Are You Financially Fit or Flabby

DISCLOSURE: This blog post may contain affiliate links and any purchase(s) made through such links will result in a small commission to HUSTLR (at no cost for you).

This article has been fact-checked for accuracy.

It’s so simple to tell if someone is physically fit. Just size them up from head to toe to get a rough idea of whether or not the person works out regularly.

If you still can’t confirm how fit the person is, get them to run around a track or ask them to do 20 burpees. That ought to do it, right?

How about being able to tell if someone is financially fit? How would that look like?

Would he be living in a big house? Is she driving a beautiful C class Mercedes Benz? Is he decked out in offwhite sneakers and she’s slinging a caviar leather medium Chanel single flap with matching yellow gold hardware to her Cartier love bracelet? Do they go on exotic vacations 5 times a year, documenting the best moments on their Instagram accounts? #livingmybestlife

Er, here’s a resounding NO.

It is not as straightforward as that. Being flashy does not always translate to being wealthy. Given how taboo it is to talk about net worth, most of us are hiding more than just financial flab when it comes to the matter of finances.

We can lie to others for sure, but it is more difficult to lie to ourselves.

 Here are 15 simple checkpoints to see how you fare on the financial fitness scale. Have a look at this checklist below, and give yourself 1 point for every criterion that is true for you. Total up your score afterward.

I have $2000 in my Bank account.
I have an Emergency Fund.
I save regularly.
I save >10% of my monthly income.
I invest my money consistently.
My Investments return me >6% per year after fees.
I can pay off my credit card(s) in full each month.
I control my debt more than it controls me.
I know exactly how much I spend each month.
I don’t over-splurge on eating out, drinking or partying.
I plan for my big purchases.
I am medically insured.
I have more than one stream of income.
If I stopped my primary source of work, I’d be able to get by for > 2 months on my other income
sources.

I have positive cash flow (income > expenses) even if I choose to stop my primary source of income.


Financial Scale Guide:

Fatal0-3
Flabby4-6
Fair7-9
Fit10-12
F*cking fabulous13-15


So, how did it go?

And more importantly, what can we do to get into better shape financially?

Being great with our finances can be achieved by honing two very actionable activities:

1. Practicing good money habits
2. Growing our wealth


1. Practicing Good Money Habits 


Utilize the Bucket Systems (full credit goes to The Barefoot Investor, Scott Pape) to save more money. Feel free to tweak the percentages further or add a different bucket label to suit our lifestyle needs.

The first step is to divvy up our income(s) into separate accounts the moment it arrives. Stick to it.

To put this into context, here is how we can split our money into buckets:

Daily Expenses40% Utilities, food, petrol, you name it
Splurge10% Treat ourselves, it’s essential to do it for our sanity
Debt Detonator10% Use this to hose down our debts, starting with the smallest one
Smile10% For saving for those bigger, longer-term purchases that will make us smile, like a holiday
Emergency Fund10% For emergencies, shocker
*Growth20% Our investment-waiting room before investing it into assets with higher returns

* ensure these are placed in no-frills, high interest-bearing saving accounts


2. Growing Our Wealth


Now then, how do we grow our wealth?

There are two parts to this workout plan:

I) Grow what we currently have
II) Grow our income


PART I: Grow What We Currently Have


Reminder: The money we save each month in our Growth Bucket is merely sitting in a waiting room. A mere 2% per year interest-credit is not going to cut it.

So start by learning up on how one, two or more of the asset classes can help you grow our buckets of wealth. The main three wealth-generating assets are Businesses, Stocks, and Real Estate.

Choose to master those that suit your personality and risk appetite and then go and kick inflation in the ass!


PART II: Grow Our Income


Focus on growing our skill sets that may grow your income within our employment, side hustles, or even within our businesses. 

Some skills to consider picking up and refining here are the art of negotiation, coding and programming, audio-visual editing, content creation, and digital marketing; ultimately, learning to make more sales.



There you have it!

By following these two steps of Practicing Good Money Habits and Growing Your Wealth, we are sure to make the transformation from Flabby to Fit!

At the end of the day, being financially fit remains to be just another aesthetic, feel-good state of being if we do not choose to use our wealth meaningfully. 

As we progress along this financial fitness journey, think about what kind of life it is we really want to create and live out. Find our WHY, our purpose; and what we truly value in this lifetime.

Because when we do, when we (truly) want something, all the universe conspires in helping us to achieve it.

The Alchemist, Paulo Coelho
Just like physical fitness, taking care of your financial fitness is equally as important! Find out if you are financially fit, or flabby.

Like What You See? Here Are Some Related Posts

Leave a Comment

Your email address will not be published. Required fields are marked *

Posts Like This

How To Get Out of Student Loan Debt Fast
Money Management
Shen Lee

How To Get Out of Student Loan Debt Fast

You graduate from college with a luggage full of big dreams, big goals, and a bright outlook on where your next steps in life will take you.  “Career success is just over the horizon!” However, something is holding you back.

Read More »
52 Best Ways to Save Money Fast
Money Management
Jeremy Ong

52 Best Ways to Save Money Fast in 2019

Have you ever given much thought to how much you save a month? If that number can hardly buy you two movie tickets; you’re doing something wrong. Worst-case scenario, you might even be in the negatives by spending much more

Read More »
13 Best Ways To Get Out Of Debt Fast
Money Management
Jeremy Ong

13 Best Ways to Get Out of Debt Fast

Americans are seriously in debt. In fact, studies show that the average American is almost $6,354 behind in credit card debt. That’s not counting the $34,144 left behind by student loans. Which means you’d probably be nearly $40k in debt

Read More »
5 Budgeting Tips When You’re Almost Always Broke
Money Management
Jeremy Ong

5 Budgeting Tips When You’re Almost Always Broke

If you often find yourself living from check to check, it’s probably time to switch things up a little. Your financial situation is yours and yours alone to be responsible for, and that always starts with the first step towards

Read More »
How To Negotiate For A Pay Raise
Money Management
Jeremy Ong

How To Negotiate For A Pay Raise

The thought of having to negotiate for a pay raise has always struck fear in employees. I’m sure you are wondering what can you do to increase your salary and the right negotiation tactics needed to achieve it.   You

Read More »
Scroll to Top
Share
Pin
Tweet
Share
Reddit