Maybe you only have one resolution this year. Maybe you have a laundry list of resolutions and a goal of being so self-actualized your friends and family will hardly recognize you! Maybe your resolution is to not have a resolution.
1. Set A Goal (and Write It Down)
Goal setting gives you direction. You can decide on your destination and make a plan to get there. This might seem small, but it’s not. Not only is goal setting found to be linked to higher achievement and self-confidence, but writing down your goal can also make you 42% more likely to succeed.
2. Get Clear
Getting clear on your priorities and deciding on a specific goal are two keys to success. When it comes to your money and your financial situation, set aside some time to reflect on what you really want to accomplish – and be specific.
Ask yourself three “W” questions:
- What do you want to accomplish?
- When will you achieve it?
- Why does it matter to you?
Visualizing a dollar amount can lead to success, whether it is a specific figure to save, pay off or earn in the year ahead. Keep that figure alive by writing it down or tracking it in an app. A real dollar amount makes for a real goal. Give yourself a deadline while you’re at it, to motivate you even further.
3. Be Positive and Realistic
Goals can challenge you and help you grow into a new future. Choosing a goal that is attainable is another important part of success. Let’s say you’ve chosen a clear goal – with a positive outcome – such as: “In five years, I will be debt free. I will pay off my entire debt of $12,000 so that I can focus on enjoying my family instead of worrying about money.” Be sure it’s a realistic goal given your specific situation. Given your income, debts and expenses, is it realistic to spend $200 on your goal each month? Is it possible to pay it off even faster by spending $250 a month? Or does your budget allow for $100? Staying positive and realistic shows you how much you can devote to achieving your money resolution.
4. Hit Those Milestones
Making your goal measurable will help it stick. Keeping track of your progress can help you stay focused and motivated. Tracking progress on an app or spreadsheet, or a simple notebook, helps you see your future getting closer and closer. Break your goal into smaller milestones. This makes it easier to see your progress and it’s less intimidating. For example, a mini-resolution might be to pay off one consumer credit card. Making smaller changes over time is often easier than trying to make a massive change all at once. Celebrate your success along the way. Celebrating wins actually “trains your brain” by reinforcing your new habits, which in turn makes it easier to stay on track if you hit a bump in the road at some point.
5. Make (and Work) The Plan
Money resolutions often go by the wayside if they serve as a goal without a plan. A plan outlines how you will accomplish your goal. Keep it simple. The plan might dearly define how much you will spend toward your goal, how often you’ll make deposits on it, and the method you’ll use to transfer money toward your goal. For instance, automating monthly payments or savings goals is proven to help people stick with money resolutions.
Choose one habit at a time to change. For example, if you need to reduce your credit card spending, focus on making that change as your first milestone. Then move on to setting money aside for payoff.
Ready to Make Money Resolutions That Stick?
The New Year is your opportunity for success. Our partners at GreenPath Financial Wellness offer free financial counseling and education. Their caring counselors are ready to work with you for options to get out of debt and improve financial wellness.
This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.
Rest, Recharge, and Save with a Staycation
As we welcome the arrival of fall and the 2023/24 school year, it’s worth acknowledging that many of us may be experiencing the Summer Blues as the result of high interest rates and historical inflation. In 2023, you might have felt forced to choose between making new vacation memories or sticking to a strict budget. If you did, you certainly weren’t alone.
If you’ve got a case of the blues because this wasn’t your year for passport stamping or hitting the open road, have you considered planning a staycation? Being a tourist in your own town can give you an opportunity to rest and recharge your batteries without wreaking havoc on your monthly credit card bill.
As the folks over at NerdWallet point out, “While the social distancing days of the pandemic may be past us, concerns over inflation, air travel chaos and gas prices make the staycation as appealing an option as ever in 2023.”
A staycation is more than just a cost-effective alternative to travel. It’s a chance to reconnect with your surroundings without the stress of travel logistics. By choosing to stay local, you can plan a staycation anytime during the year, depending on what works best for you and your household. Plus, depending on your geographical location, fall and winter can be an ideal time to explore as you won’t be competing with summer crowds if you decide to scope out popular destinations in your area.
Here are a few strategies to help you plan a staycation that will rejuvenate your spirit without sacrificing your financial peace of mind.
Be Intentional With Boundaries
Don’t think of staycation solely as a compromise; it’s a conscious decision to prioritize both your financial well-being and your mental health. Be intentional in treating your staycation like a real vacation – set boundaries with work and personal responsibilities that will allow you to truly disconnect and unwind.
Put your out-of-office on, silence work-related notifications, and consider limiting your time on social media, especially if that’s been a source of FOMO for you lately. This is your time to unwind, be present, and pause the perpetual scrolling of your friends’ activities (he might not have been around in the age of Instagram, but Theodore Roosevelt had a point when he said “Comparison is the thief of joy.”)
