As remarkable athletes compete on the world stage, it’s time for a smart-money competition a little closer to home. Welcome to the Personal Finance Olympics! Check off the personal finance benchmarks below to see if you can bring home any medals.
Bronze
- Check your credit card statement. Carefully reviewing your card statement each month helps you to catch any unauthorized purchases sooner. Plus, knowing what you spend keeps you more accountable to smart saving practices.
- Know your credit score. Your credit score is used by lenders, landlords and even employers to determine your creditworthiness. Keep an eye on your credit score, which is usually printed on your monthly credit card statement. A sudden change could indicate fraud.
- Create a monthly expenses tracker. Credit cards, debit cards and online payments make shopping super convenient—but it’s also way too easy to lose track of what you’re spending. Try a monthly tracker to get a better handle on where your money is going.
- Avoid tunneling. Many of us only focus on the most immediate financial need, which can lead to financial difficulties in the future—especially if debt is involved. Avoid tunneling by developing long-term financial goals and talking to a financial counselor.
- Take a free workshop. Harvard Federal Credit Union offers free workshops and webinars on a variety of financial topics such as homebuying, teaching kids about money, and debt. And you don’t even need to be a credit union member to attend! Check out classes at: org/workshops.
Silver
- Automate monthly payments. To really get on top of your monthly bills, set up automatic monthly payments for rent, utilities, loans and credit cards. Automated payments help you avoid penalties or interest due to unpaid bills—just make sure your checking account is funded.
- Open a high-yield savings account. A high-yield savings account offers a higher than normal interest rate, so your savings grow faster but your money is always accessible. Look for an account that offers a high APY as well as limited monthly maintenance fees.
- Find your budgeting style. Once you’re already tracking monthly expenses, take your budgeting to the next level by researching various budgeting styles: such as the 50/30/20 method, zero-based budgeting, and the envelope system budget. Try them out to see what works best for you!
- Open a Certificate of Deposit (CD). A CD is a type of savings account that offers a guaranteed interest rate for a fixed term. CDs come with minimal risk compared to other investment options and offer a higher interest rate compared to a traditional savings account.
- Prepare early for big spending. A silver medalist in the Finance Olympics knows how to plan ahead! Start budgeting and saving now for holiday shopping, next year’s vacations, and any other upcoming expenses.
Gold
- Plan for retirement. The best time to start planning for retirement is yesterday, and the second best time is today! Review your job’s 401(k) plan and start your own Individual Retirement Account (IRA) to get more tax advantages as you save.
- Get serious about spending less. If you’re concerned about rising prices, it’s time to go for gold in the smart spending competition. Plan no-spend weekends, rotate entertainment subscriptions, and search out unexpected discounts. Check out more money tips
- Start an emergency fund. Plan for the unexpected by starting an emergency savings account with three to six months of living expenses. That way, if you experience a job loss, car problem or surprise home repair, you’ll be covered.
- Learn about estate planning. From wills and trusts, to guardianship, to medical power of attorney, estate planning helps to protect yourself and your loved ones. Find a solution to create and manage your plan now, so that your family and assets are protected.
- Define your financial goals. As a gold-level Finance Olympian, you’re ready to move away from one-size-fits-all advice and define your own financial goals. Whether it’s buying a house, saving for a vacation or becoming debt-free in a year, set your goals and use your financial know-how to get there.