A 2015 Federal Reserve Board survey (“Report on the Economic Well-Being of U.S. Households in 2015.”) found that 46% of American consumers would be unable to cover an emergency cost of $400 or more without using some form of credit. Using credit for emergencies is a dangerous practice that you should avoid if at all possible. Here are some saving tips and strategies that can help you build up emergency savings to avoid unnecessary consumer debt.

Prevent debt with emergency savings.

Emergency Savings Starter Tips

• Start Small – Know your budget and figure out a realistic amount to put aside. Whether you can put aside $10 a week or $10 a day, start with a number your budget can handle. Make sure you include this new “expense” in your budget.
• Reduce Spending – Identify specific areas where you can cut back. Common ways include making all meals at home, turning off lights and AC whenever possible, and reducing or canceling your cable subscription. See ACCC’s Save by Cutting Back Guide for more tips.
• Generate Cash – Identify household items or clothes that you no longer need or use. Sell them to quickly boost cash on hand. You can put that money directly toward your emergency savings.

Now that you’ve gotten a little cash together or generated momentum by starting to save more each month, implement some strategies to grow your emergency savings a little faster. This will limit the risk of credit problems due to emergency spending.

Emergency Savings Booster Strategies

• Set Achievable Milestones – Setting SMART goals will help build momentum. Start with trying to get to $100 set aside. Then go for $500, and keep going with concrete target amounts until you’ve got enough to cover a few months worth of expenses.
• Make The Money Work for You.– Shop around at local banks, credit unions, or online-only banks for an interest-earning account to store your emergency cash. This allows your emergency fund to grow on its own.
• Make it Automatic – Once your emergency fund is held in its own account, set up automatic transfers so you never forget to contribute. This will ensure steady growth of your fund. This will also help integrate this new saving task into your standard budgeting routine.

Getting out of debt is easier when you take steps to protect yourself from relying on credit in a pinch. Putting even a little money aside as emergency savings each month can better protect you from financial stress when disaster strikes.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Health and wealth goes hand in hand. Integrate the two things for a better living situation

How Can I balance my Health and Wealth?

Firstly, let’s see why and how health and wealth is related. On the surface, good health can often lead to reduced healthcare costs. This is a major factor when it comes to the importance of balancing health and wealth.  The underlying relationship  is that good health can mean increased energy levels for productivity, and ultimately, a more active pursuit of financial goals. Conversely, financial stability can reduce stress and allow for investment in health through better nutrition, fitness memberships, and preventive care. Although on the surface you may not think good health is related to healthy wealth it is in fact a crucial aspect in life.

How Can I Invest in Good Health and Wealth?

Setting Integrated Goals

Conceptually goal setting for anything needs to follow the same structure. Your health goal can be to train to run a marathon while your wealth goal can be saving a certain amount for retirement. Both these goals need structure.  Make sure they are S.M.A.R.T! Your  goals need to be Specific, Measurable, Achievable, Relevant, and Time-bound. This framework can apply as much to saving for an emergency fund as it can to losing weight or increasing your cardio fitness. Working towards a health goal can result in better performance of your wealth goal.

Budgeting for Health

Include health-related expenses in your budget as an investment, not a cost. This includes gym memberships, healthy meal plans, and wellness programs. Depending on your life situation and your credit card debt situation make smart choices. Use free facilities if you  are living in apartment complexes that offer these services, pair up with a friend who can get you through a walk or a jog every morning. Use health savings accounts (HSAs) or flexible spending accounts (FSAs) to set aside pre-tax dollars for medical expenses, which can also be used for preventative wellness programs. Keep an eye on your insurance benefits. Make use of the free physicals, dental check ups provided by your health insurance to ensure you maintain your health and avoid high health care bills later.

Financial Fitness Programs

Take advantage of employer-sponsored financial wellness programs that offer resources and incentives for saving money and improving financial literacy. If your employer offers a 401(k) match, ensure you’re contributing enough to get the full match. It’s like a guaranteed return on your investment, which can support your health goals in the long term.

