Financial Planning Month- Blog

October is recognized as Financial Planning Month, making it the perfect time to talk about the ways you can take control of your money and set yourself up for lasting financial success. At Five Star Credit Union, we’re here to help you make smart and simple choices that brighten your future. Here are some easy-to-follow tips to guide you on your financial journey. 

Master Your Budget with the 50/30/20 Rule 

The 50/30/20 budgeting rule is one of the best ways to start organizing your spending. This breaks down your income into categories, so you know exactly where your money is going. 

• 50% Needs: Essentials like housing, utilities, groceries, and transportation 

• 30% Wants: Dining out, entertainment, hobbies —things that make life enjoyable. 

• 20% Savings & Debt Repayment: Building your emergency fund, saving for goals, and paying down debt 

This is a straightforward approach that helps balance your daily expenses with saving for tomorrow. 

 Conquer Debt with Proven Strategies 

Finding the right debt repayment method for you makes paying it off feel less overwhelming and more manageable and motivating. Here are two methods that are proven to be successful in paying off debt: 

• Debt Avalanche: Focus on paying off debts with the highest interest rates first while making minimum payments on others. This method works best for helping you save money on interest over time. 

• Debt Snowball: Pay off your smallest debts first, regardless of interest rate. Each debt you eliminate builds momentum and confidence. 

Choose the method that best fits your personality and financial situation, and watch your debt shrink. 

 Build an Emergency Fund 

Aim to save at least 3-6 months’ worth of living expenses. This safety net helps you handle unexpected costs without going into debt. 

 Automate Savings 

Setting up automatic transfers to your savings account each payday helps your savings grow steadily without even thinking about it.