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An image illustrating preparing and planning financially for college - a stack of coins supports a graduation cap in front of books and eyeglasses.

College Planning 101: 5 Tips from BALANCE

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College Planning 101 

Most parents have already heard the bad news: a college education has never been more expensive. Many, in fact, are still paying off their own student debt and would like their children to avoid that burden. The good news is that there’s a lot parents can do to help their children and make the costs of college more manageable.

Invest in a Tax-Advantaged 529 Account

The 529 account is an education savings account and it’s a fantastic deal to save for education expenses for a child, grandchild, or even yourself. Though contributions to 529s are not tax deductible, the account’s earnings are not taxed when you use the money for qualified education expenses – things like tuition, books and even room and board. Start automatic deposits from your paycheck when your child is young and you could have a substantial nest egg when she’s ready for college.

Apply for Financial Aid

You have to be poor to receive financial aid for college, right? Wrong! While many scholarships and grants are needs-based, many other financial aid opportunities are merit-based. So, if your child does well academically, or meets other specialized criteria, she may qualify for assistance even if you are affluent. For example, many colleges and universities have endowments and use this “institutional aid” to attract promising students – and not just athletes – to their programs. 

 

When exploring your options, keep an eye out for scammers. While there are reputable college financial planners, no legitimate scholarship program will require students to pay to apply for aid. And, of course, be wary of any college funding strategy or investment that sounds good to be true!

Explore Local Community Colleges

Academically-speaking, community colleges offer a phenomenal value for meeting almost any degree program’s general education requirements. Plus, students at community colleges often benefit from close teacher-to-student ratios, while many university and four-year college GE classes aren’t even taught by full-time faculty. There are also huge savings on room and board when a child attends a local institution and can continue living with mom and dad. Just remember to investigate requirements for transfer students to ensure that preparatory coursework will be accepted by the student’s chosen degree program.

Borrow Sensibly

Even with financial aid and parental support, many students will still need to take out loans to pay for college. The key is to limit borrowing to an amount the student can reasonably be expected to pay back in ten years or less. The lower the loan amount, the better, but a good rule of thumb is to borrow no more than the expected first year’s salary.

Let Your Child Have Skin in the Game

If the money’s there to pay all of your child’s college expenses, it’s all good. However, parents who skimp on critical goals — like saving for their own retirement – to pay for a child’s education, may never recover from the financial hit. Remember, your child can pay for college with a combination of student loans and work earnings, but you can’t get a “retirement” loan to pay expenses when you’re no longer working! 

 


This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA.

Article Credit: BALANCE 

An image illustrating building financial security for retirement - two wooden figurines representing an older couple stand next to a piggy bank.

10 Tips for Financial Security After You Retire

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Not that long ago, people looked forward to retirement as a time of relaxation and leisure when one might travel the world or take up a new hobby. Increasingly, however, people preparing to retire are doing the math and realizing that the future doesn’t look so bright financially.

 

The following 10 guidelines will help you enjoy a more comfortable retirement even in an uncertain economy.

1. Have a Plan But Stay Flexible

Retiring successfully takes planning. Take an honest inventory of your assets, savings, investments, and set some goals for your retirement. Consider what you’d like to be doing, where you’d like to live, who you want to be near, and what kind of lifestyle you prefer.

 

While you need a plan you also need to be flexible and open to unexpected changes. Keep yourself informed about the latest developments in areas such as the cost of living, tax laws, investments, real estate trends, and other areas that are likely to have an impact on your life.

2. Watch Your Spending

Overspending is a common mistake for many retirees. The paradox about not working is that you have less money coming in but more time to spend your money. It’s natural to want to fill up all your free time with eating out, shopping, traveling, and other leisurely pursuits. It’s important to set a budget and stick to it. You don’t have to cut out all entertainment and treats. However, make sure you don’t spend beyond your means.

3. Find New Sources of Income

It’s an unfortunate fact that people in the United States and many other countries are postponing retirement because they can’t afford to stop working. Some employees, meanwhile, are forced into retirement. There are, however, alternatives besides working full-time and complete retirement. Here are a few possibilities.

