You would never run a marathon without building up the strength, endurance and mental stamina needed to cross the finish line. Reaching fitness goals requires training and dedication. The same is true for financial fitness. If you have financial goals, you’re much more likely to reach them if you acquire and practice the fundamentals of financial fitness.
Set a training plan with a sound budget. Creating a budget is an important step because it helps you to understand where your money comes from and how you spend it. Once you understand your finances you can make choices that help you reach your goals.
- Fitness tip: Tackle one adjustment at a time. If you’re trying to save money, begin by looking for ways to cut spending that you won’t notice like canceling unused subscriptions. Once you gain a little momentum, try setting up direct deposit from your paycheck to a savings account at Advancial.
Build strength by improving your credit score. A strong credit score is important to your overall financial health. Your credit score is a number based on your credit history. The score, tabulated by three major credit bureaus – Equifax,® Experian® and TransUnion® – is based on aspects of your financial history like paying bills on time, how much money you owe and how many credit cards you have. A good credit score gives you more power to finance major purchases such as a car or home.
- Fitness tip: You can view your credit score free of charge every year from each of the three credit bureaus. Check your credit report for discrepancies and look for ways to improve your score.
Increase endurance by paying down your debt. Sometimes borrowing money is necessary but debt, especially if it’s held on a high interest credit card, can keep you from going the distance.
- Fitness tip: One strategy to pay down debt is to transfer high-rate credit card balances to a new credit card with a lower rate and 0% interest period. With VRP from Advancial, there’s no balance transfer fee and you’ll get 0% interest for the first 12 months. After that, you’ll enjoy a low rate of 8.90% - 14.90% APR based on credit worthiness.
Improve your flexibility with an emergency savings account. An emergency account gives you the flexibility to clear unexpected financial hurdles. Experts recommend you save enough money to cover your basic living expenses for three months.
- Fitness tips: Consider this recommended amount as a guideline, but any amount of savings is better than nothing. Start building slowly and work toward a goal that you are comfortable with.
When working on your financial fitness goals, remember you have many resources to help you at Advancial. Visit advancial.org to learn more.