Breaking Unhelpful Financial Habits & Avoiding Financial Groundhog Day
Do you have déjà vu each month when your bills become due? Do you feel like Bill Murray in the 1993 comedy classic Groundhog Day – no matter what you do you can’t seem to break your own predictable and unhelpful financial habits?
Whether Punxsutawney Phil forecasts an early or late spring come February 2, we predict that you can break the cycle of these financial pitfalls with some help from your credit union:
- Procrastinating on financial tasks: Delaying important financial tasks – such as creating a will, reviewing insurance policies, or filing taxes – can lead to unnecessary stress, expense, and complications down the road.
- “Keeping up with the Joneses:” Trying to match the lifestyle of others without considering your own financial situation and limitations can lead to overspending and financial strain. Ignoring a budget or living outside of your means can lead to racking up debt and other issues in the future.
- Overreliance on loans and credit cards: Depending too heavily on loans and credit cards to finance your lifestyle can lead to a cycle of debt, making it challenging to achieve overall financial stability. Consider creating a savings plan for larger financial goals, limit your impulse buying on items outside of your established budget, and speak with one of our Member Advocate Specialists about building a debt repayment plan to break the debt cycle.
- Ignoring financial education opportunities: There is a wealth of reputable information regarding personal finance online at your fingertips – and at your credit union! Avoiding opportunities to educate yourself about managing money and debt, investing, etc. can lead to uninformed decisions and missed opportunities for your own financial growth.
- Ignoring your credit score: Neglecting to monitor your credit score and addressing any issues promptly can impact your ability to secure credit, or even employment or rental opportunities. Don’t wait until a lender or landlord check your credit to figure out where you stand! You have access to your credit score on demand, for free, using Cutting Edge’s Credit Insights tools inside Online and Mobile Banking.
Breaking the financial habits that don’t serve you well can significantly improve your financial wellbeing – it takes time, but by regularly reassessing your habits and making positive changes will contribute to your long-term success. If you’re ready to SPRING into action, you can work with any of our certified financial coaches to break the Financial Groundhog Day cycle!