Building Financial Resilience: Strategies for Overcoming Financial Stress

In today’s fast-paced world, we face many financial challenges as we juggle a lot of responsibilities. The constant pressure to earn enough for covering day-to-day expenses while remembering to put away money for your financial goals never lets up. To make it even more difficult, life only gets more expensive as time goes on. However, despite the inherent hurdles, overcoming financial stress and living a financially fit life is very doable. Let’s take a look at key strategies for building financial resilience.

Manage debt

Debt can be a big source of financial stress. To effectively manage debt and gain control of your finances, take a proactive approach:

Assess your debts and choose which to prioritize.
Create a repayment plan, like the snowball or avalanche method.
Maximize debt payment until you’ve paid them all off.

Build an emergency fund

Building an emergency fund is important for creating financial resilience. Here’s how to do it:

Start small. Gradually increase the amount you regularly save over time.
Automate your savings. Make saving automatic by setting up regular transfers from your checking account to a separate savings account.
Aim for three to six months’ worth of expenses. While this can take time, make this amount your ultimate goal so you can weather any surprise and keep your finances intact.

Set financial goals

Setting clear financial goals will empower you to take control of your financial well-being and build your financial resilience. Follow these steps to successfully set financial goals:

Identify your short-term and long-term goals.
Make your goals specific and measurable.
Break goals into actionable steps.

Practice self-care

Taking care of yourself is a vital part of reducing financial stress. Find time to pursue your interests and to take frequent breaks from the daily grind. And it doesn’t have to put you into debt, either. You can go for a walk alongside a beautiful lakefront, learn a new language, visit free galleries showcasing your favorite art or develop a hobby by watching free DIY videos.

Managing money responsibly in current times is super-challenging, but financial resilience is within reach. Use the tips outlined here to achieve and maintain financial resilience.

Practical Budgeting Made Easy

With the right tools and information, building a budget can be quick and easy. Here’s how to create a simple and practical budget for the time-strapped consumer.

Review your income and expenses

Most budgeting plans recommend tracking income and expenses for three months. If you’re pressed for time, though, you can choose to look at one month and review your spending and income throughout this time. Review your checking account details and credit card statements to see where your money went and what funds came in.

Compare income and expenses

Hold up your two numbers from the previous step and see how they compare. If your income outweighs your expenses, you’re doing great! If it falls short, you’ll need to trim your expenses in the next step or look for ways to boost your income. If the numbers balance each other out, it’s still a good idea to trim expenses to leave some budget wiggle room.

Assign a dollar amount to every expense category

Next, review the ways you spend your money and assign a dollar amount to each category. Include fixed and changing expenses as well as savings contributions.

If you’re pressed for time, you can make your categories more broad. For example, instead of setting a separate number for groceries, work lunches and dining out, you can set a larger number for all monthly food expenses.

If your income does not cover your expenses or just barely covers them, look for ways to trim the fat however possible.

Jot down your dollar allocation on paper, or create a digital version of your budget and upload it to your personal devices for easy access.

Use technology

Harness the power of technology to help you track and manage your expenses well. A budgeting app can make tracking your monthly spending super-easy. You can upload your budget to the app and track expenses throughout the month. The app will let you know how much you’ve spent in each category and warn you when you’re approaching the limit.

Live with your budget

You’re ready to live with a budget! Remember to keep your monthly expense categories in mind as you spend throughout the month.

If you find it too hard to keep track of your spending throughout the month, the money envelope system can make it easier. Simply withdraw cash amounts for each non-discretionary expense category in your budget at the start of the month and only use the money in these envelopes to pay for these costs throughout the month.

Review and adjust

Your budget is up and running! Review your spending plan regularly to see if it’s still working for you and adjust as needed.

Budgeting doesn’t have to take a lot of your time or be overly complicated. Use this guide to learn how to create a practical, easy budget that works.

Which Purchases Should I Charge to My Credit Card?

Q: I’m reevaluating my credit card use and wondering if I’m doing it right. Which purchases should I charge to my credit card?

A: Your credit score, which is the key to long-term loans at favorable rates, employment opportunities and more, depends on your credit card usage. To build credit, you need to use credit. You want to make sure you use your cards, but you don’t want to spend more than you can pay. In addition, there are some purchases that are best off being made with a credit card.

Here are six purchases you may want to charge to your credit card:

1. Electronics and appliances

It’s a good idea to pay for big-ticket items, like electronics and appliances, with your credit card. This will provide you with an insurance of sorts on these purchases, such as doubling up on the offered warranty. Some cards also offer price protection, which covers the difference if the price of an item drops after you’ve bought it.

2. Car rentals

Here, too, paying with a credit card can provide you with a level of insurance on the car. The insurance likely won’t be as robust as temporary insurance you might buy through the rental service, but it will probably offer some collision coverage at no extra charge.

