McRae: Financial Wellness is a Marathon
By Treasurer David McRae
April is Financial Wellness Month at the Mississippi Treasury – a time to highlight the small things families and individuals can do to achieve greater financial freedom in the years ahead.
It is, of course, not lost on me that the last few years have been tough for many financially. Inflation, out-of-control government spending, and a lack of affordable housing have made meeting even basic financial goals more difficult. Still, we are not left without some tools at our disposal.
One of the challenges in beginning one’s financial journey is that the destination seems so daunting. While I am no runner, I have to assume it’s much like starting a marathon. You can’t go out and run 26.2 miles right away. So, you start by jogging a few blocks. Then, a mile, a 5k, and a 10k. Eventually, you work up to a half marathon, get a few more training runs under your belt, and then tackle the full race.
In much the same way, financial freedom is achieved by slowly building your savings muscles. Dave Ramsey offers eight ideas that I think provide a helpful roadmap. Start, he says, by saving $1,000. With that in hand, work toward paying off all your debt (excluding your mortgage, if you have one).
Then, aim to save three to eight months of expenses. Once you’ve created that nest egg, begin putting 15 percent of your household income into a retirement fund. Comfortable with that? Start saving for your child’s college (find tax-advantaged accounts at treasury.ms.gov/collegesavings). Then, pay off your home early. Finally, focus on building wealth and achieving complete financial freedom.
That entire process may take years (maybe even a decade), but little by little, one can achieve the financial stability required to endure any economic storm.
This is a similar approach to what we take when dealing with the state’s budget. Just like any family, our team is continuously evaluating Mississippi’s financial wellness, making sure all bills can get paid on time, minimizing debt, maximizing investments, and giving policymakers a little financial breathing room to make the decisions our state needs to thrive.
I’ve made some healthy changes to how Mississippi does things during my tenure as your Treasurer, and as a result, the state has maintained its strong credit rating and produced historic returns on investments, including $375 million last year alone.
Moreover, we’ve put the state’s college savings program on a firm financial foundation again. When I took office, the program was just 72 percent funded. Today, it is largely solvent.
As we continue through April’s Financial Wellness Month celebrations, our team will be doubling down on sharing some of the lessons learned, financial lifehacks, and general tips to help more Mississippians achieve their short- and long-term financial goals. Sign up for our newsletter at treasury.ms.gov to receive this information in your email inbox today.
Additionally, the Mississippi Treasury’s website hosts several free tools and resources to assist in budgeting, saving and overall financial health. Children are also encouraged to participate in Financial Wellness Month. Parents and teachers can find resources at treasury.ms.gov/FinancialEducation.
Mississippi Treasurer David McRae is the 55th Treasurer for the State of Mississippi. In this role, he helps manage the state’s cash flow, oversees College and Career Savings Mississippi, and has returned more than $100 million in unclaimed money to Mississippians. For more information, visit Treasury.MS.gov.
