It’s a New Year. Get Financially Fit!
Happy New Year! Do you have a goal to become financially fit? It’s a good goal. Financial stress takes a toll on us both emotionally and physically. To succeed, be realistic about what you can and can’t accomplish this year. But, don’t start off with a “I think I can’t” attitude. Set reasonable, achievable goals and small ones at first. Success breeds success! Here are ways to a become Financially Fit.
Have a Spending and Saving Plan
Track your spending for a week. Every. Single. Thing. Analyzing even a short amount of time’s spending will give you some insight on where you can reduce spending. Next, identify and list all income and necessary expenses. Yep, it’s a budget. Most all other financial goals center on getting a handle on where your money goes and planning for your financial future. Check out Dave Ramsey’s budgeting articles. Here’s a start: Dave Ramsey’s articles.
Establish an Emergency Fund
Many experts recommend that you save anywhere from three to nine months’ salary in an easy to get to account. If that is discouraging, just start to put aside even a small amount automatically. Small additions add up to large amount. Check out our Change is Good Round-up Program. Set up savings as an automatic and routine part of your paycheck.
Avoid Complex Investments if You Don’t Understand Them
There are many products out there that can be matched to your goals whether they represent creating income, achieving tax-free growth, staying ahead of inflation or building wealth. Avoid investments with high expenses or costs. If you need some help getting a handle on investments, let us know. We have an investment broker who can help you. Set up a no-obligation appointment today.
Pay Off Debt
There aren’t a whole lot of ways to say it. Owing less money is good for your financial fitness. A strategy to effectively pay off debt is to tackle your smallest credit balance with everything you’ve got and then use that amount of freed up payment to pay off the next smallest. Continuing in this way creates a snowball of payment dollars that will steadily reduce your debt load. Here’s a good article about reducing credit card debt. How Can I Pay Off Credit Card Debt?
Check Your Credit Report
Your credit score can have a major impact on your financial fitness. You should take an active role in creating and maintaining a good credit score. We can help you with that. Contact any of our professional and friendly loan officers.