7 Steps to Stay Financially Fit

While we are young, we do not understand that fitness is not just health but also wealth. Financial fitness is often ignored when we are free of responsibilities. However, financial management and fitness shall be inculcated within us from a young age so that as we grow up, we understand the values of saving money and staying financially fit.
We have jotted down some of the steps that can be followed since the beginning of your earning times that will help you to stay financially sound for a long time.

1. Understand your assets and liabilities

Understanding the details of your assets and liabilities is important. Know about the assets you hold and the liabilities that you owe. Cash in savings accounts, stocks, shares, savings, property, vehicles, and such items are considered assets. On the other hand, EMIs, mortgages. Loans, credit card bills, etc. keeping a tab of it will give you your overall financial picture. You can calculate them every 3 months by adding up all your assets and subtracting them from the total of your liabilities.

2. Be on a Budget

We always underestimate the power of sticking to a budget, however, it is one of the best ways to stay fit financially. It looks after your expenses, savings, and earnings in a nutshell. Budgeting each one of your earnings, expenses, and savings will give you a clear picture of how you should save for the dreams that you are aiming at.

3. Start your savings journey

Savings are the key to financial fitness. When you have saved some amount for situations like emergencies or for attaining a goal in life it becomes easier to come monetarily strong in the situations. If you opt for a zero-balance account opening online method or a traditional savings account and be ready for any given situation that demands money in the future.

4. Assess your goals

Assessing your goals from time to time will give you an idea of the amount that will be needed for the same in the coming time. This shall help you in the best way to save the funds as per your needs.
For instance, you are saving for a car that is worth Rs. 3 lakhs but by the time you are about to buy that you find a better version at 4 lakhs but have no extra savings. However, if you would have keep assessing and looking for the variants in the time being you would have known that some more savings will get you a better car. This is why assessing your goals is of utmost importance.

5. Manage your taxes

It is essential to ensure you have an adequate amount to pay your tax bill well before the annual deadline. Generally, the date in India is April 15. The national income tax you owe each year depends on your tax bracket, but many elements affect it. In most cases, your employer withholds taxes from your paycheck, although the share withheld will often differ from what you eventually owe. Nevertheless, if you are self-employed, you will likely need to pay an evaluated amount of tax instead, usually every quarter.

6. Check if your investment and goals align

The amount you invest or save shall be aligned well with the objectives you are looking to achieve. For instance, if you want to buy a house and a particular amount is needed for its booking amount; you must know the details on the same and plan your investments accordingly. Always keep them in balance for no financial tension at the moment of purchase.

7. Determine if you have the right insurance

In the present times having insurance for a particular term, health, life, and assets are very essential. As we live in a fast world we do require to get insured so if any emergency comes into line, we are ready to face them financially. Do assess your insurance plans from time to time and get updates if required by any chance. Click here for more details.