5 Ways to Increase Your Financial Capability

April 3, 2023

April is Financial Literacy Month in the United States, a time dedicated to promoting financial education and improving your financial capability. Financial literacy includes understanding personal finance concepts such as budgeting, saving, investing, borrowing, and managing debt. At New Valley Bank, our priority is to help you build your financial knowledge and improve your financial health.

In this article we’ll share some of our best tips to help you get started:

1. Set Financial Goals

Start by setting financial goals for yourself. This is an essential step towards achieving financial stability and success. These could be short-term goals like paying off a credit card or long-term goals like buying a house. In any case, it involves identifying what you want to achieve with your money in the short term and long term.

Once you have identified your goals, make them specific, measurable, achievable, relevant, and time-bound. It’s important to regularly track your progress and adjust your plan as needed to ensure you stay on track to achieve success

2. Create a Budget

Allocating money towards different categories of expenses is a crucial aspect of financial planning. Prioritizing needs over wants is one of the most important decisions you must make during this process.

To create a budget, start by tracking your income and expenses for a few months to get a clear understanding of where your money is going. Next, allocate funds toward necessary expenses, such as rent or mortgage payments, utilities, and groceries. Then, identify areas where you can cut back on peripheral expenses, such as eating out, entertainment, or travel. Lastly, review and adjust your budget as needed to ensure you’re staying on track and reaching your financial goals.

3. Save Regularly

By setting aside a portion of your income on a regular basis, you can build up a solid financial cushion that can be used for emergencies or invested in long-term growth.  You can also set up automatic transfers to your savings account to ensure that you’re staying consistent. With discipline, patience, and perseverance, you can develop a strong savings habit and reap the benefits of financial security and stability.

4. Invest for the Future

Investing can help you grow your wealth over time. Consider investing in a tax-advantaged retirement account like an IRA. If you’re unsure where to start, talk to a Tax Consultant or Professional Advisor for guidance.

5. Manage Your Credit

Your credit score affects your ability to borrow money, so it’s essential to manage it wisely. Pay your bills on time, keep your credit utilization low, and monitor your credit report regularly, disputing any errors or fraudulent activities.

Only allow a lender to conduct a credit check when you are sure you’re ready to proceed forward with financing since a hard check could have a negative impact on your overall score. By managing personal credit carefully, you can avoid financial problems and achieve your financial goals more efficiently.

The More You Know, the More You Grow

At New Valley Bank, we understand that increasing your financial capability requires intentional effort. We’re here to help you improve your financial knowledge and take control of your finances. You can build a strong financial foundation for yourself, your family, and your dreams. Start small and stay consistent, and you’ll be on your way to financial success.

We are ready to provide you with the tools and resources you need! You can call, text, or reach out online. We are here 24/7 to help!

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5 Ways to Increase Your Financial Capability