As we continue to navigate the ups and downs of persistent inflation, many Americans are feeling the financial strain. With 2025 already halfway through, now is the perfect time to take a step back and review your finances — and explore ways to find some much-needed relief.
Review Your Spending
A great place to start is by reviewing your spending over the past three to six months. Are there any expenses you can reduce—or eliminate entirely? Even small changes can add up and create breathing room in your budget.
Refine Your Budget
Once you’ve reviewed your recent spending, take a closer look at your budget to see if any adjustments are needed. With ongoing price fluctuations, you may need to reallocate funds to account for rising costs in areas like groceries, utilities, and transportation.
Updating your budget to reflect today’s realities can help you stay on track.
Build Your Emergency Savings
It’s important to have emergency savings set aside— ideally enough to cover three to six months of living expenses—in an easily accessible account, such as a high-yield savings account. If you already have an emergency fund but have had to dip into it, now is a great time to focus on replenishing it. Setting up automatic transfers, even in small amounts, can help you rebuild your savings consistently over time.
Tackle Your High-Interest Debt
With interest rates remaining high, carrying high- interest debt—especially credit cards—has become even more burdensome. Now is a smart time to focus on paying down those debts. Two popular and effective strategies are the Avalanche Method and the Snowball Method.
- The Avalanche Method is designed to minimize the total interest you pay over time. You start by focusing on the debt with the highest interest rate, making extra payments toward it while continuing minimum payments on the rest. Once that debt is paid off, you roll its payment amount into the next highest-interest debt, accelerating your progress.
- The Snowball Method, on the other hand, is often favored for its motivational benefits. With this approach, you begin by paying off your smallest balance first. Once that’s eliminated, you roll that payment into the next smallest debt, and so on. This method provides quick wins early on, which can help build momentum and keep you motivated.
Don’t Lose Sight of Your Long-Term Savings Goals
Paying down debt while saving for the future can feel overwhelming, but it is possible with a balanced approach. Start by creating a budget that supports both goals, even if you’re only able to make small progress at first. And don’t forget to take advantage of the resources and tools available through CAPTRUST and TIAA—they can help you build a personalized strategy and stay on track.