3 tips to be financially fit

If you are overwhelmed and don’t know how to get your finances in order, you definitely need to keep on reading.

Get over with your old excuses and get to work for a financial upgrade with these 3 tips:

Tip #1. A financial audit

To build wealth, you have to know a few things first. Can you answer all of these questions quickly and easily?

1.) Where is my money?
2.) Where is my money GOING?
3.) Do I have any debt?
4.) If so, how much?
5.) What is the INTEREST in that debt?

If you don’t know the answers you should definitely go and do your homework. You need to know how much you are making and how much and where you are spending your money.

So do a financial audit before you make any more big purchases. Work out exactly how much you've got coming in and going out.

Tip #2. Know where to spend your money

Make sure that you have a purpose for your spending.  Do not spend carelessly because you are infatuated with a car or something nice for your house. No. If you can’t find three uses for what you are going to buy, you can’t buy it. Bear this in mind and you are not only going to spend less but also realize that you don’t actually need that much stuff.

Get your priorities in order and make sure you're spending the right amount on all of them.

Tip #3. Pay yourself first

Ok, so far you know your income and outgoings. You've sorted out your spending. The next step now is saving. In life, as in business, if you don't want to go broke, you need to start saving money each month. Whether you put that money into a Roth IRA or under the mattress – you need an emergency fund. Don't put yourself in that horrible position in which funds aren't available when you actually need them.

The easiest way to start saving is to set it up automatically. Have your bank deduct a fixed amount of money out of your checking account every month on a date of your choice. 

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