The 2×2 System is where you set aside two hours on the calendar two times a month to complete a predetermined financial task. This modest yet consistent effort can help you maintain financial health and build wealth in bite-sized chunks. To view June’s blog covering the benefits of setting up auto pay and learning your credit score, click here. We hope you find this month’s information on tracking your progress and improving your cash flow beneficial.
July Session 1: Track your progress.
It’s time to pull out your spending and savings plan from February. If you didn’t create a plan, catch up by reading this blog now. Ideally, you’ve been able to dedicate a few minutes each month to comparing your actual numbers to your target figures. But don’t feel bad if you haven’t logged every expense. Use this 2×2 session to see how well your actual outlay matches what you set forth back in winter. If you’re like most people, there will be some “creep” in your numbers. Consider whether it’s time to tighten things up or if a new plan is in order to reflect a change in your financial goals or circumstances.
Tip: If you’ve gotten a raise since you last did a budget, think about whether it’s possible to put the entirety of the raise toward achieving your goals. There’s a tendency with an increase in pay to spend more, but that may not be what brings you the most happiness in the end If you’re unsure about what to do with an increase in pay, consider using your additional earnings to open an Online Savings account. You’ll earn 3.00% APY* with Direct Deposit (2.00% APY without) – it’s like giving your money a raise. Or pool a few months of your pay increase and open a Limited Time 4-Month Certificate to earn 4.00% APY**, an industry-leading rate.
July Session 2: Improve your cash flow.
Upon conducting a mid-year financial review, most people find themselves looking for ways to improve their bottom line each month. It comes down to either cutting expenses or generating additional income, but how you go about it is entirely up to you. You know what will work best for your life. There are no wrong answers, so take some time to brainstorm ways to put more of your money to work for you.
When considering ways to making more money to achieve your financial goals, it can help to think in terms of happiness. First, for each of the expenses on your list, ask yourself if that particular thing brings you happiness. If not, cut it out. On the flip side, for work that could get you extra cash, think about what you would enjoy doing. Otherwise, it won’t be sustainable, and the bonus income will quickly dry up.
Tip: This is a terrific time to negotiate better prices with all your service or content providers by calling them up and letting them know you’ll switch to their competitor if they don’t give you a better deal. As you’re compiling your list for these calls, watch for any monthly bills for services you no longer use. Cancel those immediately. Check out our Subscription Manager in Tulee, our digital banking platform. Use it to easily cancel unwanted subscriptions, like the gym or streaming service you no longer use, and put more money in your pocket. Play this video or review the how-to guide to learn more.
Final thoughts.
The year is half over, it’s the ideal time to assess your finances and make moves to set yourself up for further success or correct areas that need improvement. Tracking your progress is a great way to start. Brainstorming ways to improve or add to your cash flow is another step that can pay short- and long-term benefits. The year is flying by. Start making moves to end the year on a financial high note now.
Thanks to our friends at Balance for these smart tips.
*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 01/21/2025.
**Limited Time Offer 4-Month Certificate / Rates are subject to change without notice. This is a promotional rate of 4.00% APY. Bonus Rate may not be combined with any other rate increase/bonus. Annual Percentage Yield (APY) is calculated on a 3.93% base rate, no minimum balance, regular share certificate requirement on a 365 day basis. IRA share certificates do not qualify for this promotion. Deposit must be new funds to the Credit Union and may not be transferred or withdrawn and deposited back into the Credit Union from any existing Credit Union account. No additional deposits accepted (other than dividends) during certificate term. There is a substantial penalty for early withdrawal of certificate funds. Fees and other conditions may reduce earnings. The 4-Month promotional certificate will automatically roll over to a regular 3-Month term certificate at maturity. Federal regulations require dividends be paid from available earnings; dividends are contingent upon this regulation. Refer to our TISA Disclosure for terms and conditions. APY = Annual Percentage Yield. This Promotional Rate is effective March 26, 2025 until further notice. Yields/rates are subject to change at any time. Fees could reduce the earnings on an account.
