Five Part Checklist To Improve Your Financial Fitness

Being financially fit can be thought of as performing like an elite athlete on the playing field of your finances. It’s all about money-savvy acrobatics to keep your cash in tip-top shape.

 

Financial fitness lets you flex those savings muscles! The stronger your savings, the more you can lift your dreams into reality. Whether it’s a dream vacation or a shiny new gadget, your savings make it happen.

 

Being financially fit also means you’re in the race to win at personal finance. You’ve got the determination, discipline, and enthusiasm to take home the gold medal in money management.

 

Your financial fitness lets you 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.

 

Financial Fitness Checklist

 

Let’s review five steps to help you achieve financial fitness.

 

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.

 

If you take the time to manage financial tasks, you will start to develop 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 income and expenses will help as you create a plan to increase financial fitness.

 

2. Set Goals

 

If you are saving for an emergency fund 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 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. NE PA members can monitor their credit score and view their full credit report for free with Credit Score, available within NE PA Online/Mobile Banking.

 

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. NE PA members can set up additional savings accounts for different expenses and even rename the accounts to reflect the savings categories.

 

5. Connect with Trusted Resources

 

When it comes to financial fitness, you are not alone. Our trusted national non-profit partner, 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, non-profit 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. Contact GreenPath today.

 

Take the first step—call GreenPath at 877-337-3399. Visit our website for more information or to schedule a call.