Gaining Financial Freedom: How to Take Control of Your Finances

Adulthood offers plenty of exciting opportunities, but it also comes with its share of stresses. Fortunately, learning how to create a smart plan for your financial future is easy. For most of us, that begins with understanding how much we spend and addressing debt before saving money for the future. At Carthage Savings & Loan, our experienced professionals can help you get started with the financial tools you need and the customer service you deserve.

Make a Plan

One of the first things to consider when seeking financial freedom is your goals. Do you need to establish an emergency fund by saving small amounts of money each month? Or are you ready to set up a long-term savings plan that will see you through everything from buying a house and starting a family to retirement? Understanding your financial goals can help you take the first steps toward managing your money. Having your thoughts on paper (or on your computer) can make a big difference, so take a few minutes to jot them down.
Once you know what you want to achieve, you'll need to take a good look at your lifestyle. Creating a budget is a simple way to cut back on spending, but it can pay off big in the long run. Start by tallying your must-pay expenses, such as:

• Rent or mortgage
• Car payment
• Utilities
• Student loans and other debt

After comparing these expenses to your monthly income, you'll know exactly how much money is left over for things like groceries, entertainment, and shopping. Most people can find easy ways to cut down on most of these categories, like cooking at home more often or hosting a game night instead of having drinks out with friends.  

Make Smart Changes

Now that you know what’s available after your monthly expenses, consider allocating those funds toward your debts and loans. If you still have student loans to pay off, taking care of them as soon as possible is a great way to eliminate one monthly payment. You can even look into a student loan forgiveness program to lessen the burden. Consolidating student loans is another simple solution that can help those struggling to save by providing lower monthly payments.

Using extra money each month to pay off high-interest credit card debt is another smart option.  Once you do, look into a credit card with a lower interest rate to help save money whenever you need to rely on credit in the future.

With debt under control, it’s time to set up a savings account. Saving just a small amount from each paycheck is a great way to build an emergency fund and then begin working towards long-term savings. If you’ve fallen behind on savings, consider putting your former loan or credit card payments into savings each month to catch up.

Feel Confident in Your Financial Future

Taking a hard look at your current finances and setting goals for the future are the first steps toward financial freedom. If you need help with budgeting, savings, or other financial matters, the Carthage Savings & Loan team can offer guidance and support. Visit one of our convenient locations in Carthage, Watertown, Clayton, or Croghan, or call 800-232-0450 today for more information.