Financial management is critical to your current wellness and future success. It all starts with education and information on managing your finances, and Altra Federal Credit Union can help.

Question: I just got my first job and I want to take charge of my finances, but I’m not sure where to start. What’s the best way to manage my finances?

Answer: Whether you want to get out of debt, grow savings, buy a home, pay for a child’s education, take advantage of opportunities, help others, retire comfortably, reduce money-related stress, or pursue dreams, there are four main concepts and actions you can take to help improve financial wellness.

1. Save

This concept encompasses growing your money for what you need, what you want, and for what you never see coming. Developing a consistent savings habit, even with modest amounts, is a crucial step towards long-term financial well-being and success.

Actions you can take:

  • Start saving and pay yourself first.
  • Utilize automatic transfers from each paycheck to build and grow your savings.
  • Build up emergency savings in an easily accessible account for unexpected events.

2. Spend

This concept encompasses making smart decisions with your money and also taking into account your money choices. It’s helpful to set short and long-term financial goals and manage your spending plan to meet them. Certain categories, such as clothes, entertainment and dining out are relatively flexible expenses that can be modified to lower your spending.

Actions you can take:

  • Be a savvy shopper and compare prices and quality
  • Set the maximum amounts you plan to spend each week or each month and stick to it

3. Borrow

This concept encompasses understanding what you need to know when borrowing money and having a plan to pay it back. Sometimes it’s necessary to borrow for major purchases like a house, car, an education, or maybe to meet unexpected expenses. Reach out to your financial institution for borrowing options that best meet your needs and budget.

Since a good history of credit is critical, be careful when borrowing and have a sound plan to be able to make on-time payments to keep your credit history strong. Your creditworthiness can also affect your insurance rates, ability to rent an apartment, setting up utilities, and even future employment.

4. Plan

This concept encompasses planning for your money, protecting your money, and developing sound financial strategies for the future.

Insurance plays a central role in your financial wellbeing, helping to provide financial security for you and your family if something unfortunate was to happen. Typically, insurance plans are beneficial to anyone looking to protect their family, assets/property and themselves from financial risk/losses. Being aware of what’s available and how it works can have a major impact on the price you will pay to be covered. It is a good idea to buy insurance when you have a lot of financial risk or investments on the line.

The bottom line

Check with your financial institution for financial education resources, information and assistance to help improve financial wellness. Many offer certified financial counselors, online financial education resources, apps that make learning fun for kids, financial wellness assessments to gain a better understanding of your financial health and areas of opportunity, educational podcasts, and adult and youth classes.

Altra Federal Credit Union offers an array of financial tools and information to help you manage your money. For more, visit them online, visit one of their Clarksville locations – 1600 Madison St. or 2625 Wilma Rudolph Blvd. – or call 800-755-0055.