Here we are… another new year right around the corner. With a new year comes the promise of a fresh start, the chance to refocus and recommit to habits or goals that may have fallen behind in the past weeks or months.
SCE Credit Union’s favorite nonprofit organization, the Center for Financial Empowerment, teaches high school youth a variety of personal finance concepts. One of the most foundational concepts is to set goals for your money. And what better time to think about making plans for your money than the beginning of a new year?
Here are some important things for teens and adults to include in their money plans for the new year.
|1||Tighten up the budget||
Where can you cut spending or bring in more income to accomplish some financial goals? The new year is a good time to take stock of where you might be spending money unnecessarily. Consider canceling some subscriptions or eating out less often. Maybe pick up some extra hours at work or a side hustle.
Focus on building up a solid emergency fund. The experts recommend having 3-6 months of living expenses saved for emergencies. If that’s too daunting, start with $500. Having a cushion to fall back on will give you peace of mind you can handle an unexpected expense if you need to.
Set goals to pay down debt and improve your credit score this year. You’ll love the feeling of accomplishment that comes with owning more and owing less.
|4||Consider your coverage||
The new year is also a good time to re-evaluate your insurance coverage. Do you have the right coverage amounts in place with your life, auto, and home insurance to mitigate risk? SCE Credit Union’s Member Advantage representatives can help!
|5||Improve your investments||
Whether you’re new to investing or have experience, this is a great time to look into taking it to the next level. If you don’t know much about investing, schedule some time each week to learn. There are plenty of online resources, including SCE FCU’s online modules and Wealth Management professionals can help you develop a strategy for your financial future.