Financial Fitness for the New Year

Just as January often heralds a rush to the gym for many, it’s also an ideal time to flex your financial muscles. Improving your financial health is akin to embarking on a physical fitness journey. Both require dedication, a clear understanding of your current state, and a commitment to developing healthier habits.

Before you can improve your fitness, you need a baseline - a financial health check. Financially, this means taking a detailed inventory of your income and expenses. It’s like stepping on a scale or measuring your body fat percentage; it provides a clear, if sometimes uncomfortable, picture of where you stand. This will show you how much money is coming in and where it is being spent? This step is about confronting the reality of your financial health. Not sure about your expenses, there is a paper trail, and you just need to follow it. Check your bank statements and credit card statements as to what you spent money on. If you are paying cash, then keep the receipt. Just total it up and you will see quickly all the places you have been financially snacking.

In fitness, you might adjust your diet to achieve your health goals. Similarly, in finance, adjusting your spending habits is crucial. Having a well-balanced budget is like a healthy diet. This doesn’t mean starving yourself of all enjoyment, but rather consuming wisely. Just as you balance carbs, proteins, and fats, balance your essential expenses, savings, and discretionary spending. It might require trimming the fat off unnecessary expenses, much like cutting down on junk food.

Shedding the excess debt to be financial fit. High-interest debt, such as credit card balances and auto loans, is the financial equivalent of carrying unwanted pounds. It’s a burden that slows your progress. Paying off this debt is like losing excess weight; it may be challenging, but it’s liberating and enhances your financial agility. Pick a place to start to eliminate a debt payment. No matter how small just take the first step.

Building your money muscles with consistency. Once you’ve shed the burden of debt, it’s time to build strength. In personal finance, this means starting to save and invest. Just as regular exercise strengthens your body, regular saving strengthens your financial future. The amount you start with is less important than the consistency, it’s the financial equivalent of a steady workout routine. Over time, your investments will compound, building your financial resilience.

Finally, consider consulting a financial advisor as you would a personal trainer. They can provide a customized plan, tailored to your unique financial goals and circumstances. They can guide you on investment strategies, retirement planning, and more, ensuring your financial regimen is well-rounded and effective.

Improving your financial health is a journey, much like achieving physical fitness. It requires understanding your starting point, making deliberate changes, shedding unnecessary burdens, consistently building strength, and perhaps seeking expert advice for optimal results. Here’s to a financially healthier you in 2024!

RICH FLANERY IS A CERTIFIED MORTGAGE PLANNING SPECIALIST AND AN INVESTMENT ADVISER REPRESENTATIVE. BRANCH LOCATION 600 S. SAINT VRAIN AVE #4, ESTES PARK, CO 80517. WWW.PEAKCAPITALMORTGAGE.COM PEAK CAPITAL MORTGAGE, LLC, 1045767 & 2347925, RICH FLANERY, 256117, PEAK CAPITAL MORTGAGE, LLC, CO-2347925, PEAK CAPITAL MORTGAGE, LLC, (970) 577-9200, CO-256117, WY-256117, WY-2347925 PEAK CAPITAL MORTGAGE, LLC, 970-577-9200, FL-2347925 FL-256117 SUBJECT TO BORROWER APPROVAL