5 Ways to Celebrate Financial Awareness Day
August 14 is Financial Awareness Day, a day dedicated to focusing on financial health. Because our finances will impact many important decisions we will make throughout our life, understanding our financial health and maximizing on ways to improve it can mean a better life for us, our family and our community. Here are five ways to get started.
1. Create or update your spending plan. Seeing where your money is going each month will help you create and maintain your financial goals. Download our free spending plan.
2. Set a goal for your savings. Ideally you should save three to six months’ worth of your expenses in your savings. Think of this as your safety net if your life should have an unexpected change like a job loss or a major home repair. Establish the amount of time you can accomplish your goal and determine the course of action to get you there. Paying into your savings the same way you would pay a bill is a good way to ensure you’re putting money away every month.
3. Manage subscription services. Do you know how many subscriptions you’re paying for? A $10 monthly subscription may not seem like much but that’s $120 per year you could be saving. Evaluate your current subscriptions and cancel ones no longer in use. Cell service providers like T-Mobile and Verizon have service plans that also include subscriptions like Hulu, Netflix, and Apple TV. Crunch the numbers on what your monthly cell phone bill might be if you subscribed to your favorite streaming services through them. You may save money combining the two rather than paying a subscription service separately.
4. Commit to small changes. Finding alternatives to costly habits can help you reach your goal quicker. Identify changes you can make in your spending and commit to that change. Some of us might want to try making coffee at home or dining out three nights a week instead of five. The important thing is to find something you want to adjust and feel like you can continue. Behavioral changes don’t happen overnight, so start small with a daily or weekly change, then determine if it’s something you can manage long-term.
5. Know where your credit stands. Your credit score will determine whether you can be approved for credit cards, loans, mortgages and auto loans. It also influences the rate and terms lenders may assign upon approval. Keeping your debt low and paying your bills on time are the best ways to increase and maintain your credit score. Don’t wait to get started, Coach Lea can help you right now by quickly looking at your credit history and credit score with you. She’ll work with you to create an action plan to help improve cash flow, create credit card payment strategies, or tackle large expenses like mortgages, rent or student loans.
As always, we’re here to help you build and maintain financial slack. Make an appointment at one of our Financial Health Centers for more personalized guidance on improving your financial health.