Are you financially fit?

Are you financially fit? It’s not an easy question to answer for most Canadians. The website of Canadian Association of Credit Counselling Services has a short video clip that interviewed and asked Canadians the following eight questions:

Does talking about money make you uncomfortable?

If we gave you $500 right now, what would you do with it? Do you have a budget? Do you follow your budget? Are you a spender or a saver? Credit: friend or foe?

Who do you ask for financial advice?

Financially, what shape are you in?

You may find some of these questions easier to answer than others.

Perhaps you are currently struggling with one or two of these questions.

Are you alone in your troubles when dealing with money? The answer is no. Sometimes it seems like it is you against the world.

Many fellow Canadians have similar problems when speaking about, dealing with and managing their money.

There are many tools available to help you deal with and manage your money.

Googling ‘financial fitness’ brings up many websites as a starting point.

Should you save or should you pay down your debt?

Should you only make the minimum monthly payment on your credit cards?

Do you need help to manage your debts?

If your goal is to be debt free, then keep things simple. Consider these three easy steps. Stop adding to your debt. Get free from debt. Once free from debt, stay there. What exactly do you need to do to become debt free?

It begins with a simple concept of spending less than you earn.

If you keep adding to your debt level, you cannot become debt free.

For three months, keep track of where your money is going. Be honest with yourself. Take your bank and credit card statements and summarize where you are spending your money. Use this information to make a budget. Now for the next 90 days, keep track of everything you earn and everything you spend. Everything. Once you have this base, you are able to see ways in which spending can be reduced or eliminated.

Perhaps you can bring coffee from home instead of buying a coffee every morning.

Can you cut back on eating out or reduce your TV cable package?

Can you hike or run outdoors instead of keeping your gym membership?

The choices are to reduce your expenses or increase your earnings.

If you bring home $2,500 each month and your budget shows you are spending $3,000 then you are not on a path to becoming debt free.

If you bring home $2,500 each month and spend $2,000 then you have just found $500 to reduce your existing debt. Still struggling? Sit down with your financial adviser and show them your budget.

Talk about ways you can put yourself on the path to becoming debt free.

Consider meeting every three to six months to review your situation.

Being debt free won’t happen overnight and it won’t always be an easy.

If your goal is to be debt free take the steps to make it happen.

It will change your financial fitness for the better.

Financial fitness plays an important part in your day to day life.

A good financial foundation guides you in making good choices by ensuring you have the necessary skills to deal with and manage your money.

Dealing with money may not be your strong point now, but learn from your spouse, friends or business associates so you feel more comfortable and confident in making those important financial decisions.

You can do it.