At the start of every year, a physical fitness craze sweeps across America. But, you should also consider financial fitness when deciding on your resolutions. Whether it is saving more money, paying off debts, or sticking to a budget, you should take your financial fitness serious. Financial strategies differ on a case by case basis, but we are here to provide the basic first steps for your journey towards financial fitness.
Step 1: Understand why you want to be “financially fit”
Your “why” is unique to you and will be different from your brother, best friend, or co-worker. Whether it’s to save your marriage, live well after retirement, send your kids to college, or finally have financial freedom, make sure you know what motivates you—not anyone else.
Step 2. Establish your “financial workout routine”
Just as most people usually have a physical fitness routine, you must have a financial workout routine. Evaluating your spending habits, keeping tabs on your credit score every month, and lowering unnecessary debt will help whip you into financial shape.
Many people skip these essential steps, but just as you wouldn’t run a marathon without proper training, you can’t expect to get financially fit without covering the basics.