January is a great time to establish habits to make 2022 a successful year for you financially. MSUFCU Chief Marketing Officer Deidre Davis has a few financial habits you can begin working on today.
When it comes to financial health, where should you start?
Saving is key to financial success. Incorporating saving into your monthly budget will help you reach your overall financial goals.
Setting those financial goals is the second item. Using your budget as a guide, decide what you want to do this year – travel, purchase a car or a home, reduce debt, or anything else. Once you have your goals, establish savings accounts for each and set an amount to contribute to them each month.
To make it easier, set up automatic transfers to your accounts through your financial institution and watch your savings grow.
What should you do if you are struggling to save?
If you have more savings goals than room in your current budget, there are two things you can do: reduce expenses or increase income.
Review your budget for ways to cut costs, such as reducing the number of streaming services or canceling the gym membership you don’t use. You can also refinance your auto or home loan if your credit score is good or interest rates have dropped.
To increase income, consider freelance or part-time work in addition to your current job. You also could look in your closet or elsewhere around your house for items you no longer use and sell them online.
What is one of the most important items to save for?
Saving for an emergency should be at the top of your list. According to bankrate.com, only 39% of U.S. consumers can cover an unexpected $1,000 expense.
To be more prepared, establish an emergency fund to cover unplanned costs such as car repairs and medical expenses. It can help your budget, preserve your savings goals, and keep you from adding more debt.
Experts recommend saving three to six months’ worth of expenses in your emergency fund but you can start with a smaller goal and build from there.
What can MSUFCU do to help?
MSUFCU offers its Savings Builder account to help members save faster by paying more dividends on initial deposits. Members can establish multiple subsavers within their main savings account and automate their savings. In addition, the Credit Union’s mobile app allows members to easily monitor their accounts. MSUFCU also offers auto and mortgage refinancing. For more information about any of these products, stop by one of our two Traverse City branches at 312 S. Union St. or 3752 N. U.S. 31 S.; call us at 231-715-4016; or visit msufcu.org.