How to build your financial foundation

Just as your home needs solid foundation to remain stable, building a strong financial foundation is essential for long-term financial health and security. Your foundation is made up of the habits, tools and strategies that support your financial success. 

Life rarely follows a script, and unexpected events can happen when you least anticipate them. We get it! But with the right habits in place, you can build a safety net that helps you confidently navigate life's curveballs. 

Here's the materials you'll need to construct your financial foundation: 

1. Start an emergency fund - While you can't plan for everything, having a financial cushion for unexpected expenses and repairs helps you avoid straining your budget or relying too heavily on credit. Establishing a dedicated Savings Account for emergency funds can help you stay in control during challenging living situations. It is generally recommended to set aside six months' worth of living expenses. For even greater growth, consider automating deposits into our High-Yield Savings Account and let compound interest do the work. With dividents paid monthly¹, you'll have peace of mind as you watch your savings grow steadily.
2. Pay off debt - Debt, especially high-interest debt, can put significant pressure on your monthly budget. Prioritize paying off higher-rate balances or consider consolidating multiple debts into one manageable payment with an Abound Personal Loan or Home Equity Line of Credit (HELOC). If you're carrying high-interest credit card debt, you can transfer your balance fee-free to our low-rate Abound Classic Visa® to help keep your finances on track. Consolidating debt can lower your monthly payments, simplify your finances and help pay off debt faster. Become debt-free sooner can free up room in your budget for other important goals, like purchasing your first home or increasing your retirement contributions. 
3. Invest in your future - It's never too early to start planning for retirement and ensuring you're financially prepared for the years ahead. Many employers offer 401(k) plans or similar retirement programs. At Abound, we offer a 401(k) with matching contributions along with a fully employer-funded pension plan. If your employer provides these benefits, take full advantage of them. Another powerful retirement tool is an Individual Retirement Account (IRA). At Abound, we offer both Traditional and Roth IRAs. WIth a Traditional IRA, contributions may be tax-deductible, and you'll pay taxes when you withdraw funds in retirement*. With a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawls are tax-free.
4. Protect yourself and your loved ones - Insurance plays an important role in keeping your financial foundation secure. Planning for risk through life or disability insurance can help protect you and your family if you were to pass away unexpectedly or be unable to work for an extended period. Whether you're looking to protect your loved ones or insure valuable assets, you can explore your options here. You could qualify for exclusive discounts with your Abound Credit Union Membership. 

Whether it's an unexpected expense, job loss or another financial emergency, having a strong financial foundation can make all the difference. 

Interested in opening an IRA, High-Yield Savings Account or consolidating debt? Stop by your nearest branch- we're here and ready to help you build your financial future.