Simple Goals to Improve Your Financial Health in 2016
By Mary Lukow
It seems like we all love to have a fresh start. We love to erase any bad decisions from our memories and wipe the slate clean so we can start again. Each year in January we get to do just that. We make resolutions to lose weight, eat better, and exercise more. Those changes will get your body into a better state of health. But what about your finances? Here are a few simple ways that you can improve your financial health over the course of this year.
Pay Down Debt. Being in debt can be a vicious cycle. Once you have taken on debt, especially high-interest debt, it is easy for this debt to grow larger and larger. It is then more difficult to just pay the minimum, let alone to get the balance paid off. Don’t let yourself be caught in this trap. Be proactive about moving any debt you have to a lower-interest option, if available. And most importantly, be persistent in paying what you can toward the balance. Federated Bank has options to help you consolidate your debt and get it paid off.
Prepare for Emergencies. There will always be unexpected events in life – situations that we weren’t anticipating or planning for. And of course, by nature, we never know when the unexpected will occur. But it is possible to prepare for emergencies in general even though we cannot know the particulars of when or what. Having an emergency fund with a couple months’ worth of expenses can enable you to handle the emergencies that life throws at you. Recommendations about the amount your emergency fund should contain vary from 3 to 12 months’ worth of expenses. But as you get started, the goal is less important than just actually beginning to save. Start today and work your way toward the amount you feel comfortable with. Federated Bank offers automatic transfers into savings accounts, which are an excellent way to make your saving goal a reality.
Invest for the Future. Besides having an emergency fund for the unexpected, it is also good to save for the expected events in your future – the events that you know will probably happen or that you hope will happen. Some examples of this include college, weddings, and retirement. Starting to save for these before they are near will enable you to save slowly and steadily. You will be surprised how saving a little bit every month can add up over years and years. With IRAs of varying terms, Federated Bank will help you begin to invest in your future today.
Assess Your Progress. Hitting the gym in January only to revert to being a couch potato in February isn’t going to give you long-term health benefits. Likewise, making a new start in these areas is good, but in order to really improve your financial health, you’ve got to stick with it. A good way to ensure that you don’t fall away from your plan is to set aside regular time to assess the progress you are making toward your goals.
As you look to improve your financial health in 2016, Federated Bank is here to assist with your endeavors. Come in and talk with any of our branch managers or loan officers about the ways we can help you.
