Ira can easily tell how many calories she burned and also her current heart rate with a clever little device just at the push of a button. She loves her fitness tracker as it makes her aware of her physical fitness. This leads to the question, “How many of you are aware of your financial fitness?” It can be a daunting task when you don’t know where to begin. To simplify, just think of the questions you would ask your financial fitness tracker.
Here are the questions you could start with:
Are you following your budget?”
A fitness tracker can tell you how many steps you have taken in a day. In that way, you know your goal and you will work hard to reach the number of steps you have decided to walk more. You must check that you have completed your budget by taking necessary and then comes the part where you hold yourself accountable for what you are actually spending. Do a regular check-in to compare expenses vs. the goals outlined in your budget.
“What are the goals you have set for yourself?
As you know, your step count and how many calories you have burned according to your tracker. As soon as you’ve started tracking your budget, you can see its effect on your financial goals. It will answer the question; “Are you working towards meeting them?” becomes much easier.
You can take your time to think about your future goals and also the corpus you need to achieve them. You surely want to be financially independent and you can start with small steps to achieve them. When you earn a bonus or an increment, increase your percentage of savings too.
“How do I feel about the investments related to my goals?”
When you complete your workout you can easily analyze your heart rate over that time. Your heart rate goes up and down during your workout. In the same way, when investing for your financial goals in the market, you should expect movements in your investment values. But over the long term, you can expect positive trends for your investment outcomes. Do you feel comfortable with your goals through the ups and downs that occur in the financial markets? A lot of goals are tied to timing and your life stage. Be sure to re-evaluate your risk tolerance as changes happen in your family, your income or your goals. You should be prepared to acknowledge that the markets are not within your control, but investing in the markets and rebalancing your investments will help you keep a track.
Staying financially alert is an easy step to keeping a tab on your financial fitness. The peace of mind that comes with being in good financial health is just as important as the peace of mind that comes with keeping up with your physical health!