3. Purchases made abroad

When traveling and making purchases abroad, a credit card is usually your best way to pay. Cash has the risk of loss or theft and debit cards may have fees for transactions that are made outside the country. They may not even be accepted at some vendors. Credit cards from well-known issuers, on the other hand, are accepted almost everywhere and are a lot safer to carry than large sums of cash. In addition, many credit card companies offer a favorable exchange rate.

4. Fixed monthly bills

If you’re looking for an easy way to build credit, pay a fixed monthly bill, such as a subscription or payment for phone or internet service, on your credit card each month. This will ensure regular transactions are made on your card. As long as you’re paying your credit card bill on time or early each month, you will show a pattern of responsible credit usage!

5. Online purchases

When shopping online, you’re usually best off paying with a credit card. Unlike other forms of payment, credit card transactions are always traceable and provide some coverage for fraud.

6. Mobile phone bills

Another good candidate for credit card payments is your monthly mobile phone bill. Many credit card companies offer some coverage for phones that are lost, damaged or stolen if the card was used to pay a specific number of bills and the cardholder is up to date on their bills.

6 Financial Resolutions for the New Year

It’s a brand-new year, so now is a great time to set budget-friendly resolutions to pave the way toward a more financially fit future. Here are six financial resolutions to get you started.

1 – Create (and stick to!) a budget

If you don’t have a monthly budget, let’s get one started! Track your spending and income over several months, and then make a list of all expenses and all monthly income streams. Assign a dollar amount to each expense category. If your columns are equal, or your income is more than your expenses, you’re doing great. But, if your expenses are more than your income, you’ll need to trim your spending or find ways to increase your income.

After you’ve created your budget, or if you already have one, resolve to actually stick to it each month. You can use one of the many budgeting apps, like YNAB, to help.

2 – Build an emergency fund

An emergency fund is your financial safety net. Experts recommend having three to six months’ worth of living expenses in your emergency fund. Resolve to build an emergency fund this year by setting aside a small sum of money each month until you have a nest egg that can get you through virtually any emergency.

3 – Trim your expenses

Have your expenses started trickling upward in any area(s)? Identify your weak points and brainstorm for ways to start spending less. Small change today adds up to big bucks tomorrow.

4 – Pay down debt

Make this the year you pay down debt, or at least make real headway toward getting rid of it for good. You can choose to prioritize high-interest debts, or work on paying off your smallest debt first to keep your motivation going. Maximize payments on your chosen debt until it’s paid off. Then, keep on rolling to the next debt on your list until you’re completely debt-free.

5 – Automate your savings

It’s all wonderful to resolve to put more money into savings each month, but how do you turn those good intentions into reality? Set up automatic monthly transfers from your checking account to your savings so you never forget to feed your savings.

6 – Expand your financial education

Invest in your financial education this year by reading books, taking online courses, listening to podcasts or attending seminars on personal finance.

Your Complete Guide to Santa Shock Recovery

The holidays are over, and with the start of a new year, we are often dealt a case of “Santa shock”. Its main symptoms are the result of the house and daily schedule being in disarray as well as those first post-holiday credit card statements haunting you as the ghosts of purchases past!

The good news is, all it takes is some self-care and planning to make a full recovery from Santa shock. Here are four ways you can bounce back from the post-holiday slump.

Declutter and reorganize

Get your house organized! To ease the overwhelm, move all the holiday clutter into one area. Then make a list of all you need to do to get your home looking liveable. Finally, enlist the help of all household members to divide and conquer it all. In no time, your living space will be looking neat and organized again.

Reestablish routine

Getting back into a normal post-holidays routine can be challenging, but the sooner you start, the easier it’ll be to get back into real life. Set a regular sleep schedule, plan balanced meals and reintegrate exercise into daily life. Returning to a structured routine will help you feel more grounded and reduce the disorientation that often accompanies the post-holiday season.

Help your budget recover

Get your budget back on track after the holidays with these tips:

Consider a no-spend month. Resolve to only spend money on what you truly need for an entire month after the holidays. This will help your budget get back on track quickly.
Assess your holiday spending. Take a look at how much you spent so you have an idea of how much you’ll need to pay off sooner than later.
Make a plan for any carryover debt. If you put a bit too much on credit (meaning “borrowed money”) during the holidays, make a plan to pay it off as soon as possible.
Consider opening a Christmas Club Account for next year. A Christmas club account will allow you to spread the cost of the holidays across the rest of year to help pay for all of the season’s expenses without taking on debt.

Prioritize self-care

The holidays can leave you feeling drained. To fully recover from Santa shock, prioritize self-care in the weeks after the holidays. This may mean reading a book, meeting friends for coffee or indulging in a spa day. Whatever revives you!

Follow the tips outlined here to recover from Santa shock and transition smoothly back into real life.

Financial Preparation for The New Year

The new year is almost here. Are you ready?

Usher in the new year with plans for financial improvement and resolutions to do more.

Here are some tips to get you started:

Tune your budget

It’s great to start off the new year with a plan. A budget is just that — a plan — that starts with the income you expect and your fixed expenses such as your mortgage, insurance, and utilities. The plan incorporates your savings goals, and the remaining money is designated for your other expenses. A realistic budget will help you set your financial goals and will remind you to stick to them. Now is the perfect time to assess last year’s budget or create a new one if you don’t yet have one in place.

