« Back to Blog

Your Money & Your Health: More Connected Than You Think

White Text with a Purple Question Mark Background

Picture this: You’re enjoying your morning coffee, scrolling through your phone, and U see another headline about rising costs. You start thinking about your own money—your paycheck, your savings, your bills—and wonder, “Am I on the right track?” 

Finances and health might seem separate, but they’re often closely linked—especially in today’s economy. Let’s break down the numbers: 

  • $67,521 – Median U.S. household income 
  • $145,000 – Average household debt 
  • 697 – Average credit score 
  • $106,478 – Average 401(k) balance 
  • 8.9% – Average 401(k) contribution rate 
  • $1,657 – Average monthly Social Security benefit 

 

Planning for Retirement & Healthcare Costs 

Retirement isn’t just about savings—it’s about planning for major expenses, like healthcare. A healthy couple retiring at 65 may spend $208,000 out of pocket on healthcare over their lifetime—even with Medicare. 

To prepare, consider a Health Savings Account (HSA), which offers tax benefits for medical expenses. Just remember: 

  • Contributions must stop once you start Medicare. 
  • Non-medical withdrawals before 65 come with a 20% penalty. 
  • After 65, you can withdraw funds for any purpose—though they’ll be taxed if not used for medical expenses. 

 

Budgeting for a Stronger Financial Future 

A solid financial plan starts with a budget. Here’s how to build one: 

  1. Know Your Income – Calculate your take-home pay. 
  2. Track Your Spending – Identify fixed and variable expenses. 
  3. Make a Plan – Prioritize needs vs. wants. 
  4. Adjust as Needed – Cut unnecessary costs and boost savings. 
  5. Review Regularly – Stay on track with weekly or monthly check-ins. 

 

Set Smart Financial Goals 

Budgeting lays the foundation—goal setting gives you direction. Define what financial success looks like for you: 

  • Emergency Fund: Aim for 3–6 months of expenses. 
  • Debt Reduction: Pay down high-interest debt first. 
  • Retirement Planning: Contribute consistently to a 401(k) or IRA. 

 

Whether you’re planning for the future, managing day-to-day expenses, or just trying to make smarter money moves, staying on top of your finances is important. The good news? A little know-how can go a long way. Let’s break it down and help U feel confident about your financial future—one step at a time!  

Small steps today can lead to financial wellness tomorrow. Want help getting started? UMe is here for U! 

Call (818) 238-2900 x4 for more information or to schedule a consultation with the UMe Wealth Management Team.

 

Disclaimer: U matter to Me (to all of us) at UMe — and that’s why we do our best to deliver helpful information on our blog. Please note the following: (1) UMe Credit Union works hard to make certain that the information we post here is as accurate as humanly possible. But as you know, information can change and evolve quickly. While we try to update the blog on a regular basis, the content of some older posts may not be correct or up-to-date. (2) Some destinations on the World Wide Web that we link you to will exist on external websites. UMe Credit Union does not officially endorse any connected sites, nor do/did we compensate or get compensated by any entities to be featured in our posts (unless otherwise noted). (3) Everyone’s situation is unique and we advise you to consult with our personal bankers or your finance, tax, or legal professional for advice individualized to you!