by Chelsea Springli 
Most people focus on physical fitness for their New Year’s resolutions, but financial fitness matters just as much for long-term well-being. This year, as you commit to healthier eating or exercise, consider adding a financial fitness routine that strengthens your money habits too.
This year, I’m making a plan to become more financially fit. It’ll help us ease the expenses of the holidays, save for that vacation we’re planning, as well as just get us on track for the future.
Here are three helpful tips to get you started.
Track Every Dollar You Spend
Write down, or use your online banking app, to track every purchase — from gas station stops to morning coffees. Seeing exactly where your money goes helps you find quick wins, such as trimming frequent dining-out costs. (Fun fact: The average U.S. household spends over $3,500 annually on dining out).
For example, my husband and I realized we were spending too much on weekday lunches. By limiting eating out to twice a week, we saved about $120 a month.
Create a Budget and Stick to It
Your budget needs to be realistic and within your means. Everyone’s finances are different, so make sure you set a realistic goal that involves ways to save and cut back. My husband and I know we spend too much on unnecessary items so we’ve created a budget by cutting back on those purchases and automatically allocating money to a savings account. We are doing this by utilizing our RollUp Savings account with Alltru. This account allows us to automatically round up every debit card purchase we make and put the extra funds into a savings account. This is simple and easy for us, and it allows us to automatically save money almost every day without having to think about it.
Assess Your Accounts for Hidden Fees
Sit down and review all your accounts, including credit cards, to see if you are paying any unnecessary fees. I recently noticed that one of our checking accounts was charging us a monthly fee. We quickly closed that account and started a free checking account instead. So, pull out those statements and see if you have anything that you can cut because those fees can add up quickly over time.
Increase Your Financial Literacy
Tracking your spending, following your budget, and opening strategic accounts are great moves to make. But they may lack a dramatic long-term effect if you don’t know the “why” behind these moves. Increase your financial literacy so you can make financial moves that will benefit you for years down the road. The phrase “knowledge is power” is true in the financial world. With Zogo, you can learn financial literacy in small chunks and earn rewards for doing so. Plus, you can use access code ALLTRUCU to use Zogo for free!
Start Strong, Stay Consistent
Building financial fitness isn’t about perfection, it’s about steady progress. Start with small, achievable goals like tracking your spending or opening a RollUp Savings account to save automatically with every debit card purchase.
If you need help getting started, Alltru Credit Union is here to help.
