Five Tips to Strengthen Your Financial Habits — Amro Menor

When setting financial goals, start small at the beginning and aim your bar high in the long run. Setting realistic goals will keep you encouraged and committed. When I first started establishing my own financial goals, I struggled to keep up because they were more ambitious than I could fulfill at the time. I originally told myself that I could accomplish what should have been a long-term goal in a short period of time. Eventually, I gave up since I was frustrated and felt like I would never get there.

Over time, I learned to set achievable goals in three categories: short-term, mid-term, and long-term:

Short-term: Goals that can be accomplished within three years. Some of mine were starting an emergency fund and saving for my bucket list trip – however, the uncertain times we are facing may impact this process. You can also start by building a budget to determine how much you want to save and are able to spend.

Mid-term: Goals that can be accomplished in three to five years. Some examples include saving for a down payment on a car and/or paying off credit card debt.

Long-term: Goals that can take five or more years to achieve. These goals are normally things like saving for retirement or paying off a long-term debt like a mortgage.

These differentiators helped me set realistic goals and put me on a solid path to become financially stable. A great way to start this process is by scheduling an appointment with one of BECU’s Financial Health Check Specialists. During this phone-based coaching session, you share your money goals and the specialist shows you how to take immediate action: naming bank accounts, building savings, setting up recurring transfers, and managing debt.

2. Reduce or Eliminate Debt

Debt comes with accumulating interest that could become very expensive over time. Building a solid plan to pay it off is important for having financial freedom in the future. One of my mid-term goals was paying off my student loan debt by the spring of 2021. By committing to paying more than the minimum amount due, I am currently on track to reach this goal. Financial wins are not limited to saving a lot of money or buying property. Paying down your debt and not falling into more debt are wins, too.