Financial Wellness: A Recipe for a Stronger New Year
If you’re wishing for a better and more successful year, make sure to include financial wellness in your New Year’s resolutions in 2023.
Financial wellness is more than just sticking to your budget - like any great recipe, there are many components that have to work together to create the end result. But instead of a cake or casserole, the final product for this recipe will be your overall relationship with money. This includes:
There are some key “ingredients” you need to empower a healthy and balanced financial life this year.
Perform a financial audit
The goal here is to have a sense of what you’re working with, financially. Giving your finances an audit means diving into your income, debt, monthly bills, savings and more to give you a better understanding of what money is coming in, what money is going out, and how much is leftover. You can get started with your financial wellness assessment today!
Create a monthly spending plan
A monthly spending plan will set you on the right path to financial wellness this year. With your spending plan, you’re following the “recipe” for smart financial decisions and developing healthy spending habits that will last a lifetime. Use our debt payoff calculator to get started.
Save for a rainy day
Ideally, experts recommend having 3-6 months of expenses saved and accessible, but it’s helpful to have a short term goal that is less intimidating and can build on itself. Start with saving at least one month of expenses – it can help you weather the difficult times. Then once you have one month, go to two, and so on.
Pay off your debts
One of the key ingredients to financial wellness is reducing your debts. To do this, make a plan to pay off your debts as soon as you can – there are many strategies to debt payoff. The snowball method, where you start with your smallest debt and work your way up can give you a boost each time you pay off a small debt. The avalanche method starts with the largest debt and knocks it out first, then uses those funds to pay off the next highest debt. There are even more options - find out which debt strategy works best for you and get started!
Take advantage of available tools
If your employer offers financial wellness programs, don’t hesitate to take advantage of them. These programs will help you understand different financial topics and how you can apply them to your personal finances. Don’t have one? Use the credit union’s financial resource Banzai and share it with friends and family members – it’s free!
Take action this year!
When you start improving your financial wellness and you will feel the positive impact in so many areas of your life.
At CCCU, we strive to help our members realize their financial goals and dreams. Our credit union staff s always here to provide support and offer financial coaching. Call us at 702-228-2228 to help you get on the right track this 2023!