1. Understand Your Spending Habits

Understanding your spending habits and expenses can reveal a lot about your finances and where there is room for improvement.

Start by listing out all your monthly expenses, such as mortgage payments, car loans, utilities, and groceries. From there, figure out how much is left over for tackling debt, tucking into savings, or treating yourself.

If you aren’t sure where to start, there are apps to help you track expenses and manage your budget. Some apps can even identify sneaky subscriptions and cancel them on your behalf. These tools can help you stay informed and on track toward your financial goals.

2. Reduce and Manage Debt

Interest rates have been unpredictable, making it crucial to manage and reduce your debt. Focus on paying off any debt you have as soon as possible to avoid high interest rates eating up your savings.

Debt can be daunting, but with a solid plan and budget, you can tackle it effectively. Start by consolidating any credit card debt you have. Credit card debt is one of the costliest forms of debt due to high interest rates. By transferring your balance to a Rally Credit Card, you can pay down your balance faster and more efficiently.

For other forms of debt, such as auto loans, check if your loan has a variable interest rate. You may be able to refinance these loans to lock in rates before they rise.

3. Revisit Your Budget

A budget is a system that tells you how much you should spend on certain things and how much you should save. Your budget will vary based on your specific needs, but the 50-30-20 rule is a great starting point for most people.

The 50-30-20 rule breaks down your monthly income into three categories:

• 50% goes toward your needs, such as mortgage payments, groceries, or utilities.
• 30% goes toward your wants, such as entertainment, clothes, or TV subscriptions.
• 20% goes towards your savings or debt payments.

This simple system can help you identify if you’re spending too much in certain categories and if there is room for improvement.

4. Stay Savvy about Saving

To make your money work for you, you need to have some form of savings. Saving money can feel like an afterthought, but it is essential for financial wellness. Your savings can provide security and peace of mind for your financial future.

Think of savings in three categories: short-term, long-term, and an emergency fund.

• Short-term savings can fund anything from a vacation to holiday gift shopping.
• Long-term savings include retirement, education costs, or a down payment on a home.
• An emergency fund is a nest egg to dip into if something unexpected happens.

Look to your budget to see where you can tuck away some money into each of these saving accounts. Plus, check out Rally’s Liberty Savings account to help you save your money wisely.

Small Changes Can Make a Big Difference

Reaching your financial goals won’t happen overnight. You will need to be dedicated, consistent, and optimistic throughout your financial wellness journey.

At Rally Credit Union, our purpose is to improve lives and drive possibilities. We are here to help you become confident in your finances and support you every step of the way.

If you want to learn more about how Rally can help you reach your financial goals, contact us or visit us at your local Rally Credit Union branch today!