October is Financial Planning Month

October 3, 2024 -With the holiday season approaching, Financial Planning Month is here to keep us in check. There are many ways to ensure that you are financially prepared for the future, but it all starts with understanding the importance of planning. Your plan may change throughout every stage of your life but the sooner you start, the better off you will be in the long run.

A budget can help you hit a savings goal, understand your spending habits, and plan for everyday expenses. It can be easy to spend money without being aware of how quick your expenses add up. A budget can help you see exactly how much that daily coffee is costing you and help you get the spending under control without having to cut your favorite treats out of your life completely. If you have a savings goal you are trying to reach, whether its for a big expense or to be confident in retirement, a budget can help. You can use your income and your monthly expenses to see how much you will have left over at the end of each month to put towards savings. This can help you know exactly when you will hit that savings goal.

If you are looking for a place to start, try following the 50/30/20 rule. Spend 50% of your money on your required expenses such as shelter, utilities, groceries, healthcare, and transportation. The next 30% of your money goes to discretionary spending like dining out, entertainment, hobbies, and subscriptions. And the final 20% is for your savings.

Every bit helps. If your employer offers a 401k and match, it can be a great way to set money aside for the future. For every dollar you don't contribute to the matching limit, you're leaving money on the table. If your employer doesn’t offer a 401k, we have savings products that can help! Maybe saving 20% of your income doesn’t fit your personal financial situation. Setting a savings goal is still a good idea. Try starting small, with saving an extra $20 per paycheck. Over time, you’ll see your savings add up. Once that goal seems doable, you can reevaluate your goal and gradually increase the amount when the timing is right.

Financial planning can be a lot. Don’t worry, we’re here to help! Planning is what we do. Our experienced member service representatives are trained to help you identify the financial solutions that fit your individual goals. We offer so much more than financing. We are here to make sure you understand your options and feel confident going into whatever stage of planning you are in. get started at cuwest.org/plans.