January is Financial Wellness Month, which is all the more reason to exercise
discipline in order to build financial strength and become financially fit in
2009. Here are some tips to help you trim your spending and get your financial
house in tip-top shape:
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Set up a budget. Even if you don’t have a lot of debt, a budget can
still be very useful and provide direction. Make sure you have a cushion of at
least 3 to 6 months of expenses in case of a layoff, health problem, or other
personal issue.
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Take control of your wallet. If you take note of how much you’re
spending and on what, it might help reduce expenses in the long run as you
realize how much you’re spending on coffee, meals out, household items, and
other things that are easy to cut back on.
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Minimize credit card use. Credit cards may seem like a good idea at
first, but the more often they’re relied upon, the easier it is to misuse them.
Even though credit cards can be a convenient form of payment, the reality is
that they cause you to spend more because of high interest rates and the
tendency to spend money you don’t have. Using credit cards frequently when the
resources are not available to pay the charges off in a timely manner can
result in accumulating debt that’s hard to pay down. Keep only the credit cards
that are most necessary, and use them sparingly.
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Aim to live at or below your means. The majority of the population lives
above its means. Income is not an indicator of your rank on the financial
fitness scale. It boils down to how you manage your income and spending.
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Seek out a financial advisor to help you create a plan. Just like a
personal trainer can help you create a regimen to improve physical fitness and
reach your health-oriented goals, a financial advisor can help you develop a
plan that speaks to your needs and keeps you focused.
There will be times when it will be hard to stay on track, but if you can
resist temptations and focus on the benefits of financial fitness, it will be
much easier to stay on course. Keep in mind—no pain, no gain!
