Let's Talk About...Financial Fitness!

January 8, 2021

Back in December (which already feels like months ago somehow) I teamed up with my friends over at Hallo to put together a series of events to help y'all Level Up Your Lifestyle in the new year. One of those events was all about financial fitness. We also had social media influencer and content creator Natalie Barbu join us to talk about her own personal journey with finances and learning about how to be financially fit.

So, without further ado, here is the abridged rundown of key terms and takeaways from our financial fitness event!

Financial Fitness: the basics

  • Financial Fitness = the ability to manage your money in a way to meet your short and long term needs, can efficiently handle your expenses while living a quality life
  • A budget is a financial plan for a defined period of time that allows you to track revenues and expenses
  • Why is having a budget important?
    • You can see exactly where your money is going → hold yourself accountable!
    • Allows you to plan and prioritize finances
    • No surprises when looking at your bank balance

Budgeting Tips & Tricks

  • Budgeting tips & tricks:
    • Consider creating a buffer in your budget to account for any emergencies
    • Remember that not every month will be the same in terms of spending (holidays, months with vacations, etc) so plan accordingly
    • Set aside time to regularly reassess your budget

TIP: Free resources for budgeting include Mint and Napkin Finance Money 101 course

All About Saving

  • A few reasons why you should save your money include:
    • Can lead to long-term security which means less stress
    • Can help you pay for large purchases (house, car) when the time comes 
    • More financial freedom
  • Ways to get started with saving:
    • Create a savings account that is separate from your everyday bank account
    • Try the 50-30-20 rule (50% of income to necessities, 30% to discretionary items, 20% to saving)
    • Take advantage of discounts where you can, consider “A” and “B” options when making purchases

Tips for Investing Your Money

  • Investing some of your savings can be a great way to help your income multiply
  • Common investment mistakes:
    • Mistake - putting all your eggs in one basket.
      • Solution - Consider investments with varying levels of risk, and rebalance your portfolio regularly
    • Mistake - buying and selling based on emotion
      • Solution - Before you make a move, assess the situation based on logic and planning
    • Mistake - too much turnover with stocks leads to more fees
      • Solution - Perform substantial research before diving in and investing so you can be confident in your decisions

There, you have it. The quickest of quick event takeaways! This run-through on financial fitness is just a scratch on the surface. Head here if you want to take a look at the full presentation from the workshop itself.

Finally, here are some additional resources to help you become more financially literate and fit in 2021!

How to Make Money While You're Still in College

Financial Literacy for College Students, by US News

30 Fab Student Deals

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