Reviewing how you spent last year’s money will help you make better financial decisions for the year ahead. While thinking about it, include a method for tracking your spending. You can do this on a spreadsheet or tag items in your checking account.

Even with a solid plan, there can be surprises along the way, so be sure to build an emergency fund into your budget.

Plan ahead to meet your goals

Consider how you will accomplish your goals. You might have shorter-term goals, such as purchasing a new home, as well as longer-term goals, like retirement. Each set of goals requires different kinds of planning and saving.

Financial planners recommend setting up a separate savings account for each goal. This way, your progress toward that goal is clear.

It’s best to work backward for determining how much you need to save for each goal. Determine the cost of your goal and then establish a reasonable timeframe as well as how much you’ll need to save each month to reach it.

Spend mindfully

Make your financial future more secure this year by identifying your wants and needs. Your needs are necessary for survival and include food and shelter. Your wants are simply things you desire-like a luxury car. Tend to your needs first. Then, if there is money remaining, consider your wants.

This might sound obvious, but for many of us, the lines between wants and needs are blurred.

Maximize tax contributions

Tax deductions can be a valuable source of savings. If you have employer-matching funds available, take advantage of them. Also, verify with your HR contact and your accountant that you are contributing the optimal amount to your 401(k) and IRA.

Check your flexible savings account (FSA)

If you have unspent money in your FSA, now is the time to use it. Your pre-tax dollars in such accounts typically need to be spent before the end of the year or they are lost.

Put the brakes on holiday spending

Avoid going overboard on holiday spending or you might spend the beginning of the year trying to pay it all back.

These are just a few of the many ways you can prepare financially for the coming year. With a little attention to some often-overlooked details, a little perseverance, and a little mindfulness throughout, you’ll be moving forward with a strong foundation and positive outlook.

Should I Adopt a Minimalist Lifestyle?

Q: Minimalism is all the rage, and with everyday expenses at an all-time high, I’m wondering: Should I adopt a minimalist lifestyle?

A: The minimalist movement, or the idea of living with just the barest of necessities, has exploded in popularity in recent years. Let’s take a closer look at this trending lifestyle choice so you can make an informed decision about embracing its philosophies.

What is minimalism?

The generally accepted definition of minimalism is: Less is more. But adopting a minimalist lifestyle is more than just decluttering. It also means getting rid of, or whittling down, any expense category in your budget along with any activity you engage in that is not necessary for your life or peace of mind.

Getting started on minimalism.

There are lots of ways to live a minimalist life. Here are some popular ways to get started:

The 90/90 rule. Choose an item in your home and ask yourself if you’ve used it in the last 90 days and if you will use it within the next 90. If the answer to both questions is no, toss it.
The 30-day declutter. In this challenge, throw out one item from your home on Day 1, two items on Day 2 and continue this progression until Day 30, when you throw out 30 items.
The 100-item life. Here, you choose 100 essential items you need to live with and toss out everything else you own.

It’s important to know there is no “right way” to embrace this lifestyle. Since minimalism means living with what you need and what brings you joy, it will look different to everyone. As long as you are left with a home and a lifestyle that fills you with peace and serenity, you have adopted the minimalist lifestyle.

Pros of living a minimalist life

Improved mental health. Evidence shows that a cluttered life is a stressful life.
Increased opportunities to experience life at its purest level. Walking away from extraneous commitments can free you up to experience the true pleasures in life.
More room in your budget. When you throw out all unneeded expenses from your budget, it’s easier to save and avoid falling into debt.

Cons of living a minimalist life

Feelings of deprivation. If taken to an extreme, a minimalist life can be depriving and ultimately backfire.
Unhealthy obsession. Minimalism can require a lot of brain power. If you spend all day thinking about your stuff, it still owns you.
Owning just a few items means a large initial outlay. You’ll need to invest in a few items that really last, and these don’t come cheap.
It can be isolating. Unless you jump into this lifestyle with a partner or friend, it can be a very lonely life.

Use this guide to make an informed decision about embracing a minimalist life.

Three Common Money Mistakes People Make

Managing money responsibly doesn’t just happen. Even with the best of intentions, many people make mistakes in how they handle money – and they don’t even realize it. But there’s good news! Harmful behaviors can be unlearned. Let’s look at three common money mistakes and how to fix them.

Mistake #1: Ignoring one’s financial situation

It is common for people to go about everyday living without a whole lot of thought toward their money. They may not know how much they have in their checking and saving accounts. They could also jam their heads in the sand when it comes to their outstanding debt. Awareness of how good or bad their credit score is? Forget about it! The hard truth, though, is that ignoring money can lead to big-time consequences, like excessive debt, missed payments and zilch in savings.

