As the new year begins, Members Choice Credit Union highlights the pivotal connection between financial wellness and overall health. Offering quick and simple strategies, they aim to advocate effective financial planning for a secure and stress-free future.
Featured on CW-39 Houston – Members Choice Credit Union, shares the importance of financial wellbeing and how to prioritize it this year.
“It’s the first of the year and the first thing we do is schedule that gym time to make sure we get our heart healthy, but I propose that we take a little time to look at our budget, bills, and credit report to make sure that we’re financially fit as well,” said Marina Rivera, chief lending and retail experience officer for Members Choice Credit Union.
Financial wellness begins with the development of a personalized budget. While it might involve some trial and error to discover the most effective approach, Rivera emphasizes that these invaluable tools are likely available within your online banking account.
“My favorite budgeting tool can be found in your online banking. It’s where you can see where you are spending money,” said Rivera. “You’ll notice how much you are spending on entertainment, eating out, and those are the places most people could maybe make some changes.”
To maximize savings even further, Rivera encourages a nuanced understanding of interest rates to optimize financial strategies and enhance long-term savings.
“When we’re saving money we want that higher interest rate, but when we go out to finance a car right now we really want to find that lower interest rate,” said Rivera. “So, interest rates are actually what we pay if we are borrowing and what we earn if we are saving.”
For individuals with idle funds, exploring the option of a Certificate of Deposit (CD) or a high-yield savings account becomes an attractive financial move. Rivera highlights that the current savings rates are the most favorable they have been in decades.
“It’s a great time to get a certificate of deposit. The last time CD rates were this high I used to have to roll an actual certificate and a typewriter and type it out,” said Rivera.
Parents with college-bound children often contemplate the task of saving for their education. To address this concern, collaborating with a tax professional or establishing a recurring deposit emerges as viable strategies.
“Start a savings account and actually set up a recurring deposit to where it’s out of sight out of mind,” said Rivera. “There are other structured ways, but you should probably speak with a tax professional because they come with quite a few rules and that makes it more complex for the average individual.”
Want more tips like this? Visit Good Money Habits for more ways to save.
