How Well Have You Planned for Your Financial Future?

October is National Financial Planning Month! With the holiday season around the corner (a time of more spending) and the new year to follow, Financial Planning Month is a great time to get your finances and budgets in order before the busy end-of-the-year season. Use this as your reminder to sit down and take a good look at your finances including your spending, saving, investments, and more. Here are some things to try:
1. Examine Your Goals
A fun way to celebrate National Financial Planning Month is to think about your financial goals. Break these down into short-term and long-term goals. Are you considering a vacation next year? What does retirement look like to you? By making new goals or reviewing your current goals, you can focus on your savings.
At IAA Credit Union, we offer a variety of savings options to fit your needs such as:
- Christmas Club: Put a little away each paycheck throughout the year to make the holidays more financially manageable.
- Vacation Club: Save a little each paycheck throughout the year for your big summer plans.
- Money Market: Earn higher interest rates with higher balances while having access to your money.
- Share Certificates (CDs): Put your money away and watch it grow with flexible maturities.
- Premier Savings: Earn a high rate on balances up to $20,000 while having easy access to your funds. No minimum balance is required!
2. Pay Down Debt
If you're carrying debt and don't have much of a plan to address it, a month dedicated to financial planning is the perfect time to change that. You'll be able to rid yourself of debt much faster with a concrete plan. We suggest the avalanche method: Paying down the highest-interest debt first and then proceeding down the line.
3. Reduce Spending
Go through your budget and eliminate any unnecessary spending. Remember, every little bit helps. A $5 monthly charge is still $60 per year. Would you rather spend or save $60 a year for something more meaningful - or just let it slip through your fingers?
This might also include reducing the amount of times you eat out for lunch or dinner, not purchasing impulsively online, and more. You should also use this as an opportunity to go through your subscriptions and get rid of the ones you aren't using. These can add up over time and there might be some you don't even remember you have.
4. Check Your Credit
At IAA Credit Union, we offer our members free access to My Credit Score, which is available through our online and mobile banking. This tool lets you check your credit score without impacting it, so there’s no reason not to stay informed about your score or to miss any inaccuracies on your credit report. While checking weekly isn’t necessary, it's important to review your credit at least once a month. Mistakes on your credit report can lower your score, potentially leading to serious financial consequences.
Do One Thing: Trim and revise your budget so that your spending and savings align with your values and goals.
Originally posted by SavvyMoney Blogs on October 12, 2023, adapted by IAACU.