Setting Financial Goals Now for a Secure Future 

For over 15 years, Malana LaCombe has been a guiding light for individuals striving to meet their financial goals, offering her expertise as the financial counseling specialist for Southwest Louisiana Credit Union, where certified financial counselors provide their services at no charge. 

LaCombe works daily with people of all ages, income, and circumstances. She says the most common challenge with personal finance is when someone attempts to live beyond their means.  

THE BIG PICTURE 

As a basic rule of thumb, LaCombe says, “It’s best to have three to six times your gross monthly income of savings in reserve.” That’s tough for many Americans to do, so she advises to start small by saving at least $500 toward it.  

LaCombe says financial goals of any kind should be realistic. “You can’t save enough money in a year to buy a $300,000 house if your salary is $30,000 a year. But you can have measurable goals that are doable in the time frame that you need. Make sure you’re working within a time frame. If you want to build or buy a house, set a deadline: ‘In three years, I want to be in my own home.’ That way, you’ll be working toward that goal every day.” 

LaCombe teaches three types of savings goals: 

• Short-term. “Aim to save three to six months of pay. You never know what might happen to you. At least have $500 to $1,000 for emergencies.”
• Medium-term, such as paying off or paying down a credit card, a loan or small debt.
• Long-term, such as buying a house or building your retirement fund.

FOR FAMILIES 

Spending is always a major factor in finances. “I see parents about to go broke trying to give their kids everything the other kids have. Lululemon, Drunk Elephant skincare, Xbox, PlayStation, and shoes,” LaCombe says. “Parents don’t have to spend down to their last dollar. Don’t go broke trying to give your children materialistic things. It’s okay for parents to say no.” 

Credit card debt can be difficult to manage. “If you have a low balance on a credit card and you’re not really paying too much in interest, then pay a little more than the minimum,” LaCombe advises. “However, if you have $15,000 to $30,000 in credit card debt on cards that charge almost 30 percent interest, you absolutely want to pay that down — because interest is money you’re throwing away.” 

She also suggests always looking for a better interest rate. “Do a balance transfer,” she said. “Apply for a credit card at an introductory rate, like a zero percent-interest promotional offer, but keep making the same payment you already do. You’ll reduce your debt faster.” 

FOR NEAR-RETIREES 

Many people in their 50s and 60s have concerns about their retirement funds. First, the sooner a person starts a 401(k), the better, she said. But if you’re 55 to 60, you need to up your game if you have concerns. Ideally, you should have your debt completely paid off. If not, however — and many people have not paid off their house by retirement. Consider opening a second IRA, switching to higher-yield savings accounts such as money market accounts and CDs, or choosing investments with higher risk but the opportunity for higher yield. 

OTHER STRATEGIES 

Other challenges include having personal loans, or balances on multiple credit cards with interest rates that can run to 29 percent or higher. Manage these challenges with a debt consolidation loan to pay off unsecured debt through a single monthly payment at a lower rate. Refinance a car note, depending on the equity in a car, or a home mortgage. Apply for a home equity line of credit (HELOC). Or “cash-out refi,” using the equity in their home to pay down debt. 

LaCombe also counsels people who are concerned about whether they have enough credit history, because they want to qualify for an auto loan or be on track to buy a house. She recommends a “health checkup,” where she helps people look at the best ways to spend and save money. “Whatever your situation, look for ways to save money and cut spending,” she said. “Cut back on dining out. Consider how much you’re spending on streaming services and other entertainment subscriptions.” 

“We have free financial counseling [at Southwest Louisiana Credit Union],” LaCombe said. “We work one-on-one, looking at income, debt, and spending — and we see what we can get reduced for you.” 

LaCombe believes financial strength leads to financial freedom. “Financial freedom is peace,” she said. “Peace means having a happier and healthier life.” 

For more information, visit swlacu.com/financial-counseling.