Top Ways to improve your Financial Wellness

Top Ways to Improve Your Financial Wellness

Financial wellness is important especially with everything going on today. Here are some tips on how to reduce financial stress and how to boost your financial wellness:

Beef up or create an emergency fund. Your emergency fund is intended to save you from going under. Yet, most households in the U.S. don’t feel good about how much they have saved. It’s generally recommended to set aside three to six months worth of living expenses for unexpected medical bills, repairs, and unemployment. You can automate to save a set amount each month until you reach this goal and/or save any extra income.

Get comfortable using a budget. Make it easy on yourself and use one of many handy budgeting apps versus a more cumbersome spreadsheet. There are different apps, both free and as cheap as a dollar, that can help you set savings goals—like saving up for a down payment on a house—and create a timeline to achieve them.

Look for ways to hedge inflation. Right now, everyone’s thinking about inflation. Thankfully, there are a few reliable ways to hedge against it, and owning a home is one. If you’re already a homeowner, consider using other hedges to help buffer the effects of inflation—like investing in gold, stocks, TIPS (Treasury Inflation-Protected Securities), and even a second rental property. As always, meet with your financial advisor before making any new investments.

Pay down high-interest debt. With the Federal Reserve increasing the short-term cost of borrowing, now’s an ideal time to pay down debt, starting with debt at high interest. The average homeowner has accumulated a record amount of equity. Some homeowners are cashing out on this home equity to pay off debt. If you own a home, it’s worth talking to your Loan Officer about this option.

Stay friendly with your financial professionals. Wondering when you can afford to buy your first house? Need credit-strengthening strategies to help you qualify for a better mortgage rate?* Looking to fine-tune your existing mortgage so you can build your prosperity? Keeping in touch with a mortgage expert can help you stay in the know so you make your smartest decision. Connect with a local Academy Loan Officer for guidance.