According to a 2019 Northwestern Mutual study, 92 percent of adult Americans agreed with the statement “Nothing makes me happier or more confident in life than feeling like my finances are in order.” Unfortunately, most people aren’t taking action to build their sense of financial well-being. Just 3 percent of those polled engaged in daily financial planning, according to a Motley Fool survey in 2022,
On the second episode of Journey: A MedPro Podcast, Financial Relationship Manager Michael joined Vanessa to share some do’s and don’ts for personal financial wellness. With a background in banking, Michael assured that you’re financial goals should be the same no matter where you work: to pay off debt, afford necessities, save for emergencies and the future, and have a little fun.
Budgeting Basics 101
Make budgeting easier by using tools designed to help you succeed. From Excel spreadsheets to mobile banking and finance apps, there are plenty of aides to track spending and alert you to trends. “You can track income, expenses, and savings. These tools give you a visual of what’s coming in and what’s going out and can help you create and stick to a budget,” said Michael. Skyrocketing housing costs have forced many of us to reconfigure our budgeting. Still, Michael pointed to the 60-30-10 rule, 60 percent of income to debt and savings (including mortgage or rent), 30 percent for necessities, and 10 percent to wants, as a gauge for analyzing current spending habits and developing a budget.
With rising interest rates, Michael suggested looking into high-yield savings and money market accounts or a high-interest online checking account. CDs or certificates of deposit are also a great way to earn money in savings. But most importantly, if you have debt, pay it off as soon as possible.
For a full breakdown of Michael’s financial do’s and don’ts, including advice on 401ks and IRAs and the value of equity, check out his full interview on YouTube, Spotify, and Apple.