Five Tips for Financial Fitness

Emily Gracewell
Emily Gracewell

Tips for Achieving Financial Well-being

As summer comes to an end and the holiday season draws near, thoughts of achieving a perfect beach body take a backseat to the pursuit of financial stability. Just as individuals commit to health and fitness plans for their physical well-being, it’s essential to give your financial health the attention it deserves. Much like our bodies, our wallets can benefit from some trimming around the edges. Let’s dive into the details.

While maintaining a healthy lifestyle is relatively straightforward – eat your vegetables, limit sugar intake, and exercise moderately – understanding what constitutes financial health can be more complex.

Below, you’ll find guidance to kickstart your journey toward financial well-being this autumn.

  1. Evaluate and Realign Your Goals

Many individuals struggle to adhere to a financial plan, often due to a fundamental reason: their financial objectives are disconnected from their core values. The foundation of a successful financial wellness plan lies in assessing both short-term and long-term goals, and ensuring they align harmoniously with your values.

Whether your aspirations involve globe-trotting adventures or ensuring a debt-free college education for your children, evaluating your current spending and saving patterns in relation to your values can unveil any potential inconsistencies. 

  1. Establish Regular Checkpoints

Maintaining regular oversight of your financial accounts is akin to practicing good health habits. This practice allows you to track progress and identify areas needing adjustment. Quarterly check-ins offer an optimal rhythm for reviewing your risk tolerance and savings targets.

If reviewing your quarterly statements induces discomfort, consider it a clear signal for change. Address any imbalances, perhaps by rebalancing your budget, or consult a financial advisor to ascertain the appropriateness of your allocations considering your time horizon and objectives.

Five Tips for Financial Fitness

  1. Embrace Incremental Progress

Financial planning parallels preparing for a marathon – you wouldn’t attempt to run 26.2 miles on your first training day. Likewise, expecting exponential balance growth year after year is unrealistic.

A more balanced approach involves setting achievable short-term objectives, guiding you through the financial marathon. If you struggle with defining reasonable short-term goals, consider starting by increasing your annual 401(k) contributions by one percentage point. Conventional wisdom suggests saving around 10-15 percent of annual income for retirement, but individual circumstances vary. Your goals and needs should dictate adjustments.

  1. Celebrate Milestones

If you’ve been diligent in managing retirement savings, meeting monthly bills, and reaching other financial milestones, take a moment to congratulate yourself. It’s essential to enjoy the fruits of your labor, but exercise caution in distinguishing between wants and needs. Align your spending with your values and objectives, just as you do with your savings.

  1. Cultivate Discipline

Discipline forms the bedrock of financial fitness, although it can also prove the most challenging aspect. Enlisting the help of a financial advisor offers a potential solution. They provide accountability and expertise, guiding you through options and strategies that maximize your hard-earned savings.

In summary, achieving financial well-being requires thoughtful alignment of goals and values, consistent monitoring, incremental progress, and disciplined adherence to your plan. By approaching your financial fitness journey with determination and the right resources, you’ll be better equipped to secure your financial future.

The recommendations contained in this article are designed for informational purposes only.  Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.

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