Five Financial Wellness Tips for a New Year, New You!

Financial Education, Savings

With a New Year, many people often set goals for themselves that revolve around establishing new daily routines with a focus on health and wellness. A part of those goals that shouldn’t be overlooked is a focus on your financial wellness. Having a plan or taking steps to improve your focus on finances can alleviate both physical and financial stress. Whether you want to pay off debt, buy a first home or build the home of your dreams, take a family vacation, or plan for the future, there are a few things to consider that can help you save a little and walk away with a lot.

Take inventory of your finances and monthly budget. A great place to start as you embark upon a new year is looking at your bank statements and listing out the expenses you have each month. You can track expenses by simply writing them in a notebook, using an Excel file or perhaps trying apps such as Mint or Goodbudget. Centris also has a budget tracking tool built into our online banking system that allows members to track expenses and spending habits. Find the tool that works best for you, compare your expenses against what your monthly income is and determine how much expendable income you will have each month. You may even notice trends in your spending habits that could easily be changed or eliminated to offer you more financial freedom.

Wipe out the bad spending habits. Spotting those financial trends that appear to be impulse and habitual spending habits can add up to thousands of dollars every year. Experiment with cutting down on the “nice to have items” by 10% every month or giving them up altogether for a quarter and see how much you save. For example, if you go out to eat 3-4 times a week, consider cutting that down to 1-2 times a week. Pack an easy and healthy grab-and-go meal or take a few minutes on the weekend to meal prep. Adding just a few more minutes of planning can save you money that can be used to fulfill those financial intentions.

Declutter your subscriptions. As you were listing out your expenses, did you notice an abundance of services you subscribe to each month? From TV subscriptions, food service subscriptions and other monthly memberships, the ease and convenience are wonderful, and the special deals are even better. With the number of options available to us these days, that list may be long. $9.99 here or $24.99 there can really add up. That money you’ve been spending on perhaps unnecessary or forgotten subscriptions each month can offer a nice savings that could be used to help pay off debt or grow your savings account. You might also want to try using apps such as Truebill, that identifies your subscriptions and helps you stop paying for things you no longer need.

Put more money into savings or investments. You’ve decluttered those subscriptions and now you have a few extra dollars each month. It might be time to think about your financial goals for the future and determine if you can invest in certificates of deposit, mutual funds or possibly increase your contributions to your retirement accounts. Make 2022 the year you improve your ability to pay your future self, first!

Remember to give yourself grace. Keep in mind, 2022 is an entire year (365 days). Don’t let a slip up one day or one month derail your progress. This isn’t an all or nothing project. It’s about understanding where your finances stand overall, putting a plan in place so you can reach your goals, making slight adjustments along the way, learning from any obstacles or road bumps you encounter and getting back on track quickly so you can reach your goals and feel better about your financial health.

For additional tips and tricks and educational information that can help guide you to financial success, visit the Centris Financial Wellness Center today!

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