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5 Tips for Financial Fitness

5 Tips for Financial Fitness


There is no doubt about it. Managing your financial fitness plays a large role in our day to day life. To manage your financial fitness is to have the ability to look after all expenses without the worry of debt or financial crisis. Financial Fitness doesn’t just include paying the bills; it also includes the ability to save and invest. So, what can you do to save money and invest it properly? Here are five tips for optimal financial fitness.

Assess your GOALS

The ability to analyze where you are at and where you want to be financially will have a positive outcome towards your overall financial fitness goals in the future. Give yourself a long-term plan, then a few short-term steps towards reaching that target. Create a progress report; you can go over monthly. Every month assess where you are at and some improvements you can make to better your financial fitness goals.

Once you have created a financial game plan, you can start to analyze your habits, both good and bad. Recognizing a need versus want is a major game-changer when it comes to personal spending habits. Do you need that sweater, or is it more of a desire? Do you need to order take out or can you cook at home? Factors such as lifestyle inflation can influence this too. When one makes more money, they tend to spend more. Look closely at your spending habits and look for areas you can reduce or cut out altogether. Subscriptions, leases, eating habits, even coffee, it can all add up fast. See more about budgets and managing spending at https://www.investopedia.com/articles/personal-finance/111813/five-rules-improve-your-financial-health.asp

Manage Your Taxes!

Set money aside for any surprises when it comes to tax season. Your employer will usually do the deducting for you each pay period. If you are self-employed, you might need to put a bit more aside to pay every quarter. Make sure you have enough set aside by the annual deadline. The deadline generally occurs mid-April each year. Make sure you know what you can and cannot deduct as an expense when managing your taxes. Costs such as phone bills, travel, and office supplies, file them as an expense during tax time. It is essential to stay on top of these expenses as they can hold you back when it comes to your financial fitness.

Make Sure Your Investments and Goals Align

Investments include staying on top of assets and making sure they are having a positive effect on your goals. It can be a simple as making sure those bills are not overlooked. Or it can be as strategic as to how you spend your time to earn your income.  Making sure your investments have a positive impact on your overall financial fitness will create a promising path. If you are working a job that has not presented you with an opportunity to excel financially, maybe it is time to talk to your employer. If you are not paying your minimum payments on your credit card monthly, that can present a negative impact. If you are driving a vehicle that eats your money away in fuel, maybe it is time to re-asses.

Check Your Credit Report Regularly!

Staying on top of your credit score is a must when it comes to financial health. Many apps and webpages will run a soft credit check to help you gain insight. Apps such as Mogo will not only run a soft credit check monthly, but it will also offer suggestions to improve your credit better. Tips such as the amount you should have available on your card, usage, ways to increase your credit score and more, can be found on apps such as Mogo. A soft credit check does not hinder your overall score. It is a great way to keep on top of your spending. Any bad habits that are creating a negative impact on your overall financial situation.

Something as simple as accepting a raised limit can benefit your financial fitness by improving your credit score. Having more than one type of credit will help your score. Having not just a card, but something like a line of credit or car loan will increase your score.

Find more tips about your credit at https://www.moneyadvicecanada.ca/blog/financial-health-check-improving-your-credit-score/

Consolidate Your Balances!

That’s why we want to offer you a special 5.9% annual interest rate on balance transfers to any Collabria* credit card¹. By taking advantage of this special rate, you’ll get to:

    1. Consolidate your balances and pay only one interest rate on balances
    2. Save on annual fees from multiple cards²
    3. Enjoy this 5.9% balance transfer rate on as many balance transfers as your credit card limit allows for the next six months from the date of transfer³