The fix: To avoid this mistake, assess your income, expenses and savings regularly. Creating a budget can help you get a handle on your financial inflows and outflows. This way, you can identify areas where you can cut back, save more and achieve and maintain financial wellness.

Mistake #2: Not having a clear money vision

The second common money mistake is a lack of financial plans or goals. Without an established money vision, it can be challenging to make smart money choices.

The fix: Establish short-term and long-term financial goals. Whether it’s saving for a down payment on a house, starting a business or planning for retirement, having a clear vision will guide and motivate all your financial decisions while ensuring they’re choices you can live with for years to come.

Mistake #3: Not discussing money

The third common money mistake is failing to talk about money with one’s life partner. Money is a sensitive topic, and many people believe they can avoid arguing over money by not talking about money. Unfortunately, though, not talking about it can lead to misunderstandings, conflict and financial instability within the relationship.

The fix: Have open and honest discussions about money with your partner. By establishing open lines of communication, you can work together to create a joint financial plan that aligns with both partners’ values and aspirations.

Use this guide to learn how to fix three common money mistakes and avoid making them in the future.

The Importance of Saving for a Rainy Day

Life is full of surprises, and some of them can be expensive. Whether it’s a medical emergency, job loss, car repairs or any other unforeseen event, having a financial safety net can provide a sense of security and stability. Let’s take a look at why it’s so important to save for rainy days.

Stay out of debt

When life throws an expensive surprise your way and you don’t have money to pay for it, you may fall into debt just to get by. On the flip side, if you had a well-padded emergency fund, you’d have the cash you need to fall back on in case of an emergency.

Be prepared for sudden unemployment

When you live paycheck to paycheck, your job is your financial lifeline. But no job is guaranteed to last forever. Your workplace may decide to downsize, close its doors or even to replace you with a bot. Or, you may find yourself unable to work due to personal circumstances. Having an emergency fund when you’re gainfully employed can help you stay afloat should you suddenly find your lifeline is reduced or cut out.

Flexibility and freedom

Saving for a rainy day brings an element of flexibility and freedom to your life. It enables you to pursue new opportunities, take risks and make major life changes without the constant fear of financial instability. Whether it’s starting a business, furthering your education or taking a sabbatical, savings provides the support you need to confidently explore these possibilities.

Peace of mind

Financial stress can take a toll on your physical and mental wellbeing. Constantly worrying about money can lead to anxiety, depression, strained relationships and more. Knowing you have an emergency fund prepared and on the ready for a rainy day can offer a sense of security and peace of mind.

Achieve long-term financial goals

Saving for a rainy day is not just about preparing for emergencies; it’s also a stepping stone toward achieving long-term financial goals. Whether it’s buying a house, starting a family or planning for retirement, having savings will help you stay on track.

Avoid economic downturns related to market fluctuations

The economy is subject to fluctuations, and financial markets can be volatile. During economic downturns or recessions, people will often face reduced job opportunities, pay cuts or decreased business revenue. However, an emergency fund can make a challenging economic climate easier to navigate. People who’ve saved up money for emergencies will be less reliant on credit cards and loans during such times, thus lowering their vulnerability to economic uncertainties.

If you don’t have a well-padded emergency fund, start building one today! Most experts recommend having three to six months’ worth of living expenses in your emergency fund. Review your monthly expenses to reach this number, and then make a plan for building up your fund until it’s complete. You may want to prioritize your emergency fund over other investments until it’s set up.

When the sun is shining, it’s hard to believe the rain will come, but no one’s life is all sunshine, all the time. Saving for a rainy day is a crucial part of financial wellness. Start saving today for a more secure and financially fit life.

6 Tips for Building an Energy-Efficient Home

Building a new home involves many decisions and expenses. As you work through the process, try making your new home as energy-efficient as possible. Let’s explore six ways you can build an energy-efficient home that promotes a sustainable future.

1. Optimize site selection

The first step in building an energy-efficient home is to choose the right location. Consider factors such as solar orientation, prevailing winds and surrounding vegetation. Maximizing natural resources, like sunlight and wind, can really reduce the need for artificial heating, cooling and lighting.

2. Efficient building envelope

A well-insulated building envelope is crucial for maintaining a comfortable indoor environment while minimizing energy loss. Use high-quality insulation materials in walls, roofs and floors of your new home. Opt for double- or triple-pane windows with low-emissivity coatings to reduce heat transfer. Finally, properly seal any gaps or cracks to prevent air leakage, ensuring your home remains airtight.

3. Use sustainable materials

Choosing sustainable and locally sourced materials can have a positive impact on both the environment and your health. Look for materials with low embodied energy, such as recycled content or renewable resources, like bamboo and cork. Opting for sustainable materials reduces the carbon footprint of your home and creates a healthier living environment.

4. Install energy-efficient appliances and lighting

Energy-efficient appliances and lighting fixtures can significantly reduce your home’s energy consumption. Look for appliances with an ENERGY STAR® label, as they meet strict efficiency standards. LED lighting is another excellent choice, as it consumes less electricity compared to traditional incandescent bulbs.

