You did it! 2024 may have come with its challenges, twists, and turns; but here you are, about to cross the threshold of time; stepping out of the old and into the new. Take a bold leap of faith right now. Look back with pride over all the accomplishments; challenges that you have encountered, obstacles surmounted, goals conquered and look forward with hope and optimism to all the successes that are waiting around the corner of midnight.
A New Day is about to dawn and when it does, you want to be ready. Ready to Save, Ready to Soar, Ready to Conquer! It is time to revive those dreams and see them come alive in 2025. This is a turning point in your life, and you want to be sure to maximize your potential and optimize your opportunities. Here at Liberty, there are many options to help you on the pathway to financial freedom and we can help to show you the money.
Establish a Healthy Relationship with Your Money & Financial Goals
If you feel like anything around money and budgeting is a chore, or any sense of shame surrounding the topic of money, it's time to change that mindset.
Starting today, view money goals as an opportunity to imagine your desired lifestyle in the future. Take a step back and forgive yourself for any mistakes made or shortcomings in your past so that you can turn over a leaf and move into the New Year with motivation.
Set Financial Re-Solutions
This year, take a pause before making new plans and setting new goals. It's more important to establish the “why” of each goal than to set the goal itself. Being aware of the bigger life goal that is attached to each financial goal makes the journey much more motivating and makes it more likely you’ll continue on the path to accomplishing the goal.
Whether you're saving to buy a car, start a house, pay off credit card debt or take a summer vacation, being clear about the goal can keep you motivated. We also recommend using available tools to help you keep track of your finances. We would be happy to help you get started.
Get Comfortable with the B Word
We have been experiencing inflation for the past three years and your salary (and pay increases) are likely still playing catch up to your monthly expenses. This makes it all the more important to work on setting up your monthly budget for 2025 and resolve to track your spending against it throughout the year.
Remember that your budget is a guide or a plan, not a straitjacket. You will likely need to make adjustments during the year as certain expenses fluctuate.
Align your spending with your income, and any month you spend less than budgeted, transfer the difference into your savings account, ideally one of Liberty’s high-yield savings accounts.
Attack Debt Strategically
While there are sometimes opportunities to reset and reduce interest costs through consolidations for lower interest rates, you will still have to put in the hard work of paying down debt. It is especially beneficial to attack high-interest credit card debt first and as a priority, and to do so with a great sense of urgency.
Start by checking how much debt you have now. Check your loan balances and credit card balances. If you have any IOUs for friends and family, make sure to take stock of those as well. Hopefully, you’ve made steady progress on paying down your debt in 2024. Even if you’ve gone in the other direction, it is best to start making a game plan. Feel free to reach out to explore ways that we can assist you in repaying your loans faster and saving more $$$ for your financial future. Email: gm@libertyccu.com or book time with me on our website for a free financial consultation.
Set SMART Goals Now
When planning, it’s important to make your goals sustainable for your lifestyle, setting realistic, practical goals makes it easier to stick with them through to the end. For example, instead of planning to save thousands of dollars by the end of the year, start by saving $25, or $50, or $75, or $100 a paycheck. The Liberty Dare to Save Savings is an excellent way to earn interest (and a special bonus) for your efforts to improve your financial wellness.
Also, remember that even the best plans sometimes need to be adjusted. Even though your plans are achievable when you start, there is a possibility that a life event may occur. If this situation occurs, do not feel defeated; you are not alone. We are here to help you get back on track without feeling guilty.
Remember that life is a marathon, not a sprint.
Don't be an Ostrich
You can't plan for what you can't see. If you are already experiencing financial constraints, now is not the time to bury your head in the sand. Here are some tips for debt repayment:
Be sure to pay more than the minimum on your credit card accounts, as that's one of the best ways to beat the interest accrual and pay off your principal faster
Make all payments on time and contact your dedicated loan officer if you have any difficulties; we can help with payment arrangements or waiving late fees if members are proactive when a life event throws an unanticipated curved ball or surprise
Pay a little extra on your mortgage and see how it snowballs into months of savings off the interest over the life of your loan. Even an extra $20 per month on a 25-year mortgage can save thousands of dollars in interest.
Review your credit card statements to make sure that all charges are legitimate. The sooner your report activity, the more likely we can help with rectifying issues.
Check your email often and register for our Liberty Academy in 2025 to get front-row seating for our virtual sessions on savings, investing, budgeting, debt payoff tips and all things money.
Automate Your Savings Today
Automated activity, like setting up direct deposits from paychecks into your dedicated high-interest Liberty Savings Accounts, and arranging for monthly transfers into special club savings accounts are a sure way for you to get on top of your financial strategy quickly and help you reach your savings goals faster.
Be Focused & Intentional
Your financial goals need to take into consideration more than just managing your money better. In today’s age of cyber-security and fraud, it is also important to keep your money safe from scams. A golden rule to protect yourself from scams is to be vigilant.
If it seems like a scam, it probably is. Establish a routine system with your family to keep you and your loved ones safe from being targeted by fraudsters.
Scammers fake a sense of urgency to dupe individuals into falling for their tricks, so taking your time before making any financial decision, no matter how urgent they may first appear, can be the ultimate safeguard to prevent the loss of your hard-earned money.
Prioritize Your Financial Wellness
Your financial goals are not all defined in dollars and cents; take some time to focus on the dollars and sense as well. Finances are deeply connected with our mental health, and, to take care of our money, we also need to take care of ourselves. It is well known that money and finances are the leading cause of stress. This is not based on a dollar amount — they can also be about well-being.
It is important now more than ever to ensure that your financial wellness makes it to your list of resolutions. Consider making your mental health and balanced relationship with money one of your 2025 goals.
Focus on your financial wellness by setting one or two goals focusing on your relationship with money. For example, you could find ways to address and resolve past financial trauma, or you could set a goal to talk more openly with loved ones or your financial advisor about money. Liberty offers free professional financial guidance and advising. We can help you get started on your 2025 financial journey and lead a richer life. You are Richer than You Think!
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