September is self-improvement month. This month encourages people to explore different ways to improve their daily lives. This can consist of small tasks such as completing home projects left undone, to larger goals such as taking the steps in pursuing a new career. We’re always looking for ways to help our Eastex Credit Union members improve their daily lives, so we’ve compiled a list of 10 ways you can start financially improving today!
Calculate Your Net Worth
Know where you financially stand. Your net worth is a good indicator of your overall financial health. To calculate your net worth, subtract all your liabilities from your assets. Examples of assets are checking and savings account balances, real estate equity, and retirement accounts. Some liabilities examples can include mortgage, student loans, car loans, miscellaneous debt.
Create a Budget
When listing your finances and creating a budget is the first step in improving your financial well-being. By reviewing your financing, you can know exactly where your money goes each month and have a snapshot of areas you’d like to improve. Be sure to avoid these five budgeting mistakes when creating and implementing your budget.
Track Your Spending
Tracking your expenses helps you to identify areas where you may be overspending. It also allows you to identify areas where you can cut back, such as dining out too frequently. Explore different budgeting apps and find what works best for you. Plus, Eastex Credit Union has variety of financial planning calculators available for our members to use!
Review Monthly Expenses
Cut back on unnecessary expenses where applicable. Have a recurring charge for a service you no longer use? Get rid of dead weight and free up some extra monthly cash! Getting rid of the clutter from your monthly statement on items you no longer use can instantly improve your financial health and mind.
Build Up Your Emergency Fund
An emergency fund is a great way to improve your financial well-being. An emergency fund is a cash reserve that’s specifically set aside for unplanned expenses or financial emergencies. Saving for these unplanned expenses or financial emergencies creates a financial buffer that can keep you afloat and prevent you from racking up credit card debt or depleting your existing savings. Having an emergency fund is especially important if you have debt to avoid accumulating more debt and never getting out of that cycle. Establishing and making an emergency fund is a crucial component to your financial health.
Pay Monthly Bills on Time
Paying your bills is another important aspect of taking control of your finances and maintaining your financial well-being. Paying your bills on time each month will boost your credit score which directly affects lower-interest rates on future credit card and loan applications. Paying your bills on time each month can also save you the headache of paying late fees and interest.
Pay Down Debt
Another way to financially self-improve is to tackle debt. Even taking the first step of planning and researching repayment methods for getting out of debt will give you a sense of relief. Wiping out high-interest rate debt on a timely basis can save you thousands of dollars in interest. Once you’ve eliminated a debt payment, you’ve then freed up money in your budget for other purposes. Consider consolidating debt to simplify your loan payments, pay off debt faster, all with a likely rate through Eastex Credit Union!
Designate a Beneficiary
Another way to financially self-improve this month is to designate a beneficiary on your checking, savings, and retirement accounts. Naming a beneficiary ensures that your funds will go to who you want them to. By doing so, you can simplify the probate process and avoid family conflict and confusion.
Start a Side Hustle
Find ways to earn extra money! Starting a side hustle can help you achieve your goals quicker including paying down debt, saving a down payment on a house, or building up an emergency fund. When looking for side hustle ideas, be mindful of scams – if it looks too good be true, it probably is!
Eastex Credit Union believes in you! If you’re on the road to financial self-improvement and hit a bump in the road, let us know! Our team of financial experts can help you get back on course and provide exceptional credit union care with products and services designed to fit your needs.
