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JULY 2023

Live your best financial life

It’s great to have money, but who wants to think about it? The short answer is: You do. Because the earlier you think about it, the better. If you’ve decided it’s time to learn more about money and get your financial life on track, congratulations. Getting control of your finances is the first step toward achieving the financial life you’ve always wanted.

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If you’ve already decided to learn about money and create a financial plan, you’re one step ahead of most people. An important next step can be to share your journey with friends and family. That way, when they check back with you about your progress, you can be accountable to someone. Remember: Goals that aren’t written down are just wishes. So write your decision down, share it with loved ones and stay accountable.

After making your decision, you’ll want to know exactly where you stand. One way to do that is to look at your credit report so you know what information lenders are seeing about you. Check with any of the three credit score issuers: Transunion^®, Equifax^® and Experian^®. Review your credit report carefully and be sure to challenge any mistakes or inaccuracies.

Make a plan — and a budget

Looking through your credit report can give you an idea of the existing debt and expenses you have. Write down all your monthly expenses and your monthly income. Capturing your total income and expenses is the first step in making a budget. Depending on your history with money, you may have a negative association with the word budget, but it’s important to remember that a budget is just a tool. It can help you stop spending money on things that aren’t important to you, so that you still have money to spend on the things that are important to you.

Cut your expenses

Again, you’ll want to make sure your budget is written down and tracked. Once you’ve been budgeting for a few months, you’ll start to notice patterns in where and how you spend your money. Decide which expenses align with what’s important to you, and cut the things that don’t. Use any extra money each month to create an emergency fund and reduce your debt. 

Grow your income

While many budgeting guides talk about eliminating that daily coffee purchase or unused gym membership, that’s only one side of the story. There’s only so much you can cut out of your budget, while in theory at least, you have unlimited income potential. Look for more ways to save in your spending when you go shopping, or out to dinner. Wait for larger items to go on sale before you pay the full price. And also look for ways to bump up your income — perhaps selling items you don’t need or doing small jobs in your spare time.

It’s a marathon — not a sprint

Finally, remember that financial health is a marathon, not a sprint. Depending on where you’re starting, you may not completely eliminate your debt in a few months or even a few years. It will take time. So it’s important to remember to be steady and patient. And not all months will be the same. There will be times when you slip up and make poor financial choices. This is another reason why writing down and tracking your progress can be useful. It helps you see that if you have a bad financial day, you’ve also had many good days. You’ll get there. 

Need help?

As a Costco employee, you have access to SmartDollar^®, a financial well-being program, as well as one-on-one financial coaching, that’s included in your Costco benefits — at no cost to you. In addition to educational content from financial experts, it offers a full suite of budgeting, tracking and financial tools, plus Dave Ramsey’s 7 Baby Steps program. This proven program is designed to help you learn how to stick to a budget, get out of debt, save for the future and retire with confidence — no matter where you start.

The bottom line

Deciding to manage your financial situation, track your expenses, learn to budget and get control of your money is one of the best financial decisions you can make. Building on a sound financial foundation can provide peace of mind and help you lead a more stable life. Decide to start, write it down and share it with trusted friends and family. Gather information on your monthly income and expenses and start a budget.

Remember, sharing your decision and your progress with others helps keep you accountable, even when the inevitable slip-ups happen. When you do slip up and make a poor financial decision, the most important thing you can do is acknowledge that it happened and plan to do better tomorrow. One day at a time, you’ll find your path to a brighter financial future.

Source: Intuit MintLife. Getting my finances together: Where do I even start?

*With more than 90 days of service.

If you’re ready to live your best financial life, the following resources can provide the support you need.