Chasing financial wellness? Start by taking a good look at your current finances. Setting a budget and checking out your spending habits can really help you see where your money's going. With interest rates likely to stay high for a while, the new year is a great time to tackle high-interest debt and check out reward programs to make the most of your monthly budget.
The next step is to prioritize savings, especially with an emergency fund.
"Kickstart an emergency fund—aim for at least $1,000—and work towards saving enough to cover three months of expenses,” says Robin Tooms, chief marketing officer at Members Choice Credit Union. “Having this safety net can give you peace of mind and financial security when life throws you a curveball, like unexpected home or car repairs.”
To boost your savings even more, consider options where your money can grow, like a high-yield savings account or a certificate of deposit. These options not only keep your money safe with federally insured deposits, but also help it earn more over time, giving you a little extra boost towards your financial goals.
With interest rates still up there, automating your savings by setting aside a chunk of your direct deposit each month is a simple way to start building a financial cushion. This way, you’re consistently saving without having to think about it, making it easier to reach your savings targets.
The new year is also a perfect time to check your credit score. You can snag a free copy of your credit report from the major consumer reporting agencies. Keeping an eye on your report for any mistakes or missing info is key to keeping your credit healthy.
This is also a great time of year to get some expert advice from a financial advisor or planner to help you steer your finances in the right direction.
“A financial advisor can be your go-to coach for all things money. They can help you fine-tune your financial strategies, spot savings opportunities, manage debt, and turn your goals into actionable plans,” says Tooms. “Think of them as your personal guide to navigating the sometimes choppy waters of personal finance, helping you stay on course towards achieving your individual financial goals.”
Financial Wellness Assessment
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