Staying Financially Fit

You might not think that you need to check in on your financial status when you’re just starting out in your career. But looking at where you stand financially can have both immediate and long-term benefits. This blog post will give you a few tips for staying financially fit.

Go Over Your Statements
Go over your statements whenever you receive your bills in the mail, immediately review them. By doing this, you’re taking one of the few opportunities you have to catch mistakes and fraudulent activity. You should never just pay your creditors without going over your bills with a fine tooth comb. Since most banks have stopped mailing statements to their customers, this bit of advice goes for your electronic statements, too.

Know Your Assets and Liabilities

The items and property you own, or assets, and your debts, or liabilities, together determine your individual net worth. Assets could include some of the following:

  • Bonds
  • Cars
  • Cash
  • Collectibles
  • Real Estate
  • Retirement Accounts
  • Savings
  • Stocks

Liabilities might include some of the following:

  • Auto loans
  • Credit card debt
  • Mortgage
  • Other bills
  • Student loans

On an annual basis, calculate your net worth by adding up all of your assets and subtracting your liabilities. If you just left college with student loan debt, your net worth is negative. It’s not necessarily something for which you need to be ashamed. You’ll just have to work hard to pay down the debt.
Balance Your Checkbook
Balance Your Checkbook Even though most of us rarely write checks anymore, we still need to reconcile every cent that we spend on our credit and debit cards. Prevent those nasty overdraft fees by doing the math as often as possible.

Look Over Your Credit Report
Look Over Your Credit Report In your credit report, you will find information about your credit accounts and your payment history. If you want to qualify for loans at great rates, you will need a high credit score. Experts recommend that you look at your credit report at least once a year to ensure that all of the information on it is correct. You should do another check before you apply for big purchases like vehicles and houses. You can ask for a free credit report from each of the three credit reports – Equifax, Experian, and TransUnion – once every 12 months.