Get Financially Fit: Simple Steps to Strengthen Your Money Habits

Just like physical health, financial fitness is essential for a strong and secure future. It’s never too late to start exercising control over your finances, building better habits, and achieving your financial goals. Whether you’re tackling debt, saving for emergencies, or planning for retirement, these steps will help you get financially fit.

Warm Up:  Organize Your Financial Life

The first step toward financial fitness is getting organized. Think of it as stretching before a workout—you’ll set the foundation for success.

Tips for Financial Organization

• Use alphabetized file folders or a digital system to keep financial documents in order.
• Invest in a shredder to securely dispose of sensitive information and avoid identity theft.
• Set aside regular “financial fitness sessions” to review and organize bills, receipts, and statements.

A streamlined system keeps your finances in check and reduces stress during “tax season sprints.”

Create Your Financial Fitness Plan:  Budgeting Basics

A well-crafted budget is like a workout plan for your money—it helps you target problem areas and build financial strength over time.

Steps to Build a Budget That Works

1. Track your income and expenses to see where your money is going.
2. Set realistic financial goals, like cutting back on dining out or saving for a vacation.
3. Use tools like budgeting apps or spreadsheets to simplify the process.
4. Regularly review and adjust your budget, just as you would tweak a workout routine.  

For more guidance, check out ABA Foundation’s budgeting tips - like a personal financial workout guide!

Burn Off Debt:  Tackle Financial Weight 

Debt can feel like carrying extra weight, slowing you down on your journey to financial health. By following a plan, you can reduce this “financial weight” and feel lighter and more secure.

Debt Reduction Workout

• Pay more than the minimum on debts whenever possible to chip away faster.
• Focus on high-interest debts first—think of them as “unhealthy fats” you need to eliminate.
• Transfer balances to credit cards with lower interest rates when it makes sense.
• Take on loans only for purchases that will grow in value, such as a home.

By staying disciplined and consistent, you can cut down debt and strengthen your financial core. Check out our loan calculators to understand how higher interest rates affect monthly payments and total interest paid. 

Focus on Your Financial Macros:  Build Your Savings for Emergencies and Beyond

No fitness plan is complete without recovery time. Saving money acts as your “financial recovery,” preparing you for the unexpected and ensuring a secure future.

Emergency Fund Essentials

• Aim to save at least three months’ worth of expenses for emergencies like medical bills or car repairs.  To learn more about the options at Rivers Edge Bank for saving, check out Checking & Savings Accounts. 
• Set up automatic transfers or direct deposits into your savings account for an easy, hands-free approach.  Setting up an automatic transfer is easy through Online & Mobile Banking, or feel free to contact your local REB location for assistance. 

Retirement Planning for the Long Run

• Save at least 10% of your income for retirement—your future self will thank you.
• Enroll in employer-sponsored retirement plans and contribute the maximum amount your employer matches to maximize benefits.
• Explore Individual Retirement Accounts (IRAs) for additional tax-deferred growth opportunities.  If you would like more information about IRA options at Rivers Edge Bank, we would love to discuss them with you. 

Saving consistently is like building endurance—it takes time, but the rewards are worth it.

Stay on Track: Monitor Your Financial Progress

Just as regular check-ins with a trainer help you stay accountable for fitness goals, reviewing your finances ensures you’re on track to meet your money goals. Schedule “financial fitness checkups” monthly or quarterly to evaluate your progress.

Start Your Financial Fitness Journey Today

Getting financially fit doesn’t happen overnight, but small, consistent steps can lead to big results. By organizing, budgeting, reducing debt, and saving, you’ll build financial strength and resilience for the future.

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Source:  American Bankers Association (ABA) Foundation, 2024