3 Ways to get your Personal Finance Summer Body
By Naciki Reid
With summer fast approaching, many of us are trying to lose a few unwanted pounds that we gained over the winter. So what do we do in order to lose weight? We sign up for a gym membership, we create a workout routine, create a weight lost goal, and execute it so that we look good in our sundresses and rompers. My question to you is, how is it that we do not use the same drive to get our finances in order, like we do our bodies. I understand we would like to impress ourselves and others by getting fit but the same can be true for our finances as well. Lets look at 5 ways to lose financial weigh and tone up your money.
1) Financial Assessment:
The first thing we do when we want to lose weight and tone up is stand in front the mirror and take a self assessment of our body. We target areas in which we would like to lose weight and areas in which we would like to tone up. We stand on a scale so that we have a starting point to track our progress. After that we take some before pictures, so when we hit our goals, we can show the world where we came from.
Lets take the same assessment on our finances. Set aside some time to go over all of your bills, all of your debt, and all your assets. You want to know what your net worth is (Assets – Liabilities). By doing a financial self assessment, you are able to figure out what you need to do in order to tone up. While going over the bills, you want to see which ones you can live without to reduce your monthly expenses. Set up a plan of action to pay unwanted debt off to free up more money. Finally, keep track of all the assets you have. You may be able to sell some to get in better financial shape.
2) Create a Budget:
The next thing we do when we’re trying to lose weight and tone up is we create a routine. In this routine we focus on all the points our initial assessment showed us. We then take action by either running, riding a bike, and/or going to the gym. We do this all to achieve our weight lost goals.
Creating a budget is one of the most important things we can do for our finances. It allows us to see exactly what our money is doing monthly. We can figure things like; what do we spend the majority of our money on, how much in the hole are we, which area’s can we cut back on, would getting an extra job for a short period of time help, how to appropriately allocate our money, and how to save.
3) Losing Expenses:
How do we know that our weight lost plan is working? We will start seeing results. When we look in the mirror we see results. When we put on our clothes we see results. Finally, our friends and loved ones start seeing our results.
Here are some area’s that you can think about cutting back on:
Cable: Ask yourself, do you watch enough cable to warrant what you pay? Could you cut the cable off and keep the wifi so you’re able to watch internet t.v?
Restaurants: How much money are you spending on food and drinks monthly? You’d be surprise at how much you spend in this category. Try cutting back and see how much money you could put towards other items in your budget.
Going out: I understand that we all like to stay current in the social scene but we may want to limit this in order to keep more money in our pockets.
Use of Coupons: When you’re out shopping for clothes and groceries, look for sites that have coupons and shop when sales are prevalent.
Insurance: Take a look at your coverage and look for brokers that will shop around for better deals for you.
The best thing for you to do is create a budget and see areas in which you can cut back on. You will be surprised at how much of a savings you can generate monthly. Stay tuned to more future financial tips.