Financial fitness is the most underrated form of self-improvement

The self-improvement industry is booming in America.  With the increasing popularity of self- care culture, plethora of self-help bestsellers, and increasing emphasis on personal development, people are more focused than ever on improving the quality of their lives.

At its core, self-improvement is about nurturing all aspects of your life - physically, mentally and also, financially.

The importance of financial fitness

The ultimate goal is financial freedom, but there are many benefits to be reaped along the way.  Simply paying attention to financial fitness can help you create both long-term and short-term goals that set you up for success.

Taking care of your financial fitness is crucial for your overall well-being. According to a 2021 survey, 73% of Americans rank finances as the number one source of stress in their life. We all know that stress is a silent killer - it can directly impact your physical and mental health. Tackling your finances can be the defining step in your self-improvement journey.

Creating a financial fitness strategy

A financial fitness strategy ensures you have the money you need when you need it. Your strategy should consist of 3 parts: goals, evaluation and action steps.

Start by setting goals. Financial goals typically fall within three primary categories: saving, investing and budgeting. Perhaps you want to pay off your mortgage, or invest in that lucrative property on the East Side. Maybe you just want a certain amount of money in your bank account for financial security. However, financial fitness means different things to different people. Even if your goal is to eat at any restaurant you want to without worrying about the bill, it is valid. Remember, a goal is an idea of the future or desired result that you envision, plan and commit to achieving.

Whatever your financial goals are, they should correspond to a particular timeline. Map out the tasks you need to accomplish to reach your goal. These are mini-goals that will motivate you to work harder towards the bigger picture. It would also be good if your goals account for significant life events, such as weddings, untimely deaths, children, and retirement.

Next, evaluate your financial fitness.  Grab a piece of paper and begin to list your expenses, from the basics like groceries, housing, insurance, and transportation to your weekly retail therapy. Get specific - your Netflix subscription might only cost you $12 a month, but it is still an expense. Be sure to list any interest rates associated with each payment too.

Lastly, take note of the actionable steps that you can take to get to your goals from your current financial fitness.

• Can you increase your sources of income?
• Can your portfolio be more diversified?
• Are you spending too much on non-essentials?
• Can your kids apply for any bursaries or scholarships?

It might also be helpful to engage a professional financial advisor to assist you in this area.

Staying on top of your financial fitness game

The top three motivations for financial fitness are: getting control of daily expenses, having a comfortable retirement, and self-care or mental well-being. It can be hard to stick to your financial fitness strategy at first, but always keep your motivations in mind. Additionally, review your goals and action steps quarterly and adjust your financial fitness strategy according to the changes in your life. Good luck!

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