No matter your age or stage in life, it pays to know the facts about personal finances. When you understand the basics, you can set yourself up for success and build a healthy financial future. Here are three tried and true facts to know about personal finance to get on the right track:
Fact #1 – Good Financial Habits Pay Off
Making it a habit to set aside money each month helps you save to meet both short and long-term goals. For many of us, the big savings goal is purchasing a home, and eventually retirement. But people also save to build up an emergency fund, afford a new vehicle, education, and more.
Making regular deposits, no matter how small, will add up over time.
Besides setting aside money and ensuring your funds earn a competitive rate of interest, the second most important habit is to control spending. By budgeting wisely, you not only set aside more money for potential savings, but you also develop spending habits that serve you in the long-term.
Fact #2 – There’s a Smart Way to Manage Debt
Many people find it helpful to understand the facts of managing debt wisely. For example, making only the minimum monthly payment on a credit card increase the time it takes to wipe out your debt. It also adds to the amount of interest you pay. Minimum monthly payments can be a short-term approach to dealing with financial challenges. However, making more than the minimum payment each month helps avoid digging yourself into a financial hole.
Have you hit the maximum balance on credit cards, or run into issues keeping up with other debt? Then it’s time to take a hard look at where your money is going and make a plan to change any habits that are not beneficial to your financial health.
Fact #3 – You Don’t Have to Go it Alone
There are times in life when you might need help to get a handle on high credit card balances, understand options when facing financial challenges, or figure out how to get a healthier credit score.
A financial counseling session, working one-on-one with a certified counselor, is a good first step. A counselor can help you understand your full financial situation. They can also also help you to develop a customized plan for your unique situation.
Whether it’s overwhelming credit card debt, student loan balances or issues with keeping up with housing costs, the path is easier when you work with a trusted resource. A trusted source, along with an action plan that provides proven strategies, can propel people toward financial health with confidence.
Just the Facts
Through our partnership, counselors at GreenPath Financial Wellness are ready to share some “tried and true” facts when it comes to financial health. Gain a better understanding of your financial picture and what steps to take to improve financial wellness. Get started with a free, confidential financial counseling session.
This article is shared by our partners GreenPath Financial Wellness, a trusted national non-profit.