Budgeting and Building to secure your financial future

In a time of significant economic uncertainty, inflation, and market shifts, financial literacy should be a top priority in the year ahead. Taking control of your finances and at minimum knowing what's coming in and tracking what’s going out can provide peace of mind and help you build a more secure future.

To improve your financial awareness, consider the following today:

• Know your credit: Start by checking on your credit score by using a free application like Credit Karma or myFICO and pulling a free copy of all three credit reports by visiting AnnualCreditReport.com and make a plan to dispute any false reporting or follow up on any collection items.

• Track Spending: Whether you prefer traditional paper and spreadsheets or are more familiar with various financial applications, use whatever method you are most comfortable with to understand where your money goes either weekly or monthly.

• Set a Budget: Once you’ve nailed down your income versus your essential expenses and discretionary spending now it's time to create a realistic monthly budget that covers those as well as shows what you have that can be routed to saving and investments.

• Start Building an Emergency Fund: Treat your emergency savings like an essential bill. You can get started with a small $25 - $50 contribution and consistently stow it away in a high-yield savings account while aiming to save for 3-6 months’ worth of expenses.

• Review Subscriptions and services: Check on and cancel any unused subscription memberships or services. Also check on your phone, internet, and insurance payments for competitive rates then take the saved money and reroute those funds to your savings account or high-interest debts.

• Focus on Debt Reduction: Review and make a list of all of your outstanding debts to include credit cards and loans. Track the amount of interest and payments that go to each in one area. Prioritize high-interest debts and come up with a clear repayment plan which may include debt consolidation strategies.

• Shop Smarter not harder: Intentionally use coupons, cashback applications, and cards, as well as sales to reduce costs on everyday purchases such as groceries, gas, household items, and even clothing.

• Invest in Yourself: Assess where you currently are and consider upskilling or certifications that can lead to better job opportunities. There may be some free to low-cost training options available in your area or virtually of interest to you.

Small changes add up over time, so it's best to start as soon as possible and gain the basic financial literacy needed to understand where your circumstances currently stand. These steps can support making it possible to achieve financial stability even in uncertain times.