google-site-verification=Z95vgn1maPTL8fRvTbDNP8X7TAWUpSwvZHh-O8h2-Qg

{This post may contain affiliate links. That means I make a small commission at no extra cost to you. See my disclosure for details.}

Understanding all about financial fitness.

Financial fitness in simple terms means understanding and using the best saving practices and living a life free of debts.

You can be living a good life but if most of your money comes from loans, then you are not financially fit.

A financially fit person will be able to get whatever he wants, whenever he wants without a hassle.

Much like becoming physically fit, becoming financially fit requires patience and focus.

Hubby and I used to have student loans and were not financially fit, however in 5 years we have turned everything around. 

It is clear that if you want to become financially fit then you must master the art of saving, I admit we are not the best in saving money. 

I would say we are better at making money. But we have somehow found a way to save money, some months more some months less

You need to know how to use your money the right way. In this article, we are going to discuss some of the steps to financial fitness that has worked for us and maybe you should try to follow. 

Set financial goals. It is simple, you cannot achieve what you have not planned for. How do you expect to get financing to get financial fitness if you don’t have goals?

You need to at least set some general objectives, like for example where you want to be in five years to come.

After setting the general goals narrow down to specific goals, like what you need to do or how much you should save within a month or three weeks.

Set realistic goals. For example, if you are earning $1500 per month, you can decide to use $1200 that month and save the rest. Don’t plan to save too much when you know you cannot survive with x amount of income in a month, be realistic.  

Always include an emergency fund when setting your goals because you can’t possibly know what will happen in the future.

You need to understand where your money is going. You should create a budget that includes all your expenses and your income.

Account for each and everything that uses money in your house. This will help you know how much you use on food, education, transport and other activities that use money.

Without a well-written budget, you cannot know how much you can save in a specific amount of time. You might make predictions but the predictions turn out to be wrong.

You will decide that you will be saving 350 dollars per month only to find out that your family needs more than you expected.

Setting a budget will ensure that everything goes according to plan. Consider cutting your expensive take away coffee, transport budget, cut the budget on clothes basically try to minimize the money you use on your daily activities. These “satisfaction” or “desire” needs that we humans have.

I often say ” we are a slave to our desires”. That means that we humans allow us more than we need.

We all have desires that we want to fulfill,  like taking a trip, buying a new car ( when we know deep inside that we don´t need it ), buying constantly new clothes or new makeup, getting the latest iPhone or Tv…  

Don’t squeeze your budget too tight that you forget about taking care of your health.

Your health is very important and needs special treatment to make sure you stay fit for a long time.

Like myself, I have a gym membership because for me going to the gym keeps me sane. It is important for my mental health to get my alone time and train. I always used to have a cheap membership since we live here in Germany, but now I have a membership at a “fancy” gym.

I did not only choose it because it was fancy but because it offers to babysit. And that is what I really needed when I was searching for a gym since my youngest one is not enrolled in a kindergarten. My point is I worked for it. Now I can allow myself to pay more for a gym membership than before. 

Manage your debt. Sometimes we need the help of a loan to do something or to cater for emergencies. 

We had student loans. 

But loans can be very inconveniencing when it comes to saving. If it is possible, try to stay away from loans. But if you have to take a loan because of one reason or another, then make sure that you get loans with the lowest interests.

Go ahead and build a debt management strategy that will help you accelerate the payment of your loans such as student loans.

Before you start saving big make sure to allocate most of the money you plan on saving monthly on paying back the money you owe people and institutions.

Put some of your money on autopilot. You should create an account where your money can be auto-piloted.

Set the specific amount of money that you want to be withdrawn directly to this autopilot account.

Assume you don’t have that money and budget for the money that comes to your normal bank account.

This way, you will be able to save a lot of money that you can use after retirement or you can use the money to deal with serious emergency problems.

Maintain a steady lifestyle. You should not spend your money on the rate that it comes in! If you earn $150,000 per year you don’t have to spend 100k just because you have it.

Just keep your expenditure relatively constant and even if you start earning more just continue living your humble life.

Because once you start living high it is very difficult to start living again as you used to live before you had this much money or income. Trust me I have been there.

This is very important for anyone who is striving to get financial fitness.

You will be able to save money for future use and you will not have to struggle.

Invest wisely. Don’t leave all the money you are saving just idling in the account when you can do something and make it increase.

My hubby has become a master in investing our money in stocks, bitcoin etc…  That has helped us to become financially fit, besides working and starting our own company.

Set some objectives, identify the most ideal marketing strategies and invest some of your savings in a business and be sure to increase your savings.

Invest in something that you are sure can bring enough profits.

Investing can be risky but if you have the right plan and enough motivation you will find a way to invest your money.

Seek for advice. No man is an island if you want to get the financial fitness that you much need then seeking advice from professionals might be a wise thing to do.

Ask for advice from people who did this before you. Ask them how they did it. Seek advice from professionals.

I hope these steps will help you start your journey to become financially fit.

2 Comments

  1. Sheila Price

    Great advice! We are working on paying off our student loans as quickly as possible right now. We just want to be done with them!

  2. Diane

    Excellent post. Very practical financial advice that we all need to put in place. I’ve really got to get my financial fitness levels up.

Submit a Comment

Pin It on Pinterest

Share This