Your Financial Health

What does financial health mean to you?

Is it paying bills on time, building robust savings, contributing to a retirement fund, or being able to afford a new car? Whatever financial health means to you, it starts with organizing your finances.

It’s tempting to think that simply tracking your account balances is enough to stay on top of your finances, but in today’s world, where accounts are often spread across multiple platforms, this is no longer the case.

Where is your money going?

To understand your financial health, you need to consider more than just your checking and savings accounts. Credit cards, digital wallets like Apple Pay and Google Pay, and subscriptions such as Amazon Prime, Netflix, Venmo, and PayPal all contribute to your cash flow. Don’t forget about long-term investments like retirement accounts. Suddenly, staying on top of it all feels overwhelming.

Achieving sustainable financial health requires a holistic approach—one that ties together all the pieces of your financial life.

Financial Health Tips to Help You on Your Way

1. Create a Workable Budget 

   Begin by understanding how much money is coming in versus how much is going out. Include all income sources, such as:

   • Salary and wages
   • Bonuses
   • Alimony
   • Interest income

   Then, take a comprehensive look at your expenses. Account for:

   • Childcare costs
   • Credit card payments
   • Mortgage or rent
   • Food
   • Utilities
   • Insurance
   • Automatic subscriptions and payments

   When you're done, you’ll have a clearer understanding of your financial situation. Tools like Financial Insights can help you track transactions and create a budget that works for you.

2. Track Your Spending Habits 

   Most of us would benefit from paying closer attention to our spending habits. Knowing where your money goes is essential for reaching goals like retirement savings, vacations, or even that new fridge.

   Ask yourself:

   • Beyond essentials, what do I spend money on?
   • Are dining out, clothes shopping, gaming, or travel eating into my budget?

   Identifying patterns in your spending can help you refine your budget and make more informed financial decisions.

3. Build an Emergency Fund 

   Saving money isn’t always easy, but having an emergency fund is crucial for financial stability. Even small deposits add up over time. To make saving easier, set up direct deposits or automatic transfers into a dedicated emergency fund. This approach helps ensure the money is out of sight and less tempting to touch.

4. Plan for the Future
   With your finances organized, it’s time to start thinking long-term. Whether you’re saving for a new car, a home, or retirement, planning is key. Use your budget as a foundation to prioritize your savings and set clear goals for the future.
5. Success step-by-step
   

   If tackling your finances feels overwhelming, don’t worry—you’re not alone. Instead of trying to solve everything at once, break it into manageable steps:

   • Add up your income
   • Calculate your expenses
   • Use that information to create a budget
   • Use tools like account alerts and digital card controls to help monitor your spending 

Financial health is a process and there is no silver bullet – even winning the lottery doesn’t guarantee it! Taking steps to really know where your finances stand is the best way to a healthy, and happy, relationship with your finances.

So, what does financial health look like to you? Give us a call today to see how we can help you get there.

The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.