Want to be more financially savvy? These tips will help you skillfully manage your money

Have high prices got you looking for ways to stretch your dollars? We’re sharing our money management best practices to help you stretch your dollars, create an inflation-proof budget, and increase your savings. Discover how you can manage your money wisely in any economy.

Create an inflation-proof budget

Rising prices can make it feel impossible to create a budget that allows you to enjoy life and still build your savings. But it is possible. Here's how to get started.

1. Review your expenses. The first step to creating a budget is to review your bills and expenses. This is a great way to track where your money goes each month. Are you spending too much on dining out? Could you get a better deal if you switch cell phone providers? Are you paying for music and video streaming services that you don’t use anymore? Reviewing expenses gives you a better understanding of how your money is being spent and how you can modify your choices to live a more financially successful life.

2. Increase your income. Take a look at your current salary and compare it to other people in similar roles (Glassdoor's salary index is a great place to start). Is it in line with industry averages for your role? If not, consider negotiating a higher salary with your current employer. Another option is to move to a different company. Protocol reports professionals who job-hopped in the past few years “received a 30% increase in salary.”If increasing your salary isn’t possible now, there are other ways to grow your checking account balance. Many individuals are starting side-hustles to supplement their income. If you have many years of experience in an industry, you can offer consulting or training services. If you have musical talent, you can perform at gigs or give music lessons. And, if you’re on social media all the time, consider that social media management and blogging are considered some of the most profitable side jobs.

3. Expand your professional skills. Learning new skills can open up new job opportunities—and access to industries where you may not have experience. 

Start saving

In addition to modifying your budget and increasing your income, saving money is a vital part of money management. Set aside a fixed amount to deposit into your savings account each month. It doesn’t have to be a large amount—you can start with 5 percent and increase that amount as your earnings increase. What’s important is to make savings a habit. Consider setting up an automatic transfer to savings every time you get paid.

Invest for the future

Investing can sound scary, but it doesn’t have to be. Investing is simply making your money work for you instead of having it sit in your bank account. Even if you’re not ready to invest in the stock market, putting your money in a high-yield savings account or a certificate of deposit can produce profitable results. If you’re not sure how or where to start investing your money, talk to a financial adviser for help evaluating your various investment choices.

Review your retirement options

Planning ahead for your golden years ensures your retirement will be enjoyable and relatively stress-free. If your employer offers a retirement plan like a 401(k), it’s a great idea to start investing in it as soon as you can, especially if they offer a matching contribution.

If you don’t have access to an employer plan, or if you want to save more than your employer’s plan allows, you have two options for opening an individual retirement account (IRA).

Traditional Individual Retirement Account (IRA)

A traditional individual retirement account is funded with pre-tax money. This means you have the benefit of getting a tax deduction on your contribution. Be aware: This means you may owe taxes on the money when you withdraw it. You will also not be able to withdraw funds until you reach the age of 59½.

Expect your retirement savings needs to change over time, especially if you change employers. Investopedia notes, “Rolling your money over into an IRA will often reduce the management and administrative fees you've been paying.” Your financial advisor can counsel you on the best course of action to take for your retirement funds.

Sign up for Vibrant Credit Union’s personal banking services

Transforming into a financially savvy superstar is easy when you take advantage of Vibrant’s personal banking services. Our friendly and knowledgeable team makes banking services easy to understand so you can achieve your financial goals. Contact us to discuss all that we can help you achieve.

FAQs

Q: What do I need to open a Vibrant checking or savings account?

A: To open an account, you’ll need to provide the following:

• Full name

• Address

• Social Security Number

• Valid, government-issued photo ID: driver’s license, passport or military ID.

• Minimum deposit of $5 to activate your account. Every Vibrant member must open a membership savings account with a minimum $5 deposit before they can take advantage of other products and services.

Q: How much money should I keep in my checking account?

A: We recommend keeping 1–2 months of living expenses in your checking account.

Q: How do I open an IRA?

A: Schedule an appointment with a Vibrant personal banker to review your goals. They'll set up your account and help you choose a portfolio that's the right fit.