Once a year, you take the time to get a thorough physical. You check your blood pressure and your heart rate, someone listens to your lungs and checks your cholesterol levels. Once or twice a year, you go to the dentist for a full set of tooth x-rays, checking to be sure that any problems are caught in the early stages. We at Salal CU think this is an excellent idea, with, of course, a fiscal twist.

With the start of a new year, why not give yourself a quick fiscal fitness exam? Here are seven steps you can take to be better prepared for life’s uncertainties and give yourself some peace of mind:

1. Get your free, annual credit report and check for errors. Once a year, you can get one, two or all three reports (TransUnion, Experian, Equifax) —free—from annualcreditreport.com. You can elect to get them all at once, so that you can compare (they do contain slightly different information), or you can choose to space them out, so that you can keep an eye on your credit history for free, three times a year.  Be careful, however; other agencies may promise you a “free” credit report, but it usually involves signing up for a paid service or paying a subscription fee. Check your reports for mistakes, and if you find any, notify the agency right away.
2. Update your Emergency Fund. Life changes may necessitate having more money stashed away for emergencies. A new baby, a child in college, the purchase of a home: all of these can mean your monthly expenses are greater than they used to be, so you may need to have more put aside.
3. Review the family budget. Did you stay within your budget in 2010? Did your income or expenses increase or decrease significantly? If you weren’t able to save as much as you’d hoped, or if perhaps you had extra cash that could have been earning interest, it’s time to give your budget spreadsheet a thorough going over. If you spent too much, where can you adjust so that you’re saving more? BALANCE has great worksheets to help you fine tune your budget and do better in 2011.
4. Review your retirement plan. Do you have the right mix of savings and investment products to get you to your retirement goals? No matter if retirement is right around the corner or many miles ahead, it’s never too early to start planning. Salal has savings products to help you get started or keep moving forward. If you’re not even sure where to start, check out some of these financial education publications from BALANCE.
5. Check your debt. Are you staying on top of payment schedules and interest rates? Would you be better off if you applied for a low-interest personal loan and paid off higher-interest credit cards or other debt? Is this a good time to refinance your mortgage to a lower rate or change from an adjustable-rate mortgage to a fixed? Can you afford to shorten your loan term, even if it means higher monthly payments? Salal staff would be happy to talk with you about solutions we can offer; just drop by your branch!
6. Review your financial goals. Are your goals manageable and are you on track to meet them? If you want to buy a home, are you putting away money for the down payment and doing what you can to improve your credit score? If you’re preparing to send a kid to college, do you have an Education IRA with Salal? It’s important to be realistic, but with care and patience, big things are possible. Call Salal or visit a branch for information on how we can help.
7. Seek opportunities to save. Even if you don’t “need” to save, is having extra money ever a bad idea? Take a look at your credit card bill for the last three months, or go through your receipts. Are you spending money you could save instead? Is there a subscription for a gym you don’t go to or a magazine you never have time to read? Could you make your coffee or your lunch at home? Plug up those spending leaks and have money for your Emergency Fund and your future!

Filed under: Financial News and You, Money management tips by admin