January Is Financial Wellness Month

The start of a new year is a natural time to pause, reflect, and plan ahead. January is recognized as Financial Wellness Month, an opportunity to focus on building healthy financial habits that can support you throughout the year.

At Plains Commerce Bank, we view financial wellness as an ongoing process. It’s not about perfection or quick fixes, but about understanding your finances, making informed decisions, and creating a plan that aligns with your goals and values.

Understanding Financial Wellness

Financial wellness refers to your overall financial health and your ability to manage both current needs and future goals with confidence. It includes day-to-day money management, preparation for unexpected expenses, and long-term planning.

Key elements of financial wellness often include:

• Awareness of income, expenses, and cash flow
• A realistic and sustainable budget
• Short-term savings for emergencies
• A thoughtful approach to managing debt
• Planning for future milestones and long-term goals

Improving financial wellness can help reduce financial stress and provide greater flexibility when circumstances change.

Why January Is a Good Time to Review Your Finances

A new year offers a fresh starting point. Many people use January to review priorities and set goals, making it an ideal time to take stock of your financial situation.

This can include:

• Reviewing account balances and recurring expenses
• Updating or creating a household budget
• Setting savings goals for the year ahead
• Checking progress on debt repayment
• Revisiting financial goals to ensure they still align with your plans

Even small adjustments made early in the year can have a meaningful impact over time.

Practical Steps to Support Financial Wellness

Improving financial wellness does not require major changes all at once. Consider starting with one or two manageable steps.

• Track Spending
  • Understanding where your money goes each month is a foundational step. Reviewing spending patterns can help identify areas to adjust or improve.
• Build or Replenish Emergency Savings
  • An emergency fund can help cover unexpected expenses without disrupting your long-term goals. Many financial professionals recommend saving three to six months of essential expenses over time.
• Review Debt and Payment Plans
  • Taking time to understand interest rates, payment schedules, and overall balances can help you make informed decisions about managing debt.
• Set Clear and Measurable Goals
  • Whether your goals involve saving, reducing debt, or planning for the future, clearly defined goals can help guide financial decisions throughout the year.

A Long-Term Approach to Financial Wellness

Financial wellness is not limited to one month. It is an ongoing effort that evolves as your life and priorities change. Regular check-ins, continued learning, and thoughtful planning can help support financial stability over time.

Plains Commerce Bank encourages individuals and families to use Financial Wellness Month as a starting point for conversations and planning that extend well beyond January.