When you want to get physically fit, you start eating healthy and exercising, right? Well, when you want to get your financial health in check, the same rules apply. By working out your financial goals and leveraging the right tools, you can create a brighter financial future for yourself.
To help you, we have created a list of actions you can start taking right now. Just like with any exercise, slow and steady is the answer. Try taking a small step every day, and before you know it, you’ll be financially fit!
Create a Budget
First things first: to get your finances in shape, you should know how much money is coming in and how much is going out. Creating a budget helps you manage your income and expenses so you can start saving and investing. If that seems intimidating, don’t worry, you don’t have to do it alone. Tools like the moveUP Budgeting Tool can help you make a plan and reach your goals.
Understand Your Credit Score
Your credit score affects so many parts of your financial life. Understanding how your score works, what raises and lowers your score, and how your current score is affecting your financial health are all critical to getting financially fit. Once you understand your score, you can start taking steps to raise it.
Speaking of credit scores, one factor that contributes to lower scores is debt. Not only does debt lower your credit score, but also the more debt you accumulate, the less money you have to save. When it comes to eliminating debt, start small. A good place to start is to focus on paying off either your lowest balance or highest interest rate first.
Consider Refinancing Your Loans
Sometimes, refinancing your loans can help you save money. It isn’t always the right decision, but if you’ve recently had a rise in your credit score or positive changes to your financial health, it could be time to refinance. When you refinance, you lower your monthly payments, which means more money to use toward eliminating debt or saving.
Evaluate Your Expenses
Is it time to upgrade your car, home, or other assets? Look around and consider whether upkeep has become more expensive than a new purchase. For example, if you have a car that is paid off but constantly breaking down, it might be costing you more in upkeep than a monthly payment would be.
Look at Your Saving Options
Whether it’s as simple as starting a high-interest savings account or investing in a retirement account, take a look at your savings and consider upgrading or investing in new accounts if the timing is right. Money Markets and basic savings accounts are great for setting money aside, but Certificates of Deposit (CD) are better for long-term savings. Look at your goals and determine what account is best for you and then set up an automatic transfer and watch your money grow.
There are great options out there for rewards accounts so that every time you spend, you get something back. Those rewards can come in the form of points for every dollar spent or even cash back. Consider your options and then sign up for the rewards account that works for you.
The best way to stay financially fit is to keep learning more about finances. The more you understand about your financial options and the tools available to you, the easier it will be to stay financially fit.
Check out our moveUP Financial Wellness Program