The end of the year is quickly approaching, which means it’s a perfect time to start strong in the new year with a clear-eyed vision of your financial future. Financial goals can help you identify what you want to achieve with your money and lay the foundation for your overall financial plan.
It might be useful to think about your budget less as a restriction and more about an alliance between your values with your money. Money can sometimes be wrapped up in guilt or remorse, but enjoying your money responsibly can help you feel empowered.
Follow these steps for a worry-free financial year!
Review last year’s spending
First, get some perspective. Taking a close look at your past spending habits can help you know where you can save. Even reviewing one month of expenses can be surprisingly useful.
If you haven’t already, create a budget! Focus on these four categories: fixed costs, variable costs, savings/investments, and guilt-free spending. Whether you go old-school (pencil and paper), or use a budgeting app, it’s important that you accurately identify where your money is going every month.
Our no-cost Banzai platform offers a budgeting calculator and other tools to help you strategically manage your expenses. Whether you need to learn how to track your expenses, identify how much to save for an emergency fund, or how to manage debt, Banzai is a user-friendly tool that can help you strengthen your financial confidence.
Try to follow the 50/30/20 budgeting rule (allocate after-tax income to 50% needs, 30% wants, and 20% savings/ debt repayment). A well-planned budget can help you achieve financial well-being.
Set aside money
Prepare for your future with a savings plan. A good rule of thumb for an emergency savings account is to put away at least three months’ worth of expenses.
Explore savings options, from a simple savings account to an IRA account. Depending on what stage of life you are in (and what your financial goals are) different accounts will be right for you.
Consider enrolling in The Power of Change through Nusenda’s Mobile and Internet Banking app. The unique program automatically rounds up your Nusenda Visa or breeze debit card transactions to the nearest dollar and places the change into your savings account.
Make your money go further by putting it into a high-rate savings account instead of a traditional account. A great option is to place your savings in an interest-accruing account, such as Nusenda’s Money Market Savings Account. If you are able to, a share certificate account is a great way to save money safely while earning even higher dividends.
Pay off credit card debt
In 2024, the average American carried a credit card debt balance of $6,501. So, it’s not surprising that many Americans cite this as a top financial goal for 2025. And even if obliterating debt isn’t realistic, you can certainly make progress by reducing credit card debt.
Choose a payment strategy! Either tackle your highest-interest card first (“debt avalanche”) or pick your lowest (debt snowball). It makes more mathematical sense to pay off the high interest card, however some people find momentum in the quick gratification of starting with the low interest card. In either case, making MORE than your minimum payment every month is crucial to paying off debt.
Debt consolidation can be helpful. It is simply a debt management strategy that involves combining your outstanding debt into a new loan, thereby simplifying your financing. There are many advantages to consolidating your debt, including a faster, more streamlined payoff. It can also give you lower interest rates and/or lower monthly payments. Finally, it can help you feel more organized and in control.
Another option is to take a personal loan with more affordable interest rates and fair terms. Nusenda offers personal loans can give you more breathing room.
Pro Tip: Keep older, more established lines of credit open to ensure that your credit score doesn’t take a dip.
Keep track of your credit score
This one’s easy! Keep an eye on your credit score with our Credit Score tool. You can check it as often as you like without ever impacting your score. Six quick tips for improving your credit score are:
- Make on-time payments
- Pay down revolving accounts
- Keep your oldest credit card account open
- Dispute incorrect credit card charges
- Limit hard inquiries
- Diversify your credit
Expand your financial knowledge
The more you know, the smarter your financial decisions will be! Financial literacy—debt management, budgeting, and investing—is crucial to making solid choices. Increase your knowledge by attending Nusenda workshops in-person or taking classes online. You can also read through Nusenda's financial library and browse topics that range from budgeting to investing. Or check out our no-fee BALANCE Financial Fitness Program, which offers comprehensive financial education and unbiased counseling services. You can also attend webinars!
Take advantage of programs that put cash back in your pocket. Earn Your Return and Community Rewards from Nusenda allow you to earn cash back and The Power of Change (mentioned above) allows you to round up your Nusenda Visa debit card purchases to the nearest dollar and use the change to boost your savings, pay down debt, or donate to your favorite cause!
At Nusenda Credit Union, we’re dedicated to improving our members’ financial well-being and supporting them through affordable products, friendly service, community involvement, and financial education. We'd love to find other ways to help you reach your goals. Stop by a branch or make an appointment to meet with us today. With these steps, you’ll be setting yourself up for a stress-free financial year!