There is an increasing number of people becoming health conscious and taking adequate measures to remain fit. Though along with physical fitness, financial fitness is equally important.

So you are earning good, you have a few insurance policies, you are able tfulfilll the current requirements of the family; but have you planned for all your future financial requirements like: education fee for your children or early retirement? Have you ever given a thought about retiring from work and comfortably living a life, which you choose to?

Financial fitness is more about being on the right path than it is about reaching some magical number on a net-worth statement. Clearly, it is more a sense of satisfaction with what you have than a specific level of wealth.

Things to do for having financially successful 2018

Budget your expenses

Since knowing how much you have will pave the path for rightful expenses. We recommend the 33-33-33 rule where your needs should be limited to just 33 percent of your net income. Your wants should only take up 33 percent of your budget and spending.

Your savings and debt repayments should equal at least 33 percent of the money you earn each month. For example, if your salary is Rs. 70,000 and you’re thinking of buying the latest iPhone, this is a want and not a need and isn’t an appropriate thing to do with your salary.

Maintaining good credit score

Protect your good name and check your credit reports and pay your taxes on time. If you have a good ITR and credit score, you are more likely to get loans as and when you need them the most. Try to finish off your debts by the end of the year as the more time you take to finish it off, the more interest you will end up paying for the same amount.

Investments pay in long run

Automatically transfer at least a portion of your paycheck to an investment account every month. Have the investments automatically invest (or go to an investment advisor who will invest it for you) and then play dead. If you follow this strategy you too can be a millionaire soon. Keeping a check on the mutual funds or shares is advised strongly since it can give huge returns.

Can money buy happiness?

One of the most common things people do with their money is get stuff. It doesn’t make you unhappy, but it doesn’t make you happy for long either. But one thing that does make us happy is an experience. Create a shopping list together with your family members (dedicating a budget to everyone) and differentiate between wants and needs.

Don’t buy the latest handbag, car or TV. Buy an experience that you can draw on for years to come. Take a trip that will change your life for the better. Expand your worldview.

Save whenever you can

Look for coupons whenever and wherever you shop. Being a frugal shopper will help save you a lot of money and will provide you with the opportunity to make the most out of your earnings. Each pay period aims to contribute funds to your savings.

In essence, you want to treat your savings account as a bill, so you can actively grow it. Having good savings skills will help you stay afloat and will keep you more conscious about your spending.

Get well insured for future

Review your health coverage to ensure you aren’t over-insured or have major gaps in your plan. Health insurance will provide you with a cover from those costly hospital visits and prescribed drugs. Life Insurance is needed to ensure that your immediate family has some financial support in the event of your demise and to have a savings plan for the future so that you have a constant source of income after retirement.

If you’ve ever struggled with money or seen your family or friends, you know how terrible it feels and you probably want to avoid ever being in that situation by becoming financially fit this year in 2018.