Budgeting Checking Savings

What is Financial Wellness?

Did you know that two-thirds of Americans plan on making a financial New Year’s Resolution? However, only 20% of those are confident that they will be able to keep up with their goals. This year, instead of making a resolution, put your focus on financial wellness. What is financial wellness?

 

The simple definition is the ability to take care of your basic needs financially, both now and the proper management of finances for the future. The simple way to have financial wellness is to not spend more than your monthly income. But for many of us, that seems like a daunting task.

 

At BHFCU it is our goal to provide you with the tools you need to be financially well. Here are a few quick tips for members looking to improve their financial wellness in 2023.

Set a budget

One of the most basic steps in setting yourself up for financial wellness is setting a budget. Create a list of your expenses and compare that to your income. Are there areas that you can make changes? Look specifically for areas that you can save money each month. Do you have a lot of subscription services? Is that morning cup of designer coffee a necessity?

Don't forget to set some room in your budget for fun! You're more likely to stick to your budget if it meets all of your needs. Remember that your budget is there to help you maintain balance, pay down debts, and increase saving. As you pay down debts, revise your budget to better serve your current needs.

Pay DOWN Large Debts

Debt can be overwhelming! Which debt should be paid first? How much should you pay? When creating a budget, it is important to set aside extra funds to pay down large debts or those with the highest interest rates. Don't just budget the minimum monthly requirement, but always try and pay over that amount each month if possible. Consider refinancing loans with high interest rates. BHFCU offers the option to make no payment for 90 days when you refinance your auto, farm equipment, boat, RV, camper, or ATV loan, giving members the ability to use those 3 months of payments to put toward other needs!

Start Saving!

Did you know you can use Direct Deposit each month to have money from your paycheck put directly into a savings account. Doing this makes sure that the money is saved and not spent.

Plan for the future

While it may seem hard to plan 20 years from now when you’re struggling financially today, investing is still an important part of financial wellness. BHFCU offers IRA, CDs, and Life Insurance policies. Planning a life insurance payment into your monthly budget is an easy way to start saving for your future today.

increase your credit score

Your credit score determines your interest rate, which determines how much you’ll pay on your loan. BHFCU is now providing FREE Credit Monitoring without negatively impacting your credit score. Our program allows you to see what your credit score would be based on future payments and teaches you how to improve your credit score in the future. 

refinance your home or auto loan

Refinancing is a great way to save money each month. If you’re paying a high interest rate on your home, auto, boat, RV, or camper loan, consider refinancing with BHFCU. When you refinance, you’ll make no payment for 90 days!  That gives you 3 months to use the money that would have been spent on your loan, to put toward an urgent need.

EArn additional income

We find ourselves living in a world where you can work from anywhere, anytime! If money is placing a financial burden on your life, look for additional ways to bring in income using your unique skillsets. Are you creative? Consider looking at starting an Etsy Business or becoming a freelancer. Do you have a car? Put it to use by working for a delivery or pickup service during your free time. Interested in sports? There are paid positions such as a referee or coach that could be done on the evenings or weekends. Love fitness? Offer your services as a personal trainer. Whatever you're interested in, look for ways to use your talents and earn extra money in your spare time!

Financial wellness can often leak over into our physical and mental wellness. According to a Vericast study, 75% of consumers said the amount of money in their bank account, impacts their mental health. Money can, but should not have an impact on how you feel about yourself or your life decisions. Your financial wellness should not impact your emotional wellness. Always have a plan of how to change your spending if there is a change to your income. It is also important to save to ensure you have funds to cover emergency expenses. If you’re struggling with your financial situation, give us a call at 501-202-2373. We can discuss options like skipping a payment, refinancing, and lend a listening ear during your time of need.

 

Remember, you control your finances, your finances do not control you. Baptist Health Federal Credit Union is here for you! We want to assist as much as we can. If you have a financial question, are looking for ways to save, or have questions on creating a budget, give us a call at 501-202-2373!
Wealth Money Possession Investment Growth Concept

Leave a Reply

Your email address will not be published. Required fields are marked *