Fiscal Fitness: Creating a financial wellness plan
For resolution makers, health-related goals are the most common way to start the New Year on a fresh note. Take the same approach you use for improving your physical well-being to improving your fiscal well-being by creating a financial wellness routine for 2020. By setting up a defined plan, with goals and steps to get you there, you can make this year your most monetarily sound yet.
Make slow and steady change
When you first go into the gym, you won’t immediately be able to lift the heaviest dumbbells. But if you show up regularly, those weights will increase. It works the same way with saving money. “The progress that you make is measured in being consistent over a long period of time,” said David Maurice Sharp, a financial educator in New York City. To make the process even easier, try setting up an automatic payment to your savings every month.
Beware burnout
It’s easy to get caught up in New Year’s enthusiasm, which pushes you into wanting to accomplish all your goals at once. That’s not realistic — and it’s a recipe for becoming overwhelmed. “If you go gangbusters, you can get frustrated,” Sharp said. “When working toward a financial goal, start small.” That might mean picking an amount to save and upping it by just $5 every few months. That consistent effort is better than a couple of good months followed by no progress toward your goal until you make a new resolution next year.
Set a routine
The people who are most successful with exercising on a regular basis are the ones who treat their workouts as an entry on the calendar that’s the same as an appointment or other commitment.
How does that work with financial wellness? “Pick a certain time every week that you’re just going to sit down and address something to do with your finances,” Sharp said. That could be balancing your checkbook, reviewing our account statements online or looking into investment options.
Sharp recommends making a hit list at the beginning of the year of financial topics you want to address. Set aside 30 minutes once a week to work on the list, and you’ll get through it faster than you think. Then, once a quarter, review all your financial assets and liabilities with your financial advisor. “It makes you aware of where your money is and the progress that you’re making,” Sharp said.
Make money wellness a social event
Getting to the gym is much easier when you have a workout buddy waiting for you. Makes sense. Don’t try to go it alone with your financial knowledge. Consider joining a money club — this is a group of people who get together to discuss different topics related to finances, often over a meal. It doesn’t have to be formal, though. Even if you just chat with friends or colleagues about topics like saving for retirement, that’s a great start.
“We have to get past this idea that it’s embarrassing that we don’t know more about money,” said Sharp, who started an investment club for artists. “Talking to peers can give you great ideas.”
Remember, you don’t have to be in shape to get in shape. So many people don’t want to go to the gym until they’re fitter, but that’s backward thinking — and with your financial future, there’s never a better time to set goals than now, even if your finances aren’t in a perfect spot. Make the effort today, and it will pay off tomorrow. By the time next year’s resolution-making season rolls around, you’ll be deep into a wellness routine and ready for the next phase of the plan.
How we can help:
The Credit Union’s Financial Wellness program helps members create a solid personal financial foundation. Call (833) FIN-WELL (833-346-9355) or click HERE [ link to Financial Wellness ] for more information.