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Are Your Finances Fit or Flabby?
We all know that staying physically active and eating healthfully can do a body good. But have you ever thought about the fitness of your finances? Your approach to money management needs regular checkups, too. You might discover that you need to trim some fat from the budget, bulk up on savings or work with a financial coach to reach your goals.
To help determine the fitness of your finances, here are 10 questions to answer. Grab a pen and paper and answer these 10 questions. Give yourself one point for each "yes" answer.
- Do you stick to a budget?
- Do you have enough money to comfortably pay your bills each month?
- Do you have a savings account?
- Do you have a retirement account?
- Do you regularly contribute to an emergency fund that would cover at least three months of expenses?
- Have you identified your short- and long-term financial goals?
- Do you know your current net worth?
- Can you locate your important financial documents, including bills, tax returns and statements?
- Do you increase the amount you save when your income increases?
- Do you avoid impulse buying and purchasing unnecessary items with your credit card?
Ready To Learn Your Score?
8-10 points: You're financially fit! Congratulations, you pass the fiscal fitness test. Keep contributing to savings and working on paying down debt.
5-7 points: You're soft around the edges. You're on the right track to financial fitness – but your training plan could use a boost. Perhaps it's time to build your savings or review your financial goals.
0-4 points: It's time for a serious workout. Focus on building the basics of financial fitness: a sound budget, appropriate savings accounts and/or a debt-repayment strategy. You might benefit from the assistance of a financial coach to get on the right track.
Remember, the road to strong and sound finances is more like a marathon than a sprint. Review your finances regularly. Seek training in areas that need improvement. You'll enjoy financial fitness for years to come.
Whether you're looking for minor suggestions or a major overhaul of your money management, meeting with a financial counselor can help. A professional at The White House Federal Credit Union may be able to help you consolidate debt or create a savings plan to meet financial goals.