Pamper Yourself
Luxe resort stays aren’t the only way to nourish your mind and body. Treat yourself to activities you don’t typically prioritize amidst school or work demands.
Engage in mindfulness activities such as outdoor yoga, meditation, or nature walks if you have proximity to beaches, hikes or scenic parks that can offer inspiring views. Many fitness studios also offer “first class free” promotions for newcomers if you want to try a class without the upfront financial commitment.
If you prefer the indoors, indulge in a DIY spa-themed evening or transform one of the spaces in your home into a personal theater. A blank wall can double as a surface for a projector and the addition of cozy blankets, pillows and snacks can elevate a movie marathon.
If you’re wanting a more luxurious experience without booking a hotel room, sites like ResortPass allow you to enjoy local hotel pools and spas for the day, with prices starting at $25 per person.
Try Something New
Is there a new restaurant you’ve been wanting to try forever and just haven’t gotten around to it? Have you been contemplating a cooking or baking class to expand your home chef skillset? A staycation can be a great chance to experience new flavors or experiment with recipes at home. Some cities also offer walking food tours that give you a sampling of the best your area has to offer.
Other new activities you might try in your area could be exploring a museum—inquire about Free Admission Days, as this is often a way to incentivize visitors. Catch a live performance at a local music venue or if you’re looking for a family friendlier option, visit a local theme park (which often boast lower rates in the fall or on weekdays).
With student loan repayments resuming for many next month and holiday planning looming in the not-so-distant future, consider making your next vacation a staycation so that you can create memories without sacrificing your savings. And if you want tips on how to build a budget that accommodates future fun (local or abroad!) connect with one of our counselors for friendly, nonjudgmental financial guidance.
This information is brought to you by our partner, GreenPath Financial Wellness
Student Loan Repayment, Simplified
After a historical hiatus throughout the pandemic, borrowers now face federal student loan repayment. Evaluating your full financial picture and making a repayment plan goes a long way towards reducing stress and uncertainty. Unsure where to start? Read on!
Verify servicer(s).
As an outcome of contract transfers and terminations mid-pandemic, your servicer(s) may have changed since 2020. Translation? You’ll need to confirm who will be receiving future payments and ensure they have your updated contact information.
If you have private loans, review any correspondence you’ve received from your original loan servicer, reach out to your school’s financial aid office for help tracking that information, or visit AnnualCreditReport.com for a free weekly report that lists loans in your name.
If you have federal loans, visiting the Federal Student Aid website is the simplest, most efficient way to access your federal loan information and verify current servicers. You’ll first need to log in with your FSA ID (create one here if you don’t have one already.) Once logged in, you can view your original principal amount, current balance, and interest rate as well.
Evaluate repayment.
Much can change within our big picture in three years. Is your student loan payment still affordable? Check out the Department of Education’s Loan Simulator to help decide what repayment strategy fits your priorities—for example, do you value a lower monthly payment or faster payoff? Look into an income-driven repayment plan which takes your current earnings into account and can lower your monthly payment.
Set aside savings. Once you know what your monthly loan payment will be, transfer that amount to a separate savings account monthly, starting right away. By accounting for this reduction in your budget sooner rather than later, you’ll lessen the initial impact of repayment (since you’ll now have money set aside) and you’ll be back in the habit of making this a monthly routine.
Consider consolidation.
Depending on whether you have federal loans, private loans, or a combination, loan consolidation could potentially reduce your payment burden. For federal loans, you can apply for a Direct Consolidation Loan which allows you to combine education loans with zero application costs, and most people complete the process in 30 minutes or less. You can also refinance your private education loans (in which you replace one or more private loans with another.) This happens through a private bank, credit union, or online lender. SafeAmerica Credit Union offers members free access to private Student Loans and Student Loan Refinancing through our partners at LendKey.
Seek support.
If you're feeling overwhelmed at the prospect of repayment, you don't have to figure it all out on your own!
SafeAmerica Credit Union is here to help! You can take advantage of free student loan counseling through our partners at GreenPath Financial Wellness. GreenPath counselors help you look at your total financial picture to develop a personalized repayment plan
This information is brought to you by our partner, GreenPath Financial Wellness
Saving For The Unexpected – America Saves Week 2023
How often have you heard that saving for life’s unexpected events is very important and a necessary part of being financially prepared? Most likely A LOT! Accompanying this message often is the statement that you need three to six months of expenses in your emergency savings account.
For those of us who struggle with saving for the unexpected or are saving but don’t have that three to six months amount accumulated, our confidence might be shaken because we haven’t met this standard. And when we lack confidence, it can be even harder to get or stay motivated to save for those unexpected events or opportunities that arise.
Instead of focusing on what you haven’t accomplished, here are a few strategies to consider that may help you build your financial confidence and begin or continue on your path to saving for the unexpected.
