Activism, Community, Economic development, Entrepreneurship, Small business, Technical assistance, Uncategorized |

In partnership with GreenPath Financial Wellness

With inflation running at a high rate, you may feel some extra pressure on your household budget right now. Knowing how to navigate this period is critical to financial wellbeing.

Our partners at GreenPath Financial provide free financial wellness and counseling services, and they’ve put together some helpful steps you can take to stabilize your budget and sustain yourself throughout this inflationary period and in the future.

Take a look:

Check-in on your financial situation. Has your household income changed? Have you adjusted your budget for rising groceries, transportation, or other expenses? Review your existing budget to check on your cash flow. Having healthy money habits can help you better plan for these circumstances. If you don’t have a budget and don’t know where to start, GreenPath’s expert counselors can help you set up a spending plan or roadmap of your monthly expenses.

2. Continue to build your emergency fund. Your future self will thank you for having money to tap into when unexpected circumstances arise. An emergency fund helps reduce the chance of taking on debt to cover an unplanned cost. Resist the urge to pause your monthly savings, even if rising prices take more of your monthly budget. Instead, it’s best practice to automatically deposit money in your personal savings account every month. Remember, even a little bit adds up over time. We offer one of the best savings accounts so you can get the most out of your personal savings.
3. Revisit your monthly spending. Reflect on your expenses and determine which ones are unnecessary. A good place to start is with recurring charges like subscriptions or streaming services. According to researchers, the average household has 4.5 streaming services and spends an average of $55 per month – that amounts to more than $600 per year. Next, define a new spending baseline for yourself and adjust your credit card usage to meet your new personal savings goal.
4. Monitor your debt. Be mindful of rising interest rates when applying for a personal loan or credit card. We offer affordable and transparent personal loans to help you build credit and avoid high-cost predatory loans. Prioritize paying off high-interest credit card debt to improve your credit score and free up room in your budget.
5. Always remember your goals. It pays to stay budget-aware, especially when prices are rising. Before making any purchase, ask yourself if it aligns with your personal savings plan. Make it a habit to check your budget weekly to make sure you’re staying on track. These practices will build a strong foundation for your financial future.

Inflation might seem scary, but it doesn’t have to be. As a community bank in NY, we offer our clients perks like cash back rewards and safe & easy money transfers, as well as access to free tax preparation and free financial counseling from our trusted partners to help you take control of your money and build a successful financial future.