 

Get a part-time job. This can actually be good to keep you active as well earning money.

 

Start a business. There are many businesses you can start from home, from selling items on Amazon or eBay to providing freelance services.

 

Make money from your property. If you have extra space, you might rent out a room or set up an Airbnb.

4. Get Out of Debt

Reducing or eliminating debt is one of the best ways to improve your financial situation. Debts are especially draining after you retire. Do whatever you can to cut down on what you owe, especially high-interest debts such as credit cards.

 

Paying off debt provides two main benefits. On the one hand, it reduces the burden of making high payments when your income may be decreasing. Additionally, you have a chance to improve your credit score which is useful if you want to apply for a mortgage, business loan, or another type of loan in the future.

5. Don’t Touch Your Retirement Account Early

Withdrawing money from your retirement account early may be tempting but it’s seldom a financially wise decision. You also incur tax penalties if you take money out of an IRA or 401K before retirement age (currently 59.5). If you’re thinking about raiding your retirement account, make this an absolute last resort. You’ll be glad you held out a few years from now.

6. Downsize Your Lifestyle

For most people, mortgage, rent, utilities, and other home-related costs are their costliest expenses. Consider how much space you need and whether it might be practical to downsize. If you have your own home, you could sell it and buy a smaller one or relocate to an area with a lower cost of living. Renting or moving to a condo helps you cut down on home maintenance costs. An extreme way to reduce your cost of living is to retire to a country with very cheap living expenses such as Ecuador or Panama.

 

There are other ways to downsize and simplify your lifestyle aside from housing. Consider moving to a location where you don’t need a car. With ride-sharing services and short-term rental options, more people are finding that owning a vehicle is an unnecessary expense.

7. Take Care of Your Health

Medical expenses are one of the biggest reasons people fall into financial difficulties later in life. Aside from getting regular checkups, pay attention to your habits and lifestyle. If you smoke, drink heavily, use drugs, or don’t exercise, consider transforming your lifestyle.

 

Bad habits tend to catch up with you when you can least afford it. Eating a healthier diet, exercising regularly, and avoiding harmful substances will cause you to feel better while also saving you money on health care costs. You can also manage health expenses by researching the most advantageous health insurance options.

8. Invest Wisely

It’s never too late to start investing or to improve your investing strategy. As a general rule, you should invest more conservatively as you approach retirement.

 

Diversifying your holdings is the best strategy. Spreading investments between small and large-cap stocks, bonds, mutual funds, and real estate trusts increases your chances of reaping steady returns. An annuity can provide you with predictable payouts after you retire. If you need help, consult with a CPA or investment counselor.

 

The other side of the coin is to be wary of dubious investments. Older people are often targeted by scam artists selling fraudulent “investments.” Even legitimate investments that are highly speculative such as futures, Forex, cryptocurrency, and others carry significant risks. Make sure the bulk of your holdings are in more stable assets before you start speculating.

9. Don’t Be Overly Generous

Many older adults are victims of their own generosity. As younger people face rising housing and education costs, they sometimes turn to their parents and grandparents for help. While it’s great to help your kids buy a home or pay for your grandchildren’s college tuition, make sure you don’t overextend yourself. Before you give away large sums, look into the future and ask yourself how this will impact you 5 or 10 years from now. Sometimes you just have to say “no” even if it’s painful.

10. Take Advantage of Senior Discounts

There are many financial advantages to being a senior (though the exact definition differs depending on the situation; it may be 55, 60, 62, or 65). If you’re not a member of AARP, join now and learn about more benefits. Your local public library is also another good place to learn about programs. Before spending money on anything, from healthcare to travel to transportation, find out if you can get a discount based on your age.

 

These are some ways to help you manage your finances when you retire and even before. It’s important to look at your situation and devise a workable strategy. People get into trouble when they live day-to-day and ignore impending problems.

 


This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA.

Article credit: BALANCE

"Three Reasons You Should Always Pay More Than The Minimum" next to a hand using a mock credit card on a card reader.

