The importance of financial wellness
For the month of August, Centra is celebrating the importance of financial wellness.
What do we mean by financial wellness? Having control over your money, knowing what’s coming in and what’s going out, and having the confidence to effectively balance your finances in your everyday life are all part of financial wellness. The Consumer Financial Protection Bureau defines financial wellness (or well-being) as “having financial security and financial freedom of choice.”
Financial wellness isn’t easy for everyone. That’s why it’s important to learn and take steps that you’re comfortable with to move in the right direction. You know you and your financial situation better than anyone else!
Tips to gain financial confidence
Being financially comfortable is a goal of many people, but how do you get there? Here are some tips to help you get started:
- Know what’s coming in and what’s going out. Tracking your spending daily can help you see where you’re spending most of your money. This can help you eliminate unnecessary spending habits.
- Create a budget that works for you. You know when you get paid and when your bills are due. Creating a budget that works with your cashflow can help you organize your finances and plan your spending.
- Have a rainy day savings. Life can throw you curve balls, so it’s important to always have savings for surprise expenses.
- Set up automatic transfers. One of the easiest ways to save is if you don’t have to lift a finger! Setting up a portion or percentage of your paycheck to automatically transfer to a savings account can help you quickly boost your savings. Learn about Centra’s Member Loyalty Rewards >
- Pay down your debt. Having too much debt or high-interest debt hanging over your head can really impact your financial well-being. Learn how much you owe and make a plan to pay down on debt. You can also explore a debt protection program.
- Look ahead. You have goals that you want to reach at some point in your life. Plan for them! Just be smart when doing so. The Consumer Financial Protection Bureau suggests breaking down your goals and keeping them within your financial limits.
There’s no one right path to financial wellness, but finding your way is easier with a partner by your side! That’s why our experienced Team Members are here to help you through every financial stage. If you have questions about which accounts are right for you, make an appointment to talk one-on-one with a Member Service Representative. Our Centra Financial Services consultants are also here to help you with all your financial plans, whether you’re starting out on your own, preparing for kids, or almost ready to retire! You can make an appointment with a consultant here. It’s always a great time to start planning for your future.
There are also resources out there to help you along the way too! Tools such as Zogo can help you learn budgeting basics while having fun and earning rewards. Learn about Zogo >
Plus, in our new digital banking, you have access to our updated financial wellness feature! This section of digital banking helps you track your financial health in the same place you manage your money. You can set your spending and saving goals, review your overall debt report, and discover your financial health score. Managing your money and your financial wellness is easy with digital banking!
Ready to grab your finances by the dollar bill? Here are some resources to help you get started:
- Intuit Mint Life – 12 tips to achieving financial wellness
- BetterUp – Financial wellness: What it is, and how to get it
- Money Management International
- Enrich – How do we define financial wellness?
- Centra Financial Services