5. Consider renewable energy systems

Integrating renewable energy systems into your home is a proactive step toward energy independence. These include solar panels, wind turbines or geothermal systems that generate clean energy while reducing your reliance on the grid. Generating electricity sustainably will pay off for many years to come.

6. Water conservation strategies

Conserving water is an essential part of building an energy-efficient home. Install low-flow fixtures to reduce water consumption without sacrificing performance. Implementing water conservation strategies will save water while also reducing the energy required for water treatment and distribution.

Use the tips outlined here to build a home that has a lower carbon output and saves you money for years to come.

How Can I Beat Inflation and Save on Back-to-School Shopping?

Q: How can I beat inflation and save on back-to-school shopping?

A: Lucky for you, there are ways to save on back-to-school shopping. Follow these tips.

Shop with a budget

Determine how much you can afford to spend and set specific amounts for different categories such as clothing and supplies. Having a budget will help you stay focused and avoid impulse purchases.

Take inventory

Before hitting the stores, inventory what you already have at home. Check your kids’ closets, drawers and study areas for supplies and clothing that can be reused or repurposed for the coming school year. This will give you a clear idea of what you really need to buy.

Plan ahead

Start shopping early and take advantage of sales throughout the summer. Watch for clearance sales, promotions and discounts. By planning ahead, you can secure better deals and avoid the rush and price hikes closer to the start of the school year.

Buy generic

Don’t hesitate to reach for generic brands when purchasing school supplies for your kids. Store brands, like Walmart, or Target’s Up & Up, are usually cheaper than name brands without compromising on quality.

Shop without your kids

Shopping with kids is an easy budget-killer. Kids have their own ideas of what’s best to spend money on, and their opinions may not align with your budget. Leave your kids home for at least some of your shopping trips this season.

Think secondhand

Consider purchasing used textbooks, clothing and electronics. You can find gently used items at much lower prices on secondhand websites like ThredUp, and at thrift stores like Goodwill.

Use discounts and coupons

Before you shop, look for coupons, promotional codes and student discounts to bring down the prices of the items you need to buy. You can sign up for loyalty programs and use a discount-finder app or extension to pull up any coupons for the items you need.

Buy in bulk

Whenever appropriate, buy supplies in bulk. This is useful for items that are commonly used throughout the school year. Buying in bulk often comes with a lower per-unit cost, providing long-term savings.

Follow the tips outlined here to beat inflation and save on back-to-school shopping.

Money Tips for College Students

Hello, college, hello, money worries!

College life brings a sense of independence that extends to personal finances. Being in charge of your own money can seem like an impossible challenge, but it doesn’t have to be that way. If the thought of managing your money in college is stressing you out, dig into these tips for some help!

Create a budget

Living with a budget is a must for good financial wellness. First, track your income, including all earnings from part-time jobs, scholarships and student loans. Next, list your expenses, including tuition fees, textbooks, rent, groceries, transportation and entertainment. Set a realistic spending amount for each category, and your budget is good to go! Review and adjust as necessary.

Minimize student loan debt

Student loans can be a big financial burden after graduation. To minimize your debt, explore options such as scholarships, grants and part-time jobs to cover educational expenses. You can also get ahead on your debt by saving for your student loan payments before you graduate.

Live frugally

You can have your fun while in college, and your budget, too! First, buy used when possible. This goes for textbooks, sports equipment and your college car. Next, consider pooling some of your expenses with roommates. For example, you can split the costs of food items, cleaning supplies and more. Finally, get used to eating in and save big. Remember, every dollar saved can go toward your future.

Prioritize essential expenses

Life while in college is filled with temptations and social activities, so it’s crucial to prioritize your expenses. First, make sure your tuition, rent, utilities and groceries are covered and then you can spend money on fun! Having a good budget developed, and a regular review of it, will help you plan in some of that fun.

Build your credit

College is a great time to get your credit score ready for adult life. A strong credit score is essential for qualifying for large loans, getting favorable interest rates, securing a job and more. To build credit responsibly, consider getting a secured credit card or becoming an authorized user on a family member’s credit card. Use the card sparingly and make full payments on time each month.

Take advantage of campus resources

College campuses often provide many resources to help students manage finances. Take advantage of financial literacy workshops, counseling services and career centers at your college.

Use these tips to manage your money smartly in college.

How to use Appliances Efficiently

Did you know that appliances account for approximately 13% of your home’s energy use? The good news is, you don’t have to completely pull the plug to save on your energy costs. Here’s how to use your appliances more efficiently to reduce your energy use and do one for the environment.

Choose energy-efficient appliances

When purchasing new appliances, choose models with high energy efficiency ratings. Look for the ENERGY STAR label, which indicates that the appliance meets strict energy efficiency standards.

Follow the user manuals

User manuals provide valuable information about the optimal usage and maintenance of appliances. Take the time to read the manuals thoroughly, as they offer specific instructions on how to maximize efficiency and extend the lifespan of each appliance.

