Celebrating (Financial) Independence

Ready to start your journey to financial independence? It might be easier than you think. Here are a few steps to get you started:

1. Spend less than you make — habitually. Yes, this might sound like a broken record but knowing that you’re a) saving enough and b) not falling into debt is the key to long-term financial health. Unless you do this, you can’t do anything else. There are many great budgeting tools available to help you do this. Find one that works for you. Town & Country offers several budgeting options on our website. Check them out here.

2. Build an emergency fund. Aim to save 3 to 6 months’ worth of expenses to cushion you for unexpected events like a job loss or medical emergency. Small amounts socked away over time will get you there — start with 5% of your take home.

3. Prioritize high-interest debt. The exact numbers vary but one quick Google search will show you that the majority of Americans have some sort of debt. Not sure how to tackle it? Prioritize paying off your highest-interest debt first (it’s the cheapest, fastest way to make debt vanish).

4. Invest. Take the money you’re not spending and funnel 15% toward your long-term goals — then put it to work by investing it. Any matching dollars you receive from your employer count toward this 15% and if you can’t get there overnight don’t panic. Just bump up your savings rate by 1 – 2% every year or whenever you get a raise, and you’ll get there eventually.

5. Brush up on your financial knowledge. When it comes to your money, chances are you have questions. That is why Town & Country offers Banzai — a free financial education program designed to meet you where you are and get you to where you want to be in life. The program offers interactive content with coaches, calculators, and articles on a range of timely topics including savings, budgeting, housing, life changes, debt and credit, investing, retirement, insurance, taxes and more.

If you would like to discussion options for building financial independence or have questions about budgeting or other personal finance needs, reach out to a Town & Country representative by emailing us at info@tcfcu.com, calling 800-649-3495 or book a consultation here.