Key Takeaways

• • • Managing your finances can improve both your bank account and your peace of mind.
    • Begin by reviewing your finances to create a budget that works for you.
    • Balance saving, debt repayment, and occasional spending on things you enjoy.
    • Don’t miss out on the employer match in your retirement plan—it’s extra money for your future.

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    Most of us would admit to abandoning resolutions relatively quickly after the ball drops on New Year’s Eve. But that doesn’t mean you shouldn’t try again! This year, start with financial goals. Even if you just reach one or two, it can make a big difference.

    Managing your money well does more than improve your bank account—it helps your mental health too. A study from 2024 found that nearly half of U.S. adults say money causes them stress, worry, and anxiety.¹ So, why not work on your financial health? Here are some steps to help you get started.

    Start Where You Are

    Don’t worry if you haven’t made a plan, created a budget or got your credit card debt under control. Take the first step from wherever you are today.

    Make a Financial Inventory

    Taking inventory of your money helps you see where you are and plan where you want to go. Grab paper and pen or use a spreadsheet to list:

    • Your monthly take-home pay
    • Essential expenses (like food, health insurance and housing)
    • Nonessential expenses (like entertainment and restaurant meals)
    • Your debt (balances, interest rates and minimum payments)

    Once you have the big picture, you can decide how to tackle your finances. For example, paying off debt could help you save more.

    Review Your Budget—or Make One

    A good budget should fit your life and change when needed. Start with your financial inventory and plan monthly payments that focus on your goals, like paying off debt. But remember to leave room for fun too! A balanced budget that includes both saving and spending is important.

    Build an Emergency Fund

    Emergencies are unexpected and can be scary, but you’ll feel more secure if you have money saved for them. If an emergency fund seems like an impossible goal, start small. Aim for $1,000 and add more over time. Most experts suggest saving enough to cover three to six months of living expenses. You can save easily using a tool like Goals² in Lake City Bank Digital. Set a goal of how much you want to save and the date you want to meet it. Goals calculates how much you need to save each week or month and helps you set up an automatic transfer to make sure it happens.

    Get the Match

    If your employer offers a retirement plan with a match, make sure you’re saving enough to get the match. This helps boost your retirement savings.

    Pay Down Debt

    Debt, especially credit card debt, adds up fast and costs a lot to repay. Look at yours and determine how you can pay it down most efficiently. Be sure to work payments into your budget so you’re not buying on credit while you’re trying to pay it off. Reaching for your debit card, like our Lake City Bank Visa® Debit Card, instead of a credit card can help you stick to your budget.

    Improve Your Credit Score

    Your credit score is important—it affects your access to credit and the rates you’ll pay on loans. Follow these steps to improve your credit score.

    • Pay your bills on time and in full.
    • Decrease how much credit you use.
    • Limit how often you apply for new accounts.

    Ready, Set, Resolution!

    This year, set resolutions that improve both your financial situation and your peace of mind.  No matter your situation, get started with an inventory and build from there. Creating your own financial freedom is a reward worth the effort!

     

    ¹Bankrate study from March 2024. https://www.bankrate.com/loans/personal-loans/money-and-mental-health-survey/

    ²Goals, as referred to herein, constitute the Goals Account described in Section E Investment Accounts of the Personal Account Terms and Conditions.