Make a Financial Freedom Plan: 10 Steps to Take with Your Credit Union’s Support

(5 Minute Read) — What is financial freedom, and why is it so important?

People often use the terms “financial independence” and “financial freedom” as if they mean the same thing, but they don’t. Financial independence means having enough income to cover your essential needs without relying on others. Financial freedom, however, goes further. It’s the ability to make life decisions without being limited by money, so you get financial peace of mind and the flexibility to create the future you want.

If you’re tired of living paycheck to paycheck or feeling unsure about your financial security, it’s time to act! Take these 10 steps to create your own financial freedom plan with the help of a powerful partner—your credit union.

1. Set Clear Financial Goals

Every successful plan starts with clarity, so before you do anything else, define your short- and long-term financial goals. Are you hoping to pay off debt, retire comfortably, or start saving for a home? Clear goals keep you focused and help you make better decisions. 

As you consider your goals, explore the Unitus Blog for practical ideas. Select articles from a variety of categories including Financial Wellness and Personal Finances.

2. Track Your Income and Expenses

After setting your goals, take a look at your current financial life. Track every dollar you earn and spend in order to see patterns and uncover habits. Many people are surprised to learn how much they spend on small things like takeout coffee or subscriptions.

With Unitus Mobile and Online Banking, you can sign up for instant spending notifications to help you keep your spending in check.

3. Create a Budget That Works for You

Next, it’s time to build a realistic budget you can stick with. Many financial experts recommend the 50/30/20 rule: 50% of your income for needs, 30% for wants, and 20% for savings and debt. You can fine-tune these percentages to fit your lifestyle and priorities.

Make the budgeting process straightforward with the Enrich Budgeting Tool provided by Unitus. Be sure to check out the Overview, Analysis, and Resources features.

4. Build an Emergency Fund

With a budget in place, establishing an emergency savings fund is the next step toward financial stability. Many experts recommend saving three to six months’ worth of expenses, but it’s fine to start small. Even $500 can help with unexpected bills.

Set an emergency fund goal and timeline with the Unitus Save for a Rainy Day Calculator.

5. Pay Off Debt

Once you have an emergency fund, focus on getting rid of debt, especially high-interest credit card debt, which can derail your financial freedom. Consider strategies like the avalanche method (paying off the highest interest debt first) or the snowball method (paying off the smallest balance first).

Use Unitus Bill Pay to automatically pay credit card bills and avoid late fees.

6. Create a Long-Term Savings and Investing Strategy

Your next focus should be on steady savings and smart investing, the keys to building wealth. Contribute regularly to retirement accounts, explore mutual or index funds, and build a diversified portfolio. Consistency is your most powerful tool for lasting success.

Sign up for a no-cost, no-obligation consultation with a Unitus Financial Advisor. They’ll help you with your goals, no matter what stage of life you’re in.

7. Automate Your Savings

An easy and effective way to stick to your savings target is to make saving automatic. Set up automatic transfers to your savings, retirement, or high-yield accounts each payday. You can also use your debit or credit card to automate savings effortlessly. 

Boost your savings automatically with Unitus Rewards options: debit cash back, debit round up, or a cash back rewards credit card. 

8. Get Financial Education 

As you work on your financial freedom plan, constantly sharpen your money skills with financial education. The better you understand your finances, the less money stress and anxiety you’ll suffer, and the more confidence you’ll have to make big decisions. 

Design your own path to financial wellness with Enrich’s Personal Finance Platform, provided by Unitus. Learn your money personality, understand credit reports, and more.

9. Work With a Financial Coach

In addition to self-education, consider personalized support from a financial coach, which can help you build better money habits, manage debt, and stay accountable. Coaching is especially helpful if budgeting feels overwhelming or you’re unsure where to begin.

Make a free appointment with a Unitus Financial Coach. You can select the branch location where you’d like to meet.

10. Use Credit Wisely to Support Your Goals 

When you need to buy a home, finance a car, or get another type of loan, discover how credit unions can help you save and stay on course for financial freedom. As member-owned institutions, they typically offer lower interest rates and fewer fees than traditional banks. 

Check out the many home loan options available from Unitus. 

Bonus Step: Review and Adjust Your Plan Regularly

As your life changes, your financial plan should change with it. Evolve your strategy; don’t let it stay stagnant. Check in with yourself every few months to review your progress, adjust your budget, update your savings strategy, or refine your goals. 

Stay on top of your finances, anytime, anywhere, with Unitus Digital Banking.

Take the First Step 

Financial freedom doesn’t happen overnight, but every step you take brings you closer to a life where money supports your dreams, instead of limiting them. With the tools, benefits, and support available through Unitus Community Credit Union, you can achieve your financial goals. Become a Unitus member today and transform your financial future!