Yahoo Finance 10 Tips to Improve Your Investing Fitness
Get your finances in top shape.
It's the start of the year, gym memberships are being fully utilized, juicers and smoothie makers have been dusted off, and so many of us pledge that finally this is the year where health will come first. Maybe it's for weight loss, maybe it's for better nutrition, to get stronger, drink more water, prioritize sleep. Whatever they may be, resolutions are easy to make and hard to stick to. But what about your wealth workout? What are some simple exercises to become more financially fit?
Warm up with small, achievable steps.
This could be as simple as increasing your retirement plan contributions by a few percent, setting up auto-saving for a goal, or finally making the call to an estate attorney to plan for your legacy.
Commit to a goal.
An athlete's goal might be to run a marathon within the next year. As an investor, your goals could be longer term -- things like saving a specific amount for retirement, or children's' college funds -- or shorter term -- things like saving for a new car down payment. Remember that shorter-term savings should be exposed to far less market risk, since you don't have as much time to recover from a potential downturn. Write down what you hope to achieve (the larger goal) and some steps you plan to implement to get there.
Get the right wealth workout equipment.
Equipment can take on many forms. It could be dusting off your login information for your financial accounts, seeking out tools to track your finances, or hiring an advisor to manage your investments or create a financial plan. Even recruiting your spouse or trusted friend as an accountability partner could be a useful tool.
Get lean.
Remove bloated costs from your financial life. Perhaps you're paying for a gym and Orangetheory -- figure out which one works best for you. Or give your insurance agent a call to see if your annual costs could be lower.
Do some crunches.
Number crunches, that is. How much do you typically spend each month, and do you have enough in emergency savings to cover three to six months of core expenses? What percentage of your income are you setting aside in your retirement account, and is it at least enough to get the company match? Find out exactly what numbers you need to reach your financial goals.
Make it fun.
How could managing money be fun? Rewards! Figure out what reward works for you, but keep the financial amount of it in check. Don't undo all the progress you have been making with extravagant rewards. It could be a non-monetary reward, like time. Take an afternoon to yourself to enjoy nature, or treat yourself to a special bottle of wine.
Visualize success.
Olympic athletes use visualization, and it works for investors, too. The definition of success is entirely up to you. Are you debt-free by the end of the year? Bumped your retirement savings by a certain percentage? Saved for a fun vacation? Imagine how you will feel, who will be around you, and how your life will be different once you have achieved your goal.
Schedule your time.
What is your deadline to achieve your goal, and how often will you check your progress? Commit a certain amount of time periodically to review your goals, monitor your progress and evaluate the appropriateness of the goal.
Take a Zumba class!
Not literally, but do something you don't normally do. Change up your financial life if your current strategies are losing their appeal. We're not suggesting you try to time the stock market or invest in something crazy. Instead, consider setting a 30-day money challenge, try out a new financial website or app or commit to learning something new about investing by the end of the month.
Take action.
The best time to start is now. Your financial journey starts with the first step. Just do something, anything to get you started.
More From US News & World Report
