Financially Fit in 5 Simple Steps

July 25, 2017      |      Posted on Posted in Total Well-Being
Financially Fit in 5 Simple Steps

With tax season in full effect, it’s the perfect time to get personal finances in order. These five simple steps will help start the process of building long-term financial wellness, security, and success.

Follow the money trail

Swiping a card, buying online, and simply feeling too busy to track spending can lead to a lack of financial awareness and added financial stress. The first step to managing finances is having a clear picture of income versus expenses. Whether using pen and paper, Mint.com or the bank’s mobile app, make it a priority to track spending, assess money leaks, and build and manage a realistic budget.

Set S.M.A.R.T financial goals

When developing a financial goal, make it specific, measurable, attainable, realistic, and timely. Instead of, “I absolutely must obliterate all debt this year even if I subsist on ramen noodles,” try, “I will pay off my $3,000 credit card bill in 18 months with monthly payments and no additional charges.” It also helps to break down goals based on dates and priority to understand action steps and outcomes for each week, each month, or each year.

Trim non-essential expenses

To reduce spending, spot the easy cuts first. Brian Alexander, founder and managing partner of Alexander and Associates, suggests identifying what services or products are either not necessary or not being used. “Subscribing to channels that aren’t being watched? Paying for a gym membership that’s not being used? Recurring costs like these can eat up a budget over the course of a year and derail big picture financial goals,” he says.

Expect the unexpected

Whether it is appendicitis, surprise weekend guests, or a clogged toilet, life happens. Unexpected expenses will always be an issue, but an emergency fund helps prevent those additional costs from destroying a budget, depleting long-term savings, or causing a complete financial breakdown. Review how much those surprise costs average each year and account for that amount in future budgeting.

Create a cookie jar

While being on top of a budget, having an emergency fund and planning for the future are all important, make sure to leave a little wiggle room for fun. Maybe it is setting aside $15 a week for a family fun fund, or sending mom some surprise flowers. Part of building financial wellness is establishing a healthy relationship with money and using it to facilitate a life that brings the most joy.

ACI Specialty Benefits provides a contemporary and confidential Employee Assistance Program (EAP) including financial wellness benefits that alleviate stress and help employees and families thrive. Contact 800.932.0034 or eapinfo@acispecialtybenefits.com to get started!

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