Before you pull the trigger on any more big purchases, you might want to have a look at a set of guidelines published this year that help you measure your financial well-being.
Developed by the Consumer Financial Protection Bureau, the guide is intended to provide people with an easy way to chart their present and future financial well-being. Basically, it helps us to determine whether we are saving enough for a secure future.
It is built around these four elements of financial well-being:
- Financial security in the present: This element focuses on whether consumers feel they have control over their day-to-day and month-to-month finances.
- Financial security in the future: This element focuses on whether consumers feel they have the capacity to absorb an unexpected financial shock.
- Present financial freedom of choice: This element focuses on whether consumers feel they have the ability to make choices that allow them to enjoy life.
- Future financial freedom of choice: This element focuses on whether consumers feel they are on track to meet their longer term financial goals.
- Find the user guide here: http://www.consumerfinance.gov/reports/financial-well-being-scale/
Download the guide, and go through the Q&A process. If you find that you are not where you’d like to be financially -- and not enjoying the level of security you would like to attain – think of making some changes in the New Year.
Make your credit union part of this 2016 plan. Your CU can help you to set budgets for spending, and savings that will help you to achieve the financial well-being you need and want.