Everyone makes the new year’s resolution to get physically fit, but what about being fiscally fit? Sure, having six-pack abs is always great, but having financial freedom is even sweeter and will save you money instead of costing you a gym membership.
We’re not talking down to physical fitness, but we’re not ones to give you tips on burpees and squats, but we can help with being fiscally fit.
How to get started? Glad you asked! Below we have broken down the pathway to not only being fiscally fit but fiscally ripped, but just like a gym routine, you have to keep working at it.
Check the score.
There is always some sport on TV in Australia, but we’re not talking about checking that score. If you are applying for mortgages or loans, knowing your credit score is good. While many folks seem to skate through life without knowing their credit score, you are on a different journey, so you can apply to get your free credit score report. Moneysmart.gov.au states, “You have a right to get a copy of your credit report for free every 3 months. It’s worth getting a copy at least once a year. Your credit report also includes a credit rating. This is the ‘band’ your credit score sits in (for example, low, fair, good, very good, excellent).”
They also state you can contact the below places to get your free credit report.
- Experian 1300 783 684
- illion 132 333
- Equifax 138 332
Moneysmart.gov.au also has some great information on what is in a credit report and what it means here.
Get to know your assets and liabilities.
If you have a budget or started a budget for 2022, you are probably already across this part. Much like weight training is the backbone of getting physically fit, knowing where your money is coming from and going is the essential part of getting fiscally fit.
An added tip from this could be to calculate your net worth. This calculation is done by adding the value of all your assets and subtracting all liabilities; it’s like getting the BMI of your finances to give you a clear picture of where you currently stand.
The dreaded tax!
Tax is something that we prefer to set and forget about. Well, at least forget about it. But it’s essential to keep on top of your tax to ensure that you are more likely to get a return at the end of the financial year than you are a bill. Make sure to double-check your payslips to ensure that your employer calculates the right amount of tax. If you are paying your tax, make sure to put that money aside out of the clutches of your household bank account so that you are not tempted to spend it.
Insurance double check!
While your coverage might not yet need to be renewed, it’s always good to double-check the amount of insurance you have and check if the coverage is too much or not enough. If the coverage is over and above what you need, this is an excellent area of savings that can be made. However, not having the right insurance cover could cost you more than a higher premium if an unexpected event occurs.
Calling around to different insurance companies to get quotes is also a great way to ensure that you are getting the right price while you have the right coverage.
Now that you have given your finances a once over, it’s time to look at the goals that you have. The ultimate goal for anyone is to be financially free or debt-free. However, it’s also great to have other goals to keep you motivated. Maybe you want to invest more, get an investment property, start a business, or pay off a debt.
Making goals and regularly assessing how you track those goals will keep you fiscally fit.
Just like keeping physically fit, being fiscally fit might mean that you need a trainer. Our team of experts are ready to put in the work with you to ensure that your finances break a sweat working for you. If you are ready to not only fiscally fit but fiscally ripped, then contact a member of our team today!