Becoming financially aware is a constant journey, as it requires research, planning, consistency, tenacity, flexibility, and creativity. Anyone can begin this journey at any time, regardless of where they are in life, as financial awareness will help improve one’s quality of life. But if you start small, you can build on your success.

Get Started
If you’re not confident in your ability to manage your finances, you’re not alone. According to the Financial Health Network’s Financial Health Pulse Report, 54% of Americans are struggling with some aspect of their financial lives. The journey to gain control of personal finances is a lifelong pursuit. If you’re just starting this journey, here are some helpful steps:

  1. Check your account balances. Ensure you know how much money you have in your checking and savings accounts. Additionally, look at your balances for any loans, credit cards or retirement accounts you may have. This will help you gain a full picture of your financial health.

  2. Set up a budget. A budget will not only help you track your spending, but it will also help you live within your means. We have plenty of budgeting blog posts to help you decide which budget method works best for you. 

  3. Automate saving. Make saving easy by setting up your accounts to automatically move a certain amount of money from your checking account into a savings account. Another way to save? If available, you can set up automatic contributions to your retirement account from each paycheck. 

  4. Know your credit score. Your credit score is an important number – it can affect your ability to rent an apartment, get a loan, or even get a job. If you’re unsure of your credit score, you can check it annually for free at annualcreditreport.com. 


Optimizing your Finances
Once you have a basic understanding of your financial situation and where you stand, it is time to make the next step – optimizing your finances. In addition to helping improve your current situation, it will put you on the path to financial stability. A few examples of optimizing finances include:

  • Debt Repayment
    • Debt is something that can make or break you – now is the time to work on minimizing your debt and working towards being debt free. Gather your debts and look at the interest rate and terms. Is it possible to refinance to a lower rate or pay off more than your monthly payments? These options could save you a lot of money over time. 

  • Retirement Savings
    • Saving for retirement may not seem like a necessity, but it’s essential if you want to be able to retire. If you start saving even a small amount now, the compounding interest acts like a snowball adding your original money plus the interest helping your savings grow even faster. Work your way up to saving 10% of your pre-tax salary for retirement (including any company match).

  • Credit Card Rewards
    • There are many benefits to using a credit card and understanding which credit cards offer the best benefits depending on your specific situation. SDCCU Visa® credit cards include different perks, from earning points that can be used for travel or purchase security. 

  • Auto Loans
    • Understanding auto loans and how to make them beneficial for you is a sure way to optimize your finances. If you’re planning on purchasing a car, be sure to save for a down payment, increase your credit score (if necessary), and know exactly what you can afford. 

  • Home Loans
    • If purchasing a home is on your radar, it’s essential to learn all you can about home loans. Once you know the area you want to live in and how much money you are able to put down, you’ll be able to determine which home loan works best for you.


Advanced Topics
Now that you understand where you are financially and how to optimize your finances, you can start advancing on your financial position.

  • Investing
    • Once you have a budget, create an emergency fund, and start saving for your future and retirement. Try investing your money and let your money work for you. This can be in the stock market, with an investment firm, or through real estate. Investing money can be scary if you don’t know where to begin so start small and test the waters – once you get the hang of it, you may wonder why you never did it before! If you need assistance, you can get help from one of our Financial Advisors.

  • Creating Multiple Sources of Income
    • Creating a side hustle in addition to your current job is a great way to hit money goals faster. The best source is one that can make you passive income, which is money earned on something that requires little effort. 

Visit our Financial Knowledge Blog to learn more tips on setting up a solid financial future or join us for Financial Wellness Wednesdays.