Our finances are a big stressor for most of us. It is daunting to try to figure out how to find financial wellness when you feel like you are living paycheck to paycheck and just barely getting by. Do you want to take control of your finances and work towards financial wellness? Here are five steps that can help you get started on your journey towards financial wellness. These steps help you create a budget, reduce your debt, save for emergencies, invest for the future, and educate yourself about personal finance. By following these steps, you can work towards achieving financial wellness and take control of your financial future. Let’s dive in!
1. Creating A Budget
First things first, let’s talk about creating a budget. A budget is a plan that helps you manage your money and track your expenses. It’s important to create a budget that is realistic and takes into account all of your income and expenses. You can use online tools such as the budgeting worksheet provided by the Consumer Financial Protection Bureau (CFPB)1 to help you create a budget that works for you.
2. Reduce Your Debt
Next up, let’s talk about reducing your debt. High levels of debt can be a major source of stress and can make it difficult to achieve your financial goals. You can start by paying off high-interest debt such as credit card debt. The Accelerated Debt Payoff Calculator² provided by Community Resource FCU can help you create a plan to pay off your debt.
3. Save For Emergencies
We have all experienced unexpected financial emergencies that forced us to really tighten our wallet belt. Saving for emergencies is an important part of financial wellness. Emergencies such as job loss, medical bills, or car repairs can happen at any time and can be expensive. However large or small these expenses are, they often feel like they hit at the worst times. It is recommended that you put aside money each month-even if a small amount-to help cover the cost of these unplanned expenses. To learn more about what an emergency fund is check out this article on the Consumer Financial Protection Bureau3 website. This is a simple read and answers a lot of questions about building an emergency fund. Open your emergency savings account with Community Resource FCU by clicking here and get started on your journey to financial wellness today!
4. Investing
Investing for the future is an important step towards achieving your long-term financial goals. You can start by contributing to a retirement account such as a 401(k) or an IRA. The Retirement Planner Calculator4 on Community Resource FCU’s website helps you calculate an amount you should be contributing to your retirement based on a number of different factors. You will also see how long your retirement money will last you.
5. Get Educated
Finally, let’s talk about getting educated. Educating yourself about personal finance is an important step towards financial wellness. There are many resources available online that can help you learn about personal finance. You can start by listening to the Money Management Podcast5 provided by Community Resource Federal Credit Union. Additionally, the MyMoney.gov website provides a wealth of information on personal finance topics.
By following these five steps, you can work towards achieving financial wellness. Remember, achieving financial wellness is a journey, not a destination. It takes time, effort, and dedication to achieve your financial goals. But with the right tools and resources, you can achieve financial wellness and improve your overall financial health.
1: https://www.consumerfinance.gov/about-us/blog/budgeting-how-to-create-a-budget-and-stick-with-it/
2: https://communityresource.balancepro.org/resources/calculators/accelerated-debt-payoff
3:https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/
4: https://communityresource.balancepro.org/resources/calculators/retirement-planner-calculator
5: https://communityresource.balancepro.org/resources/podcasts/money-management-3
6: https://www.mymoney.gov/