April is Financial Literacy Month! That means it’s the perfect time to take a look at your financial wellness and make sure you’re making healthy financial decisions and building positive habits.
5 tips for financial wellness:
1 – Create a budget and track your monthly spending: Take some time to identify where your money comes from and what you spend it on. If your expenses exceed your income, see what you can cut out. Then, track your spending each month, so you can see if you are within your budget. Don’t know where to start? – Stop in at a local Peoples Bank office and we can help!
2 – Set up a savings account for emergencies: A good rule of thumb for how much money to keep in your emergency fund is three to six months of living expenses. Don’t worry if that seems impossible, every little bit can help to make a difference in your financial wellness. Emergency savings can help protect you from debt if unexpected problems arise.
3 – Check your credit report each year: Review your credit reports each year at www.AnnualCreditReport.com. Developing and maintaining good financial wellness builds good credit. This will help you to obtain lower interest rates on a car, home, or other loans.
4 – Pay off your debts on time and review interest rates: If you must take on debt, be aware of interest rates, and make sure payments fit into your budget. Keep in mind that not all debt carries the same interest rates. For example, interest rates for credit cards are typically higher than home equity loans.
5 – Make a plan for achieving your financial goals: Set a budget for a vacation, a downpayment on a house or a needed car, and begin saving and investing. You can set up an additional savings account through your bank and direct deposit into it if desired. Planning for the future is a wise practice and reduces overall monthly expenses when done effectively. You can use the Personal Finance Tool in the Peoples Bank mobile app to assist you with financial planning!
Good financial wellness allows for more generosity, flexibility, and enjoyment of life through leisure time, travel, hobbies and more. If you need help cultivating healthy financial habits, don’t hesitate to contact your local Peoples Bank branch.
Looking to open a checking or savings account? Find out which Peoples Bank Checking or Savings Account is best for you.
