EAST HANOVER, N.J., July 6 /PRNewswire/ -- If we've learned anything from the current recession, it's this: Being "financially fit" is as important as being "physically fit."



"If we paid as much attention to what we spend as to what we eat everyday, perhaps we would be better prepared to weather the impact of a recession," says Stephanie Sherman, CFP(R), Partner, Family Wealth Management Group, LLC, in East Hanover, NJ.



Here are ten tips for staying financially fit for life:



1. Track expenses - Save receipts, record expenditures and track expenses for 2-3 months to see where your money goes. Many online banking programs offer customers the ability to categorize and track expenses online. Knowing how you spend will help you see where you can cut back.



2. Trim the fat - Look for ways to save extra dollars each month. Avoid ATM fees and directory assistance charges on your cell phone, pay bills online (it saves postage and time; and time is money), watch movies at home, eat out less frequently, turn the thermostat up a few degrees in the summer and down a few degrees in the winter, turn off lights and appliances when not in use. Ask yourself whether you need all of those premium cable channels.



3. Save - Build a cash reserve of three to six months of expenses. It may take time, but it may be your lifeline in the event there is a job loss in the family. Look for a savings account with a higher than average interest rate - typically an internet bank - with insurance by the FDIC.



4. Reduce Debt - Evaluate your credit card balances, limits, interest rates and monthly payments. Avoid late payments. Pay down cards with the highest interest rates first and aim to reduce the balance of every card to below 40% of its limit. This will boost your FICO score.



5. Consider Ways to Make Extra Income -- Think of different ways to make extra money through side jobs or a hobby that has marketable benefits.



6. Plan for Retirement - Take inventory of your assets and possible income sources available for retirement, such as IRAs, 401(k)s and 403(b)s, and Social Security.



7. Investigate Annuities - Talk to your financial planner about an annuity with a guaranteed lifetime annual payout.



8. Protect your Assets - Review your life and disability insurance needs, especially if you are the primary breadwinner. Ask your financial advisor if long-term care insurance is right for you.



9. Plan for your Beneficiaries - Create a will, choose a guardian if needed, and select who will manage your estate in the event of your death.



10. Meet with a Financial Planner - A qualified professional can help you meet your goals and stay financially fit with or without a gym membership!



Stephanie Sherman, Partner, Family Wealth Management Group, LLC, 383 Ridgedale Avenue, East Hanover, NJ 07936, is a CERTIFIED FINANCIAL PLANNER(TM) and Investment Advisor Representative of Prudential Financial Planning Services. Contact Stephanie Sherman at (973) 386.9699 or stephanie.sherman@prudential.com.



Stephanie Sherman, CFP(R), offers investment advisory services through Prudential Financial Planning Services, a division of Pruco Securities, LLC (Pruco) and securities products and services as a registered representative of Pruco. Family Wealth Management Group, LLC is not affiliated with Pruco. Other products and services may be offered through a non-Pruco entity. (800-201-6690). Stephanie Sherman does not offer tax or legal advice. Prudential is not affiliated with any of the above mentioned.

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