Three Reasons Why You Should Always Pay More Than the Minimum

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Credit cards are a valuable financial tool for both individuals and businesses–but they come at a price. 

 

You get purchasing power on the spot, and the creditor only requires you to pay off a small amount of the total every month, i.e., the minimum amount due. However, it’s important to remember that the minimum is calculated in the best interest of the creditor, which puts you at a disadvantage. 

 

Here are some important reasons why you should always pay more than the minimum due on your credit card. 

 

1) Save money 

When you only cover the minimum every month, you end up paying more in interest. The minimum payment exists to ensure that interest fees are covered, with only a small amount going toward the actual balance. 

 

For example, suppose you have a $3,000 balance with a 14 percent APR (Annual Percentage Rate). Your minimum payment would be around $65. By the time you pay it off, you will have paid an additional $1,332 in interest. 

On the other hand, if you were to pay $100 every month instead of $65, you would only pay $713 in interest. 

 

2) Get to debt-free faster 

The more you pay, the quicker you’ll be debt-free. Using the same example, it would take 67 months to pay off the original $3,000 balance, along with all that extra interest. That’s 5.5 years! 

 

Paying $100 per month instead would clear the debt out in approximately 38 months, which is just over three years. Of course, this is provided you’re not adding additional charges to the card and that your APR remains at 14 percent. 

 

3) Raise your credit score

The ratio of your balances to your credit limits is called “credit utilization.” This ratio actually accounts for 30 percent of your entire credit score. 

 

For example, a credit limit of $2,000 with a balance of $500 would mean that you have a credit utilization of 25 percent. A lower ratio is better because it shows that you’re using only a small amount of the total credit that has been extended to you. 

 

If you’re only paying the minimum, your balance remains high relative to your total credit limit. This will cost you some points on your score. Naturally, this also means that when you begin making higher payments that quickly bring down your balance, you’ll likely see an increase in your credit score to reflect this change. 

 

So what’s the solution to avoiding the minimum payment trap? Whenever possible, pay off your balances in full every month. 

 

APR = Annual Percentage Rate. This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. All loans subject to approval and rate may vary depending on individual's credit history and other factors. All Credit Union loan programs, rates, terms and conditions are subject to change at any time without notice. Membership required. SRP is federally insured by NCUA. 

Article Credit: BALANCE

"Three Mortgages Every Home Buyer Should Know" above the SRP logo and next to a key with a house-shaped keychain inside the door lock.

Image for an article describing the different types of mortgages available.

Three Mortgages Every Home Buyer Should Know

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Because of the high cost of most real estate, very few people can purchase a home with savings alone.

 

Therefore, if you are like the vast majority of people, you will be borrowing money from a financial institution to purchase the property you want. Called mortgages, these loan products can be quite complicated. Knowing the basics of how mortgages work can help guide you to the loan that is most appropriate for you. 

 

Mortgage Terms 

How long is it going to take you to repay the loan? That depends on the term of your mortgage. A term is the number of years that you agree to pay back the amount you borrow. 

 

The term also affects the cost of your mortgage payments. Shorter repayment periods mean higher monthly payments but less interest you pay over the life of the loan, while longer terms will give you lower payments but will cost more over the long run. The traditional mortgage term is 30 years, but they have ranged from ten to 40 years. 

 

Types of Mortgages 

There are several types of mortgages available, with the most common being fixed-rate, adjustable, and interest-only. 

 

Fixed-rate mortgages come with an interest rate that remains constant over the life of the loan. 30-year mortgages are the most common, but you may also choose a 20-year, 15-year, and even 10-year fixed-rate mortgage. In certain high-cost areas some mortgage lenders were even offering 40 year-loans. Though the mortgage interest rates tend to be higher than for other loan types, the rate is fixed and your payment won’t change. This stability makes them the most secure type of mortgage for buyers. 

 

Adjustable-rate mortgages (ARMs) have a period of fixed interest, but after that the payment changes with whatever index the loan is based on. The period of fixed interest may be three, five, or seven years. With a 5/1 (the first number stands for the number of years in the initial fixed period, while the second indicates how often the new rate will adjust) ARM, for example, the initial interest rate remains fixed for the first five years, and then adjusts annually for the remaining term. 

