Tips to Tackle Financial Wellness with Confidence in 2022
Whether you’d like to save a little more or pay down debt, January is the perfect time to set financial goals for the year ahead. If you’re not sure where to begin on the path to financial wellness, your credit union is happy to offer a list of ways that you can get started. Please keep in mind that improving your financial wellness tends to be most effective by focusing on completing small goals that will help you achieve larger milestones.
Create a Budget – A budget is key to effectively managing your money and to understand where you have opportunities to improve your financial wellbeing. You can create your own from scratch, use a free app, or download and print a budget sheet online.
Save Monthly – Make saving a regular occurrence regardless of the amount. To grow your savings faster, place your money in a savings, certificate, or IRA account to earn dividends on your balance.
Make a Will or Living Trust – Creating a will or living trust helps to ensure your finances are managed according to your wishes on a long term plan. Depending on the complexity of your estate, there are free and low-cost options you can find online to help you with this.
Pay Down Debt – There are several ways to tackle this task, such as consolidating debt with a low-rate personal loan, or focusing the majority of your efforts on paying down debt with the highest interest rate first.
Consider a Refinance – Refinancing your auto or mortgage loan provides the opportunity to save long-term on monthly payments and possibly even the overall cost of your home or vehicle. In turn, this can help you keep more money in your pocket each month.
Review Insurance Coverage – Taking a peek at your insurance coverage every January is a good way to make sure you that you have the best coverage for your needs, while also confirming you are receiving great, competitive rates on your insurance.
Improve Your Credit Score – Working to bump up your credit score is an indirect but essential exercise to improve your financial well-being. A higher credit score offers many benefits including lower interest rates on lines of credit, discounts and perks on insurance, utilities, and more.