Benefits of Being Financially Fit

Is financial fitness on your list of priorities this year? If not, you should consider it. Just like physical health, your financial wellness plays a big role in your overall well-being. Managing your finances can help you achieve balance, freedom and peace of mind.  

Below are a few benefits of being financially fit, as well as steps you can take today to improve your financial fitness. 

Why financial fitness is beneficial for everyone 

Increased freedom 

Financial fitness can help you make the most with what you have and open the door to greater opportunities. Not only does it provide the flexibility to be creative with your investments but it also offers greater freedom and security as you plan for retirement. It can empower you to support causes that matter to you and even provide for loved ones in meaningful ways. Additionally, you can make more financial choices that align with your personal values and goals – whether it’s traveling, changing careers or pursuing lifelong passions.  

Preparedness for emergencies 

Financial fitness can give you the confidence and stability to handle unexpected expenses without going into debt. You’ll have the resources and ability to cover unexpected costs and navigate the unknown with less stress. 

Reduced stress 

Being financially fit can significantly reduce the daily stressors that often weigh on individuals and bleed into their work and relationships. By reducing stress, you can create peace of mind and stability that benefits you and those around you. 

Steps to take to improve your financial fitness 

• Create an annual budget and find areas to cut overspending. 

• Prioritize regular maintenance on your home and vehicles along with preventative healthcare to reduce potential future costs. 

• Start building an emergency fund to save for unexpected costs and understand when it’s appropriate to spend it. 

• Review your retirement plans with a financial professional or advisor to find out if you’re on track to meet your goals. If you’re not on track, discuss steps you can take to do so. 

• Consider ways to earn extra income, such as a weekend job or turning a hobby into a small business. 

• If you’re able, consider investing any discretionary funds.  

• Maintain a strong credit score by making regular payments, only taking on debt you can afford, and keeping your balances low. 

• Reduce your debt, especially high-interest debt.  

No matter where you are on your financial fitness journey, taking small steps today can help ensure greater financial freedom and security tomorrow.