RBFCU Financial Literacy Month

10 personal finance tips to get you on the path to financial freedom!

“What do I value?” You would never run a race without knowing that there was a finish line somewhere out there, so why would you spend or save money without knowing what you are working toward?

“Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are.”

James W. Frick

Tip #1: Figure out what is most important to you

How to do it:

• Write it down. This will help you figure out your financial goals. • Create a plan that aligns your spending and saving with your financial

goals and values. • For example, some folks would prefer to use an app or budgeting

software while others prefer to write things down. There’s no right or wrong way, just make sure you can stick to your plan.

Download our Family Spending Plan template.

Tip #1: Figure out what is most important to you

Once you have identified your values and what drives you to save, plan to pay your future self first and simplify your life by making those savings choices automatic.

Pensions are a thing of the past and Social Security may not be able to keep up with inflation so it is left in our hands to plan for our own futures.

“Do not save what is left after spending, but spend what is left after saving.”

Warren Buffet

Tip #2: Pay yourself first and make savings automatic

Tip #2: Pay yourself first and make savings automaticHow to Do It:

• Make saving automatic by setting up electronic transfers straight from your paycheck to your savings or retirement account(s). Based on life expectancy, a good amount to save is 10% for men and

12% for women of monthly gross salary.

David Bach is a wonderful financial author who provides some great insight into making saving automatic.

Credit history plays an important role in your financial standing and can affect: • Job opportunities• Your ability to buy or rent a home • The price of your auto insurance

However, unless we are applying for a specific type of loan, many of us forget to check it on a regular basis. Credit reports should be reviewed at least once a year.

“We always take credit for the good and attribute the bad to fortune.”

Charles Kuralt

Tip #3: Pull your credit report

Tip #3: Pull your credit report How to Do It:

• Schedule a reminder on your calendar dedicated to reviewing your report• Report any inaccuracies regarding loans or payment history

Did you know RBFCU offers a low-cost credit monitoring service called IDProtect Plus which also allows you to access your credit

report and your score once every 90 days at no additional charge? You can also access your free report once a year from the major bureaus at AnnualCreditReport.com.

It is a good idea to monitor your account activity in order to: • Check for accuracy• Identify spending leaks• Prevent fraud

Spending leaks are those day-to-day purchases that may be small but can be disastrous because they can add up to quite a bit of money over time.

“Beware of little expenses; a small leak will sink a great ship.”Benjamin Franklin

Tip #4: Review statements to track your spending

Tip #4: Review statements to track your spending How to Do It:

• Save your receipts and review your account activity when you get your statement to make sure they match up.

• If you identify any spending leaks, reduce the frequency of those purchases. • For example, if your habit is to buy a latte 5 times a week, reduce it to

2-3 times per week. You can still save money, while not feeling deprived. Try out this worksheet to figure out your “Latte Factor” and track your spending.

Review investment accounts and make sure they are up to date with your retirement goals and values. A regularly scheduled check-up can keep you on track as you work toward your financial goals.

As your life changes, you may need to adjust your investment strategy and make sure your funds are diversified. As you near retirement, make sure your risk is in line with your age.

“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t…pays it.”

Albert Einstein

Tip #5: Do an investment account check-up

Tip #5: Do an investment account check-up How to Do It:

• If you’re not saving for retirement, start now. • Schedule a visit with a financial professional to make sure you’re on the

right track when it comes to saving

Did you know…You can schedule a no-cost, no-obligation financial check-up with a registered RB Financial investment advisor?

RB Financial LLC is a wholly-owned subsidiary of RB Premier Services LLC. RB Premier Services LLS is affiliated with RBFCU.

No one can ever truly plan for the unexpected, so how do you know how much money you should be saving?

• Set aside enough money to cover your living expenses for at least six months in an accessible savings or money market account.

• Keep your “emergency” funds liquid so they are easy to access when you need to withdraw them.

“Balancing your money is the key to having enough.”Elizabeth Warren

Tip #6: Plan for the unplanned

Tip #6: Plan for the unplanned How to Do It:

• Open a separate account that is meant solely to cover any financial surprises life throws your way.

• This account could be used for anything from an unscheduled medical bill to that well-deserved weekend getaway that you have been meaning to take.

• Start putting aside set amounts each month to build up this fund. • Planning for the unplanned doesn’t stop when you reach your goal

because you can never be too prepared for what life throws your way.

How to Budget for Emergencies | Quicken

Review your credit accounts to get an accurate picture of the amount of debt that you currently have. Seeing is believing.

“I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.”

Warren Buffet

Tip #7: Reduce unnecessary debt

Tip #7: Reduce unnecessary debt How to Do It:

• First, be smart about the debt that you’re taking on and don’t get into situations you cannot afford.

• Add up all your credit balances to figure out the total debt you owe. • Plan to pay more than the minimum payment to the highest rate debts

first. • Be patient and persistent. Debt is typically not accumulated overnight so it

won’t be paid off overnight. • Don’t stop saving while you are paying down debt. Seeing a positive

balance accumulate in savings will help you to stay strong during moments of temptation.

• “I have a policy at work, why do I need additional life insurance?” • “How do I know how much life insurance to purchase?”• “Am I too young to need life insurance?”

These are a few standard questions that most people have asked themselves at one time or another. The truth of the matter is that the answer lies in figuring out what your family needs to survive if they lost you.

“Someone is sitting in the shade today because someone planted a tree a long time ago.”

Warren Buffet

Tip #8: Protect yourself and your family

How to Do It:

Remember that list of financial goals? Take a look at it, and ask yourself if your family would able to achieve those goals without you. • For example, if your goal is to send your child to college, would your

significant other be able to do that on their income alone?

Life insurance can provide comfort in a stressful situation. To learn more about life insurance options, click here (Investor Connection - Life Insurance).

Tip #8: Protect yourself and your family

Periodically pull out your auto and renter/homeowner insurance policies and review them to ensure that your coverage is in line with what you need.

Unplanned damage or losses happen and in those cases, insurance can help us financially recover those costs. As life changes, updates may be required.

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”

Ayn Rand

Tip #9: Protect your assets now

Tip #9: Protect your assets now How to Do It:

• Contact your insurance agency and ask about any discounts that they may offer.

• Ask your agent for advice on how much coverage you need. You don’t want to pay for more coverage than you need but you also don’t want to short yourself either. Shop around for competitive pricing as well. Many insurance companies will provide you a discount for bundling your auto and home policies.

Did you know…You can request a no-cost, no-obligation quote for Auto and Homeowner’s insurance from Randolph Brooks Insurance Agency, LLC (RBIA)?

Randolph Brooks Insurance Agency LLC is a wholly-owned subsidiary of RB Premier Services LLC. RB Premier Services LLS is affiliated with RBFCU.

Do you know who will retain your assets upon your death? Many of us may believe a will is for a rich person or that if we don’t put it in writing then it automatically goes to our family, but the truth of the matter is, it’s not always that simple.

“It takes as much energy to wish as it does to plan.”Eleanor Roosevelt

Tip #10: Protect your assets later

How to Do It:

• If you have a will, make sure it includes current beneficiary information on all accounts.

• If you don’t have a will, consider working with an attorney or using an online program to create one.

• Make sure your family knows where to find these crucial documents in time of need.

If you fail to name a beneficiary or have a valid will, state law determines how your assets will be allocated at your death. Make your choices now so that your choices are not made for you. 10 Things You Should Know About Writing a Will

Tip #10: Protect your assets later

“He who fails to plan is planning to fail.”Winston Churchill

For further information or to request financial education resources, contact the Financial Literacy Department at

financialeducation@rbfcu.org