Financial fitness is very important for any individual. Unless you have the financial fitness, you won't be able to afford the items that are important to you. Also, a good financial health will ensure a better future for you. In order to improve your financial fitness, you need to replace your bad spending habit with a good one. Thus, you need to stop overspending, paying down debt and/or depositing money in a savings account.
Note down your financial goals: You should note down your financial goals by setting achievable and measurable targets. This may include setting up an emergency fund, purchasing a home (an asset) or paying off the credit card bills. Once you know your goals, it will be easier for you to draft a plan in order to achieve these goals. Then you should make a commitment to yourself that you will follow the budget that you have made for yourself.
Keep a tab on your progress: In order to be financially successful, it is very important to track your expenditures. Unless you track it, it won't be possible for you to know whether or not you're progressing toward your goal. You can maintain a diary in order to keep a tab on your financial progress. Various tools are available to help you track your expenses. Consumers can review their expenditures with the help of software programs like Mint.com or Quicken, etc.
Try to foresee ups and downs: We all are human beings and it is not always possible for us to maintain the budget and go according to the financial plans. A sudden crisis may lead to using all your emergency fund. Thus, you should foresee such ups and downs and maintain a backup plan. Your best bet will be to avoid overspending at any cost. However, in a month, if you overspend and don't follow your budget, make sure that you save more the next month.
Take help of a financial planner: You may not be an expert in financial planning. In such a situation, it's always better to take help of a financial planner or trainer who will guide you in this process. You can even take the help of your own accountant or tax preparer as he/she will know your financial situation better than others.