Make money and pay off debt: Financial wellness is the hot new resolution

January is Financial Wellness Month, a perfect opportunity to adopt a fresh perspective on your finances. When we think of starting a new year, we tend to focus on physical wellness. However, it’s equally important to take control of our financial health. In fact, studies show a link between financial well-being and our physical and mental health.¹ Just like starting a fitness regimen, making small, manageable changes with your money can pay off big later.  

Here are some easy ways to kick-off your financial wellness in 2025: 

Balance spending and saving 

One of the first steps to financial wellness is finding the right balance — being mindful of your expenses while also setting aside money for the future.  

• Distinguish between wants and needs: Learn patience and contentment. Save cash for the things you want and treat yourself when you have enough.  
• Create a monthly budget:  Start with your income and then list each regular expense followed by that month’s additional items like birthdays and other one-offs. Add a line for sinking funds for medical bills, home maintenance, car repairs and more. That way you’ll be ready with cash and won’t have to turn to a credit card. Be sure to add a line item for a little fun money too, if you can. Consider it a few dollars to treat yourself for a job well done.
• Automate payments and your savings: Automate bill payments to save time and effort and to avoid late fees. Set up monthly automatic transfers to your savings account to ensure you consistently save money.

Umpqua Bank offers free Financial Tools, where you can create a budget, track spending and more, right from your Personal Online Banking dashboard. Learn more here. 

Say goodbye to debt

Once you have a budget that outlines your income and expenses, prioritize paying off debt. Whether you do it by cutting unnecessary expenses or finding ways to increase your earnings, every extra dollar helps.

Use the avalanche method and pay the highest interest bills first or go with the snowball approach, paying debts off smallest to largest. For some, those quick little wins help them realize hope, especially if they’re burdened with a sizeable amount of debt. 

Pick what works for you and celebrate small victories along the way to stay motivated.  

Save for the future 

To prepare for life’s biggest financial milestones, start by creating goals. Whether you’re starting a family, buying a home or planning for retirement, there are many reasons to build robust savings. When you know your “why,” the steps to get there are much easier to take.  

Have an emergency fund: Keep three to six months’ worth of expenses in a savings account that can be accessed in an emergency. Keep it liquid, meaning not in the market. High-yield savings accounts or money market accounts are a good option that can earn you interest on your money too.

Invest in retirement accounts: A plan at work, like a 401K or 403B, is often the easiest way to start saving for retirement. Get an employer match? Even better. Once you contribute enough to get that match, or if don’t have one at work, explore opening an Individual Retirement Account (IRA) for access to the most investment options. Your banker or investment professional can help you understand of the difference between a Roth and Traditional IRA and which is the best plan for your specific circumstances.

Save for kids’ education: If you have children, consider contributions to a tax-advantaged 529 savings plan. Plans vary by state but can generally be used for qualified education expenses, including private school, trade school or college. Plus, funds can be transferred between beneficiaries. And if they don’t need it all for school, new rules allow for some of the money to be moved into an Individual Retirement Account after meeting certain requirements. 

Start strong with a financial checkup 

At Umpqua Bank we offer complimentary financial reviews with a banker. Together we’ll review your goals, maximize tax efficiency, plan for retirement and help you take proactive steps toward a strong and stable financial future.  

Visit your local Umpqua branch or call (866) 486-7782 for an appointment.

¹ Columbia University Irvine Medical Center, June 2024, “The Link Between Health and Financial Well-Being”