Improving your financial wellness
Achieving your financial goals and dreams is dependent on a number of factors, but financial wellness is one of the most important. It is determined by the relationship you have with money as it relates to spending, saving, borrowing and planning. Here are some helpful tips to develop habits that can position you for long-term financial success and stability.
- Spending: Create a budget that aligns with your goals and track your expenses to help you make informed financial decisions. This is a great way to reduce the temptation for unnecessary spending. Start improving your spending habits by using a tool to automate your budgeting process such as Quicken. Learn more at esfcu.org/Quicken.
- Saving: Even though life can make saving challenging at times, try your best to make it a habit. Saving a small amount regularly can help you build an emergency fund, save for future goals and reduce financial stress. Optimize your savings by scheduling recurring transfers to your savings account each pay period. When possible, aim to save a minimum of 10 percent of your monthly income.
- Borrowing: Your credit score impacts if you’re approved for a loan and the interest rate charged. For this reason, it’s important to manage your debt. Focusing on paying off high-interest rate loans and avoiding new debt can help you maintain good financial health. If you have multiple credit cards, prioritize paying down the cards with the higher interest rates. Depending on your situation, you may eligible to consolidate credit card debt into one payment and reduce the amount paid in interest.
- Planning: A financial plan helps you make informed decisions about spending, saving and investing in addition to helping you prepare for your long-term goals. It can be intimidating to consider your goals and determine the changes that must occur in order to achieve them, but guidance is available. Don’t hesitate to seek a financial advisor to help you create a personalized financial plan based on your unique needs and goals.
Attaining financial wellness takes time and effort, but with a positive attitude and a plan you can be one step closer to achieving your financial goals and dreams. Working on each component daily will help you build a strong financial foundation to benefit you for years to come. To get started, schedule a financial checkup with Educational Systems FCU by emailing [email protected].
*This article was produced using content provided by our partner, GreenPathTM Financial Wellness. Visit https://www.greenpath.com/partner/EducationalSystemsFCU to access expertly-crafted financial education and resources to help with your financial matters.