When it comes to financial health, there is uncertainty surrounding what exactly healthy finances consist of. We all know it feels good to pay off bills, but there’s more to it than that. Here are five useful tips that anyone can use, whether you are just starting to save or investing in your retirement.
1. Debt is the dirty little word no one wants to talks about, but the majority of people have some degree of debt, sometimes with devastatingly unhealthy effects. The key is to confront your debt head on. Knowledge is power. Take stock of all of your debt, organizing from smallest to largest and, in doing so, pay the minimum on all your debts excluding the smallest debt. Pay everything you can spare towards this smaller balance first because it’s a quick win that translates into positive momentum – once it’s paid off you’ve just taken the first step towards handling your overall debt. Now you can start paying off the next smallest debt, and so on.
2. Building a healthy budget may sound a little redundant but this can go a long way in helping achieve the financial success you desire. Start simple. What are your necessities? Monthly obligations, utilities, or commitments?
3. Go back to basics with your savings. There are two keys to savings. “Start early and save often” is one tip you may often hear, and if you haven’t started yet, it’s never too late. The second is to automate the process as much as possible. Set up automatic monthly transfers with your bank or credit union, or set up a specific amount to be withdrawn from your paycheck and moved to a savings account automatically within online banking. You won’t miss it if you don’t see it, and the savings will build quickly.
4. This next step goes hand in hand with those saving habits we just touched on: the plan for retirement starts now, even if you start small. Doing the minimum match with your employer’s 401k or 401b plan is a great place to start. Upping the amount you put into those plans each time you receive a raise is another great way to save. We can’t stress enough – you won’t miss it if you don’t see it, and the savings will build over time.
5. The final tool you should take advantage of is a surprisingly underused resource. Get an annual free credit score check. Once again, knowledge is power and it’s always better to be proactive. Visit annualcreditreport.com to get your free credit report. The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.
Altra Federal Credit Union offers multiple free and accessible online tools and features that you can utilize to start building your wealth, get out of debt, and create a realistic budget and savings plan. Track spending and set goals with our free online MoneyDeskstop feature and view your entire financial picture on a single dashboard. We offer multiple free financial calculators that can help you pay off debt faster and save more, along with professional financial tips and information concerning almost any financial situation. For details visit www.altra.org, call 931-552-3363, or stop by one of our Clarksville office locations.
Article sponsored by Altra Federal Credit Union, a full-service financial serving 88,000+ members in all 50 states and around the globe. This information is intended solely to provide guidance and is not financial advice.