Strengthening Your Finances

Your Credit Union is here to support you. Sometimes people feel uneasy when there is uncertainty in the economy. Here are the things you can do now to strengthen your finances including trimming your budget, managing your debt, and protecting your retirement. 

Trim Your Budget

The first thing you can do is tighten your budget. Review your finances to identify essential expenses, and items that are flexible which can be trimmed. Ask yourself these questions to help identify costs that can be reduced or cut out: 

• Is this something I need or am I spending out of habit?
  Items we buy out of habit, like coffee and fast food, tend to be wants more than needs. Consider if this is something you can cut, at least in the short term.
• Is there a more cost-effective item or service that I can purchase or utilize?
  You may have necessary expenses that have gone up in price. Now is the time to do research and explore your options. Consider everything from insurance to purchases you make at the grocery store.
• Is this expense something that I can get for free?
  There are lots of places that offer free products and services. For example, explore your local library. Most offer more than just books and movies; some lend out tools, video games, music, even household items.
• Can this purchase be postponed?
  You may be considering buying something, but can it wait? Is this purchase an upgrade of something you already have? Is it something you want just because someone else has it? Don't let your emotions drive your purchases. Now is the time to hold off on buying anything that can be budgeted for later.  

Use the Trim Your Budget coach to identify ways to reduce your spending. With a leaner budget, you can free up funds to reduce debt and put toward savings. 

Manage Your Debt

Now is a good time to look at your current situation and make it more manageable. 

• Once you have trimmed your budget, put a little extra toward paying off high balance and high interest debt while you can.
• If you receive a tax return, consider using some or all those funds to reduce your debt load.
• If you carry a balance on a high interest credit card, shop around to find a lower rate. 

Visit our Online Learning Center and watch the Debt Repayment Strategies video to explore different approaches to reducing debt. If you need a little extra help, schedule time to meet with a Financial Coach for guidance in building a debt reduction plan. 

Protect Your Retirement

You have been working hard to invest in your future and want to preserve it. You may even be in your retirement years and counting on your savings to see you through. Now's not the time to panic but rather stay informed and work with an expert. A financial planner can help guide you through these times.

• Go to FINRA for more information on different types of investment professionals, the credentials they hold, and guidance on how to choose one.
• Visit Investor.gov for resources including an introduction to investing, information for older investors, and financial tools and calculators.
• Read Retiring in a Rocky Market? Here's What You Can Do Now for more tips on how to navigate a volatile market. 

Being proactive about your finances can ease stress during uncertain times. BMI Federal Credit Union has free resources and services available to help improve your financial well-being. Visit bmifcu.org/education to learn more.

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(May 2025)