Use appliances smartly

Take full advantage of any automatic settings on your appliances to use them more efficiently. For example, you can set your HVAC system to adjust its temperature when no one’s home or everyone is asleep.

Saving on energy around the house

Follow these tips to use appliances more efficiently around the house:

Computer

Choose “sleep” over “screen save” to use less energy when away from your computer.
Consider switching from a desktop PC to a laptop, as these use 10% of the electricity.
Turn off your monitor when it’s not in use.
Think three times before you print.

Oven/range

Match up your pots to your burner size
Cook with aluminum pans for even heat conduction.
Keep range-top burners clean for better reflection of heat and saved energy.

Refrigerator/freezer

Keep your thermostats at the recommended settings.
Position your refrigerator away from a heat source.
Clean the condenser coils of refrigerators and freezers regularly.

Dishwasher

Only run full loads.
Avoid pre-rinsing dirty dishes unless absolutely necessary.
During warmer times of the year, run the dishwasher in the early morning or evenings, when it’s cooler out.

Washer/dryer

Wash with cold water as much as possible.
Keep the lint filter clean for quicker dry times.
Make sure your dryer is vented properly.

Air conditioner

Cook less when it’s hot out.
Set your thermostat to adjust automatically.
Clean or replace your filters regularly to maintain proper airflow.

Use these tips to use your appliances more efficiently and save on energy usage and total costs.

Step 12 of 12 Steps to Financial Wellness – Review and Tweak

Congratulations! You’ve reached the 12th and final step of the 12 steps to financial wellness. Here, we’ll review the previous steps and adjust this part of your financial health plan as necessary.

Step 1: Track your spending

Are you regularly tracking your spending? Knowing where your money is going will help you make more responsible spending decisions in the future.

Step 2: Create and stick to a budget

Budgets need to be reviewed and tweaked every few months or so to ensure they still work for present life circumstances. If your budget no longer works for you, tweak until it does.

Step 3: Pay down debt

Have you made as much progress in your debt-paying journey as you’d hoped to by this point? Can you beef up any payments to make debt disappear sooner?

Step 4: Talk money with your partner

Have you had the big money talk with your partner? Need to revisit any of the topics you’ve discussed, such as sharing accounts, dividing expenses and saving up for a shared dream?

Step 5: Spend mindfully

Review some of your recent purchases. Are you blowing money on stuff you don’t need instead of relieving stress in a healthier manner? If so, look for better ways to de-stress. Spending mindfully is one of the most important steps to financial wellness.

Step 6: Pay it forward

Are you remembering to pay it forward? The money, time and smiles we share are the only moments that are truly ours.

Step 7: Pay yourself first

Are you remembering to feed your savings? At this time, you may want to consider increasing the amount you’re regularly putting into savings by trimming some discretionary expenses.

Step 8: Know when and how to indulge

Are you remembering to work your just-for-fun expenses into your budget so you can indulge without guilt? Now is a good time to look back at your indulgences to figure out if they were really good uses for your money.

Step 9: Check your credit score

If you’ve been following the rules for boosting and maintaining a high credit score, like paying your bills on time, having several active cards, and keeping your credit utilization low, your score should have improved during these last few months.

Step 10: Think about retirement

Review your retirement accounts and assess whether your funds have reached the place you’d hoped they would by now.

Step 11: Start investing

Make sure your investments are performing well and that your assets are optimally diversified.

Step 12: Review your overall financial health

In this final step, you’ll review your steps to financial wellness on a regular basis, just as you’ve done here.

Reviewing your financial health on a regular basis is an important part of staying financially fit.

How Can I Help My Elderly Parents Manage their Finances?

Q: My parents are aging, and I believe they can use help in managing their everyday expenses, and may eventually need a proxy. How can I best help my parents with their finances?

A: Your parents are fortunate to have a child who’s proactively willing to help with this challenging task. Here are some ways you can help your elderly parents manage their finances.

Determine whether they need help

If you notice any of the following, it may be a sign that your parents need assistance with money management:

Unusual and unnecessary purchases.
Piles of unopened mail.
Physical setbacks.
Cognitive impairment and/or memory failure.

Communicate openly

Before you take steps toward managing, or assisting with, your parents’ finances, have an open conversation with them about your current and future intentions. You can share that you are only there to help and that you will not take any actions without their permission, whether before or at the time of need.

Gather information

Next, sit down with your parents and ask these questions about their finances:

Have you named a durable power of attorney (POA) for finances?
Where do you keep your financial records and assets?
What is the name of your mortgage lender?
What are your monthly expenses?
How do you pay your bills?
How much is your annual income?
What kind of health insurance do you have?
Have you written a will or a trust?

Establish a plan

Now you’re ready to establish a plan for managing, or assisting with, your parents’ finances. Be sure to honor their dignity as much as possible. Ask them if they’d like you to take responsibility for one or more of their monthly financial-related tasks. For example, you can pay their mortgage and car payments each month, or make decisions relating to their investments.

