Financial wellness

What is a Financial Wellness Check

By March 15, 2022 No Comments

At American United Federal Credit Union, we are dedicated to serving the financial needs of our members through ways such as providing personal and online banking, financial monitoring, and providing business access. We offer higher dividends with lower fees, customer rewards, and other special services customized to add value for our members.

Our mission is to help others attain their financial goals. American United Federal Credit Union is a non-profit cooperative financial institution with many offices throughout Utah. Having been in business for over 60 years, we understand all the unique needs of our customers, and thus we offer exclusive options for our members that a traditional bank does not.

What is a Financial Wellness Check-Up?

Financial wellness probably is not new to you as it is commonly used in most financial institutions. It simply means the ability to have a healthy economic life. This means that your debts are manageable, and you have sufficient funds to cater to needs such as emergencies, basic needs, and retirement.
So, how do you check your financial wellness? Financial wellness check-ups involve evaluating your fiscal wealth or how well-armed you are to handle any financial crisis. Below are factors that can help you evaluate your financial wealth.

Do you have a method to help control your spending? One of the essential ways to monitor your monthly spending is by creating a budget. A budget allows catering for retirement, savings, investments, or college funds for your children. It also helps you maintain or build your financial wellness as you spend within your limits.
Most people tend to spend more than they earn, and through this, they cannot make savings. Therefore, it is essential to have a budget that will help prioritize making payments on some of the vital things, including savings.
By using a budget, you will not only be able to secure financial stability, but it will also help enhance your physical and emotional well-being.

Retirement Plans
What retirement plans do you have? Are you saving enough for the future? You should make the most out of your workplace saving programs by making total contributions. The earlier you begin saving for retirement, the more funds you will have when you retire. We advise workers to make unlimited contributions to their 401k plans to get the full employer match.

Cash Cushions or Emergency Funds
Are you in a position to come up with $500-$1000 for a sudden expense like a broken refrigerator, a sudden illness or accident, unexpected job loss, or even car repair? A budget not only helps you keep track of your monthly expenses but also allows you to set aside enough funds to cover an unexpected cost that can derail your financial stability.
The amount to save as an emergency fund depends on your income, monthly bills, dependents, or lifestyle. However, you should be able to save at least 5 to 10% of your earnings as a comfortable emergency fund.

Credit Cards
How do you pay with your credit card? Do you pay in full monthly, or do you keep a balance? Credit cards are essential when making certain payments, but you should never forget that the interest accrued affects your potential savings.
It is also wise to take advantage of the free annual credit reports to track your financial goals. The federally authorized website that you can use to get your credit card report is The report can further help you determine if there is any identity fraud linked to your account.

Debt Reduction
What other high-interest debt do you have apart from credit cards? Debts with an interest rate of 10% and above can damage your finances. On your road to financial wellness, it is essential to settle these types of debts.

Have you saved enough funds to cater to all your daily and future financial needs? What will happen if you suddenly lose your source of income? One of the things which genuinely determines your financial wellness is the amount you have saved in your working days. It would be best to prioritize saving for your future the same way you prioritize clearing your debts.

Savings include the money you have in your retirement accounts, college funds, maintenance funds, emergency funds, etc. Some investments, in a way, also act as savings as it is easy to convert them to liquid cash.

What Are the Benefits of Checking Your Financial Wellness?

There are multiple financial benefits associated with performing a financial wellness check-up, and they include:
1. It helps you assess whether you are following your budget. Creating a budget can be easy, but it can sometimes be challenging to follow it. Through financial wellness check-ups, you will see whether you have been spending according to your budget. You can revise your budget if you realize that your monthly income cannot accommodate your budget.
2. A financial wellness check can help you review your retirement plans and savings. The assessment enables you to determine whether you have been saving enough and if there is a need to adjust your retirement savings.
3. A financial wellness check allows you to analyze your income and expenses. An annual check will help you compare your after-tax income with your costs. You can adjust your spending if you realize that your expenses have exceeded your monthly income.

Banking with a Credit Union in Utah That You Can Trust

Not financially fit? We can help. The financial consultants at American United Federal Credit Union in Utah are ready to advise on ways to make the most out of your monthly earnings and create a balanced budget. The company’s products and services are handy for saving for your retirement and controlling your expenditure.

Many people do not have other saving goals apart from retirement goals. The financial advisors at American United will help you generate other saving plans and also help you create an appropriate investment strategy for each goal.
In everything you do, always keep in mind that there is always a chance to improve your financial well-being. Contact us today and schedule a meeting with an expert!