{"id":326,"date":"2023-04-18T20:57:53","date_gmt":"2023-04-18T20:57:53","guid":{"rendered":"https:\/\/blogunitedpurpose.azurewebsites.net\/?p=326"},"modified":"2023-04-18T20:57:57","modified_gmt":"2023-04-18T20:57:57","slug":"how-a-community-can-transform-financial-health-for-generations","status":"publish","type":"post","link":"https:\/\/blog.unitedpurposemortgage.com\/index.php\/how-a-community-can-transform-financial-health-for-generations\/","title":{"rendered":"How a Community Can Transform Financial Health for Generations"},"content":{"rendered":"\n

Impacts a Community Can Bring + Improvement of Financial Well Being <\/p>\n\n\n\n

When people are consistently able to meet financial obligations, feel financially secure, and have more choices available, they are considered to have a high level of financial well-being. When people are unable to pay bills and feel a little bit more stressed about money, they may experience some negative impacts on their quality of life and health. To get an overall scope about someone\u2019s financial health, you will have to consider things like income stream, amount in savings, and how much you ultimately have left after bills and other expenses have been paid.<\/p>\n\n\n\n

While financial health is important person to person, financial health can also have a big impact when it comes to communities as a whole. Many poor communities out there have not had access to the right financial tools that build communities and make them stronger. Community-created financial health<\/a> refers to members in a community coming together to lower financial risk, so that they have a higher chance of getting a credit or loan. When people are facing a problem together, more of them are willing to help out when needed.<\/p>\n\n\n\n

The Common Cents Lab<\/a>, or CCL, part of the Center for Advanced Hindsight at Duke University, has conducted behavioral research on the power of community to create financial health. Beginning research shows that delinquencies are uncommon and defaults are more rare. In some of these findings, 87% of people never miss a payment, and 10% rarely miss a payment, (once or twice). That amount equals  97% of people, which means that only 3% of people are missing more frequently. A survey of 400 people, in which 252 had their home paid off, support the idea that delinquencies are low in general.<\/p>\n\n\n\n

6 Ways to Increase Financial Strength In a Community<\/strong><\/h2>\n\n\n\n

Follow these 6 strategies, and your community will be on its way to financial strength in no time!<\/p>\n\n\n\n

Take Budgets Seriously<\/strong><\/h3>\n\n\n\n

It may take a couple of steps to finally reach good financial health, but you should start off with some budget planning. If a situation arises where you have the opportunity to donate\/give back to your community, a little bit of budgeting can help you. <\/p>\n\n\n\n

Keep Track of Operating Accounts<\/strong><\/h3>\n\n\n\n

You can build your operating fund by adding a contingency to your budget, which can be from revenue received for storage or parking rental, laundry income, and other income sources in your community. You should work to maintain your operating fund balance at a minimum of half a month\u2019s expenses.<\/p>\n\n\n\n

Reduce Bank Expenses and Earn Interest<\/strong><\/h3>\n\n\n\n

There is always an opportunity to reduce expenses, and a great way you can do this is by not paying banking fees or even earning interest on your operating account. <\/p>\n\n\n\n

Attract more equity funding through CDFIs<\/strong><\/h3>\n\n\n\n
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A post shared by Entrepreneur Fund (@entrepreneur.fund)<\/a><\/p><\/div><\/blockquote>