Since 1992
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From New Dimensions Federal Credit Union
You’ve probably heard the quote by Albert Einstein, “Insanity is doing the same thing over and over again and expecting different results.”
Like millions of people, you may be tired of being in debt, living paycheck to paycheck, and unable to put money into your savings account. If you are in a bad financial situation, these five goals may help you get back on track.
New Dimensions Federal Credit Union believes using these five goals may help you become “Financially Fit” this year:
Seek assistance — If you’re feeling overwhelmed, you may want to make an appointment with a professional. At New Dimensions Federal Credit Union, we have staff that can help you build a budget or show you how to increase your credit score.
Pay your bills on time — Add reminders on your cell phone or paper calendars, use bill reminder apps to remind you when your bills are due. You can also use auto payments to have your bills automatically deducted from your account. Making just one late payment on your mortgage can lower your credit score by 60 points or more.
Save money — It’s critical you actively contribute to a savings account so you don’t rely solely on credit for emergencies. Experts suggest you save at least six months’ worth of bills in case you lose your job or sustain a significant medical expense.
Open a health savings account — HSAs are a great way for people with a high deductible health plan to save for medical expenses and reduce taxable income. Each plan year, you’ll decide how much to contribute to your HSA based on the amount of expected expenses (note: government-mandated maximums may not be exceeded). You can use the funds on eligible medical expenses such as deductibles, prescriptions, co-pays, and other qualified medical expenses not covered by your plan. HSA contributions are pre-tax/tax-deductible when used for eligible medical expenses.
Increase your income and decrease your expenses — If it’s been a while since you got a raise, perhaps it’s time you ask for one. Approach your boss with a plan and valid reasons why you deserve a raise. Here’s an informative blog from Glassdoor, which outlines how/when to ask: www.glassdoor.com/blog/guide/how-to-ask-for-a-raise/. If you’re at the salary limit at your current job, you may want to look for better opportunities while keeping your current job and taking on a second job for the short-term. Additionally, review your budget and reduce or eliminate some discretionary spending. Use the savings to pay down debt or add to your savings account.
Becoming financially fit is possible, but it will take some action on your part. If you would like assistance on reaching your financial goals, call Tanya Verzoni, Director of Financial Education, at New Dimensions a 800-326-6190.
