In a time when financial stability is paramount, mastering your finances is a crucial skill. Rivermark understands how difficult it can feel to create and continue good money habits, especially in a world that so often challenges that. With over 60 certified financial coaches, Rivermark meets our members where they are on their financial journey.

Our coaches are certified through CUNA’s Financial Counseling Certification program and can assist with a variety of financial goals. They can help with putting together a spending or savings plan, building or rebuilding credit, managing and consolidating debt, and managing cash or paying bills.

Whether you’re just starting your financial journey or looking to enhance your existing strategies, our financial wellness team has some important tips to help you achieve your goals.

Tip #1: Create a Budget to Manage Your Money

Creating a budget that outlines your income and expenses is key to achieving your financial goals. While this is one of the most basic principles of money management, tracking where your money goes can help you identify areas where you can cut back and save more effectively.

When it comes to basic budgeting and money management, tracking your progress is one of the biggest difference-makers! While there are tons of apps that can be used to track your progress, use whatever system works best for you, even if that’s an old-school Excel sheet. Consistently tracking your budget allows you to celebrate wins along the way and can help inspire others to change their spending habits because it can show concrete successes.

Tip #2: Have an Emergency Fund

Having an emergency savings fund is vital to growing financially. Start by researching how much things may cost for unexpected events, then craft your savings goal around that. It can often feel very difficult to handle unexpected situations, so if you do some research beforehand, you’ll have a much easier time making logical decisions rather than becoming emotionally overwhelmed.

The typical idea is that you should aim to save three to six months' worth of expenses, but this number is really centered on what your needs are and how much you’re able to set aside. Add up your expenses throughout a month and determine how much you’ll feel comfortable putting away from there. Then, once you have a number in mind, you can create a savings plan to build up that emergency account.

Tip #3: Start Planning for Retirement

Most of us don’t want to work forever and it’s never too soon to start planning for future retirement. Taking advantage of your employer-offered 401K plan is a great start to planning for retirement. Make sure you contribute enough to at least meet your maximum employer-matched funds. And when your pay increases, try increasing the percentage of contributions. Your immediate self won’t feel the difference, but future you will be grateful!

Tip #4: Manage Your Debt and Credit Score

Managing your debt and credit score go hand in hand. There are several tricks to lowering your debt while raising your credit score. First, develop a plan to pay off high-interest debt, such as credit card balances, as quickly as possible. You can also consider consolidating debt or negotiating lower interest rates to accelerate your progress.

While there are several methods to paying down your debt, there are two strategies that tend to be fan favorites: the “snowball” and “avalanche” methods. While they work similarly, there are some key differences. In the snowball method, your goal is to pay off the smallest balance first. Then, you’ll use the minimum payment you were paying on that card to pay down the next lowest debt. Repeat this process until you’ve paid off your debts. In the avalanche method, you’ll focus on paying down the debt with the highest interest rate first. Then, similar to the snowball method, you’ll include that payment to the next debt with a high interest rate. And voila, you’ve paid off your debts!

The next step is to know what’s on your credit report. Most of us know that the better your credit score, the less you typically pay in interest to borrow money. A good credit score can save you thousands of dollars over time. It’s also good to check your credit report to verify the accuracy of reporting and monitor for potential fraud. If there are reporting errors on your report, dispute them with the credit bureaus.

And lastly, an important piece to managing debt is to avoid longstanding credit card debt. Limit your spending on credit cards to what can be paid off every month. If you do need to use a credit card for unexpected expenses, use the card with the lowest interest rate.

Tip #5: Create Savings Strategies

With the high cost of living in cities like Portland or Seattle, saving money can seem daunting. However, making savings a priority is essential for achieving financial freedom. The trick to combating that daunting feeling is to treat your savings like a non-negotiable expense. This ensures that you prioritize saving before spending. By automating transfers to your savings or investment accounts, you can save much more easily.

Setting aside savings for emergencies is incredibly important, but there are other savings accounts to focus on as well. Things like vacations or planned purchases should be in a different savings bucket than your emergency savings. You could even set up separate savings accounts for things like taxes, home improvement, vacations, and gifts. It’s easy to set up multiple savings accounts at Rivermark. Just log into Online Banking to get started.

Tip #6: Manage Your Financial Stress

Managing financial stress can feel like an uphill battle. But you don’t have to go through it alone. Community is at the heart of the Pacific Northwest’s cultural identity. You can cultivate meaningful connections with like-minded individuals who share your financial goals and values across the region. Consider joining a local networking group, attending financial literacy workshops, or participating in community initiatives focused on economic empowerment. By learning from others and sharing your own experiences, you can strengthen your financial health and support one another on the journey to financial freedom.

Another way you can manage financial stress is to meet with a certified financial coach who can provide clarity and peace of mind. A financial coach can help you set up actionable goals and realistic timelines so that you don’t feel overwhelmed or struggle to get started.

By implementing these financial tips into your life, you can take control of your finances, build wealth, and secure a brighter financial future. Remember, financial success is a journey, not a destination, so stay committed to your goals and keep striving for improvement!

We encourage you to continuously educate yourself about personal finance to make informed decisions about money management, investments, and financial planning. Resources such as books, podcasts, and online courses can provide valuable insights.

And if you’re looking for additional financial advice, consult with a Rivermark financial coach for a personalized plan tailored to your goals and circumstances. A coach can provide valuable guidance and help you navigate complex financial decisions.