New Year’s Resolutions for Financial Health

Next to physical health, financial health is at the center of many Americans’ New Year’s resolutions. If you’ve resolved to finally get your finances in check this year, use these tips to save more, spend less, and make this your year!

Like other lofty goals, taking small, manageable steps in the right direction is going to be the key to actually succeeding. And just like other improvements in one’s life, deciding to make a change is the biggest hurdle to making a difference.

1. Save Wherever You Can

A person’s financial health depends on many factors, not the least of which is their ability to pay for emergencies out of savings rather than cash flow. So how do you boost your savings on regular basis?

First, decide on the portion of your tax return, bonus, or financial windfall that will go to your savings account and what will go toward paying off any debt you may be carrying. Second, slide some of your income into savings before it even gets into your hands. Use payroll deductions from St. Cloud Federal Credit Union to put a portion of your paycheck directly into savings.

2. Get on the Same Page as Your Spouse

According to a study by SunTrust banks, nearly half of all respondents have different spending habits than their partners, which is why this made our list. It is difficult to reach financial goals as a couple if you don’t agree on the goals or how to get there. Not to mention that financial stress is the number one cause of marital stress for those who indicated stress in their relationship.

Sit down together and take stock of where your finances are. Make the following decisions together:

• Decide what you’d like to accomplish in the next year, whether it’s paying down debt, opening a college savings fund, or just keeping monthly spending to a specific and firm budget. 
• Decide who is best to manage your finances. If the current arrangement isn’t working, think about having the other person step in.
• Set your budget and make a plan to stick to it. That brings us to the next suggestion.

3. Watch Those Little Purchases

Whether you’re single or attached, make a budget. Look carefully at your monthly and yearly income, and where it was spent last year. Are you happy with what you see? Is it what you expected?

Setting a weekly and monthly budget with spending caps can help you reach your year-end goals. Watch those little purchases that may have made up more of your spending than you thought, such a parking, eating out, coffeehouse visits, or traffic tickets. Although they seem small at the time, adding these small tickets to your burden every single week or month will end up creating a big hole in your financial plan.

4. Watch Those Big Purchases

Ah, the splurge. Whether it was a Christmas gift or a mid-winter vacation, one large purchase outside the scope of your budget can throw things off for months. Discuss these big ticket items with a financial advisor to proactively set a plan for achieving it. Americans often have a habit of buying first and thinking about it later, which is a sure way to rack up debt. Shop around, compare prices, check your impulses, and remember that it’s ok to say no to yourself in favor of your greater goals of financial freedom.

5. Check Interest Rates

If reducing your debt is one of your goals—and if you have debt, it should be—look at the interest rates you’re paying. Get rid of the balances that carry the highest rate, and work down from there. If you’re not sure where to start, this is one strategy for tackling debt.

Similarly, compare interest rates for savings accounts and money market accounts. Talk with a representative at St. Cloud Federal Credit Union to determine if the money you’re saving could be earning you more.

6. Plan for Retirement

According to the 2016 Financial Literacy Survey, one-quarter of Americans don’t save any of their annual income toward retirement. Lauren Brouhard, Senior Vice President of Retirement at Fidelity Investments, recommends saving 15% of your income to ensure a comfortable retirement.

If you haven’t opened your 401k retirement plan or checked in on its performance, do that immediately. If your employer offers a matching contribution to your 401k, be sure to take advantage.


For assistance with any of these tactics, we encourage you to let St. Cloud Federal Credit Union help you maintain this year’s New Year’s resolutions!

We Asked Employees Their Tips and Tricks For Saving Money..... This is What They Have to hare:

Looking for ways to SAVE MONEY??? 

We asked employees their tips and tricks...this is what they have to share:

"I shop at Aldi! The produce is excellent and so cheap! We are staying in our budget, spending less than we ever have at the grocery store, and eating healthier than we ever have before. Win-win-win! I try to avoid going to the store. I use as much as I can of what is already in my cupboard/closets before going out and buying more. Then I buy what is on sale when I need it."

"I shop the clearance aisles. I generally don’t buy clothes unless they’re 50-75% off. A good trick for kids is to buy at the end of the season for the following year. The Children’s Place will have their t-shirts on clearance for $1.99 and then they generally have 25%-30% off coupon plus an additional 5% off for using their store card. This brings the price of a brand new shirt down to less than $1.50! That’s less than what it would cost at a used clothing store."

"I share my kids’ clothes with friends and family. Kids outgrow clothes very quickly and generally they’re in excellent condition. I have a network of people who pass clothing to me and I continue passing clothes along the line. This takes some organization, but it’s amazing how old nuisance clothes can be an amazing help to the other families. This is a HUGE money saver!"

"I use my credit card! I buy most things using my credit card and write each purchase down in my check book register, just like as if I were using my debit card. When the statement comes at the end of the month, I have all of the money sitting in my checking account and pay the bill in full. Once I reach 10,000 points on my credit card, I get a $100 statement credit. That is FREE money! I don’t pay interest on the balance on the credit card and you don’t have to pay taxes on the statement credit. I call it taking advantage of the credit card companies and not letting them take advantage of me! This also lets money sit longer in my checking account accruing interest, so I am making money on both sides of the equation."

"I am a super planner. I plan my bills/shopping/entertainment/groceries out in advance to make sure I am saving as much as I can. I keep what I need in checking and the rest goes to savings—I have specific sub savings to organize my funds for future bills, vacations, and long term. Out of sight, out of mind! When I run out in checking, I try my best to wait until my next paycheck."

"I have another savings elsewhere that comes out the day after I get paid- out of sight, out of mind! I also did our WINcentive account for us and both kids and club savings accounts here.. And one other thing I did was start saving for both my kids when I found out I was pregnant with them and continue to put money in each of their accounts with my payroll checks. This way when we have big expenses- vehicles, insurance, college or whatever- we have funds tucked away. The other thing, it pushes my kids to put money in their savings- what’s not to like about that!"

"My money saving tip is.... Shop at ALDI!! I love that place and it's amazing the price difference there really is between other grocery stores! If you haven't been there... Check it out!"

"Use the Club Savings accounts to save for specific, individual goals or sporadic expenses. It makes it easier to see your progress for each goal. If all your savings is lumped into one savings account, it seems like your balance is high, but you’re actually falling short of your needs for each individual expense."