Financial Wellness Month: Build Better Money Habits

Every January, folks all across the world begin making and committing to their New Year’s Resolutions, with improved financial wellness being the #2 most popular New Year’s Resolution according to Forbes. If Financial Wellness is your priority this year, let us help: in this blog, we’ll cover the basics of what Financial Wellness Month actually is, how to make the most of it, how to build financial flexibility, make money management easier, and more!

What is Financial Wellness Month?

January is the perfect month to get started with Financial Wellness, as it marks the beginning of a new year, new aspirations, and renewed focus. That is exactly why credit unions like ours here at BluPeak utilize this month to offer resources, workshops, and information to help people improve their financial knowledge and health, ultimately fostering a culture of financial wellness.

How to Make the Most of Financial Wellness Month

If you’re the type that prefers a structured approach to learning, consider an in-person workshop or review. Local libraries, credit unions, and schools often offer free classes for Financial Wellness Month, and BluPeak is no exception: we offer free personalized financial reviews as well! If you prefer a less traditional approach to learning, we recommend using trusted financial education resources. There are a plethora of free online tools, simulations, and guides that can help you learn independently. For example, you can improve your financial IQ, rebuild your credit, get a handle on student loans, and lots more with the financial wellness resources we offer in partnership with GreenPathTM, or check out Youtube Channels like the Financial Diet that offer financial educational videos catered to people at all stages of their financial journeys. For example, college students might enjoy “The College Student’s Guide to Money” series, covering topics from making your first budget, figuring out your student loans, and even how to start building a career from scratch!

Build Financial Flexibility and Freedom

Financial flexibility and freedom is just one of the many good reasons to participate in Financial Wellness Month activities! When you take the time to assess your financial health and establish clear goals, you’ll be able to build a more adaptable financial foundation. Consider some of the below suggestions to kickstart your financial wellness this year:

Set Clear Financial Goals: Start by identifying both short-term and long-term financial goals. Whether it’s saving for a vacation, buying a home, or planning for retirement, having specific targets can direct your financial decisions and keep you motivated!

Create a Budget: You can start by tracking your income and expenses to identify areas where you can cut back. Use budgeting tools or calculators to simplify this process. Stick to your budget, but also leave room for flexibility. Life is unpredictable!

Build an Emergency Fund: An emergency fund serves as a safety net for unexpected expenses or financial setbacks. Aim to save at least three to six months’ worth of living expenses. This will enable you to navigate unforeseen circumstances without setting you back!

Reduce and Manage Debt: Take a close look at your current debts, whether they are student loans, credit cards, or auto loans. Evaluating your debt can help you create a plan for repayment. Consider strategies such as the snowball method (paying off smallest debts first) or the avalanche method (paying off debts with the highest interest rates first) to tackle your debt efficiently.

Invest in Your Future: Financial wellness is not just about present-day management; it’s also about preparing for the future. Explore options like employer-sponsored retirement plans, individual retirement accounts (IRAs), or other investment products that can help you grow your wealth over time. Don’t hesitate to consult a financial advisor if you’re unsure which investments are right for you. BluPeak offers Investment Services to help you get closer to your life goals!

Make Money Management Easier

Managing finances can often feel overwhelming, but simplifying your financial processes can alleviate stress:

Automate Savings and Payments: Set up automatic transfers to your savings account and automate payments for bills and loans. This not only ensures that you’ll consistently save money but also minimizes the risk of late payments and associated fees.

Monitor Financial Health Regularly: Use tools like BluPeak’s free money management and credit monitoring tool to track your cash flow, spend vs income, recurring/upcoming transactions, spending overviews, budgets, and more. Make a habit of reviewing your budget monthly and adjust as needed!

Educate Yourself Continuously: Financial literacy is an ongoing journey, not just a destination reached at the end of Financial Wellness Month. Goals and strategies should adapt and change as you level up, and continued financial education will be a boon to your life overall!

Invest in Financial Education or Advisement

Hiring a Financial Advisor is one of the best investments you could make this year if you’re able to take that next step – but make sure that you’re doing your due diligence when doing so.

Verify Qualifications and Credentials: Make sure that they’re either a Certified Financial Planner (CFP), a Chartered Financial Analyst (CFA), or an Accredited Financial Counselor (AFC), and ensure that they have relevant experience and expertise in the areas you need assistance with (ex: retirement planning, tax strategy, estate planning, investment management, etc.).

Ensure their Fiduciary Duty: Determine whether the advisor adheres to a fiduciary standard, which requires them to act in your best interest rather than merely meeting a suitability standard. Fiduciaries must disclose any potential conflicts of interest!

Evaluate the Fee Structure: Understand how the advisor is compensated – whether through a fee-only model (charging a flat fee, hourly rate, or a percentage of assets under management) or a commission-based model. Be cautious of hidden fees and ensure transparency in the cost of services.

Check Regulatory Compliance: Check their registration with the appropriate regulatory bodies, such as the Financial Industry Regulatory Authority (FINRA) or the Securities and Exchange Commission (SEC). Look for any disciplinary history or complaints. At BluPeak, we’re proud to offer Investment Services to help you with college planning, retirement planning, portfolio management, estate planning, insurance, and more. With your goals in mind, together we’ll create a personalized investment plan, and then stay in touch to help keep you on track for success!

Celebrating Financial Wellness Month Financial wellness is for everyone, not just adults!

If you have kids at home, consider putting together an interactive budgeting game – you can use play money (I’m sure most of you have Monopoly money at home), and cards for expenses and income sources. This way, you can include kids this financial wellness month in learning about income, expenses, savings, and more in a playful, engaging way! If you’re coupled, consider having a financial date night! You can spend a cozy evening creating a financial goals vision board together, and then assess your financial situation together. Discuss debts, create a plan for your savings goals, and make it fun!

We Help Members Achieve Financial Wellness All Year Long

At BluPeak, we go above and beyond for our members all year long. As a digital-first financial institution, we’re loyal to people, not profits, and our financial products and services are specifically designed to support your quality of life no matter where you call home. BluPeak is dedicated to building community, inspiring compassion, and being a conduit for positive change by supporting access to clean water as a means of bridging socioeconomic gaps and providing aid to those in need. By becoming a Member, you help us advance our purpose, while also empowering yourself to achieve peak financial wellness!

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