Did you make the decision to focus on your financial fitness in 2016? That’s a great way to improve your overall wellbeing by reducing a major cause of stress, according to experts. Like with many New Year’s Resolutions, focusing on finances can be a hard resolution to keep. Here are some quick tips to get you started.
Just like with the dieter’s mantra “calories in, calories out,” financial fitness is about “money in, money out.” The best way to kick start a financially fit lifestyle is by calculating exactly what your income is and what your expenses are. This step alone can help you identify areas for improvement.
If your first step showed a lot of your income is going toward debt payments, consider ways to pay down debt faster. Consolidating or refinancing debts to lower interest rates can help boost a debt repayment resolution. Increasing your monthly payments is also a good idea, but you may not have room in your budget for that. Consider ways to increase your income and put that money toward your debt.
Plan for retirement, even if it’s 40 years away. If your company offers a match on your retirement savings, make sure you’re taking advantage. Increase your contributions each year, especially if you’re consistently seeing pay raises. Most importantly, make sure you’re on track. Set an appointment with a Centra Financial Services advisor to discuss your goals and see if you’re on track to meet them. If you’re not on track now, discuss ways you can change your spending and saving to get there.