Money matters can be intimidating and overwhelming for many people, particularly with the high cost of living today. The good news is almost anyone can improve their financial health and start feeling better about their money—most people just need to know where to start.
You might be wondering, “What is financial health?” Simply put, it's all about balancing your financial needs today with those of tomorrow. It’s about managing your spending, saving, and debt, and ensuring you have a plan to achieve your short-and long-term goals. Some of the questions to ask when thinking about your financial health include:
- Do you have and follow a budget?
- Are you able to save a little each month?
- Do you pay off your credit card debt each month and avoid high-interest charges?
- Do you have an emergency fund tucked away for unexpected needs?
- Do you have a plan to help you get where you want to go short-term and longer-term?
Addressing these questions is crucial for gaining control over your financial situation. Taking steps toward improving your financial health doesn’t require a dramatic lifestyle overhaul and the end of fun. Small and consistent actions can lead to results.
For instance, establishing a budget and spending less than you earn each month helps to ensure you are living within your means. Paying yourself first each month by setting up an automatic deposit of a predetermined amount from your chequing to your savings account is a great way to save money. You will be amazed at how small amounts add up over time. There are many ways to get your debt under control, and talking with an expert is a good first step.
Once you have worked through these steps, you will be prepared to develop a comprehensive plan to achieve your specific goals. Whether it involves saving for a home, funding education, going on a vacation, or planning for retirement, consulting with a financial expert can prove highly advantageous.
Strengthening your financial health brings forth several benefits. It enhances your resilience by reducing vulnerability to unexpected expenses and enables healthier relationships with your loved ones. Money-related stress is a leading cause of tension and conflict among couples and families. Budgeting, saving, managing debt, and planning with partners and family members help to build trust and unity, creating a solid foundation for shared dreams and aspirations.
If you're uncertain about how to embark on the journey to improve your financial health, it may be worthwhile to seek guidance from Coastal Community Credit Union. Their team of experts will help you review your situation and goals, and then work with you to craft a plan to get you on track. Remember, achieving financial health need not be an intimidating or unattainable feat. It can be a calming and empowering process—simply take the first steps today.
To learn more about Coastal Community Credit Union, visit www.cccu.ca.
