Flexing Your Financial Fitness

Financial fitness begins with the basics: a budget, an emergency fund, a strong credit score, and a savings plan for the future. Levo’s Executive Vice President - Strategy & Service, Preston Meline, shares a few steps to get started on your financial fitness journey.

Financial Fitness is a Journey

It is important to understand there is no one-size-fits-all approach to financial fitness, and your journey will look a little different depending on the stages in your life. Gaining additional education and understanding related to your personal finances and future opportunities will serve you in the long-run.

Beginning the path to financial success starts with a savings account and or certificates. This discipline of saving for future needs early in life will help build the discipline needed for the long road it typically takes for most to achieve financial independence. This account can then be built upon by opening a checking account for your everyday transactions and learning budgeting and money management. Later, you should learn to leverage credit for things like an auto loan to purchase a vehicle or a mortgage to own a home, and a credit card to get paid for using your own money. Financial fitness also covers the what-ifs, such as building an emergency fund, funding a child's education, and planning for retirement, as well as insurance.

DIG DEEPER: Build An Emergency Fund For Life's Unexpected Expenses

Getting Started

It can be easy to get frustrated or feel defeated by where you are in your financial journey, which can lead to inaction or uncertainty about where to start. Take some time to understand where you are currently in your journey, what you would like to learn about your finances, and begin identifying a few goals you can easily achieve.

If you are just getting started, make sure you have the essentials covered with a savings and checking account. You can add more products and services later as you become more comfortable and confident on your journey.

Next, to grow in your financial fitness journey, you need to understand how your income compares to your expenses. Using a budget is one of the best ways to track this. The most important budget is the one that you will use and reference often.

RESOURCE: Budgeting Sheets

Improving Your Position

Review your earning potential relative to your current role and any side hustles you have. Can you work harder and longer earlier in your career to reach your financial goals and emergency planning to offset inflation and increasing costs? Saving and paying yourself first is crucial for you and your family.

Levo can help with critical financial needs as well as day-to-day financing, including auto, mortgage, and credit needs, as well as insurance and protecting what you have worked hard for.

Being financially fit can take a lot of discipline, and consistent efforts are what help you see the results. Here are a few ways to maintain the progress you have started:

• Check in weekly or biweekly to review your finances. Sometimes you may stray from your budget, and other weeks you may be stricter, reviewing your finances frequently can help you stay on track.  

• Have an accountability partner you trust. This can be a significant other or someone else you trust to keep you to your word. Sometimes having someone else on the same journey makes it easier to keep going and hold ourselves to the standards we set.

• Use your emergency fund for only true emergencies. These 3 to 6 months of savings are meant to help offset unexpected emergencies such as job loss, car repairs, or medical costs, not for vacations or entertainment. Your future self will thank you for not dipping in, if or when something comes up.

• Start saving and investing early. With more time to let your money grow, you get to take advantage of compound interest. Make sure to leave these accounts alone. Your savings and investments can pay you later, acting as supplemental income. 

Begin Today

The only way to improve your financial fitness is to improve your financial fitness. Financial fitness is like going to the gym; people approach the situation differently. Some people are just beginning their journey, while others are hitting one personal record after another. Regardless of where you are on your journey, you can always make positive progress toward your future self. 

As you move along your financial fitness journey, Levo Credit Union® makes a great partner to assist you when you need some support. Reach out to our Service Center at 605-334-2471, stop into one of our branches, or visit our website to learn more.

About Preston Meline
Preston Meline has served as Levo's Executive Vice President - Strategy & Service since 2019 and brings more than 30 years of experience in the financial industry. He has degrees in business management, financial services, and organizational leadership, along with certificates in performance management and commercial banking.