With the New Year almost here, many people are busy considering their resolutions, goals, and objectives. Some will adopt new habits to bring positive change to their lives, and no matter what your goals are, your financial health should always be a priority. These five tips may be helpful as you work towards achieving your financial goals.

1. Create a budget

Determining a budget is an essential component in being financially fit. A budget compares a person’s income against their expenses and then a plan is developed to analyze spending and meet personal goals. Whether you are aiming to save more money, pay down your debt, or something else, a budget is an essential tool in being financially fit.

Bonus Tip: When you are preparing your budget, include periodic expenses like car insurance, personal property taxes, etc. This will help ensure you have the funds to pay them when they are due.

2. Evaluate your spending habits

If you want to get a clearer picture of where your money is going, evaluating your spending habits is a great first step. You’ll want to track your spending to see exactly where your money is going and determine which areas you can scale back in. Be sure to check your finances for a spending leak, which is money that leaks out of your budget without your knowledge. By taking control of your finances and seeing exactly where your money is going, you will be able to better control spending.

Bonus Tip: Take a look at commonly overlooked areas like unused subscriptions you are still paying for or your eating out budget to potentially save more money.

3. Pay down debt

We talked about the importance of creating a budget and evaluating your spending habits, but getting a handle on outstanding debt is another good way to increase your financial fitness. There are many ways to pay down debt, including paying more than the monthly minimum, paying the most expensive loan off first (while still paying all other debt), or making more than one payment each month. There are also methods of paying down debt including the Debt Avalanche and Snowball. The Debt Avalanche prioritizes debt by interest rate while the Snowball method focuses on paying debts in order of balance amount. No matter which method you utilize, paying down debt is an important facet of getting financially fit.

Bonus Tip: Know what’s on your credit report, and check it at least once per year. You can obtain a free copy of your credit report at www.annualcreditreport.com.

4. Build an emergency fund

Building an emergency fund may not be fun to think about, but planning for the unexpected is important to your overall financial health. Most experts agree that an emergency fund should cover around six months’ worth of living expenses. We recommend opening a dedicated savings account for your emergency fund so you aren’t tempted to spend it. DCCU is pleased to offer numerous savings options, and you can find out more about the products we offer.

Bonus Tip: Make building an emergency fund an achievable goal by first starting with saving one month of budgeted expenses, and then continue on until you have reached the entire amount.

5. Talk to a financial professional

We’ve covered a few ways that can help you be financially fit, but talking to a financial professional may be beneficial for you as well. Financial professionals and advisors have a singular goal: to help people achieve their financial goals. A financial professional can help you create a budget that works, counsel you on important financial decisions, and more.

Bonus Tip: The team of dedicated financial professionals at DCCU are here to help you achieve your goals. Contact someone today at 540.946.3200, or stop by one of our convenient locations!

No matter what time of year it is, your financial health should always be a top concern. Becoming financially fit this year can be a bit closer by following these five tips.

This article is for general information only and not intended to provide specific advice or recommendations for any individual.