Extension Office Friday: 10 Tips for Financial Wellness

The Valley Today

Our conversation today welcomes back Karen Poff, Senior Extension Agent, Family & Consumer Science, Virginia Cooperative Extension office to discuss ten essential tips for financial wellness. Karen is based in the Warren County office, but serves all five surrounding counties. She also manages the Northern Shenandoah Valley Financial Education Program.

Our conversation covers various aspects of managing personal finances effectively, including setting priorities, creating SMART goals, and managing expenses. She starts by emphasizing the importance of knowing what matters most to you and aligning your finances accordingly. Karen highlights how financial wellness is crucial to overall well-being, connecting it with values like family and education.

The second tip is about setting SMART goals, making them specific, measurable, achievable, relevant, and time-bound. Janet shares a personal anecdote about saving for a car by simulating a car payment to prepare her budget.

Spending less than you make is discussed next, with an emphasis on the need for a written spending and savings plan. She mentions dealing with unexpected expenses and how having a plan can mitigate financial stress.

Karen introduces the idea of a reserve fund for irregular expenses, recommending calculating annual irregular expenses and setting aside money monthly to cover them. Janet adds her example of managing personal property taxes this way.

An emergency fund is vital, and Karen provides practical advice on building one, even starting small. We also discuss using raises and paid-off bills as opportunities to increase savings.

She underscores the importance of automating savings, with me explaining how I automatically save money by treating it like a bill payment, ensuring consistency in savings.

Tip eight focuses on using credit wisely, avoiding using credit for consumables like vacations or dining out, and instead reserving it for long-lasting purchases. Karen advises borrowing only what you can repay and highlights how lenders might approve you for more than you can afford. She suggests setting personal limits and staying within them.

The final tip is about protecting your information from scammers, recommending that you verify contacts independently and be wary of sophisticated scams.

Karen concludes by inviting listeners to contact her through local extension offices or online for more financial education resources and programs. You can call here at 540-635-4549 or send an email: [e-mail]. You can also find more information on her website by clicking here.