Financial Fitness

“Financial Fitness” gives a sense of exercise, growth and improvement. While the term ‘fitness’ is normally associated with our physical body, it can also apply in other areas of our lives – emotional fitness for instance, spiritual fitness, and in this case, financial fitness.

Each January millions of Americans embark on a journey toward self-improvement. Over 40 % of Americans make “New Year’s Resolutions” annually. Let’s join the crowd and make some New Year Financial Resolutions of our own! Using some simple practices, every one of us can improve our Financial Fitness. 

Let’s get FIT: Financial Intelligence Training.

Financial, for our purposes, is all things relating to money. This includes wages you earn, income you receive as dividends, interest or loan payments, and money you receive as profit from your investments. We’ll also include the money you spend in all categories (household living, entertainment, children, education, investments, etc.). Money comes in the form of EFT’s, bank and credit card transactions as well as cash and checks. Thanks to modern technology, many of us use online banking tools to organize our finances and pay bills; others use cash, checks or money orders. Whatever your preference, our FIT Training will fit your needs (pun intended!).

Intelligence is our ability to understand as our awareness level increases. It involves learning, planning, perception and communication. Certainly, we all have the ability to improve our intelligence in any area; it just takes training.

And training is the action of undertaking a course of exercise in preparation, and it is what these next few articles are all about.  

Starting Strong

As with any exercise program we embark upon, it's beneficial to have a goal in mind. I've learned over the years that people are almost always motivated by what pleases them (a nice outfit, a trip with friends or a new boat); very rarely are they motivated by what's best for them. If there is a way to tie the rewards together, over time we can train ourselves to be motivated by what is also best for us. For example, I have a friend who has met the man of her dreams and they're making wedding plans. Wisely, they have made a budget for their first few months of married life. Once they’ve saved enough money in their bank accounts they'll be able to set the wedding date. Motivated by her love and desire to be Mrs. Dream-man, my friend is working extra hours, eating food from home, and saving every dime. 

As a team they have successfully tied the reward of a wedding (pleasing to them) to the goal of reaching a budget through discipline (good for them). What a fantastic way to begin a lifelong journey.

So, our starting point is to determine a few financial goals. What would you like to have or to do? Goals should be attainable and specific, such as putting $1,000 in a savings or IRA account, or taking a cruise vacation. Notice both: a goal that's good for you (savings or IRA account) and a goal that's pleasing to you (vacation). Once you've identified your goal(s), we'll be ready to form a plan to attain them next time. 

FIT TIPS #1

• Start strong by setting financial goals.
• Goals should be reasonable and attainable within 6 to 12 months.
• These goals should be specific 
• Set one goal that's pleasing to you and another that is good for you.

Plan on reaching your goals – you can do it!

Cynthia Samuels Venkler has 30 years of experience as a tax and financial accountant specializing in small businesses. Your Accountant My Accountant, LLC is located in the Delwood Office Park across from Bay Point in the Grand Lagoon.