If you’re looking for a solid resolution for the new year, consider your financial wellness and put it as a top priority in 2024. With a little help from the finance pros, savvy people can plan now and make smart financial decisions that can change the whole year.
Financial Missteps You Need to Skip
Navigating your finances can be tricky but can work out in your favor with these tips and pointers to boost your financial wellness and help you reach your long-term goals.
Budget? What Budget?
If you don’t have a budget to help manage your finances, you might be a little surprised and a bit disappointed when you realize how quickly flying blind without a budget can crash your cash party. It’s crucial for your financial success to know how to properly manage your money and that includes a monthly budget to keep you on track.
Credit Card Debt: The Silent Cash Killer
The quickest way to mismanage your money is to overspend on credit cards. Immediate gratification seems like a good idea when you see something you’ve been wanting and decide to splurge, but maxing out credit cards is always a bad idea. That $200 purchase could take you the entire year to pay off when combined with high interest charges from your credit card and past purchases that are still not paid for. Soon you will find yourself with a hefty balance that you can’t afford to pay off. If you do find yourself in this unfortunate situation, be sure to make the minimum payments each month to maintain your credit score so your credit stays in good standing.
The “No Backup Fund” Flub
Not having a backup fund is not a good plan. Optimally, having three to six months’ worth of living expenses in a Savings Account or high-yield Money Market Account is what your goal should be. Having this emergency fund will give you a financial safety net for when unexpected expenses occur. In the real world, a job loss, medical emergency, or other life event can happen at any time and having a backup fund can save the day…and your credit score. Start saving now, even if it is not a lot. Sticking to your budget is a good place to start. Be sure to include some cash to stash for savings each month. A savvy savings tip includes having money automatically deposited from each paycheck, so you don’t have to think about it each month.
Chasing Big Returns Without a Clue
Investments are a great way to ensure your financial wellness in the new year. Do be aware of any promise of high returns on your investments without the complete 411 on the terms, though. Going all-in without doing your homework can wreak havoc on your finances instead of enhancing them. Turn to Finex Credit Union for wise investments like Certificate of Deposit (or CDs) and Money Market Accounts for the best return on your money and peace of mind knowing your savings are in safe hands.
Ignoring Your Credit Score’s SOS
Making your credit score a good one should be top priority when it comes to your financial wellness in 2024. One late payment or carrying too much debt can cause your credit score to tank. This means you will pay higher interest rates on credit purchases and have less borrowing power when needed for things like a home or car purchase. Keeping your credit game strong is the ultimate key to controlling your finances, reaching your goals, and having a bright financial future.
Finex Credit Union Has an Arsenal for Your Financial Goals
If you’re looking for guidance to help you achieve your financial goals, Finex Credit Union has an arsenal of tools for your money mission. Specially designed to help members make informed decisions and achieve financial goals, these financial calculators can help with a variety of financial situations. From figuring out debt to income ratio and creating a home budget to debt consolidation calculators and Savings Account tips, your local credit union is here to help you get started on your path to financial wellness in the new year.
