Work to be debt free with Cut The Fiscal Fat’s founder’s tips – Times Union

Our nation celebrates its independence with hot dogs, parades and fireworks this weekend.

As we reflect on our countrys sovereignty and the concept of freedom this Fourth of July holiday, now is a good time to declare a commitment to achieving another form of independence: Financial freedom.

One of the greatest ways to attain personal contentment is by freeing ourselves from the stress of money struggles, like extensive debt, job insecurity and scarcity of savings.John Hancock Financials annual Stress, Finances and Wellness report found that 72 percent of those polled have experienced moderate to extreme stress in the last six months, with 58 percent pinpointing finances as the cause of their anxiety. Respondents to the insurance companys survey claimed economic conditions, retirement savings and credit card debt are their top three worries.

Like Americas fight for freedom, achieving financial independence is a battle, and most of us are never given the proper tools to succeed. But, it's never too late to learn to fight and with financial freedom comes something that will make it all worthwhile, said Megan DeCrosta, CEO and founder of financial literacy program, Cut the Fiscal Fat.

Financial independence means sustainability. It means being able to take different hits and setbacks, readjusting and ultimately being OK.

Creating a safe, healthy and worry-free financial environment is something most of us strive to achieve. The trouble is, financial literacy education isn't something that's readily taught in schools, DeCrosta said. She is hoping to change that.

Eighty-four percent of teens will leave high school and enter adult life with limited financial knowledge. In an effort to equip teens and young adults with the tools and information needed to live a financially empowering life, she founded Cut the Fiscal Fat, a digital course aimed at decreasing the divide in income inequality and combat generational poverty through early education.

A licensed insurance broker, DeCrosta pivoted to become a certified financial education instructor several years ago, launching her program just before the pandemic. The Niskayuna mom of two doesnt have a degree in finance, but thats what makes her program so practical, she said.

It wasnt until I met my husband that I realized how much I didnt know about finances, she said. Together, they dove into debt, spending and savings. They asked a lot of questions, discussed missteps, priorities and goals.

I realized how important that conversation was and that was a conversation I never had, DeCrosta said. The couple studied and developed a curriculum to teach financial literacy and simple debt-reduction tactics to adults. But, DeCrosta was adamant children and teens be invited, too.

I always said to myself, What if I had someone who could give me the tools and resources when I was young?

Today, DeCrosta partners with several local schools, as well as the Boys & Girls Club of the Capital Region, to help teens and young adults learn how to make the most of the money they have and how to use it to achieve maximum success in life.

The first lesson of the program is The Foundation. In it, DeCrosta teaches the basics of investing, borrowing and protecting money, to create personal wealth, establish emergency savings and eliminate debt. The goal is to live without the burden of financial stress. Ultimately, the information is for everyone, DeCrosta said. Its information and education many of us can use, because many of us never received it.

"Youre never too young or too old to learn it. Even though we are geared toward the younger age group and the younger demographic, it still applies to us as adults."

If youre ready to make some adjustments and move toward financial sustainability and freedom,DeCrosta has the following suggestions.

Take stock of your spending: And your lifestyle in general. Audit two to three months of expenses; chances are youll be shocked by how much you spend.

Review your credit: Its important to know what is in your credit report. Check for inaccuracies and review it regularly. You are entitled to a free credit report every 12 months from each of the three major consumer reporting companies, Equifax, Experian and TransUnion.

Everything revolves around credit, DeCrosta said. Poor credit history can lead to higher interest rates, fewer loan options. It can make it more difficult to find quality housing, potentially affect job prospects and impact retirement.

Continue by focusing on debt: Eliminating debt wont happen quickly. Start by trimming excess spending and learn to differentiate wants versus needs. Make a repayment plan and stick to it. With rates rising, transferring existing balances to zero-percent introductory rate credit cards may be a smart move.

There is a system in place that is designed to keep us in debt. Its very difficult to overcome that process, that system, DeCrosta said.

Build savings: Another important step to take when working to obtain greater financial independence is to build savings. Even if you can only manage to set aside a little bit of money each month, something is better than nothing.

Make it a habit no matter what, DeCrosta said. It will help you in the long run.

Focus on the long game: No matter how you arm yourself or what strategy you use, its important to remember that achieving financial independence is a marathon, not a sprint.

We live in an era of instant gratification, DeCrosta said. Its important to understand that youre not going to see instant results.

Bring everyone to the table: If you have children at home, include them in the process and be a good role model.

In addition to including our children in the financial picture as early as possible, it is equally as important to be honest and have a plan," she said. "Since children learn most from parents, it is essential we set an example and practice good financial habits for them to follow. It is pivotal to budget and self-educate in order to spend safely and borrow wisely.

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Work to be debt free with Cut The Fiscal Fat's founder's tips - Times Union