How healthy are your accounts?

Just as we get checkups for our physical health, we need financial checkups too. How do you know if you are financially fit, doing just okay, or need to call in the professionals? Ask yourself the following questions to take the pulse on your financial health:

SPENDING

Do you spend less than you earn? If you struggle to keep up with bill payments or run out of money before your next paycheck,
you may be spending too much.

Financial Fitness Tip: Take some time to break down where your money goes each month and create a plan to control your spending.
Use a spreadsheet or a free budgeting tool to record all your income, all your bills, and other expenses. Take a close look at what you spend
on “wants” versus “needs” to see where you can cut back.

SAVING

Do you have an emergency fund? You need a stash of cash available to help in case of an unforeseen event, such as a job loss
or vehicle repairs.

Financial Fitness Tip: Ideally, you should have at least three months’ worth of living expenses in an emergency fund. However, if you’re just starting out, aim to save at least $1,000. Since your emergency fund should only be used if absolutely necessary, it’s wise to set up a separate account where you can save intentionally for vacations or other large expenses.

BORROWING

Do you use credit responsibly? A healthy credit score can help you qualify for lower interest rates when you borrow money.
If you miss payments or max out your credit cards, it’s time to fix your credit.

Financial Fitness Tip: First, request your free credit report at annualcreditreport.com, and check it for any errors or fraudulent charges. Then, start improving your credit by making on-time payments of at least the minimum amount due and by keeping your balance below 30% of your total credit limit.

RETIREMENT

Do you save for retirement? The general retirement rule is to put away at least 10-15% of your annual income.

Financial Fitness Tip: If you don’t know where to start, an IRA (Individual Retirement Account) is a great option. We offer competitive rates, low minimum balances, and flexible terms on Traditional and Roth IRAs. Plus, we charge no setup, annual, or monthly maintenance fees.

At RiverLand, we are invested in your financial well-being. If you found these financial tips useful or would like us to cover a specific topic, let us know at marketing@riverlandfcu.org.