With the beginning of a new year right around the corner, it’s time for many people to set their New Year’s resolutions. This is the perfect time to make some small changes in your financial habits that will make a big difference in the future.
David Sant, VP of Marketing at Cyprus Credit Union joined us with some tips.
Set a Goal
Your goal can be anything, maybe a long-awaited family vacation, starting a college fund for your child or getting on track for retirement.
- Make sure you can see your goals often, write them down somewhere you will be able to see.
- Remind yourself of your goals when you have an urge to make an unnecessary purchase.
- Always make sure your goals are realistic, even if that means it will take a little longer than you anticipated.
Create a Budget
Now that you have a goal set, what do you have to do to achieve it? The best way to control where your money goes is by creating a budget.
- Write everything down you spend during an average month and see where you can improve.
- Once you’ve written everything down, set a limit for each expense during the month.
- Your budget doesn’t need be complicated, it can be a simple note on your phone
- If your needs change, you can adjust your budget accordingly.
Prepare for Emergencies
Life happens unexpectedly so it’s best to be prepared for when it does.
- Set some money aside each month for emergencies, anything from car problems to medical issues or even an unexpected job loss.
- This fund should have enough money to take care of you and your family for at least 3-5 months.
- It may seem like a lot, but it’s better to have the money set aside and ready to use. Otherwise you might have to take out loans or max out credit cards to make ends meet.
Staying healthy is about the most generic you can get, but getting into shape has some unexpected benefits when it comes to your financial life.
- Living a healthy lifestyle; exercising, eating right and quitting smoking can decrease healthcare costs. It may also help reduce your health insurance premium.
- Additionally, check with your employer to see if there are incentives they offer for living healthy lifestyle.
You can find more information at cypruscu.com.