Financial Fitness for 2014

A common New Years Resolution is to lose weight and get fit, what about your financial fitness?

What daily habits are you willing to change to get fit with your finances. Just like physical fitness, small changes give you large results.

Follow these steps to start on your journey to financial fitness for 2014:

1. Know your starting Financial Fitness level

When you start a fitness program, you often have to do a fitness test to see where you are starting at so that you can get fit safely and at the level that best meets your personal goals. The same goes for your financial fitness. This step includes the following:
     - Check your Credit Report and Score (I personally use www.CreditKarma.com)
     - Write down all sources of income
     - Write down all expenses (include due dates and payment amounts)

By doing this, you will better understand where you are financially and know where you are starting therefore revealing what you need to do to increase your financial fitness.

2. Create a Budget

A budget is a plan for your money. Those who are serious about being physically fit, create a regimen. It is no different to get financially fit, your budget is your workout and meal plan for your money. There are many smartphone apps that help you to make a budget. You can also refer back to my previous blog "The ʻBʻ Word-Budget" for detailed information about creating a budget.

3. Set Financial Goals

When trying to get physically fit, you often set a goal of a certain amount of weight to lose or specific percentage of muscle to gain. Set financial goals that are just as specific. Remember that each persons financial situation is different, no two are exactly alike. Create your Financial Goals for 2014 and remember to reflect on your goals often and measure where you are at on achieving them. If your goals need revision throughout the year, change them. Things always change, so don't think your goals are set in stone. Set yourself up for success, however challenge yourself at the same time.

Take the month of January to complete these steps. This will lay the foundation for your finances for the rest of the year. Feel free to share your successes and challenges along the way.