Fitness as a Financial Metaphor

Take smaller steps and make incremental progress. Just as you can’t expect to run a marathon without training, financial goals are reached through consistent, incremental steps. Saving a small amount each month can lead to a substantial nest egg over time. Diversifying your workouts can lead to better overall fitness, much like diversifying your investment portfolio can lead to better financial health.

Technology Integration

Use fitness trackers to monitor your progress. Many devices now also allow you to track your spending and savings, giving you a real-time view of both your physical and financial health. The growth in social media and content creation also opens up your possibilities to invest in your health without spending a fortune There are ample free resources that you can look at to craft your own health and wellness journey. Similarly, there are money management tools like CreditU that can help you adapt to a healthier financial journey.

Health Challenges for Financial Benefits

Participate in workplace health challenges that can have financial rewards, such as reduced health insurance premiums or contributions to HSAs/FSAs. Train for and participate in charity runs or cycling events that often have a dual benefit of raising money for good causes and improving your physical fitness.

Balancing Costs with Lifestyle

Opt in for frugal fitness.  Not all fitness expenses have to break the bank. Look for free workout videos, community classes, or outdoor activities that provide free or low-cost fitness opportunities. Practice mindful spending in both health and financial decisions. Avoid impulse purchases, whether it’s the latest fitness gadget or an item you don’t need.

Bottom Line…

By integrating your health and wealth goals, you create a powerful synergy that can lead to a happier, healthier, and more secure life. Remember, both journeys are marathons, not sprints. Progress may be slow, but with persistence, the results can be profoundly rewarding. Stay committed to your integrated plan in 2024, and you’ll be on your way to achieving both your fitness and financial milestones.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Our credit counseling advice is to use SMART goals to pay off debt.

How to Plan Your SMART Goals

What do you want to achieve financially this year? Think about your savings, debt, and credit. Maybe you eventually want to buy a house, pay off credit card debt, and improve your credit score. These are great starting places, but they aren’t SMART goals by themselves. Here’s how we make them SMART:

Goal 1: Buying a Home

If your dream is to be a homeowner eventually, you can make it a reality by turning it into a SMART goal. First, be specific. There are several things you should specify when buying a home: What neighborhood do you want to live in? You might want to be in a good school district for your kids, an area close to your work, or near extended family. Next, specify how much you can afford for a house and a down payment. This makes your savings a measurable goal. You also want to make sure it’s attainable. Be realistic and honest with yourself about how much you can really afford. Finally, give yourself a timeline. Because buying a home is a major purchase, this is generally considered a long-term goal, which takes five years or more to reach. Give yourself a reasonable amount of time to save up for buying a home.

Goal 2: Pay Off Debt

Let’s break down another SMART goal: Paying off debt. Again, we start with “specific.” Most likely, you have many kinds of debt – credit cards, student loans, and maybe an auto loan. Narrow it down to be more specific. Let’s say you want to pay off your credit card debt in the coming year. Determine how much you can pay off every month and factor it into your budget. Is this something that is attainable and realistic for you to do within the next twelve months?

Goal 3: Improve Credit Score

If your credit score isn’t where you want it to be, improving it is a great goal to have! To make it a SMART goal, first figure out how many points you want to improve your credit score by or what your ideal credit score is. An example of a more specific credit score goal would be “I want to improve my credit score by 20 points” or “I want to get my credit score to 750.” This is a measurable goal, as you can check your credit score every month or so to see how close you’re getting. Next, come up with some steps to get there, such as not charging too much on your credit card (ideally under 30% of available credit) and making credit card payments on time and in full.

Where to find help with your SMART goals:

You don’t have to work towards your SMART goals alone! If you’re a first-time home buyer and need help, ACCC offers first-time home buyer classes that can help you get started! For help with paying off credit card debt, you can call one of our certified credit counselors for a credit counseling session to learn about your debt repayment options. Call 800-769-3571 to learn more. 

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.