Wise money management is a crucial skill, but one we’re not always formally taught. Many of us navigate our financial journey without a clear roadmap, leading to stress. At DEXSTA Federal Credit Union, we believe everyone deserves access to the tools and knowledge necessary to make good financial decisions for their future. In this blog, we’ll share practical advice on saving, spending, and debt management.

Build a Budget That Works for You

One of the foundational elements of financial success is creating a budget. This roadmap for your finances allows you to track your income and expenses. But it’s important to remember that it should be tailored to your unique circumstances and financial goals.

You can budget any number of ways, one of which breaks expenses into categories like housing, transportation, groceries, and entertainment with the 50/30/20 rule. Some sources that account for recent surges in consumer inflation have suggested this rule is outdated and that a more achievable budget is the 70/20/10 rule. 

Regardless of which rule you land on, the ratio recommends spending the first number on needs, the second number on wants, and the third on savings. This will help you identify where you can cut back or save more. DEXSTA Credit Union offers free financial education resources to members to help them get started and stay on track.

Wise Money Management Prioritizes Savings

Saving money is a habit that can provide financial security and peace of mind. To make it easier, consider setting up automatic transfers from your checking account to a DEXSTA savings account. This “pay yourself first” approach ensures you save a portion of your income before you have a chance to spend it.

Additionally, create specific savings goals, whether an emergency fund, a vacation fund, or retirement savings. Having clear objectives can motivate you to save more diligently. DEXSTA offers a range of savings account options, including high-yield accounts, money market, and certificate of deposit accounts to help you reach your goals faster.

Mindful Spending and Debt Management

One of the most common financial challenges is managing debt effectively. Debt can be overwhelming, whether it’s from credit cards, student loans, or your mortgage. Here’s how to approach it:

Pay Down High-Interest Debt First With the Help of a Balance Transfer Card

Prioritize paying off high-interest debts, such as credit card balances, because they can quickly eat away at your financial stability. Consider transferring high-interest balances to a lower-interest balance transfer card or taking out a DEXSTA personal loan to consolidate and lower your overall interest rates.

Avoid Impulse Purchases

Make a conscious effort to distinguish between wants and needs. Before making a purchase, ask yourself if it aligns with your long-term financial goals. Some prefer scheduling a weekly or monthly check-in with their budget to confirm what they can afford. Impulse buying can lead to debt accumulation and financial stress over the long term.

Use Credit Wisely

Credit cards are a valuable financial tool when used responsibly. Pay your credit card bills on time, and try to pay more than the minimum balance to reduce interest charges. DEXSTA offers low-interest credit cards with benefits like rewards programs and fraud protection.

Seek More Financial Education for Wise Money Management

At DEXSTA, we believe that knowledge is power when it comes to wise money management. If you were never taught the fundamentals of saving or debt management, it’s never too late to learn. We offer financial education, including a library of free digital resources to help you improve your financial literacy. Get guidance on topics like investing, retirement planning, saving for college, and building credit. 

Plan for the Future

Looking ahead and planning for your financial future is important. Whether you’re saving for retirement, your children’s education, or a dream vacation, setting long-term goals can help you stay motivated and financially secure.

Wise money management is a skill that can be learned and developed over time, regardless of your background or past experiences. DEXSTA Credit Union is committed to providing you with the tools, resources, and accounts you need to take control of your financial future. Apply for membership with DEXSTA FCU to start building a solid financial foundation and achieve your goals.