I’ve never been really good with money. I’ve only gotten my first job about two years ago, and my relationship with money has been a rocky road ever since. It’s either “I can’t spend anything I need to save up” or “Let’s spend a lot of money!” So this year, I want to take matter into my own hands and finally start acting like a grown up.
What is financial fitness?
Financial fitness is the same as regular fitness. Is your body healthy? Well, it’s the same with your bank account. Do you have any debts? Is more money coming out of your wallet than is going in? Those are a few things that you need to consider before declaring yourself financially fit.
I personally need to work on a few things before I can say that I have a healthy bank account. So here’s my financial fitness plan for 2016!
START A BUDGET
You know how basically everyone is telling you how important having a budget is? Well, I finally figured that out and have been thinking about making a monthly and yearly budget for a few months now. I’ve been logging all of my income and expenses into an Excel file for the last few months and I have a pretty good idea of my spending habits. I think I’m ready to take things to the next level and start managing my money more carefully!
START WORKING ON MY CREDIT
I have a credit card. I’ve had one ever since I got a bank account. But it’s been basically sitting in my wallet. The only time I ever use it is when I need to purchase something online (and that doesn’t happen too often). So, I’m not saying I need to start getting crazy, but I should probably use my credit card more often so I can start building my credit.
Your credit is kind of like your reputation as a money borrower. It indicates how likely you are to pay that money back, and how fast you can do it. It tells whether you are a reliable person or not. Credit can become important when it’s time to get a credit card, an auto loan, or when you’re ready to move in into your own house or apartment. It can even influence employment! Credit Card Insider is a great tool to use to get credit card deals for students, but is also a mine of information on how it all works, if you have any questions!
PAY OFF MY DEBTS
Let’s make things clear: I am in no way indebted to the neck. I mean, I can breathe, my bank account is not all red. But I do have a few things debts that I need to pay off. For example, my room has received quite a makeover in the last fews months, and my dad has paid for everything – with the promise that I would pay him back for every cent. But now I owe him quite a lot of money. I have started repaying it, but I would feel a lot better if I could take this burden off my shoulders!
You know how I said that I was either saving up my pay checks or spending it all? Well, I’m usually more of the save up kind. Not that it’s a bad thing to put money aside, but I need to start rewarding myself for all of my hard work. I earned my money through sweat and blood (kidding) so I need to learn how to treat myself every once in a while! I’m actually going to dedicate part of my budget to that, so I can go out with my friends every once in a while or buy a book without feeling guilty.
What is your financial fitness plan for 2016?