Four Weeks to Better Financial Habits: Week Two

At Heritage Federal Credit Union, we believe financial wellness grows through practical tools, personalized support and steady momentum.

Week 2: Small Steps, Big Impact (Building Financial Momentum)

This week focuses on using Heritage accounts and digital tools to build savings, increase consistency and make intentional financial decisions.

Start (or Boost) an Emergency Fund

Life happens. Cars break down, furnaces quit and surprise expenses love bad timing. Starting to make small investments bi-weekly or monthly in an emergency fund gives you peace of mind and keeps you from relying on high-interest credit or taking bulk amounts out of your savings. If you already have one, when was the last time you evaluated your life changes to the available amount? Heritage tools to help:

• Emergency Fund 101: Open a Regular Share Savings, Secondary Savings Account or a Club Account to keep emergency funds separate from everyday spending. You can also open a Rewards Savings Account that earns dividends while it sits. Learn more about our Savings Account options HERE.

• Even small deposits add up: Aim for a feasible amount first, then build toward 3–6 months of expenses. The goal is to not touch the money in this account, so keep your total amount expectations low at first. 

• Life changes add expenses: Take initiative to schedule monthly or bi-monthly check-ins to see if an increase is needed based on life events or added dependents.
   

Automate a Weekly Transfer

Saving is easier when you don’t have to think about it. Automating your savings turns consistency into a habit. Heritage tools to help:

• Use Digital Banking to schedule automatic weekly transfers from checking to savings:  Set these automatic transfers the same day as known direct deposits or the day after. 

• Weekly transfers feel manageable but add up fast over time: Setting a weekly transfer amount to be transferred to savings is another way to increase your overall savings account balance. This could be anywhere from $1 or more. Do what feels manageable to your situation. In addition, automate your bills to come out the same day paychecks hit, treat your savings weekly transfer as an automated bill. 

These methods allow for savings to happen BEFORE bills and spending. 

Save Windfalls (Tax Refund Prep)

Tax refunds, bonuses or extra paychecks are great opportunities to give your savings a jumpstart. Planning ahead makes it easier to keep that money working for you. Quick tips:

• Set up direct deposit so refunds or bonuses can go straight into savings: Using any variation of direct depositing instead of check depositing creates an incentive to look over account balances more often. 

• Consider splitting deposits between checking and savings to balance fun and future goals: You may do this already, taking a moment to revise the amounts based on pay increases and tax changes are great for consideration. 

• Use savings accounts to park that money instead of letting it disappear on impulse purchases: When the holidays roll around again, look at an opportunity to open a holiday/gift savings account and set aside money for these special occasions.
   

Set One Short-Term Savings Goal

Saving feels more motivating when it’s tied to something specific, like a weekend trip, holiday spending or a home project. Have you tried these:

• Create a dedicated savings account for your goal so progress is easy to track: Heritage allows you to set up Club Accounts off your Savings Account that allows you to save for something specific. You can custom name this account to what you are working towards. We also offer a Christmas Club Account that allows you to save specifically for the holiday season. Learn more HERE. 

• Name the account after your goal to stay motivated: A smart and easy way to see how much you have saved towards your short-term goal. Use Heritage’s digital tools to check balances anytime and celebrate milestones along the way: At Heritage, we want to put the most important information you need daily right in front of you. Bookmark account summary updates in your email or turn on Heritage Digital Banking notifications, so you can quickly view any monthly statement changes.
   

Bolstering your savings is the first step toward a LARGE impact in your personal finances. By implementing smart savings 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 3 — Protect What Your Building, where we will focus on privacy and areas to keep a particular eye on to ensure secure finances. 

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.