HOW-TO
7 Steps Toward Financial Wellness
Take control of your approach to spending, saving, borrowing and planning. BY SHARI HEGLAND | CONTRIBUTED PHOTOS
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s your financial future on the right path? Jackie Urban, credit management supervisor and member education officer at Altra Federal Credit Union, says there are warning signs that should tell us it’s time to hit the brakes and consider a new route. • A sudden change in income—loss of a job, illness, loss of a spouse. • Living paycheck to paycheck. • Arguing with a spouse about money. • Being delinquent in paying bills or making only minimum payments. Even if none of those fit, it never hurts to double-check where you are on the road to achieving your financial goals.
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DISCOVER WHERE YOUR FINANCIAL SITUATION FALLS SHORT A quick two-minute quiz offered on Altra Federal Credit Union’s website can be a useful tool to assess where you stand regarding insurance, credit scores, long-term savings, spending vs. income, liquid savings, debt levels and future planning.
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PRIORITIZE CREDITORS Along with the inventory of your “stop budget” obligations, list your creditors and prioritize them in the order of who can harm or help you first.
CREATE A “STOP BUDGET” Urban says this is a budget that includes all the things that you can’t just stop paying for: • Things that can be shut off, like utilities. • Things that can be taken away, like your home. • Things that protect you, including insurance. • Gas in the tank. • Food in the tummy.
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INCREASE INCOME Apply any increase to your debts—don’t let it encourage you to increase your budget for ongoing expenses. That extra income could be a part-time job, freelance work or even selling unnecessary extravagances such as a boat or bike to get your finances back on track.
www.crwmagazine.com DECEMBER/JANUARY 2022 19
