Getting Fit Checklist
- Running shoes
- Sunscreen
- Snazzy shades
- Diet plan that emphasizes fresh veggies and lean meats.
You have everything you need to stay healthy this summer.
But what about your financial fitness?
The arrival of summer not only means more active time outdoors, it often also means more opportunities to spend. Will you be taking a summer vacation? Maybe you're looking to move into a new house. And don't forget those energy bills you'll need to pay to keep your house cool and comfortable. Just as you take care of your physical health in preparation for summer fun, you need to pay attention to your financial well-being as well. And just as the key to losing weight is to eat fewer calories than you burn, financial health depends on your ability to earn and save more money than you spend.
Here are three important steps to take toward financial fitness this summer:
Build a budget:
A balanced, nutritious diet is the foundation of good physical health and a balanced, smart budget is the cornerstone of financial health. If you've never had a budget before, it's time to create one. If your budgeting efforts have been sketchy in the past, it's time to buckle down.
Creating a budget is simple but detail oriented. Start by writing down on a sheet of paper every source of income you have in a month (your job, your spouse's salary, your investments, or my dad’s personal favorite eBay auctions, etc.). Next, list all your fixed expenses. These are ones that you can't skip paying, like rent or mortgage costs, insurance and so on. Then, list expenses that are flexible and could be trimmed, like entertainment, dining out, cable subscriptions, and so forth. If your total expenses exceed your income in a month, you need to put your spending on a diet.
Flex your savings skills:
Eating well and exercising daily are your investment in your future health. This helps you to stay well as you age or to help you fight off illness. You also need to build up some spending endurance, (set cash aside) in case of emergencies. Treat your monthly payment to your savings account like any other debt you can't skip!!!! Pay yourself that money before you spend it on flexible expenses or fun. (This is my favorite bill to pay, because it’s fun watching the bank account total grow and gives me a sense of accomplishment and empowered feeling!)
Give yourself a credit checkup: No financial fitness plan would be complete without a credit checkup. According to “Times,” a poor understanding of credit contributed to the real estate crash and the overall poor health of the economy. A credit checkup can help you better understand your overall financial health.
Your first step is to check your credit score and report online. Think of a credit score as an indicator of your overall financial health. A good score tells potential lenders that you know how to manage money and are likely to be a good credit risk. A lower score may be a symptom of poor financial health. Now, college students and high school seniors starting building credit now!! This is not limited to your parents. Rumors have it that some colleges and universities are going to start checking credit score before accepting any new students! Don’t let your credit stop you from having your dream job! Web sites like freecreditscore.com provide valuable credit monitoring tools to help you assess your credit health and how your financial health habits affect your credit. I know that medical errors can harm my patient’s health, and so can errors on your credit report. That's why checking your report regularly for errors or possible fraud is as important as monitoring your blood pressure if you have hypertension, checking your blood sugar if you're diabetic or watching your weight!
If you have any questions please feel free to ask me more about improving your credit score this summer. I provided a link to check your credit score below. This is free and will provide you a way to take a baseline to start with and will help you monitor your progression. Like I said in my last post, THIS INFORMATION IS FOR EVERYONE WHO HAS EVER EARNED A DOLLAR!!
Brooke
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