Creating a savings plan, specifically higher yield savings accounts is key, one financial expert says.
PHOENIX — Americans are starting 2025 with significant financial challenges – nearly half are beginning the year in debt, with the average American carrying over $104,000 in debt, according to Bankrate.
OneAZ Credit Union’s Director of Virtual Operations Cesareo De Anda shared essential strategies to take control of your finances this year.
1. Set Crystal-Clear Financial Goals
Break down your objectives into monthly targets and identify specific tools to help you achieve them. “Knowing what you need to set aside each month to reach those goals, breaking it down piece by piece” is crucial, explains De Anda.
2. Calculate Your Debt-to-Income Ratio
Take a comprehensive look at your monthly obligations – including rent, utilities, and car payments – and compare them to your monthly income. These two figures are fundamental for establishing a realistic budget.
3. Leverage Free Financial Resources
Don’t overlook the complimentary expertise available through your banking institution. “Talk to your banker, they are the expert, the subject matter expert in the field,” advises De Anda. Many institutions offer certified financial coaches at no cost.
4. Maximize Your Savings Potential
Focus on high-yield savings accounts to optimize your deposit funds. This strategy ensures you’re earning the maximum possible return on your saved money.
5. Build Financial Confidence
Consistent adherence to your financial plan builds confidence over time. “That truly, over the course of time is so rewarding,” notes De Anda.
6. Regular Plan Review and Adjustment
Continuously monitor your financial strategy and make necessary adjustments to stay on track toward your goals.
7. Learn from Success Stories
Take inspiration from people like Zoe Haynes from Glendale, who successfully purchased a home last year and is now focusing on rebuilding savings. “This year I’m really focusing on building a savings,” shares Haynes, who works at OneAZ Credit Union creating digestible financial content.
As always, if you have any Money Saving Monday topics you would like us to cover, email us at [email protected].
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