Q: I’d like to focus on improving my finances in 2020. Where do I start?
A: A new year is a wonderful time to make important changes in your financial life. Lucky for you, you don’t have to go it alone. Pathways Financial Credit Union can help!
We’ve broken down several of the most popular financial resolutions into three concrete steps and outlined the ways Pathways Financial Credit Union can help as you implement each change into your life.
Build a budget
Why it’s crucial: Creating and sticking to a monthly budget will force you to be accountable for your spending while giving you a clear picture of your financial reality.
In 3 steps:
- Track your spending over three months.
- Using a spreadsheet, or a personal finance app, divide your expenses into categories. Use an average of the last three months to list the amount of money you need for each expense. Set a reasonable spending limit for each category.
- Going forward, track your spending and stick to your preset limits of each category.
If your budget reveals that your monthly income doesn’t cover your expenses, look for ways to cut back.
How Pathways Financial Credit Union can help: Stop in to speak to a [financial counselor] for help with managing your money.
Get out of debt
Why it’s crucial: Carrying long-term debt can mean paying a lot of interest. It can also devastate your credit score.
In 3 steps:
- Make a list of your outstanding debts from smallest balance to largest.
- Review your monthly budget and look for ways to cut back.
- Work on paying off your smallest debt with the money you trimmed from your budget. Once you’ve paid off that debt, move on to the next smallest. Repeat until you’re debt-free.
How Pathways Financial Credit Union can help: You can open a Pathways Financial Credit Union Savings Account with an initial deposit as low as $5. Pathways also offers a FREE checking account that pays up to $300 in the first 6 months. Pathways will round up and match each of your debit card transactions and deposit them into a special 10.00% APY Owner Rewards Savings account. To learn more, go to pathwayscu.com/swipe2save.