As the calendar turns to a new year, many of us think about starting fresh with new, healthy habits, and setting new goals and plans.
With improving health and finances among the top New Year’s resolutions, we’d like to share some ideas for you to consider as we begin another year.
Healthy Finances, Healthy You
There are real connections between physical health and financial health. Studies show that people who worry about money are more likely to take sick days and report other physical problems. While going to the gym will help you get in shape, you’ll experience even more health benefits when you gain the peace of mind that comes from taking control of your finances.
Take Control
First step is to take control of your finances. You can accomplish this in several ways.
- Understand your spending habits. Knowing how you’re spending your money is a great first step to understanding your overall finances. Review your expenses and identify essential spending, such as housing, car payments, insurance, and utilities. Mark what are “nice to haves” and start to reconsider expenses that may not be necessary.
- Make a budget—and leave room for monthly savings. Start by taking your monthly income and subtracting your essential expenses. Then determine how much you can afford to save each month. Even saving $25-$50 a month may not sound that much, but it will add up over time. After your essentials and savings are accounted for, you will have a clearer view of what’s available for “nice to haves.”
- Get the big picture. Before you can effectively set financial goals, it’s best to know your overall financial situation. How much do you have in savings and retirement accounts? How much debt do you have and what rates are you paying? What other investments may you have? Taking this bigger view will help you determine where you are and guide goals for the future.
Handle Debt
Most people have debt of some sort. It’s a simple fact of life in today’s economy that many people rely on mortgages, auto loans, and student loans to build foundations for their future. Many people may also turn to credit cards to cover everyday and large expenses.
While debt is part of life, like everything else it’s best to keep it in moderation. If you feel that you need to get your debt under control, here are some things to consider.
- Keep credit card debt under control. Review your statements to see whether you are paying for things you may not really need, such as streaming services, subscriptions, or memberships.
- If you carry credit card debt, consider transferring balances to a card with a lower interest rate. SAFE’s Essential Visa® Credit Card is a great card for everyday expenses and has a lower interest rate.
- Consider cards that offer rewards, such as cash back or travel points. SAFE’s Cash Back and Cash Back+ Visa Signature credit cards give 5% cash back on quarterly categories you choose; 3% cash back on groceries, restaurants, food deliver services, gasoline and EV charging; and 1% on all other purchases.
- Maybe consolidating debt is the right choice for you. If you own a home, consider a HELOC (home equity line of credit) that has a lower rate than credit cards. Personal loans may also be an option.
Save for the Future
After you’ve set a budget and got a handle on your debt, you may have a better idea of how much you can save each month. But what kind of account would be best for you?
Here are some options to explore.
- Savings account. A regular savings account provides dividends and easy access to your funds when you need it.
- Certificates offer higher dividends while you set aside the money for a certain time. SAFE offers a range of certificates, including term certificates, where you choose from 3- to 60-month terms; Bump Up Certificates, which provides the ability to request a rate increase if one becomes available during the term; and the popular Add On Certificate, that lets you add money to it during the term.
- Money market account. A money market account can pay higher dividends than a regular savings account and provides access to your funds when you want them. SAFE offers several money market accounts for members to choose from.
Talk about It
If focusing on your finances is on your to-do list for the new year, we’re here to help. You can schedule an appointment to talk with one of SAFE’s friendly experts who can explore options that will help you achieve your goals and plan for what’s next for your financial journey.
Learn More
