10 Steps to Getting Financially Fit in 2023

Part 2

Enroll in Online banking at reliabank.com for an easy way to stay on top of all your expenses.

Now that you’ve got your budget set up and have begun tracking your expenses, here are some great suggestions for paying down debt, saving for an emergency, and taking steps to investing for the future. We have the products and tools to help, so if you have questions just give us a call at any Reliabank location.

Pay Down Debt – If you have any debt, it’s important to pay it down as quickly as possible. Make sure to prioritize high interest loans or credit cards first, then move on from there.

Snowball Method – The snowball method is a popular way of paying off debt where you focus on paying off one item at a time while still making minimum payments on all other items. This means focusing on the item with the lowest balance first, then moving onto the next lowest balance once the first one has been paid off completely. By taking this approach, not only will your debts be paid down faster, but seeing progress being made can also help motivate you to keep going until all your debts have been paid off completely.

Build an Emergency Fund – Having some extra cash saved up for unexpected expenses can help prevent unnecessary stress during tough times. Try to build up at least three months’ worth of living expenses or more if possible; this will give you greater peace of mind when faced with unexpected costs that may arise throughout the year like car repairs or medical bills.

1. Setup a savings account to set money aside. Finally, setting up automatic payments or transfers into savings or retirement accounts helps ensure that you have money being put away even when it’s not top-of-mind. Setting up automatic payments also means one less thing to worry about every month—you don’t have to remember when payments are due or manually transfer funds because it has already been taken care of for you.
   With our Transfer the Cents program, items you purchase with your Reliabank Debit Card are rounded up and added to your savings account. It’s automatic-so saving is effortless!

Automate Savings – Setting up automatic transfers between bank accounts is one of the best ways to ensure that savings are consistently being made each month without having to think too hard about it. You can set up automated transfers between checking and savings accounts, depending on what type of account setup works best for you. Visit with a Reliabank customer service rep for details!

Increase Your Income – If possible, find ways to increase your income such as taking on a side hustle or finding additional job opportunities that fit within your schedule and lifestyle goals. Even small increases can go a long way towards achieving financial security over time!

Invest Wisely – Investing in stocks, bonds, mutual funds, or other assets can be a great way to make more money over time — but only if done wisely! Do some research before investing any money into these types of investments so that you know what kind of return on investment (ROI) to expect before committing anything financially significant.

Start Small with Investments – If investing intimidates you, start small by setting aside just $50-$100 per month into an index fund, ETT, or other low risk investment vehicle. This gives you experience with investing without risking large sums up front, allowing you to gain confidence before moving onto bigger investments.

Plan For Retirement – It’s never too early (or too late) to start planning for retirement. Whether through traditional means like 401(k)s, IRA s, etc., or through alternative methods such as real estate investments, starting early gives more time for compound interest accrue over time. That means more money in the bank when it’s finally time to hang up those work boots!

Monitor Your Credit Score – Checking your credit score regularly is important not only because it gives insight into how lenders view you but also because it helps protect against identity theft and fraud! We offer Credit Sense to help monitor your score and activity 24/7. PLUS, did you know we offer ID TheftSmart® Restoration which is free to primary Ultimate Checking account holders and available to all other account holders and signers for only $2/month per person?

Keeping track of our finances can seem like a daunting task at times but following these steps will put anyone well on their way towards financial security this new year. Taking small steps towards better managing our finances now will lead to big rewards down the road — so why wait? Get started today.