How fit are your finances?

Financial fitness, like physical fitness, requires a well-structured plan.

Here are some pointers on how to achieve your goals:

1. Know what your money needs to do for you. Decide what your financial goals are: for example, buying a house, going on an overseas trip, a good education for your children, or perhaps having enough money in retirement.

2. Think about your relationship with money. Is your approach to money positive or negative? When you become aware of your relationship with money, you can work on changing it for the better.

3. Set goals. Goals are personal and different for everyone. An effective goal is specific, achievable and has a timeframe.

4. Manage your income. Money comes from three places – earnings, savings and debt.

You may have limited control over how much your income can grow, but you do have control over your debt and savings.

5. Draw up a budget and stick to it. If you are in a financially stressful situation, check your budget item by item. Categorise your budget items into bare necessities, flexible necessities and “quality of life” expenses, which are not about denying oneself, but about being smarter about these expenses.

7. Develop a healthy fear of debt. Debt is the enemy of financial fitness. If you are using debt to cover living expenses or an unaffordable lifestyle, you are in trouble. Immediately seek help from a financial adviser to assist you with a debt reduction plan.

8. Know the difference between being rich and being wealthy. While being rich is the “show” of being wealthy – expensive cars or real estate – being wealthy means being as close as possible to zero debt.

9. Get a coach. Developing financial fitness requires the help of an appropriately authorised financial adviser. Everyone needs one.

10. Take action. Doing research and asking questions are important, but until you take steps to put your plan into action, financial fitness remains just a good idea.

Contact Sticks Stiglingh at Strata BlueStar on 046-6244948 or 071-612-7339 or sticks@stratabluestar.co.za for professional advice. Glacier Financial Solutions is a licenced financial services provider.