 

There are several types of caps that may apply to an ARM: an overall cap limits how much the interest rate can increase over the life of the loan; a periodic cap limits the amount the interest can increase from one period of adjustment to the next; and a payment cap limits the amount the monthly payment can increase at each adjustment. 

 

While ARMs are less secure than fixed-rate mortgages, they tend to have lower initial rates and therefore lower monthly payments. They can be a good option if money is tight in the early years, as long as you are confident you can meet future interest and payment increases. 

 

Interest-only mortgages are loans that allow you to pay just interest for between three and ten years. Once that period is over, the payment rises to include both principal and interest. While qualification can be easier and the monthly costs can be lower than other mortgage types, they can be a gamble. A downturn in housing prices could mean that you end up owing more than you own, and an interest rate hike could put the payments beyond your reach. 

 

Certainly there are benefits and drawbacks to each mortgage type. Long before you borrow, consider each option carefully to know which is most appropriate for your situation. With so much money at stake, making the best mortgage decision is important. 

 

This article is for informational purposes only. All loans subject to approval. Actual rate and terms may vary depending on individual’s credit history and other factors. Membership required. SRP is federally insured by NCUA. Equal Housing Lender. NMLS ID #612441.

Article Credit: BALANCE

A figure of a person is being pulled in two different directions by a bomb that reads, "Debt," and a piggy bank that reads, "Save." The graphic reads, "To pay down debt, first you have to save."

To Pay Down Debt, First, You Have to Save

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When you want to pay off debt fast, that impulse often means depleting your savings. So how do you pay off debt AND save money?

 

Mathematically, based on the interest rates of your loans versus your savings account (or other savings products), your debt is likely costing you more money every month than your savings is earning you. Thus, looking simply at the highest net impact of your dollar, it would make sense to use extra income to pay off debt rather than save the money.

 

But this strategy usually results in more debt. Crazy, right? But think about it. If you're taking all your spare dollars and diverting them to your credit card or other loans, completely neglecting your savings account, what will you do when an emergency comes along, things like car repairs, vet bills, etc.?

 

Life happens, and since you don’t have a savings account, you'll probably have to slap these expenses onto your credit card. You know, the one you've been working so hard to pay off?

 

Here's how to get out of this cycle.

  1. Put away the credit cards and stop adding to your debt.

 

  1. Set a goal for your savings account that you’re comfortable would cover most emergencies, for instance, $500.

 

  1. Pay at least the minimum payments on your loans while you build your savings account until you reach $500.

 

  1. Then dedicate more money to paying down debt.

 

  1. If an emergency comes along that takes your savings below $500, switch back to paying the minimum on debt and put extra money into savings to build that back up.

 

  1. Once savings is steady at $500 and you feel you've gotten your debt under control, start increasing your savings. Most personal finance experts say your emergency savings should be able to cover three to six months of living expenses.

 

And don’t stop contributing to your retirement savings or dip into your retirement savings unless it’s truly an emergency—your future self will thank you.

 

With patience and some baby steps, you'll soon have your finances under control and find yourself resting on a comfortable nest egg.

 

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

Article Credit: CUNA

A calculator, pen, and clock next to a sticky note that reads, "Tax Time!"

The Tax Man Cometh: Quick Tips From BALANCE

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Since we all know what the other certainty in life is (death), maybe we shouldn’t be all that upset about the onset of tax season, right? And while it may seem that the tax code gets more complicated every year, the good news is there are also a lot more tools now than ever before to streamline the process of tax preparation and make sure you complete your return correctly. Here are a few quick tax tips to dial down the pain.

 

Tax Software

You’ve probably heard of Turbo Tax. It’s the market leader in tax prep software, but it’s not the only option. If your adjusted gross income is $84,000 or less, you may qualify for free software to file your federal return. Go to the IRS website’s Free File page to learn more.

 

Different companies have different eligibility criteria to get the freebie. You’ll be asked to answer a few questions to match you with the right commercial tax software. And remember, not all of the IRS’ partner companies offer free state tax returns, so check those details before proceeding.

