7 Ways to Achieve Financial Fitness in 2013


If you are not happy with your current financial situation, make 2013 the year of financial fitness. Organizing finances and being financially responsible can have short-term, but long-term benefits. When you spend your money wisely, you have larger bank account. Check out some best ways to achieve financial fitness in 2013.

1. Pay off debt

Are you tired of being a slave to your credit card debt? If you pay the minimum on your credit card, it can take from 15 to 20 years to pay down the debt, depending on the balance. There’s a great way to get rid of your debt. Each month drop a lump sum on your credit card and pay off the balance sooner.

2. Establish a budget

If you feel that your budget restrict your spending, and you are constantly broke and don’t have money for essential things, lack of a budget can be a huge problem. A budget tells you how you spend your money, and writing your expenditures on paper help you make adjustments and gradually increase your savings.

3. Pay monthly bills on time

When you are habitually late on paying your bills, it can lower your credit score and ruin your relationship with your creditors. Moreover, late payment can cause higher finance fees in the future. You must show that you are responsible and that you respect due dates. Pay on your payment date, or several days earlier.

4. Plan for retirement

It’s never too early to start thinking about retirement. There are plenty of ways to achieve your long-term financial goals. You can contribute a percentage of your salary to your 401(k). You can also open an individual retirement account. Don’t wait until your 40s to get started. The earlier you start saving for retirement, the more you will have later in your life.

5. Make your personal savings

Besides saving for your retirement, work out a strategy to increase your personal savings. You will always have some cash for such emergencies as a medical expense or a car repair. How can you build a bigger savings account? Just deposit a percentage of your salary into your personal savings account.

6. Increase your income

Does your current income make it hard to save money or pay off debt? You shouldn’t accept low pay, and you can’t also demand a higher salary from your boss, but you can take some steps to expand your income. For instance, you might turn your hobby into a side business, or enroll in courses to get additional experience in your field.

7. Reduce your expenses

Occasionally, check out how you are spending your money. Your budget might allow for extras, such as vacations, hair appointments, or dining out a few times a week. But if you can afford such expenses, it doesn’t mean that you should spend your money on these things. Make saving a priority. Stop buying needless things, and consider other ways to reduce your expenses.

If you are not financially responsible, it will be harder to achieve financial fitness in 2013. But don’t give up! With these simple steps you can make 2013 the year of financial fitness. Do you know some other ways to achieve financial fitness? Share your thoughts, please!