Start it Right
(Article courtesy of SAVVYMONEY DAILY. Written by Chris O’Shea, with local insights from Abilene Teachers FCU.)
You don’t have to wait for the calendar to flip to January to give your finances a fresh start. Taking a few quiet moments for a routine financial checkup is the absolute best way to stay in control of your cash flow.
Here are four core pillars to review to ensure your money habits are setting you up for long-term success:
1. Review Your Budget
Check in with your current budget dashboard to make sure it actively aligns with your modern saving and spending habits. Do your current tracking categories accurately reflect your reality? Have you experienced any major life transitions recently—like moving, a career shift, or welcoming a new baby—that warrant a structural adjustment to your monthly caps?
2. Check on Your Investments
Take an objective look at your long-term wealth building by asking yourself three simple questions:
- Are you currently hitting the maximum employer match on your workplace 401(k)? If not, make reaching that match your next immediate savings goal.
- Are you maximizing your personal retirement buckets?
- If you don’t have access to a workplace plan, have you looked into opening an Individual Retirement Account (IRA)?
If you can’t afford to contribute the maximum limits right now, focus on incremental, steady growth.
“It can feel overwhelming to think about contributing large amounts to your retirement or investment accounts right out of the gate. However, building momentum is entirely possible. When I first started saving, I couldn’t afford to contribute the maximum limits. I started with just 3% and committed to gradually increasing it over time. Every single time I received a raise, I added just one percent to my contribution. Because it happened alongside a bump in pay, it didn’t make a noticeable difference in my take-home paycheck. Eventually, I reached my target contribution goals without even realizing it.” — Elizabeth Gray, ATFCU Certified Financial Counselor
- Need help starting your nest egg? Explore our flexible Traditional and Roth IRA options right here at Abilene Teachers FCU.
3. Decide on Debt
A routine checkup is the perfect time to ensure you have an active, aggressive strategy for paying down outstanding consumer balances, particularly high-rate retail cards. Review your statements. Are your monthly payments actively shrinking the principal balance, or are you just treading water against high interest fees?
If you are struggling to make visible progress, it’s time to shake up your strategy. Consolidating multiple balances onto a low-interest ATFCU credit card balance transfer can instantly freeze high-interest drains, allowing more of your cash to hit the actual debt.
4. Update Your Long-Term Goals
Make sure your weekly spending matches your lifetime dreams. If you find your habits have drifted a bit off course, use today as the catalyst to realign your direction.
Commit to reviewing your budget at least once a quarter and immediately following any major milestone event. By consistently managing your tracking dashboard, you ensure your money is always working just as hard for you as you did to earn it.
