Be Financially Fit
To be financially fit, shift your money mindset and set goals for yourself and your family. Manage and prioritize your spending and create sustainable habits to last your lifetime and pass those along to future generations.
The basic components of financial fitness
- Spend – to spend wisely, you should have a budget. A budget can help you improve your spending habits.
- Save – life can make saving difficult at times. In general, try to aim to save a minimum of 10% of your monthly income. If that is not feasible with where you’re at in life right now, save what you can.
- Borrow – try to keep your debt less than 15% of your income (excluding mortgage). If you’ve got credit card debt, pay it down as soon as you can.
- Plan – Ask yourself where you see yourself financially in five years and where you’d like to be? Planning helps you create a healthy financial future.
To improve your financial fitness, play your bills on time and in full if you can. Set realistic payment amounts and timeframes for paying off debt. Save for the unexpected and for your long-term goals. Be sure to allocate a portion of your monthly budget to fun and entertainment – it’ll help you stay on track!
To be financially fit, balance your income and expenses, stay out of debt, save for the future, and understand your emotions as they pertain to money. We always seem to make New Year’s resolutions about our health and fitness. This coming year, make financial health a priority as well.
We can help you stay financially fit. Contact us at APAdvisors.com or at 866.515.2742.
Related articles
A recent survey by Charles Schwab, which studied current attitudes toward wealth, found that the amount of money someone has ranks way down the list of attributes that make people feel wealthy.1 ...
You know when you have one of those days where you don’t want to cook, so you pick up take out on the way home and maybe do a little online shopping after dinner to lighten your mood? This sort of...
When it comes to building wealth, few concepts are as powerful—and misunderstood—as compound interest. Often called the “eighth wonder of the world,” compound interest is the process of earning...