The beginning of a new year is a time when many choose to reflect on the past while making commitments for the future. Finances tend to be a common focus area, whether it’s establishing a budget, improving your credit score, or building an emergency fund. Because so much of the current economic landscape is outside of our control, particularly inflation and rising interest rates, it’s important to focus on what can be controlled in your personal finances. Here are a few practices you can put in place to help improve your financial resilience:

Establishing a Budget
Budgeting is one of the most important financial routines you can adopt to manage your spending habits and track your expenses. It shows you where your money is going and helps you avoid spending money that you don’t have. The best part – setting up a budget doesn’t have to be complicated. Simply writing down what you have coming in (income) and subtracting what you have going out (expenses) is all you need to get started. There are also a variety of online applications that can do the tracking for you. Whether you choose the basic route or take a more tech-savvy approach, the main point is that you start tracking your spending. 

Improving Your Credit Score
Another important component of your financial health is your credit score. The 3-digit number that typically ranges from 300-850 is used to determine your credit behavior, including how likely you are to pay your bills on time. This is one factor that creditors and lenders use when deciding to approve you for a new account or loan. Your credit score is based on payment history, credit utilization, length of credit history, credit mix, and credit inquiries. Always making your payments on time and keeping your outstanding credit low are two ways you can help improve your credit score. 

Building an Emergency Fund
Research shows that many consumers are unable to cover an unexpected expense. Things like a car repair, broken appliance, or medical bill can cause a setback in your monthly budget if you aren’t prepared. This makes building an emergency fund more important than ever. To get started, determine a savings goal and then set money aside consistently. In our Online Banking platform, you can even set up automatic transfers to move money from checking into your emergency fund savings account. These are small adjustments you can make to help create a habit of saving.

Now more than ever it’s important to prioritize your financial health. These foundational practices can help put you in a better position to weather economic uncertainty in 2024 and beyond. If you ever need assistance, whether it’s a simple question or a more complex situation, do not hesitate to reach out to us. In addition to our dedicated employees, DCCU also has a partnership with GreenPath Financial Wellness, a non-profit organization that has been helping people improve their financial resilience for over 60 years. They have a wide variety of tools and resources to help improve your overall financial health. 

DCCU remains committed to providing our members with the products, services, and guidance you need to make financial decisions that will help you reach your goals. Thank you for being a valued member of our cooperative. Your continued support allows us to serve our members and the community in relevant and timely ways.