This National Financial Awareness Day, August 14, Tropical Financial Credit Union encourages you to make positive changes to your financial health. With a little time and effort, these 10 habits can have a lasting positive impact on your future.
Want help getting started? Contact our financial advisors and find easy-to-follow information at our financial education website in partnership with Consolidated Credit.
Here’s how to get started:
- Automate your savings
Transfer money from your checking account to a savings account every pay period. You would be surprised how as little as $25 per week builds your balance. To paraphrase Benjamin Franklin, “Every dollar saved is a dollar earned toward your future.” At Tropical Financial, you can choose from three regular savings accounts and two tax-advantaged accounts
- Track every dollar you spend
Our personal finance website has spreadsheets that make it easy to categorize every dollar. If you’re a tech lover, download a simple app. Track your expenses for one or two months. You may be surprised just how much is leaking out of your bank accounts and how easy it is to save by cancelling subscriptions or cutting back on discretionary items like dining and entertainment.
- Pay your bills on time
This may seem like a no-brainer, but did you know that more than a third of Americans paid a late fee on a bill, and one in five paid their credit bills late in 2024, according to a NerdWallet survey. Avoid costly fees by staying on top of payment deadlines by setting up automatic payments or placing calendar reminders in your cell phone. You will also improve your credit history. Tropical Financial bankers can show you how to set up payment schedules.
- Use the 50/30/20 rule to ensure minimum savings
Allocate 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. This simple math makes budgeting a lot easier to figure out.
- Round up purchases (and get paid for them)
Use round-up savings features that deposit spare change into savings automatically. Many credit unions offer this service to help members save painlessly. Tropical Financial’s Daily Rewards Checking Account deposits 2 cents each time you make a purchase with its debit card.
- Build an emergency fund
A medical emergency, a damaging storm, or an unexpected layoff could drain your savings and then your checking account. Start an emergency savings fund with as little as $500 and build it first to a balance that would cover three months of expenses and then to six months of living costs. Learn more here and talk to a Tropical Financial advisor about setting up an account and regular savings plan.
- Review subscriptions monthly
How many streaming services do you really need? Is your home phone line still essential? Which premium online services have you stopped using? Cancel those, gym memberships, apps, and everything else that no longer gives you joy. This five-minute monthly habit check often saves $50-100.
- Set up account alerts
Use app and website features to receive transaction alerts. By watching your spending in real time, you will have a better idea of where your money is going.
- Pay yourself first
This recommendation may seem dated, but it is as true now as a century ago when George Samuel Clason included it in a pamphlet on financial advice. It later became part of his still-popular book, “The Richest Man in Babylon.” By making savings more important than expenses, you invest in your future and become more motivated to cut unneeded expenditures.
- Regularly check in on your money
Devote just 15 minutes a week to reviewing account balances and upcoming bills. It’s a great way to stay on track with your financial goals. Happy Financial Awareness Day!