BUSINESS MATTERS
you, Navy Federal offers free online calculators to help you determine the amount of emergency funds you'll need to keep your finances secure, plus tips on creating the fund and what it takes to reach your goals.
You can also find ways to make your savings work harder for you than a traditional savings account using options like a Money Market Savings Account or Certificates, both of which typically offer higher interest rates to help boost your savings.
Household budgeting
While it may sound scary, budgeting is simply knowing how much money is coming in (your income) and how much is going out (your expenses). The key to a good budget is understanding the difference between necessary expenses, such as rent and utilities, insurance, groceries and transportation, versus discretionary spending like entertainment, dining out and vacations. It's also important to remember that some necessary expenses can fluctuate, such as utilities at different times of the year.
Financial institutions frequently offer online tools to help make budgeting and expense management easier. Navy Federal offers My MakingCents, a free tool to help members manage their money. It allows members to see all their accounts in one place, track spending by category,build custom budgets, and manage subscription services. The goal is to simplify budgeting for members, especially for things like subscription
services, that are often easy to overlook or unintentionally overspend on.
As you review your expenses, be sure to include paying down debt as a necessary cost, since less debt will save money on interest down the road. You may find that you sometimes need to reduce discretionary spending and/or find ways to increase household income to help manage your costs so you can keep putting money toward savings and debt repayment.
"Budgeting starts with knowing your numbers," says Thomas Racca, manager of personal finance management at Navy Federal. "Your budget should work with your life, not against it. Flexibility is key."
Racca recommends starting with the essentials: "Track your fixed costs first - things like rent, mortgage, car payments and insurance. Then look at your past spending to get a realistic average for variable expenses like groceries, dining out and gas. That's where you'll find opportunities to adjust." One of his top tips is to "treat savings like a bill. Pay yourself first, every month. Even small amounts add up over time and build financial confidence."
" As you review your expenses, be sure to include paying down debt as a necessary cost, since less debt will save money on interest down the road. You may find that you sometimes need ...."