Financial wellness isn’t something you accomplish in an afternoon. Honing the right balance between your money and your life takes time. In fact, for most people, it can take their entire career. To help you achieve financial wellness and build on it over your working career, we’ve put together four tips.
- Use Automation to Achieve Consistency: Want to build your retirement accounts, investment accounts, and savings quickly? Use automatic transfers. Those automatic payments from your credit union account will add up quickly. Every year, reevaluate how much you are contributing and increase those transfers if possible.
- Focus on Small Things (for big returns): Every year, take a look at what you spend on insurance, wireless services, streaming services, internet, and eating out. Find ways to either maintain your current expenses or reduce your spending. For example, talk to your insurance agent about your current rates. Are there ways to save money while maintaining your coverage?
- Employ the Next Raise Rule: As long as you are able to pay all your bills and put money away toward retirement on your current salary, the next raise rule helps ramp up your financial wellness by building your savings. Every time you get a raise, put 50-100% of that money toward retirement or the future.
- Explore Every Tax Advantage: As your income increases over your career, utilize the tax advantages in 401(k)s, IRAs, as well as health savings accounts (HSAs).
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.