Americans need a regimen to get their finances in order. Studies have shown that the majority of Americans lack a basic understanding of credit scores and the fundamentals of personal finance. In other words, Americans can talk all the prosperity talk they want, but if they do not put forth the actions, behaviors and practices to become financially fit it is wishful thinking.

Know your credit score
A large number of Americans do not regularly review their credit report each year and many have never reviewed their credit report at all. Being financially fit means paying attention to your credit and money. A credit report is simply a rundown of your payment history, listing your accounts, balances and your payment behavior. Not paying attention to credit can affect your interest rates. Unfavorable credit can affect your ability to own property, rent, and can cause you to have higher premiums for many types of insurance. You can get a free credit report annually from all three credit bureaus by calling 1-877-322-8228 or going to www.annualcreditreport.com.

Know what you make
You would be surprised how many Americans do not know how much they bring home each month or year. Many discover how much they make in January or April when their taxes are done. If you do not know how much you make, how can you plan and reach your financial goals? Your gross income is the amount you make before taxes, insurance, medical and social security are taken out. Your net pay is the actual amount you bring home to live on and work within your budget.

Know what you owe
Unfortunately, many Americans feel comfortable living in denial about their debt. Listen up – you cannot become financially fit if you do not know your financial reality. One way to do that is to write down on a piece of paper everyone you owe. You must include creditors, vendors, loans, friends, family, co-workers or neighbors. In order for you to be “real” about your financial situation, you have to be honest about who you owe. Next, based on your debt amount, come up with a plan and time-line to pay it off. Your plan must be realistic and attainable.

The bottom line is that if you want to lose weight you accomplish it by having a fitness plan. In order to get financially fit, you use the same concepts. First, you admit you have a problem. Then, you identify the problem. After that, you need to come up with a plan to correct the problem. Finally, connect with like-minded people to help you stay accountable to your goals to be financially fit. Like anything else in life, financial fitness takes practice and work.

Sharman Lawson is a financial coach, writer, and author of the book 12 Steps to Eliminate Debt Forever! Visit her website at www.freedomconceptsusa.com.