Take Control of Your Financial Future: Expert Tips

by: Regan Godderz

Jan 15th, 2025

It’s always the right time to take control of your financial future. Whether you’re aiming to build savings, pay off debt, or plan for major purchases, these actionable tips will help you get started on a strong financial footing.

Review Your Budget

The foundation of financial success begins with understanding your current financial situation. Reviewing your budget gives you a clear picture of your monthly income, fixed expenses (like rent or mortgage payments), and variable expenses (such as dining out or entertainment).

Steps to Review Your Budget:

Track Your Income and Expenses: Use tools like budgeting apps, spreadsheets, or even a pen-and-paper method to document every source of income and outgoing expense.
Identify Areas to Adjust: Are there discretionary expenses you can cut back on? For example, reducing subscriptions or eating out less frequently can free up funds for savings or debt repayment.
Set 2025 Financial Goals: Align your spending with your priorities, whether that’s saving for a vacation, paying off debt, or increasing your emergency fund.

By regularly revisiting your budget, you’ll stay on top of your finances and ensure your spending aligns with your long-term goals.

Create Savings Habits

Building a robust savings account takes time and consistency, but the effort is well worth it. Even small steps today can lead to significant progress tomorrow.

How to Create Lasting Savings Habits:

Automate Your Savings: Set up automatic transfers from your checking account to your savings account. Treat your savings like a non-negotiable bill.
Start Small: If saving feels overwhelming, start with a modest percentage of your income. For example, saving 5% of each paycheck can quickly add up.
Celebrate Milestones: Reaching your savings milestones, even small ones, is an achievement. Recognize your progress to stay motivated.

The earlier you start saving, the more your money can grow through the power of compound interest.

Establish Your Emergency Fund

Life is full of surprises—some pleasant, others not so much. An emergency fund is your financial safety net, helping you navigate unexpected expenses like car repairs, medical bills, or job loss without derailing your financial plans.

Tips for Building an Emergency Fund:

Set a Target Amount: Experts recommend saving three to six months’ worth of living expenses. Adjust this based on your personal circumstances, such as job stability or family size.
Use a Dedicated Account: Keep your emergency fund separate from your everyday savings to reduce the temptation to dip into it for non-emergencies.
Start Small, Stay Consistent: Even setting aside $50 a month can get you closer to your goal over time.

Having an emergency fund can provide peace of mind, ensuring that life’s surprises don’t turn into financial crises.

Plan for Large Purchases

Whether you’re saving for a new car, a dream vacation, or a down payment on a home, planning for large purchases requires discipline and strategy.

How to Plan Effectively:

Set Specific Goals: Break your savings goal into smaller, actionable steps. For example, if you need $12,000 for a down payment in a year, aim to save $1,000 a month.
Prioritize Needs Over Wants: Evaluate whether the purchase aligns with your financial goals or if it can wait.
Shop Smart: Research and compare prices to ensure you’re getting the best deal.

By planning ahead, you can avoid taking on unnecessary debt and make purchases with confidence.

Pay Down High-Interest Debt*

Debt can be one of the biggest barriers to financial stability, especially when high interest rates are involved. Tackling this type of debt is a critical step in improving your financial health.

Strategies for Paying Off Debt:

List Your Debts: Create a list of all your debts, including balances, interest rates, and minimum payments.
Focus on High-Interest Debt First: Use the debt avalanche method by prioritizing debts with the highest interest rates, or the debt snowball method by paying off the smallest balances first for quick wins.
Consider Refinancing or Consolidation: If you qualify, refinancing or consolidating your debt may reduce your interest rates and make repayment more manageable. If you own a home, a home equity line of credit (HELOC) can help pay off debt.
Stick to a Plan: Set a realistic monthly repayment goal and stick to it.

By reducing high-interest debt, you’ll free up more money for savings and future investments.

Additional Tips for Financial Success

Here are a few bonus tips to take your financial planning to the next level:

Monitor Your Credit Score: A healthy credit score can save you money on loans and help you qualify for better interest rates. Use free tools or banking services to check your score regularly.
Invest for the Future: If you’re ready to take the next step, consider working with a financial advisor to explore investment opportunities. Investing can help your money grow and protect against inflation.
Stay Educated: Financial literacy is key. Read articles, attend webinars, or consult with your Hillcrest Bank advisor to stay informed.

How Hillcrest Bank Can Help

At Hillcrest Bank, we’re here to support your financial journey. Our savings accounts, including money market and CD options, which earn interest, can help you grow your funds faster.

In addition to accounts that can help you grow your money, our Knowledge Center and emails detail how to best use our financial tools and how to protect yourself from fraud.