At this time, consider simplifying their finances in any way you can. For example, if your parents have multiple credit card balances, you may want to consolidate this debt into an unsecured loan, and then only have to pay back the one loan payment each month. You can also automate as many bills as possible.

Alternatively, you can talk about the future only, and have your parents agree to let you manage their money if one or both of them become incapacitated in any manner.

If your parents find it difficult to relinquish this bit of independence, start assuming responsibilities for their finances gradually; just one bill at a time.

Taking over the finances of elderly parents can be a delicate and daunting task, but it is often necessary. Use the tips outlined here to navigate this situation smoothly.

Step 8 of 12 Steps to Financial Wellness – Know When and How to Indulge

Living a life of financial wellness means being happy with a lifestyle that’s within your means, but doesn’t leave you feeling like you’re lacking. At the same time, financial wellness means money choices are governed by discipline and not by emotion. So how do you strike a balance between the two?

Here’s how to indulge responsibly.

Live with a budget

To do this, track your spending for three months. Next, make a list of all your expenses and list your income in a parallel column. Tally up your totals and assign a realistic dollar amount to each expense. Going forward, be sure to only spend within the allocated amount for each expense category.

Leave room in your budget for “just for fun” purchases

As you work on building a budget, leave room for the occasional treat. The exact amount will vary by income level, lifestyle and personal choice. However, wisely choose an amount you can easily afford without feeling deprived.

Review your savings

Before giving yourself permission to indulge, make sure you’re setting aside some of your monthly income to savings. Ideally, short-term savings should be enough to keep you afloat for 3-6 months if you have no source of income. Long-term savings should be sufficient to support your retirement and any long-term savings goal you may have.

Choose your “treats”

Everyone’s got a personal vice or three. Take a look at where your non-discretionary money went over the last month and highlight the more expensive impulse buys. Hold these purchases up to these questions:

Did this purchase bring me happiness or positive energy the day I bought it? How long did that feeling last?
Did this impulse buy blow my budget?
Does thinking about this purchase now fill me with joy, guilt or something else?

Use the insight about your indulgences to help you make better money choices in the future.

Lose the guilt

Once you’ve decided how much you want to spend each month on indulgences, it’s time to let go of guilt. If you’re spending responsibly, there’s no need to eat yourself up over an impulse buy you could have done without. As long as you’re keeping these just-for-fun purchases within your budget, you can maintain your financial wellness.

Should I keep Cash at Home?

Q: I’m seeing posts on social media about keeping cash at home during rapid inflation. Is this a good practice?

A: Keeping large amounts of cash in envelopes, kitchen drawers or stuffed under the mattress is not recommended during times of high inflation – or any time.

Why is it a bad idea to keep cash at home?

While it’s perfectly OK to keep some cash at home, storing a large amount brings two big disadvantages:

The money can be lost or stolen. Hiding cash under the mattress or anywhere in your house always carries the risk of being misplaced, damaged or stolen. Unfortunately, there is no way to trace or reclaim lost or stolen cash.
The money isn’t growing. When cash doesn’t grow, it loses some of its value. This is especially true during times of high inflation. The current inflation rate is 8.5%. This means, if you’d keep $1,000 at home for the next year and inflation stays at 8.5% during that time, your cash would be worth only $985. Of course, if inflation rates increase, the loss would increase as well.

Where is the best place to keep cash?

Here are some places you may want to keep your cash at this time:

Savings account. A savings account is a secure place to keep extra funds. When you open a savings account at High Point Federal Credit Union, there’s no risk of your money being lost or stolen.
Precious metals. Precious metals, like gold, silver and platinum, have proven to hold their value even in times of inflation and a volatile stock market.
Share certificates. A share certificate is a savings account that’s federally insured, has a fixed dividend rate and a fixed date of maturity. The fixed dividend rate will remain unaffected by the fluctuating national interest rate.

Inflation is high, but that doesn’t mean it’s a good idea to hoard your cash at home. Follow the tips outlined above to find the perfect place to park your cash.

12 Steps to Financial Wellness Step 7: How to Pay Yourself First

“Pay yourself first” is a catchphrase that refers to prioritizing your personal savings above other expenses. To achieve it, savings should be a fixed line on your budget that happens every month without fail.

Here’s how to pay yourself first.

1. Review your spending

Take a clear look at your spending. If you already have a budget, this will be as simple as reviewing the column which lists all of your expenses, including your discretionary spending. If you don’t have a budget, track your spending over several months to identify your primary expenses and to find the average amount of money you spend each month.

2. Set short- and long-term saving goals

Short-term savings, or funds you want to be able to access in the near future if necessary, can be allocated to an emergency fund. Experts advise having three- to six-months’ worth of living expenses set aside in an emergency fund in case of a sudden, large expense and/or loss of employment.

Long-term savings should include funds you can afford not to touch for several years or more. Your long-term saving goals can include your retirement, as well as a down payment on a home, a new car, a sabbatical from work or any other super-big expense.

Narrow down your short- and long-term goals, then attach a number to each savings category.

