News & Tips

Life gets busy, and it’s easy for finances to take a backseat. But when bills pile up and you’re worrying about the next car payment, it’s hard to truly relax. The good news? You don’t have to stay in that stressful spot forever.

Achieving financial peace isn’t just for gurus, it’s something you can work toward right now. Here are five simple, actionable steps to help you tackle your debts and restore hope in your journey toward financial freedom.

Step 1: Define What Financial Peace Means to You

Financial peace looks different for everyone. For one person, it might mean owning a home free and clear. For another, it might simply mean sleeping soundly without worrying about the electric bill.

While everyone's goals are unique, most people agree on a few common signs of peace:

• Having cash on hand for emergencies.
• Setting up automatic payments without fear.
• Finally paying off lingering credit card debt.
• Feeling confident about retirement.

You need a destination before you can build a map. Take a moment to determine exactly what "peace" looks like for you.

Action Item: If you share finances with a partner, grab a coffee and sit down together. Agreeing on a shared definition ensures you’re both working toward the same goals.

Step 2: Build a Starter Emergency Fund

Financial worries can weigh heavily on your mind, impacting your peace of mind and daily routine. This stress doubles when life throws a curveball, like a flat tire or a broken appliance, and you aren't sure how to pay for it.

The best defense is a good offense. Financial experts often suggest starting with a starter emergency fund of $1,000.

Having that $1,000 safety net changes a breakdown from a financial crisis into a mere inconvenience. It also stops you from reaching for a credit card to fix the problem and saves you from paying interest on top of repairs. If $1,000 feels like a lot right now, just save where you can. Even saving $20 a week adds up quickly.

Step 3: Evaluate Your Debt and Make a Plan

Debt can feel intimidating, but ignoring it won't bring you the peace you deserve. To defeat debt, you have to face it.

Here is a simple method to get organized:

• List it all out: Write down every debt you owe (excluding your mortgage).
• Detail the numbers: List the total amount owed and the interest rate for each.
• Prioritize: Reorder your list by interest rate, starting with the highest rate at the top.

By tackling your highest interest rate debts first, you stop losing so much money to interest charges. As you pay off high-interest loans, more of your monthly payment goes toward the principal balance, helping you get out of debt faster. Plus, lowering your debt usage can give your credit score a nice boost.

Step 4: Aim for 3 to 6 Months of Expenses

Reaching zero debt on your credit cards and loans is a huge milestone, but your journey doesn't stop there. Once your debt is cleared and you have your starter emergency fund, it’s time to think bigger.

Experts recommend saving three to six months worth of living expenses. This fully funded emergency fund protects you against major life events like sudden job loss or medical issues.

To find just how much you should be saving, list every essential expense you must pay each month to survive, such as:

• Housing (Rent/Mortgage, utilities)
• Transportation (Car payments, gas, insurance)
• Living Essentials (Groceries, medications)

Multiply this monthly total by three (or six) to get your goal. If the number looks big, don't panic. Remember, you freed up a lot of cash flow in step 3. The money you used to send to credit card companies can now go directly into your savings.

Step 5: Ask for Help and Use Your Resources

You don’t have to do this alone. If you’re struggling to make payments, reach out. Creditors are often more willing to work with you than you might think and may help you find a solution to satisfy your obligations with them.

If you bank with a credit union, like Space Coast Credit Union, use that to your advantage. We’re member-owned and exist to serve you. Speaking with a Team Member can open doors to options for debt consolidation, financial counseling at any stage of your financial journey, and even payment adjustments you didn't know existed.

Ready to Restart?

You deserve to feel secure about your future. Take the first step toward financial peace by reaching out to a Team Member or by exploring our online resources like our financial wellness page. We’re here to help you regain confidence, restore hope, and make money worries a thing of the past. Together, we can work toward your financial freedom.