Financial Fitness: Get Your Wealth on the Right Track

person sitting on couch counting money

You eat right, you exercise and take up hobbies or activities that promote a balanced lifestyle. But, what about your financial wellbeing? Your financial fitness is just as important and shouldn’t be overlooked.

Here are four easy ways that can help put you on the track towards financial success.

  1. Take inventory. Make a list and calculate all of your outstanding debt and inventory all resources and assets that you have in place. Also, look at how your budget is affecting your lifestyle – what percentage of income is dedicated toward emergencies, and what do your monthly expenses look like? A full financial inventory allows you to understand where you stand and what changes you need to make to meet long-term financial goals.
  2. Look for ways to save, and consider reallocating resources. Aim to reduce credit card debt, refinance mortgages, or reallocate money from one savings vehicle to another (if there is a higher return or less risk). Check in on your progress toward long-term goals and understand that plans are adaptable. Any life change (e.g. promotion, job relocation, marriage, etc.) warrants a check-in/review to ensure that plans are flexible to adapt to any situation.
  3. Protect your plans. After you have taken full inventory of assets, and you are in line with long-term objectives, make sure to protect these plans. Most Americans are dramatically underinsured when it comes to life insurance. Make sure that your current life insurance coverage reflects your needs. Something you put in place 10 years ago might be out of alignment with your current situation.
  4. Allocate into “buckets.” Individuals or couples should allocate funds into three buckets – an emergency reserve bucket with at least six months to one year of income in a risk-free account, a midterm money bucket, which houses savings for college funds or funds for larger purchases, and a long-range money bucket, which focuses solely on retirement.

No matter your current financial situation, furthering your financial education can go a long way in meeting short- and long-term goals. Financial fitness is the key to an overall healthy lifestyle. By making small changes now, you can set yourself up for a strong financial future.

Our content is created for educational purposes only. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Vantis Life encourages individuals to seek advice from their own investment or tax advisor or legal counsel.