 September 2026
Fellow brothers and Sisters,
In my last article, I talked about the importance of preparing today for tomorrow. I encouraged our members, especially those newer to UAW Local 602, to create a household budget, establish emergency savings, reduce debt, and begin building a strong financial foundation. I want to take that conversation one step further—and give you some practical examples of how to do it.
Start With a Simple Budget
Budgeting doesn't have to be complicated. Start by looking at what comes into your household each month and where it goes. For example, if your take-home pay is $4,000 per month, you might divide it something like this:
- $2,000 — Household necessities: mortgage or rent, utilities, groceries, insurance and transportation
- $600 — Debt payments: vehicle loans, credit cards or other debt
- $400 — Emergency/strike savings
- $400 — Retirement or additional long-term savings
- $400 — Entertainment, eating out and personal spending
- $200 — Cushion for unexpected expenses
Your numbers will be different depending on your household, but the important part is having a plan.
Pay Yourself First, is the advice my grandfather gave me a long time ago. One of the easiest ways to pay yourself and build a savings is to treat it like another bill. If you are paid weekly and automatically transfer $50 from every paycheck, that's about $2,600 saved in one year. Increase that to $100 per week, and that's about $5,200 in a year. Over two years, $100 a week could become approximately $10,400, before considering any interest earned.
That's why starting now matters. Now take overtime on a job into consideration. Overtime can quickly become part of our normal spending. Instead, consider building your regular household budget around your normal straight-time income whenever possible. Target some of your overtime money a specific purpose. For example, you might decide that whenever you work overtime, 50% goes toward savings or paying down debt and 50% is available for your household or something you want. You still get to enjoy the benefit of working those extra hours while strengthening your financial position.
Please think before increasing your monthly bills. A wage increase can also disappear quickly if you don’t pause and consider saving the increase instead of spending it. A raise might make a larger vehicle payment, new recreational vehicle, additional credit card payment or another monthly expense seem affordable. But once you take on that payment, it remains even if overtime disappears or your hours are reduced. Before adding another monthly payment, ask yourself: “Could I comfortably make this payment on straight-time wages?” That one question can prevent a lot of financial stress later.
Build Your Emergency Fund in Stages
Don't become discouraged if saving several months of expenses seems impossible. Start smaller.
Your first goal might be $500. Then work toward $1,000. Next, try to save enough to cover one month of household expenses. From there, continue working toward several months. Every step gives your household more breathing room.
Use Bonuses and Profit Sharing Strategically
When larger checks come in, consider dividing the money before spending it. For example, you could use one-third for savings, one-third to reduce debt, and one-third for something you or your family wants. Preparing financially doesn't mean you can't enjoy the money you've worked hard to earn. It means balancing today with tomorrow.
Why This Matters
Our current agreement runs through 2028. None of us knows exactly what circumstances we will face then, and preparation isn't about predicting the future. It's about creating choices. The member with money set aside for several weeks of household expenses is in a very different position from someone living paycheck to paycheck when overtime disappears, a layoff occurs, an unexpected expense comes up, or we face a work stoppage.
As Financial Secretary-Treasurer, I believe financial education is another way we can strengthen our membership. Many financial institutions offer class to help learn more about building a stronger financial future. Look to your own credit union or bank for financial classes or reach out to your Local.
Local 602 has weathered COVID, semiconductor shortages, layoffs, shift reductions, strikes and other challenges. Those experiences have taught us that circumstances can change quickly. We have something extremely valuable right now: TIME.
Let's use the next two years to strengthen our households, reduce financial stress, and prepare ourselves for whatever the future brings. Because when our members are financially prepared, we are better positioned to stand together.
In Solidarity,
Heather
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