Get Fit for Summer 2019… Financially Fit
Top 7 financial fitness principles that over time, can produce incredible results.
For many people, producing enough money to be able to continuously live the life of our choosing is often an elusive, difficult mystery. While prescriptions and financial advice are as prevalent and varied as diet plans for one’s physical health, true financial fitness seems to be as rare in today’s social media-driven culture as less than 12 percent body fat. But it doesn’t have to be that way.
The principles of being financially fit are available to everyone. Just as with diets for physical health and fitness, where fanaticism and extremism are harmful, such is the case with financial fitness. The only worthwhile advice is to acquire more knowledge of basic principles and apply those principles to your financial situation. It’s important to understand how to plan, hedge, and win, and with a basic understanding of these three areas, anyone can learn to prosper, conserve, and multiply their wealth.
Here are the top 7 tips for financial fitness in 2019:
Live within your means. Always. No exceptions. Create and follow a cash budget that you gives you (and your spouse) a small allowance for discretionary spending each month.
Get rid of debt. Now. You will not be able to build wealth if you’re overpaying in interest and fees. Contact one of our expert Certified Debt Advisors is you’re having trouble in this area.
Use the roll-down method to pay off all credit card debts and then apply it to all other debts.
Consistently budget and save for unexpected expenses like flat tires, auto repairs, home repairs, etc. 40% of Americans can't cover a $400 emergency expense, so plan ahead and expect stuff to come up.
Make financial decisions based on a long-term vision and adopt the habit of delayed gratification. Use the compounding nature of money to constructively achieve your dreams.
Create a passive income stream on your part-time hours. Start with small goals and gradually increase your passive income to the point that most of your income is passive, eventually living off your passive income.