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Get Savvy with Financial Wellness

Your Hopes and Dreams are Possible

The best time to start planning for your future and establishing a working household budget is now. InRoads can help every step of the way, including these budget and credit-building tips for a brighter financial future. 

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Budgeting

Every financial goal starts with a budget. Don’t know where to start? We can help.

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Credit

Credit is important for your financial future. Unlock the mystery of how to improve your credit score and put it to work for you.

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Budgeting

A budget is a plan for how you will spend your income and pay off your expenses over a period of time. A budget is usually based on a monthly timeframe. The basics of a budget are simple: track your income and expenses and plan ahead on how to spend every penny. To create a working budget that fits your income and needs, start by identifying your income, expenses, and understand the difference between wants and needs.

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Identify Your Income

What money do you have coming in each month? This can include:

  • How much income will I receive from my job?
  • How much additional money will I receive from child support, spousal support or gifts?
  • Do you have investments that will bring income this month?
Identify Your Expenses
  • What are your fixed expenses – ones which do not change month to month? Include all your housing costs, utilities, insurance, car payments and other fixed monthly payments.
  • What are your flexible expenses – costs that change each month depending on your actions? This includes things like gas, entertainment, eating out and more.
  • Identify the due dates of all expenses so you can ensure you’re paying your bills on time.
Don’t Forget Savings

Always pay yourself first (after your bills). If you have anything left over after your expenses are paid, consider putting a portion of that money into savings. The amount you put away doesn’t matter. It all adds up. Saving offers an added sense of financial security and stability and creates a lifelong saving habit.

Know the Difference Between Needs and Wants

A good starting point for creating a budget is to designate needs vs. wants. Needs obviously get priority, and every budget should cover those first.

  • Needs are things required for daily life (food, clothing, housing, gas, and more)
  • Wants are things that you could do without if you had to (Netflix, morning latte, etc.)
Track your success

Every month or two, measure how well your income is balancing against your expenses. Did you stay on track? Was there a shortfall? Are there adjustments that need to be made going forward?

If your expenses outpace your resources, you will need to make some changes. But if your monthly balance leaves you in the black—or better still, with income left over—keep up the good work! You’ll be glad you did.

Tips for budgeting
  • Overestimate your expenses. You can’t predict every expense that arises.
  • Underestimate your income. You might end up with a surplus!
  • If your fixed expenses are high, reconsider your expenses. Do you need to subscribe to both Netflix and Hulu?
  • Once you’ve paid off your debt, transfer that same monthly payment amount into a savings account instead, then use it to fund a future goal.
  • Consider a separate bank account for fixed costs and automatic payment plans. That way your casual spending won’t leave you scrambling to pay a bill.
  • Don’t forget the little expenses that add up: clothing, ATM fees, dinner out, data overages, etc.
  • Choose a record-keeping system: Whether it’s a notebook, a spreadsheet or an app, decide where your budget information will live and stick to it.
  • Make money management a routine: Review your spending patterns and records each week or bi-weekly at a set time.

Budgeting Resources

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BALANCE

At InRoads, we care about your financial wellness. That’s why we offer BALANCE —a website packed with free financial guidance, services, and online classes that move at your pace. BALANCE can help you start a solid budget, manage your spending and debt, and learn something new about money, including free webinarscalculatorschecklists, quizzes, and more.

Explore BALANCE >>

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Visit with Our Financial Educator

For over 20 years, InRoads members have been been improving their financial wellbeing by working with financial educator Ryan Beardmore. He enjoys the challenge of helping people improve their every day financial lives. Ryan can help review your credit report to ensure that it’s accurate as well as help you develop a budget that works for you.

Are you an InRoads member? Call 800.940.5009 ext. 701 or email [email protected]. Get a head start by completing this budget workbook before your appointment.

Explore Your Credit Score

Your credit score says a lot about you. Lenders and other organizations use it to know how responsible you are and if you can be trusted with a certain job, insurance, or loan. Understanding how your credit score is determined and the typical ranges and ratings can help you gain insight into your creditworthiness and allow you to make improvements.

Request a free copy of your credit report by visiting annualcreditreport.com or call 877.322.8228. You’ll get your full report with information from each of the three credit reporting agencies. Once you have your report in-hand, review it carefully for accuracy as well as opportunities for improvement.

