3 minute read
Rethinking Spending and Debt
Not Everyone Needs Debt to Live Lavishly
Having a mortgage or an auto loan is not a requirement for financial success. While loans can be highly beneficial to some, to others they can become a trap. The debt can become more than you can afford, and money isn’t the only thing you should consider. Your time and your energy are just as important. Consider the value of your time and energy as much as tangible things.
Spending Less Can Lead to Bigger Rewards
These rewards may not be apparent in the short term, but in the long term, you will see the benefit. Making spending decisions as a family and learning to do more with less can relieve the burden and stress that comes with an expensive and overstrained budget.
Paying On Time is Important
As an individual or household, it is important to become a responsible consumer. Paying on time establishes respect and is extremely vital when establishing and maintaining your financial wellness. Consumers who pay on time will see access to a larger variety of goods and services. The ability to borrow becomes easier and at a lower cost to those who keep a good payment history and sustain a good great score.
Every Decision Regarding Debt Deserves Thoughtful Consideration
When considering a loan or purchases on a credit card, consider the value of the product or service. Is it a necessity, and will what you are purchasing maintain its value over the life of the debt? Consider the rate and cost of the purchase and how long it will take you to pay it off.
Don’t Settle for Minimum Payments
Making minimum payments is a trap for the unwary and can lock you in a cycle of endless financial obligation, especially when it comes to credit cards. When looking to pay off credit card debt, speak with a trusted advisor or financial counselor to review your options and develop a plan and time frame to pay off your debt.
Saving Creates Possibilities
The only way to truly get ahead and take control of your financial wellness is to save. This includes your day-to-day purchases and expenses, as well as your lifetime goals. Establish a budget, consider your wants over your needs, set aside money monthly in an account for emergencies, and find resources to help you reach your financial goals.
You Can Determine Your Financial Future
Financial mistakes and life events can create debts and challenges that can be difficult to overcome. But you have the ability to take contact of your financial future. The quicker you get started the more you can achieve.
As an institution supported by our members, we like to reciprocate that support however possible. Our Financial Wellness Program, newly established in 2022, is entirely free to our membership. If you are struggling to make ends meet, figuring out how to plan for future financial goals, or are recovering from ID theft or fraud, we can help you get on the right track. Get started today by scheduling an appointment online.
