By Taylor Schulte | Financial News
Flexing your financial muscles for a healthier life
A recent TD Bank Fiscal Fit survey found seven out of 10 Americans felt a strong correlation between sound financial health and their well-being. In fact, responders believe that a healthy financial life can have a positive impact on overall health.
As many continue to focus on their 2015 health and fitness efforts, I’ve noticed a number of people delay pursuing their financial goals. Some aren’t sure where to begin, while others feel overwhelmed about the perceived time and effort.
The sooner you start investing in your financial future, however, the more time you have to build a healthy life and enjoy the fruits of your labor.
As San Diegans, we live in a health-conscious, physically-fit community. In fact, just last year, an Anthem Blue Cross Foundation and the American College of Sports Medicine survey ranked San Diego at No. 8 for residents’ fitness.
With the strong relationship between well-being and financial health, and our community further encouraging physical fitness, it only makes sense that we should all be working hard on our financial fitness.
Below are some tips for building a healthy financial life:
Identify goals and create a plan. Similar to outlining your fitness goals, such as improving flexibility, strength training or lowering body fat, it’s important to write down your financial goals. The specifics may change over the years, as you raise a family or embark on a new career, but the overarching goal and your commitment should remain fairly consistent.
So, consider the end-game. Are you looking to accumulate wealth? Plan for retirement or a child’s college education? Then, create a plan to get there.
Start out slow. Most fitness trainers advise against an all-out body-straining routine on day one. Instead, a slow ramp up process is recommended to avoid injuries that can further hinder your fitness goals. The same applies to financial planning. For instance, start your savings out slowly — you don’t need to immediately put half of your paycheck into savings. While that’s an ambitious goal, you can start with allocating $10 – $20 per paycheck and raise the amount as more comfortable.
Commit to financial health. In fitness, mental preparation is key. In addition to creating a plan and getting started, athletes practice mental skills to get to the next level and beyond. In building your financial health, it’s also important to be confident, driven and focused.
Streamline the journey and have fun. It’s easy to skip the same boring workout, especially when it’s in an inconvenient location, or you are feeling tired or not sure if your efforts are paying off. In San Diego, many have turned to boot camps, CrossFit or stand-up-paddle boarding to break the routine. Others work out with friends or have invested in a personal trainer to keep themselves accountable and have the best experience.
Run a progress report. Speaking of progress, it’s a common fitness practice to check in on your development. Some people record times, repetitions or weights; others do a monthly workout fitness text. When it comes to checking on your finances, the important thing is to check in and make sure your plan is on track, and you’re making strides in the right direction. You can do this weekly, monthly or even bi-annually. Having a financial roundtable is especially important when you share financial responsibility with others, such as a spouse. The report is a great time to see your overall financial picture and ensure you are both on the same page.
Most people focus on fitness to live a longer and healthier life. And the longer we live, the more important finances become — particularly when it comes to saving and retirement planning. So, as you continue to ramp up our fitness efforts this year, consider making strides on your financial plan.
Starting is half the battle, so create a plan, start slow and before you know it, you’ll build a financially healthy life, which can have a positive effect on your overall health and well-being.
—Taylor Schulte, CFP® is the founder of Define Financial in Downtown San Diego. Schulte specializes in providing independent, objective, financial advice to individuals, families and businesses. He can be reached at 619-577-4002 or [email protected].
