Page 64 - Tracy Anderson Magazine - Fall 2021

When you think about wellness, physical and mental health
are no doubt two priorities that come to mind. But when it “IT TAKES COURAGE,
GE T TING comes to overall well-being, financial health is another ex- DISCIPLINE, SACRIFICE,
tremely important factor that affects you and your family’s
FIN AN CIALL Y FIT security and quality of life. I believe that if you’re financially AND CONSISTENCY,
BUT THE REWARD OF
fit, you’re ready for the unexpected and well positioned to
avoid financial stress, regardless of what life throws your way.
FINANCIAL SECURITY
Alicia McMachan shares her training plan for your finances. Whether you’re recovering from unexpected financial IS WELL WORTH THE
hardships or you’re simply looking to boost your financial
health, it’s important to establish some good financial hab- EFFORT.”
its. Here are five practical steps to help you take your finan-
cial fitness to the next level. you stick to your budget and focus on buying what you really
need rather than going off-list while browsing in the store.
Start Saving Now
There’s no time better than the present to start saving for Prioritize Paying Down Debt
retirement, even if it feels far away. It may seem tempting Identify your highest-interest debt and work to pay that
to put it off, but keep in mind that the sooner you start sav- down first, particularly if it’s credit card debt. Call your
ing, the more you’ll benefit from compound growth. First, credit card provider and try to negotiate a lower interest
put your goals in writing and prepare a budget. If you’ve rate, or research your options for transferring balances to
been financially impacted by the pandemic, it’s especially a new card that has a 0% rate offer. If you have a mortgage,
important to reassess your goals. Practice the 50/20/30 consider refinancing to take advantage of the low interest
approach to your income: This means that 50 percent of rates currently available.
your take-home pay should go toward essen-
tials like home costs, 20 percent should be Build a Solid Financial Foundation and
reserved for investing in your future, and 30 Work with an Expert
percent can be used for discretionary spend- If there is one financial lesson the pandemic
ing, like travel and shopping, for example. taught us, it’s that we need to have an emer-
gency plan. A financial adviser can help you
Pay Yourself First understand your investment and insurance
When you prioritize self-care, you are bet- product options and guide you through the
ter equipped to care for those around you— process of building a holistic plan that fits
and this goes for both physical and financial your life and prepares you for the unexpect-
well-being. Treat your savings account like a ed. Putting a solid financial plan in place will
bill and commit to paying yourself month- Alicia McMachan help you live and protect your dreams, re-
ly. Setting up an automatic withdrawal from gardless of what the future holds.
your paycheck to your savings account can simplify the pro-
cess. You’ll want to establish an emergency fund with some- Like any other wellness journey, achieving long-term finan-
where between three and six months’ worth of expenses cial fitness is a process. You need to have a plan, define your
available at the ready. Regularly contributing to your sav- financial goals, and take action to achieve them. It takes
ings account can help rebuild any short-term savings you courage, discipline, sacrifice, and consistency, but the reward
may have had to use unexpectedly and will also establish a of financial security is well worth the effort. ■
nice cushion for the future.
Alicia McMachan is the founder and CEO of Congruent Advisors,
Find New Ways to Save Within Your Budget affiliated with Northwestern Mutual Wealth Management Compa-
Once you’ve bulked up your short-term emergency fund, ny. Alicia works with clients across the country as a financial adviser,
look at other ways to cut your budget and save. Reconsid- providing comprehensive financial planning to individuals, families,
er nonessential costs and cut out items that aren’t adding and businesses. Her mission is to make a contribution to the world by
value to your current life situation. Identify lifestyle chang- coaching clients on their path to financial security. She does this by in-
es that are easier on your wallet and well-being, like trying spiring planning and influencing investor behavior that is congruent
new healthy recipes at home rather than spending more on with her clients’ values for financial security. By creating balance in
take-out. Using online grocery shopping services can help the plan, she empowers her clients to truly spend life living.

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