Celebrate Financial Literacy Month: Keys to Financial Well-being

At MSA, we celebrate Financial Literacy Month by highlighting MSA’s Keys to Financial Health℠.  You can master these financial habits through MSA’s holistic financial well-being solution: unbiased money coaching, a personal digital platform with self-help tools, and education events covering a wide variety of financial topics and life events. Let’s take a look at the five financial keys and things to consider as you get started.

1. My Money – Take control of my spending

Creating a balanced budget with a positive cash flow can allow you to feel in control of your money.  As you consider whether you have mastered this financial habit, ask yourself the following questions.

• Do you have a budget/plan?
• Are you tracking your expenses?
• Are you spending less than you earn?
• Are you saving a portion of your income each month?

Remember that budgeting helps you create healthy financial habits that you can build on.

2. My Credit – Leverage my credit and manage debt

Imagine the freedom of not being controlled by debt and having a credit score that works for you.  Paying off or paying down debt might be one of your goals for achieving this. As you assess your current situation, ask yourself the following questions.

• What is your credit score?
• What is your debt situation? What kind, and how much?
• Are you able to make timely payments on your debt?
• If you applied for a loan today, how confident are you that you’d obtain a good interest rate?

Even if you don’t need it right now, taking care of your credit can set you up for future opportunities. Plus, keeping a close eye on your credit report can help you catch discrepancies. If you’re unsure where to start, work with a money coach to create an action plan.

3. My Protection – Prepare for the unexpected

Gain peace of mind through having basic levels of insurance and emergency savings to prepare for the unexpected.  This usually includes disability insurance to protect your income.  It is also prudent to have adequate coverage for your belongings, vehicle, and home. If anyone relies on you, also consider life insurance to provide financial help if you can no longer provide support for your loved ones. Ask yourself the following questions:

• Do you have three months’ living expenses in a savings account?
• Do you have sufficient insurance (e.g. life, disability, medical, property and casualty, and long-term care)?
• Do you have a will and/or a trust in place?
• Do you have ID theft and credit protection?

There are many insurance options. A Money Coach can provide shopping tips and help you identify the types of coverage that may make sense for your situation.

4. My Retirement – Build my future

Gain confidence that your dream for retirement is possible.  Acting on a strategic plan to achieve your retirement vision is key to retiring when you want to and how you want to.  Answer the following questions to assess where you are.

• Do you know when you want to retire? What you want retirement to look like?
• Do you have current retirement funds to which you are contributing? How much?
• Do you know your retirement income needs? Will your income cover your expenses?
• Do you understand the risks to retirement plans (e.g. longevity, market volatility, inflation, healthcare)?

Don’t just dream about retirement. Put your plan into action as soon as you can.

5. My Game Plan – Achieve my goals

Your chances of success greatly improve when you take the time to create well-defined goals and realistic plans to fund and achieve them. Gain momentum as you build the future you desire.  Use the following questions to get started:

• Have you considered your future financial needs (e.g., college, weddings, home-buying, life events, car, major purchases, paying off loans, end-of-life)?
• What are your short (less than 3 years), mid (3-10 years), and long-term (10+ years) goals?
• Do you have a plan to fund your goals?
• Do you evaluate your goals and progress periodically?

Talk with an expert Money Coach who can help you prioritize your finances and achieve your dreams.

How MSA Can Help

MSA is committed to helping members achieve their financial dreams. Improving your financial literacy and well-being can be much easier when you have helpful tools and an MSA Money Coach who can partner with you to create an action plan. Call 888-724-2326 to schedule a coaching session today.