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Seven Steps toward Financial Fitness

Tired of embarrassing overdrafts, leftover credit card balances, or too much month and not enough money? Then it may be the time for you to get into a Financial Fitness Program!

Start now to get your finances on track and moving in the right direction by following these steps to Financial Fitness.

1) Plan

“You’ve got to have a dream, if you don’t have a dream, how you gonna make a dream come true?” Believe it or not, that lyric from the old Broadway song makes perfect Financial Sense. We spend so much of our lives working but to what end? Although money is not the only thing needed to achieve our dreams, it certainly can help. Dare to dream about your future and then plan for that dream to come true.

2) Set Financial Goals

It’s a good idea to develop short term, medium term and long-term goals. Just remember to “pay yourself first.” It’s your money. You earned it. You deserve to know that some portion of that paycheck is going toward some reward for a job well done. That could mean a simple outing planned for yourself (short term), a portion set aside for a new car (medium term) and a portion set aside for a retirement plan (long term).

After you have paid yourself first, determine what else you want to accomplish with your money and set the goals accordingly.  And remember: if you are in any kind of debt then, “Get out of debt” should be high on your list of objectives.

3) Know your situation as intimately as possible

Get the Facts about your income and spending habits. PMT xl can help you to determine your monthly living expenses, periodic expenses, debt payments, and so on in detail. You will then be able to create a realistic budget that suits your individual needs and lifestyle.

4) Develop a Realistic Budget

PMT xl is based on double entry bookkeeping principles. The major advantage of a double entry bookkeeping system is that it provides a continual check on accuracy.

Using PMT xl as a daily expense journal will assist you in identifying how you spend your money, and where any adjustments need to be made.  PMT xl will help you to develop and monitor your budget and spending closely. At a glance you can compare your actual expenses with the budgeted ones for any category or description item.

5) Keep Monthly Expenses below Monthly Income

Its important to Develop Good Spending Habits by first recognizing the difference between your needs and your wants; keeping a record of your daily expenditures; paying your bills on time; and learning how to use credit wisely. (Use credit for safety issues, convenience and large, planned purchases only.)

With PMT xl entering your transactions as they occur is fast and easy. PMT xl takes care of the rest of the tracking process and instantly gives updates about your financial status on the Balance Sheet. 

6) Save, Save, Save!

Saving is a great exercise for reducing the strain of those financial surprises that inevitably come along.  Save between 10% and 15% of your net income for periodic expenses; save again to accumulate six months expenses as an emergency fund; and save again for a portion to be allocated toward a retirement pension or funds.

Saving comes with an added bonus - Peace of Mind, which is, of course, priceless.

7) Start Today!

Time is money, they say. And wasting or losing either time or money is something most of us just cannot afford. 

So, begin your Financial Fitness Program today! PMT xl’s Tutorial and Reference Guide will help get you started, and our Help line by email is available for further assistance if required.

 It’s Time to get Financially Fit!  You are worth it, and PMT xl can help!  Try it or buy it and get started today!

 

Send comments about this web site to: pmthelp@videotron.ca

Page last updated: January 07, 2006