Financial Workout Tips

By Candace Bahr, CEA, CDFA and Ginita Wall, CPA, CFP®, CDS

If you vowed to lose weight and get more exercise this year, you aren’t alone. But how about extending that fitness regime to your finances? Here are some financial workouts tips to get your finances in shape.

1.  Put Your Spending On A Diet

Carrying too much debt is as exhausting as carrying extra weight. Reducing your intake is key to losing weight, but the key to slimming down debt is to reduce your outflow.  If you have trouble controlling money in just a few categories, such as clothing or entertainment, create a finely detailed budget for just these categories.

2.  Stretch Your Retirement Savings

Saving for retirement is similar to an exercise program — the more you put into it, the more you will get out, and regular investing is key. If you are maximizing your retirement plan contributions, consider a deferred annuity. You won’t get a current tax deduction for the money you invest, but you won’t have to pay tax on the earnings until you withdraw the funds in retirement.

3.  Use A Professional To Stay On Track

Just as a personal trainer can help you get the most out of your workouts, a financial adviser can help keep you on track and stay invested when your natural inclination is to cut and run. Women are more likely to see the benefits of a financial adviser — 62% of working-age women consult a financial professional when making investment decisions. Less than half of men do the same.

4.  Pump Up Your Credit Score

Some of the factors that affect your credit score, sometimes called your FICO score, are delinquencies, accounts opened during the last year, balances on revolving credit that are near limits, tax liens, judgments or bankruptcies, recent credit inquiries, and too few (or too many) revolving accounts. To get a free copy of your credit history, go to AnnualCreditReport.com.

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