Spring Into Action: How to Refresh Your Finances for a Fresh Start
The spring season is finally here and with it comes a season of renewal. Now is the perfect time to reassess your finances and set yourself up for success. And your local, trusted credit union is here to help you along the way.
Just like a spring cleaning for your home or vehicle, your finances also deserve a refresh. Whether you’re looking to reduce monthly payments, invest wisely or simply get a better handle on your budget, St. Cloud Financial Credit Union is here to guide you with ways to take stock of your financial health this season.
Evaluate Your Financial Health
Before you make any major financial decisions, take a moment to assess where you stand when it comes to your income, expenses, debts and savings.
Some questions to ask yourself to start:
Are you on track with your financial goals?
Have you accumulated any unnecessary expenses?
Could you be saving more each month?
SCFCU has experts here to help you and tools to assist you in your journey towards improving your financial health.
Visit our easy-to-use online banking and click on the Financial Planning tab to find budgeting tools, set savings goals and more.
We also have a free Credit Score Solution designed to help you take charge of your financial well-being and expand your financial knowledge so you can reach your goals.
If you’re looking to build better credit or don’t know where to start in order to build credit, we have the steps to help you begin that journey.
Consider Home and Auto Refinancing
If you already own a home or a vehicle, refinancing could be a smart financial move. Doing so can save you time and money and could benefit you, your budget and your financial goals.
Refinancing could lead you to:
Lower Your Interest Rate: If market rates have dropped since you first secured your mortgage or auto loan, refinancing could mean significant savings over the life of your loan.
Lower Monthly Payments: A reduced interest rate or extended term can help lower your monthly payments, freeing up cash for other expenses. Use our calculators to see what your monthly payments would be.
Shorten Your Loan Term: Moving from a longer-term loan to a short-term mortgage or auto loan can help you pay off your debt faster and save you money by minimizing the interest accrued over time.
Switch Mortgage Types, Tap Into Home Equity: Transitioning from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can provide stability in your monthly payments, while a cash-out refinance lets you borrow against the equity in your home for major expenses like renovations or debt consolidation.
Improved Credit Score? Even Better! If your credit score has improved since you took out your original loan, you may qualify for better rates and terms now. Use our free Credit Score Solution to check what your credit score is and how you can improve it.
Our financial experts can help you determine if refinancing is right for you and if it aligns with your goals and path towards financial health.
Consider Investment Opportunities
Springtime and the early months of the new year marks the perfect time to revisit your investment strategy. Whether you have a 401(k), IRA or other investment accounts, ensure your portfolio aligns with your long-term objectives.
A few things to consider:
Diversifying investments to minimize risk
Increasing contributions to retirement accounts
Seeking new investment opportunities that match your financial goals
Our trusted, experienced investment team is here to help you be successful and will always do what is best for you — in the present and in the future. Our team is here to work together with you to put you on a path to financial confidence.
Tackle Outstanding Debt
If high-interest debt is holding you back, focusing on tackling that outstanding debt and shrinking it efficiently is key.
Strategies to doing so include:
Assessing Debt Load: Understanding the total amount of debt you have gives you an idea of whether you can use a DIY strategy for payoff or if you should consider debt relief options.
Debt Snowball Method: Pay off smaller debts first for quick wins.
Debt Avalanche Method: Focus on high-interest debts to save money over time.
Debt Consolidation: Combine multiple debts into one lower-interest loan for easier management.
Reducing debt not only can improve your financial flexibility, but it can increase your credit score and set the stage for a brighter financial future.
Set Financial Goals
This time of the year is also a great time to look forward to the year ahead and establish or refine your financial goals. Whether it’s saving for a bigger purchase, boosting your emergency fund, planning ahead for a vacation or more, setting clear objectives and goals will help you keep your finances on track.
Things to consider include:
Creating a savings plan with automated contributions
Establishing a budget for upcoming expenses
Exploring ways to increase income, such as side jobs or hobbies
It’s never a bad time to set financial goals. You can start planning ahead and setting financial goals so you are able to reap the benefits in the coming months and years.
Spring Into Action!
Spring is a time of renewal, and your finances deserve the same attention as your home, vehicle and lifestyle.
By evaluating your current financial health, exploring refinancing options, making smart investment moves and tackling debt, you can position yourself for a bright year ahead.
Ready to take action or looking for more information? Contact us today by calling 320-252-2634 or by visiting one of our branch locations!