Why You Need To Be Financially Fit
Being physically fit is essential to many Americans. They spend hundreds of hours and dollars getting into the best shape possible. But too many people neglect their financial health. And, just like physical health, being financially fit is crucial to your wellbeing, your future, and your quality of life. So, here’s why being financially fit is so important, and how to overcome common barriers to achieve financial wellness.
Financial health: causes a ripple effect.
Managing your money responsibly will affect more than just your bank account. It can affect many aspects of your life including:
- Marriage. According to a recent study by AARP, financial problems are the second leading cause of U.S. divorces.
- Mental health. Money stress can severely affect your mental health, causing depression, restlessness, anxiety, and more.
- Physical health. Stressing over finances can directly impact your physical health, leading to recurring symptoms like headaches, fatigue, insomnia, high blood pressure, and an increased risk of heart disease and stroke.
- Work-life. Money worries can make it difficult to focus at work, bringing down productivity levels and hamper career growth.
The leading cause of money stress?
According to a survey by Credit Wise®, 73% of Americans rank money issues as the top stressor in their lives. Here are the top causes for financial stress:
- High-interest debt
- Insufficient savings
- Medical bills
- Living paycheck to paycheck
- Lack of retirement planning
Barriers to financial wellness and how to overcome them
Unfortunately, there can be barriers that make it difficult to get and keep financial wellness. Until recently, financial education was not important. So, many people lack the basic financial knowledge necessary to manage money responsibly. Also, many mistakenly believe that budgeting and saving are time-consuming and tedious. Because some consumers have fallen so deeply into debt they’ve lost hope of ever pulling themselves out.
Get financially fit:
- Education. Check out financial literacy blogs, personal finance books, podcasts, or online classes to learn about money.
- Have the money talk with your partner. It’s essential to be on the same financial page as your partner. Equally important, is to talk openly and honestly. Be careful not to be judgmental. And make sure to discuss your individual and shared money goals. Then, come up with a plan to reach them together.
- Pay all bills on time. If you can’t take aggressive steps toward getting out of debt just yet, be sure you’re making at least the minimum payment on each credit card bill.
- Create a budget. Give every dollar a destination. It makes it easier to spend mindfully and cuts down on extraneous expenses.
- Start saving. There’s no such thing as a sum of money that’s too small to put into savings.
Let’s get those money muscles into shape! Follow the tips outlined above to stay financially fit at all times. Doing this will keep you healthy in more ways than one. If you like this post, be sure to check out the MoneySmart Tips blog.