3. Set a timeline for each savings goal

Now that you have a number for the amount you want to save, you’ll need to work out a realistic timeline for meeting those goals. It’s best to give first priority to your emergency fund, but at the same time, it’s a good idea to start saving for retirement today so compound interest has an opportunity to work its magic. To that end, you may want to allocate the bulk of your monthly savings to your emergency fund until you meet your goal. Once your emergency fund is full, you can divide your savings more evenly between your short-term savings and long-term savings.

4. Calculate how much you’ll need to save each month

Take your total for each goal, and divide it by the number of months in your timeline. For example, if you’ve decided you want to have an emergency fund of $24,000 established in four years’ time, you’ll divide $24,000 by 48 months to get $500 a month. This is the amount you’ll need to set aside each month to reach your goal in time. Do this for each of your goals.

5. Automate your savings

Once you’ve got your savings plan ready to go, it’s best to make it automatic. You can set up a monthly transfer from your High Point Federal Credit Union checking account to your credit union savings account or share certificate. This way, your savings will grow even when you forget to feed them.

Congrats–you’ve mastered the art of paying yourself first!

4 Ways to Stay Financially Fit this Summer

Ahh… summer! The season of flip-flops and sunscreen, of lemonade and baseball. What’s not to love?

Unfortunately, summer can also be the season of overspending for some of us. When the sun is blazing across a cloudless sky and the day stretches on with endless possibilities, purse strings are looser and cards are swiped with abandon. But nothing kills summer fun like a busted budget and a mountain of debt. So how can you stay financially fit this summer?

Keeping your finances intact throughout the summer is possible if you’re ready to plan ahead and make responsible choices. Here are four tips for a financially fit summer.

1. Prepare for a possible change in income

If you’re a freelancer, business owner or get paid per diem, expect to see a drop in income during the summer. Business is notoriously slower across many industries at this time, so it’s best to be prepared for this reality. To avoid dipping into savings or going into debt, trim your discretionary spending and use the extra funds to cover non-discretionary expenses. You can also choose to find a side hustle for the summer to cover the gap in your income.

2. Get your budget summer-ready

Your budget will see some changes in the summertime, and it’s wise to prepare it in advance instead of being caught unaware. Here are some changes you might expect:

Higher utility bills
Increase in fuel prices
Travel expenses
Increased activities for kids

3. Create a vacation budget

Build a workable budget for your summer getaway to avoid overspending. Attach a dollar amount for your hotel stay, car rental, food costs, transportation, entertainment and outings as well as any other costs you expect to encounter during vacation.

4. Review and adjust as necessary

Blowing a budget is never an excuse to go all out and overspend without considering the consequences. To avoid falling into this trap, review your budget and your overall spending on a regular basis throughout the summer. Being aware of the state of your finances will make it easier to make responsible choices going forward.

Follow these tips to keep your finances intact throughout the summer.

10 Fun Gifts for Dad that Don’t Break the Budget

It’s Dad’s time, a day to go all-out to make your all-time favorite hero happy. But, Father’s Day doesn’t have to drain your wallet. You can make Dad’s day and keep your budget, too. Here are 10 fun and low-cost gifts that’ll make Dad smile.

1. Apple charging dock

This awesome charging dock can juice up an iPhone, Apple Watch and AirPods all at the same time. Get Dad’s 3-in-1 charging station for just $19 on Amazon.

2. BenShot pint glass with real golf ball

Does Dad love to golf? Surprise him with this unique pint glass with a real embedded golf ball. Just $26 on Amazon.

3. Classic charades

The classic game of Charades, just $12 at Chroniclebooks.com, will help create warm family memories way beyond Father’s Day.

4. Open bottle wine rest

This adorable mountain-shaped wine bottle rest is the perfect gift for the outdoorsy dad who loves to enjoy a good glass of wine and save the rest for later.

5. Rainbow socks pizza socks box

The pizza-box packaging of these socks make them a super-fun Father’s Day gift. Just $26 on Amazon.

6. Bluetooth speaker beanie

With its built-in Bluetooth speakers and a super-warm design, Dad won’t want to take this beanie off all winter! Just $28 on Amazon.

7. Fitness dice

At-home workouts are fun again with this innovative fitness dice set. Every roll gives you one of 45,000 possible routines, all are equipment-free. Only $19 at uncommongoods.com.

8. Bean Box coffee subscription

If Dad likes his morning cup of Joe, he’ll love a regular delivery of fresh bags of whole bean coffee from artisanal brand Bean Box. Subscriptions start at just $16.50.

9. Chillsner

Dad will never have to wait for his drink to chill again when he has this nifty little gadget. Keep the Chillsner in the freezer and pop it into any drink for an instant chill. $10 at uncommongoods.com.

10. Marvel’s greatest comics

Let Dad dive into an anthology of the greatest Marvel comics of all times, including favorites like Iron Man, Captain America and more. Get the collection here.

Use this guide to find the perfect gift for Dad that doesn’t break the budget.