6 Strategies to Increase Your Financial Fitness
In order to live well as we age, it is important to not only be physically fit, but also financially fit.
A team at Florida State University (FSU) researched personal finance strategies that helped real households accumulate wealth and become more financially fit, including communicating about finances, opening a California savings account and maximizing your savings.
Learn more about the recently published six key strategies below:
Strategy 1: Talk About It
FSU’s researchers found that financially fit households have couples who communicate more about their household’s finances. Try to regularly discuss your household’s finances and work out strategies together for dealing with financial issues. Two heads are better than one when it comes to getting financially fit.
Strategy 2: Ask Your Employer
Ask your employer for information about any available financial and retirement advice and plans within your workplace. If you have an employer that offers retirement plans or will refer you to professionals who can provide you with financial advice, take advantage of any information they can provide about these services.
You may discover that your employer offers more retirement and related benefits than you first thought.
Strategy 3: Work Out What You’ll Need
The sooner you work out how much money you think you will need to live on during retirement, the better. Use the Retirement Calculators at www.chevronfcu.org/calculators, or consult a financial professional.
You can also visit the Financial Planning link under the Insurance & Investments tab on CFCU’s website to learn how you can get free consultations through our partnerships with the BALANCE Financial Fitness Program.
Strategy 4: Forecast What You’ll Have
Forecast how much money you think you will have by the time you will retire if you continue to save and invest the same way you have to this point. By working this out, and then comparing it to how much you’ll think you’ll need, you can gain some idea of how you might need to change the way you save so that you will be able to retire comfortably.
Strategy 5: Maximize Savings and Interest Earned
If you don’t own a California savings account or retirement account, open one and try to save some amount into it from each paycheck you receive.
When times are tough, this is hard to do, but it’s worth evaluating your cash flow to see if there’s any excess that can be diverted towards a savings account as the interest on the savings will add up significantly over time.
Strategy 6: Minimize Debt and Paying Interest
To avoid paying interest, pay your household bills on time and your credit card balances in full each month. Failing to pay bills and credit card balances means you end up paying more than “list price” for the things you buy.
Try to pay a little extra towards your mortgage principal each month if it is allowed, and be sure to open a California savings account specifically for building an emergency fund to avoid going into debt when an unanticipated expense suddenly presents itself.