The Best Luck is the Luck You Make Yourself
Happy St. Patrick’s Day! Celebrate today by wearing your greenest outfits, hunting for
Leprechauns and hopefully, finding a few charms that bring you a little bit of luck. All this talk
about good fortune, however, shouldn’t just be about fun. It should also serve as a reminder to
evaluate your personal finances and make the necessary changes to improve your life.
On St. Patrick’s Day, a few points to consider in regards to your personal pot of gold are:
1. Assess Your Savings:
Having a healthy savings account is the best way to be prepared for the unexpected.
Unfortunately, nearly 30% of U.S. households have less than $1,000 in savings. It is inevitable
that throughout life you will encounter some emergencies. From a family emergency that
requires you to fly across the country to the unforeseen burden of a broken-down car, having a
decent amount of money saved up keeps you from adding financial stress to the pile.
A good way to plan out your savings is the 50/30/20 rule. This is a way to allocate your budget
according to three categories: needs, wants, and financial goals. The rule states that 50% of
your income should go towards necessities, such as your mortgage and other utilities, 30%
should go towards discretionary items like clothes or dining out, and the last 20% should be
going to savings. A great way to start allocating your budget is with a Unity Catholic Savings
2. Cut Unnecessary Expenses:
For many, 2020-2021 created what seemed to be an insurmountable financial setback, and the
phrase “penny-pinching” has become more true than ever before. When mulling over which
expenses to cut, you’ll likely see some household budget items you like but that you can do
without, such as new clothes, ordering take-out, and upgraded services like premium cable with
all the channels. While these luxuries are great, when you're making tough choices, the 'nice to
haves' should go first.
A big piece of advice when striving to successfully cut expenses, is to trim from every category.
By cutting all household expenses in equal proportion, you’re less likely to feel the pinch. In
other words, don’t cut one whole category out of your budget. Similar to any crash diet, you are
only going to wind up not following through, inevitably sneaking in that last piece of pie. The
best approach is to find ways to reasonably trim expenses from every category.
3. Anticipate Emergencies:
Even though you probably don’t want to think of emergencies or unfortunate events on St.
Patrick’s Day, or ever, it’s important to ask yourself what you would do in the event of a car
accident, a physical injury, or even a lawsuit. By neglecting to prepare for such events, you are
ultimately putting yourself at financial risk. If asking this question causes you to panic, it may be
a clear indication that it’s time to start budgeting for emergencies.
4. Be Realistic:
If you’ve never had a budget before, starting one can seem like an impossible task as there is
so much information out there. However, overcoming the fear of planning and actually doing it is
key in order to achieve financial freedom and be responsible. A few simple things to know are:
• Be smart about credit cards! Sure, credit cards have many benefits. They come in handy in a pinch, they
can help you build up your credit score, and many of them even offer rewards. However, they are a slippery slope,
that when used irresponsibly, will only add to your debt and take you a few steps back from your final goal.
• Track all of your spending. Automatic payments are super easy and convenient. However, they can
cause you to lose track of your spending. For instance, maybe you forgot about the recurring gym
membership that you stopped using, or somehow found yourself with memberships to every streaming
service but only use one. Tracking your spending allows you to fully understand where all of your
money is going, and eliminate unnecessary charges for services you no longer need.
• Pay your savings like paying a bill. This ensures that you have savings for emergencies and
don’t get fooled by the slightly larger number in your checking account. If you have
investments, those are treated as bills as well.
5. Be Responsible With Your Payments:
Falling behind on credit card payments can seriously hurt your credit score for an extended period of time,
and you can even end up in collections. If you’re struggling to make the minimum monthly payment on your cards,
you should consider consolidating debt. This will help you pay your debt faster and decrease interest rates.
This St. Patrick’s Day you should think green when you see green! Unless you find the pot of gold at the end of
the rainbow, having control of your finances is the only way to achieve freedom and security. If you're still struggling to
get your finances back on track, turn to Unity Catholic - Trinity Debt Management, where one of our financial experts is
there to help you back on your feet.