Tips for Improving Your Financial Wellness
Create (and Stick to) a Budget
A budget gives you a clear picture of where your money is going. Start by tracking your income and expenses, then set your realistic spending limits.
Build an Emergency Fund
Unexpected expenses happen and an emergency fund can help you avoid relying on credit cards or loans when they do happen. Aim to save $500-$1,000 to start, then work toward saving 3-6 months of essential expenses. Keep those funds in a separate, easy-to-access account.
Save for Short and Long-Term Goals
Saving is easier when you have a purpose. Whether it’s short-term goals like saving up for a vacation or buying gifts or long-term goals like buying a home, education, or retirement start by creating automated transfers to your savings accounts to stay consistent.
Manage and Reduce Debt
Debt can be a useful tool, but too much can limit your financial flexibility. You can start by paying more than the minimum payment whenever possible. You should focus on high-interest debt first, and even consider consolidating debt to simplify payments and lower interest.
Plan for the Future
It’s never too early—or too late—to plan ahead. Contributing to retirement accounts, reviewing beneficiaries and insurance coverage, and updating your financial plan as life changes can help keep your future on track.
Use Credit Wisely
Your credit score plays an important role in your overall financial health. Explore the section below to learn what impacts your credit score and discover practical ways to improve it!
What Makes Up Your Credit Score?
Want to raise your credit score or get a better understanding of what factors go into it? Here are the five categories that make up a credit score:
35% Payment History
This reflects how consistently you make on-time payments on your credit accounts. Pay at least the minimum on time—every time. Set up automatic payments to avoid missed due dates.
30% Credit Usage
Credit usage, or credit utilization, is the ratio that compares how much you owe to your total credit limit. Keeping balances below 30% of your available credit (lower is better) helps protect your score. Closing accounts can hurt this ratio by reducing your total credit limit availability. Paying off your balance each month will not harm your credit score—in fact, it’s a healthy habit that supports strong credit.
15% Credit Age
The length of your credit history is influenced by the average age of your accounts, as well as how old your oldest and newest accounts are. Keep older accounts open if possible—the longer the credit history the better.
10% Mix of Credit
Your score also takes into consideration how many total accounts you have and what types of “trades” you have. Your score will likely be higher if you have experience with different credit accounts like mortgages, credit cards, and installment loans.
10% Recent Credit
This considers how often you apply for new credit and how recently new accounts were opened. It is good to avoid opening multiple accounts at once; too many applications can lower your score temporarily.
Your credit report impacts your ability to borrow and determines the rates you pay. You’re entitled to a free report from each of the three major credit bureaus every 12 months. Reviewing it regularly helps you spot errors and safeguard your financial reputation. Request your reports at: www.annualcreditreport.com.
Additional Financial Wellness Resources
Free Financial Counseling
Whether you need to set up a budget, build strong savings, develop great credit or even prepare for a major purchase like your first home, our counselors are here and ready to help. Members who have experienced financial trauma due to the loss of a spouse, lack of gainful employment or medical emergencies can also benefit from our services. We offer counseling from experienced financial professionals as well as complimentary access to online tools that help you assess your needs and build a personalized plan. In addition, SIUECU has developed unique loan plans to establish a favorable lending history.
The professionals at SIUE CU want to see all members succeed. If you’re struggling with a financial issue – no matter how large or small – make an appointment with us!
Matthew Parrott
Matthew is a Credit Union Financial Counselor who is passionate about educating members so they can develop adequate personal finances. Matthew has worked with credit unions for more than 10 years and has served in financial management for the last 7 years. Matthew is currently the President and CEO of SIUE CU.
Suzanne Lohrum
Suzanne currently serves as Executive Vice President at SIUECU, bringing more than 20 years of dedicated service to the credit union. Throughout her tenure, she has held a wide range of financial and leadership roles, giving her a deep understanding of member needs and organizational growth. Known for her ability to spot opportunities for improvement and innovation, Suzanne is passionate about helping members strengthen their credit, build financial confidence, and improve their everyday lives through smart money management.
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