Consumers experienced another year of rising interest rates and inflation during 2023. U.S. household debt also reached record-breaking numbers. As we head into 2024, it’s a great time to make sure personal finances are on the right track, and experts at OnPoint Community Credit Union have recommended five financial resolutions to help.
“When economic forecasts are blurry, the fundamentals of personal finance are clear: budget and plan carefully, take inventory of your finances and make adjustments along the way,” said Natalie Berning, Financial Advisor with OnPoint Investment Services/Raymond James Financial Services, Inc. at OnPoint Community Credit Union.
OnPoint recommends the following five financial New Year’s resolutions to help Oregonians and Southwest Washingtonians update their personal finances for 2024:
1. Conduct an annual financial inventory.
This involves asking several important questions, such as: Did we employ the best spending strategies last year, or do we need to adjust our budget? Have we found the right balance between investments and cash on hand?
OnPoint recommends:
- Ordering a credit report to check for signs of fraud or unnecessary, open credit cards;
- Consider adjusting your budget to send more money to emergency savings;
- Updating your estate plan, making sure the right beneficiaries are listed on all accounts;
- Checking that assets are allocated correctly, based on time until retirement; and
- Reviewing your life insurance and long-term care insurance.
2. Hit reset on the budget.
A new year means updated goals and an updated roadmap to get you there.
OnPoint recommends:
- Adjust spending as it relates to both income – such as a new job or a cost-of-living increase — and expenses — such as higher gas, electric and food bills.
- Give every dollar a job, earmarking where your income will be spent, saved or invested.
- Rebalance your investment portfolio, reviewing asset allocation and making changes if last year’s choices no longer represent your investment strategy.
3. Evaluate your retirement progress.
Ask what changes are needed given your current lifestyle and the economic environment. Don’t fixate solely on your assets’ value. Instead, drill down into the types of securities you are holding, expected cash flows, contingency plans, assumed rate of return, the current inflation rates and the amount of time for which you are planning. Retirement plans have many moving parts that must be monitored on an ongoing basis.
4. Make sure you can access cash — fast.
If all your wealth is tied up in real estate and a 401(k), you don’t have liquidity. That means you can’t access large amounts of cash quickly without taking a financial hit. Lack of liquidity can be costly in times of emergency like a medical condition or job loss. You should be able to access cash that equals at least six months of your living expenses.
Where should you keep your investments, so they’re both accessible and stable? The answer is different for everyone. The options include savings accounts, lines of credit, certificates of deposit (CD), and treasury bonds. Meet with a credentialed financial advisor if you need help creating a strategy for accessing cash when you need it.
5. Take it slow.
OnPoint encourages everyone to take this process one step at a time, rather than all at once. Working through these resolutions can reduce anxiety and help people understand and take control of their finances for a confident and sustainable new year.
While the beginning of 2024 presents Oregon and Southwest Washington with many financial unknowns, people can protect their finances by being prepared, flexible and organized. If you’d like more personalized help creating a budget or advice on monitoring your spending, visit any of OnPoint’s 57 branch locations, where our knowledgeable staff can help find the best solutions for you and your family.
About OnPoint Community Credit Union:
OnPoint Community Credit Union is the largest credit union in Oregon, serving over 539,000 members and with assets of $8.8 billion. Founded in 1932, OnPoint Community Credit Union’s membership is available to anyone who lives or works in one of 28 Oregon counties (Benton, Clackamas, Clatsop, Columbia, Coos, Crook, Curry, Deschutes, Douglas, Gilliam, Hood River, Jackson, Jefferson, Josephine, Klamath, Lane, Lincoln, Linn, Marion, Morrow, Multnomah, Polk, Sherman, Tillamook, Wasco, Washington, Wheeler and Yamhill) and two Washington counties (Skamania and Clark) and their immediate family members.
onpointcu.com • 503-228-7077 • 800-527-3932
