When many people talk about financial security, they point to outside factors. They measure their security based on how much their employer pays them, how much they’re forced to pay in bills each month, or events that affect their finances, such as car breakdowns or health issues.
The reality is that your financial situation has less to do with outside factors like those, and more to do with choices you make. I’m sure you have a friend who is always stressed about money, but you can’t help but notice that he or she always has new clothes, buys a new car every couple of years, and travels extensively.
Even if you don’t live that extravagantly, the choices that you make every day can have positive or negative effects on your financial security. While there are unexpected events that cause money problems, most people who struggle financially do so because of decisions they’ve made.
You can only spend money once, so you want to be sure you’re spending it the right way. A great way to figure that out is to track every penny you spend over a month or two, and review it to see if you’d make the same decision again. Maybe instead of spending $5 for lunch each day, you can brown-bag it. Maybe you watch a movie online instead of paying theater prices.
The best move you can make? Saving for the future. It may not be fun or exciting, but regularly putting money aside is the best way to prevent problems down the road. Your first goal should be to establish an emergency fund, ideally with enough money to cover three to six months’ worth of expenses. That way, if you lose your job or have an unexpected expense like a water heater that needs to be replaced, you won’t panic. The second objective is saving for retirement. Even if retirement is far away, you’ll give your savings a chance to grow through compounding.
If you’re ready to choose to start saving, Indiana Members Credit Union has an entire family of savings plans to help. From our basic Membership Savings Account to our Money Market Account, we have savings plans to meet every need. Which one’s right for you? Stop by any of our locations, and we’ll be happy to help you make the right choice.