Recognized each year in April, National Financial Literacy Month focuses on helping people access the knowledge they need to manage their finances effectively which enables them to set and reach meaningful financial goals. It’s never too late to start taking control of your financial future! Here are five tips that can help improve your financial wellness!
Set and Commit to a Monthly Budget
You need to know your monthly spending habits and how to allocate your funds wisely. Developing a budget based on your monthly income, expenses, and savings will help you become more financially accountable and support you living within your means.
Automate Your Savings
A common phrase in personal finance is to “always pay yourself first” by setting aside money for retirement and savings. An easy way to do this is to set up an automatic deposit or transfer it into a separate account. Simply set a savings goal (emergency savings, home down payment, etc.), and treat it like any other bill by making regular monthly payments towards it.
Handle Credit with Care
Your credit score is another critical part of your financial well-being. Using your credit wisely by not overusing it, keeping your credit limit low, and paying your bills on time are just a few tips to build a healthy credit score. You should also get in the habit of checking your credit report once a year.
Protect Your Identity Online
Fraud and identity theft can cause severe damage to your financial well-being. Ensure you protect important information like your credit and bank logins, account information, social security card, and even your phone number. You can also set up banking notifications to alert you of any possible fraudulent activity.
Organize Your Financial Records
Develop a system for keeping your financial records in order. Items like receipts, medical bills, pay stubs, student loan records, tax records, banking and insurance information, and any other documentation relevant to your financial situation should be organized, secure, and safe.
For more financial wellness tips, visit the Consumer Financial Protection Bureau’s website!