FARMINGTON HILLS, Mich., Sept. 20, 2016 /PRNewswire-USNewswire/ -- The U.S. Census Bureau recently reported that median 2015 US household income rose 5.2 percent, or $2,798, over 2014. This is the first annual increase in median household income, since 2007.
"At GreenPath Financial Wellness, we always encourage people to review their budgets, whenever income increases, to ensure the new income can be put to work positively, instead of simply spending more," said GreenPath Financial Wellness President and CEO Kristen Holt. "For example, as we start to look towards the holidays, this is an appropriate time to start saving for gifts and other expenses."
"It is great news that household income is up," Holt continued. "One of the best things to do now is use that income strategically."
GreenPath Financial Wellness, a nationwide, non-profit credit counseling and education organization, has put together five simple tips, in the form of the acronym PRIDE:
1. Preserve – Putting more money away is always a good idea. Whether it's towards retirement, paying for college or building an emergency fund (see #2), preserving that bottom line, a bit more, can really add up. Make these deposits automatically from your paycheck, so that you are paying yourself first with the new income.
2. Reserve – Depositing $20 a week in an emergency reserves fund, will mean over $1,000 cash in a year, for that new set of tires or to replace that broken hot water heater. Keeping these expenses off your credit card will give you peace of mind (and help you steer clear of interest expense, if you don't pay off the balance in full, each month.)
3. Invest – Now may be the time to up your workplace contributions towards retirement. Examine limits and company matches to make sure you're maximizing your investment. If you receive an annual salary increase, adjust your withholdings to put that extra money into savings or retirement, instead of spending it.
4. Donate – Charities always need our help, especially as the holiday season approaches. If you have a cause near and dear to your heart, consider sending them a small donation. It will not only help the charity, but gives you an emotional benefit, too, in knowing that you are helping out someone in need.
5. Evaluate – What's your priority? If you've been putting off necessary home or auto repairs, look at your budget, to see if you can afford the repair. Do you have credit card balances? Paying down credit card debt can help your overall bottom line.
GreenPath provides licensed credit counseling, financial education and debt management services by phone across all 50 states and in person in more than 60 locations in 17 states. For more information about GreenPath, visit www.greenpath.org or call (866) 648-8122.
About GreenPath Financial Wellness
GreenPath Financial Wellness is a nationwide, non-profit financial counseling and education organization. GreenPath has been empowering people to lead financially healthy lives since 1961. Their financial experts partner with consumers to ease financial stress, manage debt, save for the future, make smart financial decisions, and achieve their financial goals. Headquartered in Farmington Hills, Michigan, GreenPath also delivers licensed services throughout the United States over the Internet and telephone. GreenPath is a member of the National Foundation for Credit Counseling (NFCC), and is accredited by the Council on Accreditation (COA). The organization has an A+ rating with the Better Business Bureau. For more information, visit www.greenpath.org.
SOURCE GreenPath Financial Wellness