Are you financially fit?

Are you financially fit?

We all have different goals. Some might aim to buy a bike in the next six months, others might consider buying a car next year. You could want to save a couple of lakhs by Diwali or you could be someone who wants to book their first flat in the same period. Some goals, though, are common to us all; goals such as being physically fit.

What is interesting here is that, all these varying goals are linked to one goal – Financial Fitness. Being financially fit doesn’t imply that you need to be wealthy in order to fulfil basic needs as well as start investing.

What it does imply is that you need to tread on a well chartered path and plan the usage of money at hand in a way that it helps you achieve wants, and desires as well.

This process of wealth creation is, in fact, completely within your reach and begins with the power of saving early backed by the power of saving in a systematic way.

It can rightly be said that being physically or mentally fit depends upon how fit you are financially, as all these goals are interlinked. In order to be physically fit, you follow a strict regime which includes work outs and eating right, and at the right time. Why not follow a similar routine for improving your financial fitness?

Here are a few simple steps which can yield substantial results and help you chalk out a path to any of your goals.

# 1. Gradual start: Save a part of your Salary

Remember your first day at the gym or the first yoga class? Wasn’t it a herculean task lasting through the entire session? So you started gradually with easier exercises and built up your stamina along the way.

Your quest for financial fitness can follow a similar path. Everyone has various bills and EMIs waiting to be paid long before the salary is credited. Before addressing these inevitable payments you should look at transferring a certain percentage of your salary to another bank account and treat it as forgotten.

This amount can also be invested in the form of SIPs (Systematic Investment Plans) in mutual fund schemes in order to reap long term benefits.

# 2. Slow and Steady Wins the Race – BeConsistent

It’s not about how many hours you put in at the gym each day. It’s also not about how many different exercises you are able to target each day. It’s more about being consistent in your efforts. You only witness long lasting results if you unswervingly follow a fixed exercising routine.

Drawing an analogy from the same, investing consistently for a long period of time certainly yields better and sustainable results. In addition to this, it also gives you the comfort of having created an emergency fund that can be used in case of any uncalled for circumstances.

This can also be initiated by saving an amount which can be something as small as the money you spend on a single weekend, be it on watching a movie or eating out.

The sooner you begin to save, the faster you tend to build a cushion for combating any adverse condition. This early and consistent saving also boosts your investments due to the power of compounding.

#3. Impulse Decisions – Learn to say no

When on a diet, don’t you check yourself every time you are tempted to eat anything that your diet doesn’t allow you to? Keeping your goal in mind, you say no to a burger or a chocolate. How about applying the same to keep a check on your financial health?

Every time you pick up something to buy that you haven’t planned for, ask yourself if that is actually needed at that point. It can be anything rangingfrom clothes to eatables. If you answer yourself honestly, it would certainly be a "no" a lot of times. This "NO" means that you don’t go ahead with the buy and save this money instead.

In a nutshell, all you need to do is to stop hiding behind the excuse of not earning a substantial amount and hence, not being able to save. Aim to save in a calculated way, starting at an early age, in order to ensure a holistic and fit life, financially and otherwise.

Happy Investing

Source:Scripbox