- Set a goal of saving $500 for emergencies and once you reach this amount, set a new goal for another $500 and keep going. Reaching several smaller goals feels good and when we feel good, we’re more likely to remain committed to our plan.
- If you’re not sure exactly how much you can realistically save each month, try using the America Saves Spending and Saving Tool to get a clear view of your finances. Once you know exactly what your income and expenses are you will be able to set a realistic timeframe for saving that first $500 or beyond.
- Consistency can help build confidence. Saving automatically every time you get paid is the easiest way to be a consistent saver and consistency builds confidence. You can set up split deposit saving with your employer or your financial institution so that a portion of every paycheck goes directly into a dedicated savings account. When you are saving $10, $20 or some other amount every paycheck you will see regular progress, building your confidence along the way.
- Instead of only focusing on the negative reasons for having an emergency savings account, think of it as saving for opportunities. Framing the reason you are saving in a more positive light may help you feel better about setting money aside. Not only are you saving to pay for car repairs, home expenses, or medical bills, tell yourself you are saving for an unplanned dinner out to celebrate a friend’s birthday or the chance to go see your favorite artist in concert. Those positive feelings can be motivating.
- Use the three to six months of expenses in a savings account as a guideline. Try not to become discouraged if you haven’t met this level. Instead, focus on what makes the most sense for you at this time, knowing that as your income grows and/or expenses decrease your ability to save more and more quickly will change.
America Saves is here to help you get started on any of these strategies. Check out the 6 Steps to Establishing a Spending and Savings plan, take the America Saves Pledge, or listen to our Think Like A Saver podcast. We’re with you every step of the way on your savings journey.
SafeAmerica Credit Union is here to help you on your saving journey. Check out all the Savings opportunities we have to offer.
4 Financial Resolutions You Can Accomplish Now
New Year’s resolutions are a mixed bag for many of us. On the one hand: personal betterment! On the other hand: methodical auditing of our refrigerator, checking account, and various vices. On the cusp of a fresh calendar year, we feel compelled to immediately transform our lives, but—as is the case with most good things—change takes time. This is especially true when it comes to financial goals. And in the aftermath of steep holiday spending, our goalposts can feel...far away.
Automate Your Savings.
Enroll In A 401(k).
Trim Subscriptions
Check Your Credit Report.
You can get a free report once a year from each of the three major consumer reporting companies (Equifax, Experian, and TransUnion.) This allows you to resolve errors or instances of identity theft—red flags you do not want creditors looking at when they are evaluating your application for loans and credit cards. With the exception of Experian, you will have to pay a fee if you want to see your credit score. There is often a way around this, as more than 170 financial institutions and 10 of the top credit card issuers provide free access to your FICO score (the most commonly used type of credit score).
How to Get Your Free Credit Report.
The Fair and Accurate Credit Transactions Act of 2003 (FACT Act) entitles you to receive a free copy of your credit report once a year from each of the reporting companies – Equifax, Experian, and TransUnion. The three companies have set up one central website, toll-free telephone number, and mailing address. You can request your free report either online, by phone or even mail by visiting www.AnnualCreditReport.com or calling 1-877-322-8228.
Managing Debt as Interest Rates Rise
Debt can be a challenge to manage, even in the best of times. Now, with the economy in the news nearly every day, how do you effectively manage your debt as the cost of borrowing for things like homes, cars,
and credit cards rises? People are successful when they set a realistic budget for spending. Focusing on non-traditional gifts, the joy of experiences and the resulting memories, can be just as rewarding without damaging your finances, especially as prices on essentials are rising.
Here are five general questions to ask in order to minimize the hit to your wallet in the face of rising interest rates.
What's Your Current Credit Score And History?
What Is Your Debt Portfolio?
What Are Your Current Interest Rates?
What Is A Realistic Payment Plan?
What Is Your Overall Financial Plan?
This information brought to you by GreenPath Financial Wellness.
Tips For New Credit Card Holders
For those starting their college career or their professional career, keep your eye out on offers for credit cards. These life milestones are often signals to lenders that the time might be right for you to get on board as a credit card holder.
Figuring out how to manage credit cards is critical for new borrowers. We suggest to start by asking yourself the following:
- Is using a credit card the right way to pay for the purchase? Would cash or a debit card work just as well?
- Is it clear how interest is charged?
- Will any credit card fees be assessed?
- Once the charge is made on the card, is it easy to track the minimum payments and due dates?
It can be helpful for borrowers to run through these questions for each card. Knowing due dates, minimum payments and other terms is very helpful towards using credit cards wisely.
Advice To Follow
After you ask those questions about the basics, it also pays to think ahead.
Many people who have run into challenges with credit cards have told us that the most important advice to follow is to make payments on time, keep credit card debt manageable, pay off balances and maintain low balances to avoid interest and late charges.
