At Nusenda, your financial well-being is important to us and Financial Literacy Month gives us an opportunity to shine a light on the importance of money management skills. Our goal is to not just help people learn more about finance, but to inspire action and transformative change.
Now is a great time to improve your financial know-how. So, whether you are just beginning your financial journey or planning your retirement, read on to learn even more to strengthen your financial foundation.
Budget, budget, budget!
To start, check out our resources for a budget calculator or create a spreadsheet (you can download an app for this, or just use Google Sheets or Microsoft Excel). On the far left, write out your monthly expenses. These might include mortgage/rent, car payments, utility bills, insurance, groceries, or “going out” money. On the right side, type in the amount you spend on each. Add them all to create a total. Ensure your income exceeds your expenses and take note of areas where you could spend less.
One method is the 50/30/20 rule. This approach means devoting 50% of your after-tax income to necessities, 30% to wants, and 20% to savings or debt payments. Conversely, in times of inflation, a 60/30/10 rule might make more sense (60% to necessities, 30% to wants, 10% to savings).
Start an emergency fund
A financial safety net can bring ease of mind. First, determine how much you can set aside each month, based on your budget.
Another tip is to automate your savings. This means you won’t have to think about setting money aside each month.[SL1] With The Power of Change®, round up those purchases to the nearest dollar, then place the change wherever you need it most. It’s an easy way to boost your savings!
If you can, put your money in an account that accrues interest. For instance, a savings account with a high interest rate would be ideal.
However, if life throws you an unexpected curveball, and you simply don’t have enough savings to comfortably get you through, consider an alternative like a personal loan. Our Personal Loans can help you tackle unexpected repairs, make home improvements, or handle other larger expenses with low interest rates and flexible terms. You can apply online in minutes.
Reduce debt
First, figure out how much you owe. Pay the bills with the highest interest rate first. Check all your bills for accuracy and always pay your bills on time.
One method is to consolidate your debt. In other words, take out one loan or line of credit to pay off other outstanding debts. This will help you streamline your loans into one monthly payment with, hopefully, one low interest rate. One strategy includes applying for a balance transfer credit card. Read this article for more information on how to consolidate your debt: Eliminate Stress with Debt Consolidation
Online resources
Banzai
Banzai, is an award-winning, interactive content platform that teaches real-world finance. Nusenda offers this program at no cost to members. Browse through course offerings to discover a wide range of topics, including spending, saving, borrowing, investing, and more! Click here to explore.
BALANCE Financial Fitness Program
While nobody can completely predict our future economy, we can prepare ourselves by learning more about the basics of personal finance. Nusenda is excited to offer our members access to BALANCE. This complimentary program offers comprehensive financial education and unbiased counseling services, as well as monthly webinars on a variety of financial topics. Learn more.
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 ways to help you save money. You can reach us at 505-889-7755 (800-347-2838 outside the Albuquerque area) or make an appointment to meet with us at any of our branch locations.
[SL1]Add something about the Power of Change and rounding up your purchases to save please.