Financial Wellness

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Financial wellness is learning to manage finances for the short term and long term while living within your means.

Financial wellness shows up in our lives in the following ways:

  • Managing your money and establishing a personal budget.
  • Living within your means.
  • Learning about debt and how to manage it.
  • Making a plan to pay back/pay off debts.
  • Improving your credit score.
  • Planning long term, e.g. set up a savings account, retirement.
  • Removing money as a driving force of your life.
  • Donating some of your money to a cause you believe in.

Financial Wellness Practices

KNOW YOUR CASH FLOW

Knowing the difference between needs and wants is an important step to achieving financial goals and independence. Limit your spending to the things that matter most and use the rest of your money to focus on your financial independence.

Apply these questions to your finances:

  • How much money are you bringing in each month/week?
  • Where is it coming from?
  • Is that money reliable each week, month or year?
  • What are your expenses? Account for every expense, even the cup of coffee or bottle of water.
  • What do you need?
  • What do you want?

WAYS TO STRETCH YOUR DOLLAR

  • Cut out/cut back on costly habits
  • Limit music and app downloads
  • Use any free public transportation
  • Go to free local events or attractions for entertainment
  • Comparison shop online to find the best deals
  • Need clothes? Shop the sales rack or at thrift shops
  • Borrow books, video games and DVDs from your public library
  • Read your favorite magazines at at your public library
  • Use your student or senior discount, if you qualify
  • Buy generic
  • Limit eating out by preparing food at home
  • Drink/smoke less – cutting back on alcohol and recreational drugs can save money
  • Use online discounters such as Living Social or Groupon
  • Buy used instead of new- (Don’t forget Ebay/Let Go/Offer Up!)

HOW TO BUILD GOOD CREDIT

Think of your credit score as a kind of financial scale: Your goal is to keep improving it, and then maintain it when it’s the highest you can achieve. If you’ve recently put some pounds on the scale—maybe in the form of making late payments—you’ll need to work that much harder to raise your score!

  • Pay all your bills on time, including loan payments
  • Do not overdraw your account or bounce checks
  • Before you apply for a credit card or loan, ask yourself if you really need it and if you can afford to the payments
  • Contact creditors immediately if you are struggling to make payments
  • Check your credit score, at least annually
  • START SAVING – PAY YOURSELF FIRST

Paying yourself first means that you’re making savings your number one spending plan priority. Putting even $10 to $25 into a savings account each paycheck will help you establish a savings habit. As you continue to pay yourself first, you can grow your savings and establish an emergency savings fund. Over time, you can increase your contributions to savings and pay off outstanding student loans and/or credit card debt.

  • Open a savings account
  • Save money as part of your budget plan
  • Decide what is for saving and what is for spending
  • Put “extra” money into your savings account
  • Set short and long term goals
  • KNOW WHAT YOU OWE -credit cards, loans and other personal debt

Financial Wellness Action Steps for Debt:

  • Read the fine print on any loans you take out
  • Understand your loan obligations
  • If you are in college, submit a new FAFSA every year
  • Talk to a financial officer about any change in your situation
  • If you have questions about any private loans call your lender with any questions