Financial Well Being

Fraud Prevention

It is important to protect you and your finances from fraud. Remember to use key practices to safeguard personal information. Never share sensitive data like your Social Security number or bank account details through unsecure channels. Only provide information to trusted sources you have verified.

There are many different scams; telephone, internet, charity, and phishing scams.

• Be suspicious of any pressure to send funds via wire or prepaid reloadable gift cards
• Be aware of any information about scammers and fraudulent activity that has recently happened
• Scammers often claim an emergency, hoping for a response without checking out the situation first
• Red flag warning if the call insists on secrecy
• Scammers can create authentic-looking emails, text messages, and website pages. You think you’re interacting with a trusted company but it’s hackers behind the scenes
• Hover over any links to view the address it’s trying to send you too, NEVER click the link
• Contact the company referenced in the email by using a different source of contact information than what is found in the email
• Spoofing occurs when scammers make an email address look like it’s coming from someone you know, NEVER respond
• Scammer may refuse to provide details about the charity
• Guarantees sweepstakes winnings in exchange for a donation

Budgeting Tips

Step 1: Calculate your monthly income

Start by calculating your total monthly income after taxes. Include all reliable sources of income, such as your salary, side hustle earnings, or any other cash flow. If your income varies, use an average of the last few months.

Step 2: Track your expenses

For at least one month, track all of your expenses, from large bills to small daily purchases like coffee. Categorize your spending to see where your money is actually going. This process can be eye-opening and reveal areas where you can cut back.
Common expense categories include:

• Needs (non-discretionary): Essential costs like rent or mortgage, utilities, groceries, and debt payments.
• Wants (discretionary): Non-essential purchases like entertainment, dining out, and hobbies.
• Savings and debt: Money allocated to an emergency fund, investments, or paying down debt.

Step 3: Choose a budgeting method

There is no single "correct" budgeting method. Select one that fits your personality and financial situation.

• 50/30/20 rule: A popular and simple method for beginners. Allocate 50% of your after-tax income to needs, 30% to wants, and 20% to savings and debt repayment.
• Zero-based budget: Every dollar of income is assigned a job (e.g., spending, saving, or investing) so your income minus expenses equals zero. This gives you tight control over your money.
• Envelope system: A cash-based method for tangible spending control. Place cash for each variable spending category (like groceries or entertainment) into separate envelopes. Once the cash is gone, you stop spending in that category for the month.
• Pay-yourself-first: This method prioritizes savings. Set up automatic transfers to your savings or investment accounts at the beginning of each pay period, and budget your remaining money for expenses.

Step 4: Build your budget

Use the income and expense data you've gathered to build your personalized budget.

• Set financial goals: Define clear short-, mid-, and long-term goals. For example, "Save $1,000 for an emergency fund" or "Pay off $5,000 in credit card debt".
• Use a tool: Choose a notebook, spreadsheet, or budgeting app like Mint or YNAB to organize your numbers.
• Allocate funds: Based on your chosen method, allocate your income to your expense categories and savings goals. If your expenses exceed your income, find areas to cut spending.

Step 5: Monitor and adjust

A budget is a flexible plan, not a rigid set of rules. Regularly check your progress to see how your spending aligns with your goals.

• Review your budget weekly or bi-weekly. If you overspend in one category, adjust by cutting back in another.
• Life circumstances change, so your budget should too. Re-evaluate your plan after a new job, a move, or other major life events.
• Automate your savings by setting up automatic transfers from your checking to your savings account on payday.

By consistently tracking your income and expenses, you can take control of your financial future and build a solid foundation for financial health.