That is the question every Australian should ask himself or herself. Whether it’s personal financial fitness or financial fitness regarding your business, this is one aspect of your day-to-day that should never be ignored.
With spendings left and right, inflation rates fluctuating every now and then, and the uncertainty of the times you and I live in, it’s necessary to be aware of this. It’s necessary to be straightforward with yourself and ask this: “Am I financially fit?”
As you try and answer that, understand that you’re not flying solo. There are a lot of people, too many, in fact, who answer with a “no.” That, or they’re too afraid to admit that they are. This is normal. Also, this is where we put our ball in the court to help you gain a bit of insight on how to be financially fit.
Financial Fitness Defined
There isn’t one single definition of financial fitness because it covers many aspects regarding your finances. Still, the basic definition of being financially fit is being able to take out a budget for expenditures from your regular income in a comfortable manner.
By “comfortable”, we mean that you’re on time with bills and payments of other utilities. Additionally, “comfortable” means that you’re not only ABLE to do so, but do so without tightening your belt every time.
More than regularly paying off what needs to be paid off per month, per week, you name it, it’s about accomplishing so with much ease. No back-worrying about having to pull out all of your resources for such payments.
Moreover, being financially healthy is also about being debt-free. Experts are divided in this. One side believes that not having any debt at all is what’s considered financial fitness. Others think that debts may be necessary for larger necessary spendings, say, for example, taking out a loan for your car or your home. Only, you can still be financially healthy as long as you’re capable of following through with payment terms without any issues (alluding to the word “comfortable” from earlier).
Why Be Financially Fit?
Because you wouldn’t want to live your life toiling for an income that will slip out of your fingertips every month, leaving you with scraps to have for yourself. The goal of being financially healthy is to get out of the mindset that you’re merely working to pay for the bills.
No. Aside from going through these expenditures “comfortably”, you should also plan out for the future. Savings are an important aspect of this, along with other investments. Bills payments are already a given. Work to save.
Aside from this, strive to be financially healthy for you to enjoy what you earn. Don’t drive yourself into mud and start dragging your feet day after day, whenever you’re headed to work. In contrast, be in that perspective of learning to love what you do because you’ll be reaping the benefits of it.
Your earnings should be budgeted well so that you can treat yourself with leisurely spendings once in a while. There’s nothing wrong with that. As a matter of fact, it’s encouraged. At least, once you can say to yourself that you’re doing what you need to do to attain financial well-being.