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Managing Your Money: 10 Tips to Achieving Financial Wellness

Finances are one of the top stresses that adults have. It is important to be knowledgeable about your personal finances so that you can best minimize your stress and be on your way towards financial wellness. Here are some great tips to help guide you:

1. Know where your money goes. Be aware of how you are spending your money. A $4 cup of coffee five days a week costs you $80/month. Review some of the items you spend your money on to find areas where cutting back can move your savings account forward.

2. Develop a budget. Plan for your expenditures by developing a budget and live within your means based on your monthly income. Make adjustments to remain within your budget and don’t use a credit card to cover a shortfall or unnecessary purchases.

3. Include savings in your budget. Pay yourself first. Treat your savings account like any other monthly bill by making a monthly payment toward it.

4. Plan for major purchases. Adjust your budget accordingly to build savings for your next major purchase without using credit.

5. Save for emergencies. A good rule of thumb is to have a minimum of six months of salary available in your savings account. While this goal will take time to achieve, it is important to strive for it so you’re prepared to handle unexpected emergencies.

6. Plan for retirement. Take advantage of interest and market upturns by saving for retirement early. Often, your employer will help you save for retirement with a 401(k) plan. You can also benefit from pre-tax contributions using this method of retirement savings.

7. Get tax advice. If you have circumstances that create tax dilemmas (e.g., self-employed, own and/or lease property, etc.), make sure to seek tax advice from a professional for the best possible financial wellness.

8. Protect your credit. You have the right to pull a free credit report from each reporting bureau once per year by going online to the Annual Credit Report website. Keep in mind that late payments will adversely impact your credit, as well as a failure to pay. You should immediately report any credit issues or discrepancies to the reporting bureau. Use your credit wisely and ensure your reports are accurate.

9. Keep good records to ensure your financial wellness. Utilize online tools as well as paper copies of receipts to keep records of your pay stubs, banking information, taxes, insurance and other documents important to your financial situation.

10. Repay your student loan.  When repaying your student loan, consider which repayment plan could best meet your needs. Choosing the right one for your situation is important to keep your finances in order. Contact the loan servicer (customer service provider) for your student loans to find the best option for you. Find out which company is servicing your loan by visiting the Federal Student Aid website.

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