90 Days to Financial Fitness
Becoming financially fit requires discipline, planning, and commitment. While 90 days is a relatively short time frame it is enough time to develop a plan of action and execution creating good financial habits. In a 90-day time window, you can make significant progress toward improving your financial situation.
Here’s a 90-day financial fitness plan…
Week 1: Assess Your Financial Situation
Task #1 Understanding Your Income and Expenses
- Assess your current income sources and calculate your average monthly income.
- Analyze your expenses and categorize them into essential and non-essential.
- Calculate your total monthly expenses and determine your discretionary income.
Task #2 Evaluating Your Debt and Savings
- Identify all your outstanding debts, including credit cards, loans, and student loans.
- Calculate the total amount owed for each debt and determine the interest rates.
- Assess your current savings and determine if you have an emergency fund.
Week 2: Creating a Budget
Task #3 Building a Monthly Budget
- Learn the importance of budgeting and its role in achieving financial fitness.
- Identify budgeting techniques and choose one that suits your preferences.
- Create a monthly budget based on your income and expenses, allocating funds for savings and debt repayment.
Task #4 Tracking Your Spending
- Explore various budgeting tools or apps to track your expenses.
- Start tracking your spending habits daily and categorize expenses accurately.
- Reflect on your spending patterns and identify areas where you can cut back.
Week 3: Cutting Expenses and Increasing Income
Task #5 Reducing Unnecessary Expenses
- Analyze your tracked expenses and identify non-essential items or services.
- Develop strategies to cut back on discretionary spending without sacrificing necessities.
- Implement cost-saving measures such as meal planning, couponing, or negotiating bills.
Task #6 Exploring Additional Income Sources
- Discover potential ways to increase your income, such as part-time jobs or freelancing.
- Assess your skills and interests to find opportunities for monetization.
- Create a plan to pursue additional income sources during the 90-day period.
Week 4: Setting Financial Goals
Task #7 Defining SMART Financial Goals
- Understand the concept of SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).
- Set specific financial goals for the 90-day period, considering debt repayment, savings, and investments.
- Write down your goals and develop an action plan to achieve them.
Task #8 Staying Motivated and Accountable
- Learn strategies to stay motivated on your financial journey.
- Share your goals with a trusted friend or family member for accountability.
- Explore visualization techniques and create visual reminders of your goals.
Week 5-12: Implementing and Refining Your Financial Fitness Plan
Task #9 Prioritizing Debt Repayment
- Choose a debt repayment strategy (sign up for our free convert debt to wealth webinars bit.ly/convertdebttowealth to learn the best strategy) and apply it to your debts.
- Allocate a portion of your monthly discretionary income toward debt repayment.
- Track your progress using technology and celebrate milestones along the way.
Task #10 Building an Emergency Fund and Saving
- Establish an emergency fund as a financial safety net.
- Determine a specific monthly savings amount to contribute toward your emergency fund.
- Explore different savings options such as high-yield savings accounts or investment vehicles.
Task #11 Automating Finances and Bill Payments
- Set up automatic transfers to your savings account on a designated day each month.
- Arrange for automatic bill payments to avoid late fees or missed payments.
- Monitor your bank accounts regularly to ensure automated processes are functioning correctly.
Task #12 Continuous Learning and Adjustment
- Engage in ongoing financial education through books, podcasts, or online resources.
- Reflect on your progress, identify areas for improvement, and make necessary changes or adjustments.