Four Weeks to Better Financial Habits: Week One

Getting your finances on track doesn’t require a specific month or a perfect date. It simply requires intention and a clear plan. 

At Heritage, we encourage breaking financial progress into manageable steps. One effective way to do that is by dedicating four focused weeks to reflection, adjustment, protection and growth. This approach helps reduce anxiety while creating momentum you can sustain.

Let's Begin with Week One: Reset & Refocus

Life moves quickly, and financial habits often run on autopilot. Between busy schedules, seasonal expenses and everyday obligations, it’s easy to lose sight of where your money is going. Week One is about stepping back, gaining clarity and setting realistic expectations for the weeks ahead.

Below are four key areas to focus on as you reset and refocus your finances.

Review Last Months Spending: 

Start by reviewing your most recent month of transactions. Digital banking makes this extremely easy by identifying account activity, debit card purchases, subscriptions and credit card statements. Look for

• Spending categories that take up the largest portion of your income: This can be accomplished easily by looking at your checking and savings account transactions, including debit card purchases. The Heritage Digital Banking App also breaks down your spending into categories to make this step easier for our members. To find this feature, follow these steps: 

  • Log into your Heritage Digital Banking App. 

  • On the bottom menu, select “More.”

  • Here you will see the option for “Financial Wellness.” Under the drop menu, select “Financial Wellness and Goals” 

• Purchases that were unexpected or unnecessary: Categorize your spending into easily identifiable categories, such as: groceries, dining, fuel, entertainment, etc) 

• Recurring charges you may have forgotten about: Check your credit card activity, if applicable, to identify balances, interest charges, or high-usage categories. It never hurts to look at an overall account summary and identify big increases at certain parts of the month to recognize mortgage payments and utilities. 

This step isn’t about judgment. It’s about awareness. Understanding your spending patterns is the foundation for making informed financial decisions moving forward.

Identify One Area to Cut Back

Rather than trying to reduce spending everywhere at once, choose one realistic area where you can scale back. Examples might include:

• Dining and takeout purchases paid with your Heritage debit card and credit cards

• Monthly subscriptions services automatically drafted from your checking account

• Convenience purchases such as coffee stops or impulse online shopping 

• Optional services or memberships you no longer actively use

Even small adjustments with one fewer takeout meal per week can free up funds for savings, debt repayment or future goals. Sustainable change starts with small, intentional choices.

Plan for Upcoming Events

Certain expenses tend to appear predictably throughout the year but can still catch us off guard. Take time to identify upcoming costs such as:

• Utility bills that may fluctuate due to weather or seasonal usage 

• Insurance premiums or annual fees drafted from your Heritage account

• Automotive-related expenses such as maintenance, registration or repairs 

• Planned travel, school-related costs or upcoming holidays

Planning ahead allows you to spread these costs out and avoid relying on credit or emergency funds when they arise.

Set a Realistic Weekly Spending Goal

Weekly spending goals help bridge the gap between monthly budgeting and daily decisions. Based on your income and essential expenses, determine a weekly amount you feel confident staying within. Tips for success:

• Leave room for flexibility: Perfection isn’t the goal, rather utilize Heritage and our incredible employees at your disposal for financial planning. If you want to try it out on your own first,base your weekly target on your income deposits and required expenses visible in online banking 

• Track progress weekly rather than daily: Everyday life is busy and penny pinching causes unnecessary stress on both individuals and relationships. 

• Adjust as needed based on real-life needs: It is important to recognize the difference between needs and wants. We NEED food, water, sleep, medication, etc. Allow flexibility and reflection for occasional unexpected purchases while staying mindful of your goals. Setting reasonable goals for your life is important. This is not a one size fits all method. 

A realistic goal builds confidence and consistency, making it easier to stay engaged with your finances long term.

Resetting your finances is the first step toward meaningful progress. By gaining clarity now, you set yourself up for smarter decisions and stronger habits in the weeks ahead. If you have any further questions, please feel free to reach out to a Heritage Representative HERE or Call (812) 253-6928. 

Next up: Week 2 — Small Steps, Big Impact, where we’ll focus on building momentum through simple, high-impact actions.

The views and opinions expressed in this blog are those of the writers, and do not necessarily reflect the views or positions of Heritage Federal Credit Union.

Insured by NCUA. Membership restrictions apply. Subject to credit approval.