Are you ready to stretch those financial fitness muscles? It’s time to get financially fit!
Being financially fit means living a life of complete financial responsibility. The Center for Financial Services Innovation (CFSI), also known as the Financial Health Network, defines four basic components of financial health: Spend, Save, Borrow, and Plan. These components reference everyday financial activities. As such, every choice you make in terms of these four activities either builds or detracts from your financial fitness. Like physical fitness, you can beef up those fitness muscles a little bit more each day.
Being financially fit is crucial for a well-balanced, stress-free life. Here’s why (and how):
Expand your financial knowledge
A financially fit person is constantly broadening their money knowledge. They read personal finance books and blogs, attend financial education seminars, and are aware of the evolving state of the economy. This enables them to make monetary decisions from a position of knowledge and power, leaving much less up to chance or luck.
Stick to a budget
A financially fit person knows that tracking monthly expenses is key to financial health. They are careful to set aside money from their monthly income for all fixed and discretionary expenses and to stay within the budget for each spending category.
A financially fit person is committed to paying down debts and seeks to live debt-free. Constant budgeting, ongoing financial education, and planning ahead enables them to make it through the month, and through unexpected expenses, without spiraling into debt.
A financially fit person prioritizes savings. In fact, savings is a fixed item on their monthly budget instead of something that only happens if there’s money left over.
Maintain complete awareness of the state of your finances
A financially fit person knows exactly how much money they owe, the accumulated value of their assets, and the complete sum of their fixed and fluctuating expenses. This awareness takes the stress out of money management, allowing them to make better financial choices.
Maintain a healthy credit score
A financially fit person knows that excellent credit history and score is a crucial component to long-term financial health. They are careful to pay all bills on time, hold onto their credit cards for a while, and to keep their credit utilization low. This enables them to qualify for long-term loans with favorable interest rates, which saves them money for years to come.
Create concrete financial goals
A financially fit person has long-term and short-term financial goals. This enables them to keep their focus on the big picture when making everyday money choices, empowering them to actually realize their financial dreams.
Being financially fit means living a life without battling anxiety about getting through the month or stressing about the future.
Looking for more information? Noble Credit Union offers a variety of educational opportunities on their website including financial articles, interactive calculators and virtual coaches. Noble Credit Union, voted one of the best credit unions in California, offers offer members full access to a wide range of financial services, including MyRewards Visa credit card, mortgage and equity loans, new and used vehicle loans, online and mobile banking, and more. For more information about membership at Noble Credit Union, call (559) 252-5000 or visit NobleCU.com.