Financial Fitness Tips
Whatever your age or current financial situation, it is never a bad idea to actually check in on your financial situation, and do what you can to improve it, from time to time. If you want to be financially fit, you need to consider the following:
Know Your Assets and Liabilities
If you want to understand your financial situation you need to be aware of your assets and liabilities. Assets include things like cash, stocks, retirement funds and real estate – anything that is worth something really – and liabilities include debts like mortgages, credit card debt and student loans. Once you know all of your assets and liabilities, you can calculate your net worth by subtracting the latter from the former. This will tell you how well (or not) you’re doing, which is why it’s worth performing an assessment once a year.
Check Your Credit Score
Your credit score is important not only because it tells you how well you’re doing in terms of managing your money, but because it will determine your future access to loans, mortgages and other important forms of credit. If, when you check your credit score, you find that it is on the low side, take the time to look into the most recommended credit repair companies, and get in contact with a company who can help you improve your score, and thus your future financial prospects.
Set Financial Goals
When you want to get physically fit, it always helps to have a goal in mind, where it is increasing your muscle mass by 5 percent or losing 20 pounds in 3 months. The same is true of financial fitness. To get where you want to be, you need to set very firm goals and map out a path to get you there. Your goals should be reevaluated every six months, so you can see how you’re getting on and take steps to improve your prospects should you need to.
Take Care of Your Taxes
No one likes paying their taxes, but it is an essential part of life in this country. If you want to avoid harsh penalties, it is vital that you keep an eye on your earnings and ensure that you are always putting enough aside to cover the cost of your tax bill when April comes around. You’ll feel better if you are proactive on this throughout the year, rather than having to scramble for every last cent when the time comes to pay.
Monitor Your Investments
If you have any investments, whether they be on the stock market, real estate or in a simple savings account, it pays to check on them quarterly, so that you can see how well they’re doing, and move your money to a more suitable place, should you not be seeing the returns you would like. If you don’t check on your investments, there’s a good chance that you could get a rude shock down the line when you find that your nest egg isn’t worth as much as you thought it would be!
Basically, if you want to ensure your financial fitness now and in the future, you need to show an interest and take an active involvement in managing your money at every turn. Do this, and you’ll always be on top of your money issues.
