Life can be filled with financial challenges and surprises, and sometimes all you can do is try to get by day by day. We will explore tips you can implement to help you go from surviving to thriving financially. As with anything, progress takes time and is not a clear line or the same for everyone, so be patient and be kind to yourself.
Create A Budget That Works for You
The first step in changing your financial picture is to always create a budget. You must know what money is coming in and what money is going out. A budget is not a restrictive list of ‘cannot’ but rather a helpful guide so at the end of the month you aren’t asking, “where did my money go?”
Set Clear Goals
After you’ve established your budget, you need to prioritize your spending so you can succeed. Setting a clear goal can act as a roadmap for your financial journey, guiding your decisions and helping you stay disciplined.
For some this goal could be going on vacation, purchasing a home, or it could be paying off credit card debt. Make sure you establish a goal that is realistic given your budget. Maybe instead of paying off all your debt in a year, you start with the smallest amount. Or instead of a week-long vacation overseas, you earn a weekend trip with your friends.
Debt Management
Along with setting a realistic goal, you must also be realistic about your debt. Some debt, like a mortgage, can be healthy debt. While other debt, like credit cards, could be something you want to pay off quickly, especially if you are incurring more debt due to a high interest rate. It’s ok that you accumulated debt, but now create a plan to tackle that debt.
Cultivate Positive Habits
Creating positive money habits can contribute to your financial success and well-being. This could be setting aside a small amount each paycheck to go towards your savings, or putting the money you would’ve spent on coffee during the work week towards paying off debt instead. Remember, no positive habit is too small!
Learn And Adapt
Prosperous people are lifelong students and aim to embrace new experiences, learn new skills, and adapt to their environment/circumstances. Find opportunities to expand your financial knowledge and if something about your original plan isn’t working out, don’t be afraid to modify.
To help you learn and grow, we offer many free financial education resources, including It’s a Money Thing and Enrich. These have bite sized educational videos and courses on a variety of money topics for all ages.
Celebrate All the Wins
While working toward your financial goals, don't forget to celebrate the smaller victories along the way. Acknowledging all of your achievements, no matter how minor they may seem, can boost motivate you and make the path to thriving more enjoyable. Don’t be afraid to treat yourself now and again, it’s okay to spend discretionary money within your budget for a fancy dinner or a new pair of shoes. Make the path to financial wellness fun so that you can truly begin thriving.
Financially thriving starts by living within your budget and creating a plan to tackle debt. Then, you can establish a financial goal that helps you achieve your dreams. Credit Union of Denver is here to support your financial wellness and help you create a path forward that works best for your personal circumstances. Meet with one of our certified Financial Coaches who can provide you with money tips so you can transform your financial life. Remember that it's never too late to start thriving financially!