Advice for younger Arizonans who want to take charge of their money right now

Lisa Coram, AFC

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As a financial wellness educator, I’ve heard all the reasons people don’t want to make a budget. Each one boils down to the idea that creating a budget is cumbersome and time-consuming, which leads to more stress.”

Many Americans are facing financial uncertainty today due to rising costs and shifting economic conditions. The Consumer Price Index recently showed a 3.0% increase over the past year, reflecting higher prices on essentials like food, housing and utilities.

Meanwhile, consumer confidence has dipped as families and individuals adjust their spending to keep up with changing financial realities. Having a plan to manage your money can provide a sense of stability and control.

Managing one’s finances can be difficult in the best of times. Doing so in times of economic uncertainty or personal turmoil can be downright overwhelming.

Whatever is making you nervous — whether it’s inflation, a lack of emergency savings or a sudden loss of income — know first and foremost that you are not alone. According to Moneywise, 55% of Americans feel uncertain about their financial decisions.

Fortunately, there are strategies you can put into practice now that can help restore stability to your finances.  

Start a budget

As a financial wellness educator, I’ve heard all the reasons people don’t want to make a budget. Each one boils down to the idea that creating a budget is cumbersome and time-consuming, which leads to more stress.

The irony in that perspective is that a budget often provides peace of mind and empowers people to take control of their finances. By tracking all income and expenses, you gain a more thorough understanding of your financial situation.

A budget does not need to be complicated. An app or a spreadsheet work great, but all you really need is a pen and paper.

Start an emergency fund

The age-old saying goes, “Pay yourself first.” Building an emergency fund is the first step toward a more secure financial future.

A common goal when creating an emergency fund is to save enough cash for three- to six-months’ worth of expenses. While that is a great goal, it’s OK to think smaller when first starting out. Even $5 from each paycheck is better than kicking the can down the road and leaving your savings account empty.

Start with the amount that you can handle for your situation. The most important part isn't the amount; it's about starting the habit.

Prioritize assets and reduce costly habits

A budget can highlight certain spending habits that need to change. Identify which expenditures are the most important. These may be your home, car, health insurance and utilities. Prioritize paying the bills for the most important things in your life, then find creative ways to reduce spending on the rest.

For those struggling with food insecurity, the Arizona Food Bank Network provides invaluable information about nearby food banks or food assistance programs.

Contact your service providers

Calling and asking utility providers about ways to lower monthly bills can prove to be surprisingly fruitful. There are always ways to negotiate cheaper bills, whether it be bundling, reducing unnecessary services or taking advantage of a timely offer. The worst they can do is say no.

If you’re struggling to pay credit card debt, one of the most important things to do is to inform the credit card company and arrange a payment plan.

People tend to hide from the stigma that comes with not being able to make debt payments. However, providers often have hardship programs to help, and they will be more likely to show leniency if you contact them from the get-go. 

Take control of your financial wellness

No matter your walk of life, financial hardships find us all. Managing your finances during tough times can feel overwhelming. It takes work, no doubt about it. But small, intentional steps — like budgeting, saving for emergencies and reassessing expenses — can bring clarity and control.

Editor’s note: Lisa Coram, AFC is the financial wellness senior educator at Desert Financial Credit Union, which is headquartered in Phoenix and has locations throughout the state. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.