Improving Your Financial Fitness

How to improve your financial fitness

Your financial fitness helps effectively manage your financial resources, make informed financial decisions, and maintain a stable and healthy financial state. It involves practices such as budgeting, saving, investing, and managing debt to achieve financial goals and withstand unexpected financial challenges.

To guide those looking to achieve financial goals, this five-part checklist conveniently lists some steps for success.

1. Track monthly spending

Staying financially fit begins with ensuring you earn more than you spend, so that you have enough money to build savings for the future. Keeping an eye on your spending is an important step in the effort to create a budget that builds. Once you develop a household budget and track income and spending, it becomes clear where the money is going and where you need to adjust your spending to achieve your financial goals.

Taking the time to manage financial tasks helps you develop and improve your financial fitness. This includes making sure that your bills are paid, that you have saved money for emergencies and that your financial strategy for the future is on track.

With this helpful online worksheet, getting a current snapshot of monthly money will help as you create a plan to increase financial fitness.

2. Set goals

If you are saving for an emergency home purchase or paying off high-interest debt, a simple plan will help you meet your goals. As an example, by managing debt, you ensure that your financial well-being does not suffer.

It is not uncommon for people with credit card debt to only pay the interest on the amount borrowed, instead of planning to eliminate the debt altogether. When considering your overall financial picture, consider a deb management plan.

3. Know your credit history

Another tip from the financial fitness checklist is to pull all three of your credit reports each year. It is easier than you might think.

Checking your credit history can reveal any inaccuracies or issues you might want to resolve. If you find inaccuracies or errors in your credit report, you can dispute them with the credit reporting agencies. Addressing these issues promptly can help improve your credit profile and prevent potential obstacles in the future. Each person’s situation is unique when it comes to credit history and score, a key part of financial well-being.

4. Build a savings habit

Setting and sticking to a realistic savings plan is another key component of financial fitness. You can automate savings directly from your employer or put into place other tricks to make it a seamless savings process. No matter the amount, setting aside a budget-friendly amount each month for savings builds fitness and financial health.

5. Connect with trusted resources

When it comes to financial fitness, you are not alone. Your Credit Union is here to support you along the way and guide you toward partners you can trust. For example, GreenPath offers the expertise of caring, NFCC-certified financial counselors who are trained to understand your unique financial situation and provide personalized solutions. GreenPath’s caring counselors can help you create a comprehensive plan to manage your debts effectively. In addition, nonprofit credit counseling agencies such as GreenPath offer educational resources, online webinars, and tools to help you understand the fundamentals of personal finance. This empowers you to make better financial decisions in the future.

Take small steps

In the end, financial fitness isn’t about having tons of money; it’s about managing the money you have wisely. It’s a journey, not a destination. So, take small steps, make good financial habits, and watch how it transforms your life for the better.