If people only make minimum payments and keep making purchases, their debt will quickly grow, increasing financial stress and derailing their financial future. If a person gets into the habit of making late payments or taking on more debt than they can handle, then the credit score will suffer and they will have to take additional steps to repair the damage that been done.
New borrowers are wise to understand their current financial picture, their spending habits, and the pros and cons of how access to credit will impact their specific financial situation.
Where To Start?
As those credit card offers fill up your mailbox, it can be confusing to know where to start. Credit cards are available with many options. Compare different cards based on your needs and the card terms.
For students and new borrowers interested in using credit cards wisely, it is helpful to look at the following:
- The annual percentage rate (APR): This is how much interest you will pay if you do not pay off your balance each month. Also, for many credit cards, rates may increase after a short period of time.
- Fees: Many cards have yearly fees. Most charge for late payments, balance transfers, cash advances, or spending over your credit limit.
- Credit limits: Your credit limit is right for you when it is in line with what you can afford to pay back. Many people we work with find that high credit limits offer challenges when it comes to managing the balance owed.
- Figure out how many credit cards Is the “right” amount.
- Managing just a few credit cards can be easier than having many cards.
- When you reach the spending limit on one card, it’s best to manage those payments before shifting your purchases to another card.
- Planning monthly expenses and setting a budget is the best way to easily adjust your spending habits.
- Keeping your receipts helps with keeping track of monthly activity.
- Having a plan will help you reduce the chance of impulse buying. When you have a plan, there’s less chance you will overspend on items you don’t truly need.
- Review the different payment options: Is it easier to pay through an app or at a website or over the phone? Usually people can set up automatic payment drafts to pay the full balance or just the minimum payment by the credit card due date.
- Many new borrowers find that it is necessary to use credit cards to cover important expenses such as food, gasoline, and utilities. If that becomes a regular pattern, it is helpful to review your budget.
New Credit Card Users — Next Steps
Remember: Every time you use a credit card, you take on debt, and debt is borrowing money you haven’t earned yet. It is wise to always keep the focus on this fundamental truth. Beware of high interest credit cards that can become difficult to pay back if financial circumstances change unexpectedly.
It’s all about the basics: looking at monthly expenses, looking at income and setting spending priorities as well as building up emergency savings. As a new credit card holder, these principles will be the building blocks of achieving financial success!
brought to you by GreenPath Financial Wellness
Save small. Dream big.
We're celebrating Youth Month all April long! Be sure to check out our blog each week or follow is on social media for a new youth financial literacy topic.
You can also check out our Youth Program to help get your child started on the path to smart money management.
Teaching Children How To Budget
Teaching children how to budget at a young age will be helpful for them later in life. When your child gets money as an allowance or as a gift, you can help get them started with simple budgeting concepts.
Start With Goals, Wants And Needs
Talk with your child about money and how to use it wisely. Talk about their goals for their money. What do they want? What do they need? There may be short-term goals they can be purchased right away. They may have long-term goals that will require them to save over time. It is helpful for children to have a reminder of why they are saving and why they should not spend all of their money now.
Save, Share and Spend Method
“Save, Share and Spend” is a method for children where they set aside money toward each of these three things.
Save
When your child earns money, they should first set aside a portion for savings. The recommendation is to save at least 10% of earnings. This percentage can be increased for children because they have fewer expenses. Savings can be accumulated in many ways. Some use a jar, piggybank or even a joint bank account to gain interest. The savings account should be kept for emergencies (new bike tire) as well as longer-term goals (first car).
Share
Teaching children about charity at a young age is also useful. Allow them to research and contribute to a charity of their choice. Sharing is typically around 10%. Discuss options with your child to determine which cause they may enjoy helping. Also consider having them volunteer with that organization to see what they are actually helping. For example, it can be very rewarding for children to use money to purchase toys for a local outreach center. Then they can help pass out those items out to needy families at Christmas.
Spend
The remainder of their earnings can go toward spending. The spending category is available so your child can make purchases they choose, but remind them that additional savings will help them reach their long-term goals faster.
Start Small, And Set An Example
It is helpful for your children to see how you budget, but start small. For example, allow them to help you plan the weekly grocery shopping. Start by planning a list from sale flyers and coupons, and then stick to that list at the store. This can turn into a saving game for them. Remember, children will learn from your example. So telling them about budgeting is important, but it’s much more impactful if they see you following a budget yourself.
This information is brought to you by GreenPath Financial Wellness
Save small. Dream big.
We're celebrating Youth Month all April long! Be sure to check out our blog each week or follow is on social media for a new youth financial literacy topic.
You can also check out our Youth Program to help get your child started on the path to smart money management.
Footer
Follow Us
Logos
Your savings insured to $500,000 per account. By members’ choice, this institution is not federally insured, or insured by any state government.