Money challenges can be stressful, but they’re nothing to be ashamed of. Most people never get formal financial training — they learn as they go, sometimes making mistakes along the way.
Maybe you’ve built up credit card debt without realizing how quickly it can add up. Maybe you’ve delayed saving for retirement or don’t have an emergency fund. You might even find yourself spending more than you earn some months.
The good news is that it’s never too late to take control of your finances. Small, consistent steps can make a big difference in your financial life.
Here are four ways to overcome financial hurdles:
1. Know Where Your Money Goes
Start by understanding your financial commitments. Review your bank statements and track what you spend each month. If you don’t have a budget, create one and group your expenses into three categories:
- Essential expenses: Recurring living expenses such as rent or mortgage, utilities, groceries and insurance.
- Discretionary expenses: The extras like travel, dining out and entertainment.
- Debt: Credit cards, loans, etc.
Add what you spend in each category. If you’re spending more than you earn, look for ways to cut back. You might lower some essential costs by reviewing your bills or adjusting your lifestyle.
Stay current on credit card payments to protect your credit. Falling behind can lead to late fees and higher interest rates. If you’re struggling, consider calling your lender to discuss options.
Discretionary spending offers the most flexibility — cutting back can free up money for savings. Even small changes, like skipping takeout once a week, can add up over time.
2. Build an Emergency Fund
Prepare for unexpected expenses like car repairs, medical bills or job loss. Experts recommend saving at least three months of essential expenses. That might sound overwhelming, so start small — set aside $500, then work toward saving 5%–10% of your income.
Make it easier by automating your savings when you get your paycheck. Starting with saving just $5 a week can help you grow your emergency fund faster than you think.
3. Set Realistic Goals
Once you’ve built an emergency fund, think about your bigger financial goals.
For example, maybe you want to:
- Pay off your high-interest debt.
- Start saving for retirement.
- Buy a house or car.
- Take a vacation.
- Contribute to a college fund.
Pick one priority and decide how much you can save each month. Choose an amount that motivates you but fits your budget. If money is tight, cut discretionary spending or look for other ways.
Focus on one goal and begin with an amount you can realistically save each month. Even starting small can make a big difference. As your budget allows, you can adjust your savings and continue building momentum.
4. Get Help When You Need It
You don’t have to do this alone. GreenPath Financial Wellness1,2,3 offers personalized guidance from their certified financial counselors. They can help you create a plan, negotiate with creditors and stay on track.
Getting help isn’t a sign of failure — it’s a smart move that can speed up your progress and reduce stress.
- GreenPath Financial Wellness (“GreenPath”) is not affiliated with SchoolsFirst Federal Credit Union.
- GreenPath does not disclose names or personal information of Members enrolled in their programs. Services provided by GreenPath are confidential; GreenPath does not share Member information with SchoolsFirst Federal Credit Union without consent. GreenPath does not share information with any credit bureaus.
- GreenPath provides certain financial wellness resources to Members at a cost. Fees depend on the service and state of residence and are not affiliated with or incurred through SchoolsFirst FCU; GreenPath is responsible for the financial agreement with all Members participating in their services.