As the saying goes, time is money. And since you may feel you have little time to manage your money, here are 10 quick tips for improving your financial life in 2025 that take about an hour each and can help improve your financial well-being.
1. Create a budget.
A clear budget helps you understand your spending habits and identify areas for potential savings. Outline your monthly income and categorize your expenses, including fixed (rent, car payment, subscriptions), and variable (food, entertainment, utilities, gas). The budgeting tool in our Financial Education Center is a great place to start.
2. Review your subscriptions.
How many subscriptions do you have? More importantly, how many of them are you using? Now’s the time to review your subscriptions, such as streaming services, gym memberships, or magazines. Cancel any you don’t actively use or no longer serve your interests. This quick audit can lead to significant monthly savings – money you can put in an emergency fund. Use our Subscription Manager Tool in Tulee now to start saving money. If you’re not enrolled in Tulee, now’s the time to sign up.
3. Set up automatic savings.
Getting into the savings habit is easier with automatic transfers to a savings account. Allocate a specific amount of money from each paycheck to go directly into savings. This helps you save effortlessly and ensures you prioritize saving before spending. Signing up for Direct Deposit with us is easy and opens the door to great rewards like monthly Checking account benefits, higher APY on select Savings accounts, and discounts on loans.
4. Consolidate your accounts.
If you have multiple savings and checking accounts or credit cards, consider consolidating them at one financial institution. This simplifies financial management and may reduce fees.
5. Check your credit report.
Your credit score can impact rates on loans and credit cards, whether or not you’re approved to rent an apartment, identify errors, helps you keep an eye out for fraud, and more. Use our Credit Score Tool in Tulee to check your score once a month for free with no impact on your credit report.
6. Create a debt repayment plan.
Are you paying off 2024 debt in 2025? January is the ideal time to plan how to eliminate last year’s debt and limit debt this year. Start by writing out all your debts and create a repayment plan. Consider the debt snowball method, which focuses on paying off the smallest debts first, or the avalanche method, which prioritizes eliminating high-interest debts. Creating a plan can motivate you to eliminate your debts by New Year’s Eve 2026. If you have too many sources of debt, consider paying them all off at once using a Signature Loan. You can borrow up to $40,000, and rates start as low as 9.99% APY*. Be careful, once you pay off your debts, such as credit cards, stop using those cards. The point is to simplify your life, not add another debt.
7. Set financial goals.
Before you make any New Year’s financial resolutions, take a moment to take our Financial Wellness Check. It only takes a few moments and can help you define your financial goals, both short-term (saving for a vacation or car) and long-term (retirement planning, saving to buy a home).
8. Up your money smarts.
Knowledge is power. The smarter you are about money, the more in control you’ll feel and the easier it will be to reach your goals. Our Financial Education Center has easy-to-understand, jargon-free videos to help you be more money-savvy. Topics cover budgeting, saving, how to have a family conversation around money, auto loans, and more. Here’s another way to educate yourself, and you’re already doing it: read our weekly Money Matters blogs for information, tips, and ideas to make you better at handling money.
9. Start an emergency fund.
You never know when you will be hit with an unexpected expense. Are you financially prepared for a large medical bill, auto repair, or even a job loss? Be proactive by starting or adding to an emergency fund. Here are two options. If you need help avoiding the temptation to access your money, consider our Rainy Day Savings account. There’s no minimum balance requirement, and you’ll earn 2.15% APY** on balances up to $2,000, and you can make two free withdrawals per calendar year. There’s a fee for each additional withdrawal. If you want greater access to your funds, try our Online Savings account. There are no minimum deposit or maintenance fees. You’ll earn 3.50% APY† with Direct Deposit (2.00% APY without it).
10. Increase your retirement contributions.
Time to think long term. How much are you contributing to your retirement savings? The general guideline is to save 10% to 15% of your income. Whatever your current percentage, bump it up. If your employer matches your contribution, increase yours to at least the percentage they match. Don’t leave this free money on the table. If you’re not enrolled in your company’s 401(k), do so. We understand that 10% or more may not work for your budget today; no problem, start small and work your way up. Contribute 1% this year, then 2% next year, and so on, making larger increases as you feel you can afford to do so.
Final thoughts.
These 10 quick tips for improving your financial life in 2025 can create a substantial difference on your bottom line today and help you build a stronger financial future. If you start now, you’ll be prepared to finish the year financially stronger than you are right now.
*APR = Annual Percentage Rate. APR is the annual rate of interest that is paid on an investment, without taking into account the compounding interest within that year. Rates are subject to change at any time. 1.00% rate discount is for a minimum of $1,000 monthly ACH Direct Deposit into a Farmers Insurance Federal Credit Union Checking Account and Automatic Payment/Folio Deduction as a repayment method to qualify. Rates are subject to change at anytime.
**APY = Annual Percentage Yield. Rates are subject to change at any time.
Limit one Rainy Day Account per qualified membership. Rainy Day Savings is an interest earning savings account eligible for 2.15% APY interest on balances up to $2,000 and the standard Membership Savings rate on balances over $2,000 when funded via recurring ACH deposit or other qualifying external funds. Dividends are calculated by applying a periodic rate to the Average Daily Balance in the account for the Dividend period. Interest earned will be credited to the account at the end of the statement period. This account is limited to two withdrawals per calendar year, each withdrawal in excess of this amount will incur a $20 excessive withdrawal fee that must be paid at the time of the withdrawal. This account does not qualify for withdrawal access via debit or check and does not support transactions originating via VRU, online banking, mobile banking, or ATMs. Withdrawals can be made in person at a Credit Union branch or by calling us at 800.877.2345. This account does not qualify for overdraft protection. Account holder must be a member with a regular share account who is in good standing. Current interest rates and the annual percentage yield may be found at the Credit Union’s website, may be verified at a Credit Union Branch or by calling 800.877.2345. Interest rates earned and qualifying dollar amounts for interest earned are subject to change at any time. APYs and eligibility criteria are subject to change at any time. Fees may reduce earnings.
†APY = Annual Percentage Yield. APY is the annualized rate based on a compounding period of one year. When the deposited money earns dividends and the accumulated dividends starts earning dividends as well, we are talking about compounding. Fees could reduce the earnings on an account. All yields except Certificate yields are subject to change retroactively to the beginning of the month.
Rate bonus is for a minimum of $1,000 monthly ACH Direct Deposit or Agent Net Check into a Farmers Insurance Federal Credit Union Checking Account. Rates are subject to change at any time. No branch or call center access with this account. The national average for this type of account is 0.42% APY, based on rates published in the FDIC Monthly National Rates and Rate Caps accurate as of 12/16/2024.
