When we talk about fitness, we’re usually thinking about our bodies—physical fitness. Financial fitness though, isn’t that different from physical fitness. Instead of strengthening our muscles and developing a healthier physical lifestyle, financial fitness is about strengthening our money habits for a stronger financial future. We’ve also learned over the years to think about our physical fitness as an overall lifestyle. We don’t get the results we want by showing up in the gym for a few weeks, or going on a crash diet. True fitness, both physical and financial is a lifestyle that is built from the right habits. With that in mind, here are three key habits to help you build financial fitness.
Begin with Why
Set your financials goals by starting with why the goals matter to you. What does it really mean to you, and what is the real benefit of sticking to your fitness plan? Build the urgency and make it as real as you can. Pictures, and other ways to visualize what you want in the short term and long term will help inspire and motivate you to stick to your plan.
Clearly define your As Is
Once you know what you want and why, you must create a very clear picture of where you are right now. Not just generally, but in great detail. What do you spend each month, how much is in savings, loan balances, etc. Create your budget and track your spending as you go along with the help of an app so you can keep up with your spending. Using an app helps you with all of the monthly expenses that we don’t even think about. For example, the subscriptions that we sign up for then forget to cancel when we no longer need them. Apps are also great for showing us which categories we are spending most of our money in. The results just may surprise you, and it’s the first step to helping you know where to make changes to your spending habits to remain on target with your budgets and your overall goals.
Strength in numbers
We all know that even with our compelling reasons to become financially fit as motivation and clear ways to track our spending, at times our willpower will get the best of us, especially when we are socializing with friends and coworkers. One way to build accountability is to start a fitness circle with other like-minded people who are also trying to build better financial habits. You can keep each other on track and celebrate every success together.
