| | MAY 2022MANAGEHRMAGAZINE.COM19you're covered. As a general rule, it's prudent to maintain enough savings to cover three to six months of your regular expenses. Once you build that savings, you can allocate the money you've allotted for it toward other financial goals. You can't put a price on the peace of mind that comes from an adequate emergency fund.Plan for Major PurchasesIt's best to know ahead of time how you're going to pay for any big-ticket purchase. Buying with a credit card, of course, can add significant expense with interest on debt paid back over time. Establishing a separate savings account for a specific purchase goal can be helpful, allowing you contribute a certain amount each month until you cover the cost. This will help keep the funds separate, and you'll be able to clearly see how quickly you are approaching your goal.Save Early for RetirementRetirement savings should be a long-term project. Start as early as possible, automate the process and forget about it. Even a small, regular contribution has the potential to grow into a large nest egg. If your employer offers a 401(k) plan, take advantage of it, along with the pre-tax savings on your earnings. A health savings account (HSA) is also worth considering. You can contribute pre-tax dollars, pay no taxes on earnings, and withdraw the money tax-free now or in retirement to pay for qualified medical expenses. Handle Credit with CareUse credit cards only when absolutely necessary and pay off credit card balances each month. One way to ensure you meet that goal: set a personal monthly limit and stick to it. Your credit score is another critical part of your financial well-being. Late payments, lingering credit card debt and high balances have a negative effect. The three national credit reporting agencies -- TransUnion, Experian and Equifax -- are required by federal law to provide you with a free annual credit report. You can receive your free annual credit report from annualcreditreport.com. Keep Financial RecordsDevelop a system for organizing your financial records. Items like receipts, pay stubs, tax records, banking and insurance information and any other documentation that affects your finances should kept secure but accessible.Ask for AdviceFinancial planning is essential for everyone, not just wealthy people managing large investments. Among the most important services credit unions provide are financial education and advice to members. Developing a few sound habits can put financial security within anyone's reach
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