Smart Financial Practices to Strengthen Your Finances

When was the last time you reassessed your financial habits or optimized your financial setup? These tips can help you stay on track, reduce stress, and make informed decisions about your money. By implementing these practical strategies, you can improve your financial well-being and build a more secure future. Even just reviewing these steps can boost your confidence and give you a greater sense of control over your finances.

1. Check Your Credit Report

Monitoring your credit regularly is essential for catching errors, tracking your score, and protecting against fraud.

How to get started:

• Get your free credit report from AnnualCreditReport.com.
• Review your accounts for accuracy and dispute any errors.
• Watch for signs of identity theft, such as unfamiliar accounts or inquiries.

2. Establish a Revised Budget

Yes, we know you’ve heard it before—but we challenge you to take just one hour to adjust your budget based on your recent spending habits. Make sure your money aligns with your current goals and values.

Steps to refine your budget:

• Analyze recent expenses and identify areas for improvement.
• Allocate funds toward savings, debt reduction, and investments.
• Use budgeting tools like Financial Manager or spreadsheets to track your progress.

3. Prepare for Major Expenses

Planning ahead for large purchases or financial obligations can help you avoid stress and unnecessary debt.

Consider these upcoming expenses:

• Family events or vacations
• Emergency savings for unexpected costs
• Costs for a new driver in the family or a child heading to college
• Create a dedicated savings plan for each major expense

4. Review Your Financial Accounts

Regularly evaluating your financial accounts can help you save money and improve financial management.

What to check:

• Interest rates on loans, savings, and credit cards
• Account fees that may be reducing your savings
• Opportunities to consolidate accounts or switch to better products

5. Evaluate Subscriptions and Recurring Costs

It’s easy to lose track of recurring charges that are no longer necessary. Reviewing them can free up money for more important priorities.

How to conduct an audit:

• Check your bank and credit card statements for subscriptions
• Cancel services you no longer use
• Look for more affordable alternatives for services you want to keep

6. Explore Insurance Alternatives

Your insurance needs change over time. Reviewing your policies can help you find better coverage or lower rates.

Areas to assess:

• Auto, home, and renter’s insurance
• Life and health insurance
• Request quotes to see if bundling or switching providers can save you money

7. Optimize Financial App Settings

Financial apps can be powerful tools—if they’re set up to serve you, not overwhelm you.

Tips for optimization:

• Set alerts for key activities, such as low balances or large transactions
• Update budget categories to reflect current priorities
• Turn off unnecessary notifications to reduce distractions
  

By consistently applying these best practices, you can stay organized, make smarter decisions, and build long-term financial security. Small steps today can lead to significant progress over time.

If you’re a Deerwood Bank customer—great news! Tools like Financial Manager, Online Banking, and other helpful resources can simplify and strengthen your financial strategy.

Take action now—whether it’s reviewing your credit report, refining your budget, or cutting back on expenses. Your future self will thank you!