Who are fiscally fit people, you must be wondering! Well, the fiscally fit are those who can manage money effortlessly. Aren’t you jealous now? Don’t you want to know how they do it?
Well, if you want to become fiscally fit, you’ll need to leave behind your lazy money habits and start cultivating some good money habits. So, what habits do the fiscally fit practise? Let us find out.
Pay oneself first
It’s not only about paying your bills, buying groceries or shopping for clothes. You need to learn to put money into savings too. Rather, this should be your priority. The fiscally fit people have been following this rule religiously. They never compromise on putting away money as savings first. They have a dedicated percentage of money that they put away as savings. And then they use the remaining money for their fixed expenses and other miscellaneous expenses.
Money is always a worry in their head
Even though they are sorted when it comes to money matters, worries about money always resonate in the minds of the fiscally fit too. It is just that they don’t get anxious and over-react to these worries. Rather most of them view it as healthy. Why? Because this worry helps them to keep a check on their finances. It not only nurtures a sense of discipline, but it also stops them from swaying away from their financial habits. Last but not the least, it stops them from making hasty decisions concerning their finances.
Not underestimating risks
They never underestimate risks – they know that risks are close at hand. So, they always prepare themselves for risks. For example, they always go for investments that match their risk profile. They also plan for real dangers such as accidents, disabilities, etc. by taking adequate Life Insurance and Health Insurance covers.
Steer clear from Credit Card debts
Yes, the fiscally fit use Credit Cards too. After all, a Credit Card is an indispensable financial tool. Agreed? So, where does the fiscally fit differ from the average Joe? The former always pay their debt on time and in full. Besides, they review their Credit Card statements, so that they can keep a tab on their expenditure. An average Joe doesn’t do any of these things. No wonder s/he always gets a huge Credit Card bill, never pays it on time or in full, and attracts unnecessary interest.
Plan financial goals
The fiscally fit have a good idea of what they want financially. They list down their financial goals and prioritise them. And then they chart out a plan to achieve each of their financial goals. Also, if any of their plans fail or don’t meet expectations, they do not panic. They are quite flexible that way and will always have a backup plan in place. Smart!
It’s okay to make mistakes
You learn great lessons from the mistakes that you make. Even the fiscally fit make a lot of mistakes, but they learn from their mistakes and they never make the same mistake twice. Mistakes could be something as simple as lending money to a friend or family member and not getting it back to something stupid as investing in a ‘get-rich-quick’ scheme. But, these mistakes have taught them to mark their financial boundaries and move on.
Don’t forget emergency funds
The fiscally fit lot are good at planning their finances. Along with their savings and investments, they do not forget to put away funds for emergency situations. They always keep at least six months’ worth of living expenses in an emergency fund. Keeping an emergency reserve is their top priority.
In short, the fiscally fit people know that it is the good money habits that can help them succeed financially. You too can join the ranks of the fiscally fit lot – you just need to practice the above habits religiously. Good luck!