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What does a credit score represent?

Your credit score brings together all the different aspects of your credit history. It uses a formula to provide a single score indicating how likely you are to manage your credit well and repay any money loaned to you. It gives lenders an exact prediction of the potential risk involved in providing you with a loan. Credit scores range from the 300s to 850, with higher being better. Most people have scores falling in the 600s and 700s.

There is no one ‘centralized’ credit score. But there are three main credit scoring agencies in the US (Experian, Equifax, and Transunion). They all use slightly different calculations. This means that your score can vary by a small amount between agencies.

Why does a credit score matter?

Credit scores are used to determine your creditworthiness and are part of the decision that lenders make when giving you credit. Additionally, insurance companies and employers may also use your credit score to determine how financially and personally responsible you are.

How will a good, average, or poor credit score impact you?

A good credit score generally means that you will receive a better deal in terms of interest, financing, and repayment options. An average credit score will mean that you get a typical deal in terms of interest and repayments. A poor credit score generally means you will be charged more interest and may have harsher repayment terms. In other words, the better your score, the less it will cost you to borrow money. When buying a house, the difference between a good score and a bad one can add up to tens of thousands of dollars in interest payments.

What are the main factors that make up your credit score?

Each of the following areas has a significant impact on your overall FICO score.

  • Payment history – 35%
    Payment history makes up over a third of your credit score. It represents how reliable you are in making regular payments to reduce your outstanding debt.
  • Amount of Credit Used – 30%
    This is the second-largest factor in deciding your credit rating. It represents the amount of money that you owe (your outstanding balance vs. the amount you initially borrowed and/or your credit limit). In other words, the more you could borrow, and the less you owe, the better.
  • Length of Credit History – 15%
    The amount of time you have had credit impacts your credit score—generally, the longer your credit history, the better.
  • Types of Credit Used – 10%
    Managing several different types of credit properly is a positive sign for lenders and shows that you are more financially responsible.
  • Recent Searches for Credit – 10%
    A large number of searches for credit (e.g., inquiring or applying for credit) will show on your credit record.
Credit score ranges

Credit scores can range from a low of 300 to a high of 850, and good credit scores are generally considered to be 680 and up, while a poor credit score would be 619 and below.

Score of 720 or more – Excellent
A credit score in this range will provide you with the best interest rates and repayment terms on loans and credit of all kinds.

Score between 680 and 719 – Good
If your credit falls in this range, you can still expect to be accepted for the vast majority of credit and will get you good deals on interest and repayment terms, including acceptable mortgage rates.

Score between 620 and 679 – Average
With a score in this range, you can expect fair mortgage and loan terms, although not the best. You might want to consider improving your score.

Score between 580 and 619 – Poor
Any money that you borrow will very much be on the terms of the lender, which means that you can expect higher than typical interest rates and finance charges. If you are looking for a car loan, you cannot have a score lower than this.

Score between 500 and 579 – Bad
A credit score in this range means that any money you borrow will be costly for you. From higher-than-normal interest rates to harsh repayment terms, this will significantly impact the affordability of mortgages, consumer credit, and other loans.

Score less than 500 – High-risk
If your credit score is less than 500, you will find it very difficult to get any financing or to borrow money at all. If you can get a loan, expect very high-interest charges, punitive repayment terms, and other fees.

Understanding how your credit score is calculated is a vital first step towards improving it. Once you know how it’s made up, you can identify the areas that need focus. With care and diligence, anyone can understand and make practical changes to improve their credit score.

Credit Resources

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SavvyMoney Credit Score

Are you an InRoads member? Just login to Online Banking and you’ll see your current score highlighted in the bottom right portion of the page. Or find SavvyMoney® Credit Score in the InRoads app by clicking “more”.

Are you a future InRoads member? Join today to get access to your SavvyMoney® Credit Score report and more.

Join here>>

ryan beardmore headshot

Visit with our Financial Educator

For over 20 years, InRoads members have been been improving their financial wellbeing by working with financial educator Ryan Beardmore. He enjoys the challenge of helping people improve their every day financial lives. Ryan can help review your credit report to ensure that it’s accurate as well as help you develop a budget that works for you.

Are you an InRoads member? Call 800.940.5009 ext. 701 or email [email protected]. Get a head start by completing this budget workbook before your appointment.