 

IRS Mobile App

Some filers may also qualify for free tax preparation assistance. You can use the IRS mobile app (IRS2GO) to find IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) sites.

 

You can also use IRS2GO to:

  • Subscribe to tax tips from the IRS.
  • Follow the IRS on social media.
  • Connect to other online tools from the IRS.
  • Check your refund status.

Report Everything (yes, everything)

Finally, few things will trigger an audit faster than failing to report all of the income that’s been reported to the government under your Social Security number. You’re not likely to forget income noted on the W-2 you get from your employer, but be sure to also include other sources of income throughout the year, like freelance work, unemployment compensation, scholarships, and prize winnings such as gambling and lottery winnings.

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA.

 

Article Credit: BALANCE

A heart-shaped cake on a plate next to text that reads, "Frugal Date Nights."

Frugal Date Nights: Keep Your Partner and Wallet Happy

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When you and your partner are focusing on paying down debt, it’s easy to put relationship fun on hold. After all, dining out is a sure-fire way to blow the budget. Expensive vacations? Entirely out of the question! But you can still keep the spark alive with regular frugal date nights.

 

First, schedule the time on your calendar. Often, busy couples find that if it doesn’t get scheduled, it doesn’t happen. If you have young children, consider coordinating with another family to swap babysitting duties. This way, each set of parents gets an evening out without paying for a babysitter.

 

Now that you’ve got the date set and the sitter lined up, here are some frugal date ideas so you and your partner can make great memories without spending much money.

 

Go on a hike

A hike (or a leisurely walk) in a beautiful location is a great way to spend some distraction-free time with your spouse. Enjoy the scenery, get some fresh air, and get your blood pumping. Apps like AllTrails and Hiking Project are good free resources for local hikes.

 

Play Tourist

If a friend or family member was coming to visit your city, where would you take them? Often, the most impressive or entertaining spots get overlooked by locals. Pretend you’re just visiting the area and hit up some of the top tourist destinations and local landmarks. The local Chamber of Commerce is an excellent resource for inspiration.

 

Star Gazing

You don’t need a telescope to take your honey stargazing! It’s best to choose a night when you’ll have clear skies and a new moon. Pack up a blanket and some snacks and head out of town to a place with dark skies and little light pollution. Spread out the blanket, look up at the stars, and bask in the awe of a starry sky.

 

Eat Cake

If you miss going out to restaurants while you’re tightening the budget, you can get that restaurant enjoyment without having a full sit-down meal. Coffee and dessert at your favorite restaurant still feel like a splurge. Who said you can’t have your cake and eat it, too?

 

Have a Picnic

A picnic doesn’t have to be a fancy (read: expensive) affair. A lunch sack will do just fine if you don’t have a dedicated picnic basket. Cheese, crackers, fruit, and your favorite drinks require almost no prep and taste even better at a local park or wilderness area.

 

Visit a Farmers Market

You might be amazed at how much is happening at your local farmer’s market! Of course, you’ll find farmers selling their freshly grown produce, but there’s likely also baked goods, meat and eggs, crafts (like handmade candles and soap), and ready-to-eat food. Wandering around the farmer’s market is a great way to spend a few frugal hours. You might even come home with local produce and inspiration to try a new recipe.

 

Hit up the Yard Sales

If you like the thrill of the hunt, it’s worth getting up early on a Saturday morning and hitting the yard sale circuit. Decide how much money you’re willing to spend ahead of time and bring it in small bills. This helps to ensure you stay within your budget. You never know what you might find at a yard sale—and sometimes you’ll come home empty-handed! Not knowing is all part of the fun.

 

Gather Fruit

Nearby orchards or berry farms can make for great frugal dates. The “u-pick” fruit farms are typically less expensive and tastier than the comparable fruit at the grocery store, and you get to spend some quality time outside with your partner. Make sure to research the right time to go for ripe fruit and bring some containers from home.

 

Wrapping it Up

Date nights are so important in relationships. Taking the time to talk without the day-to-day stressors and sharing new experiences help keep the romance alive. These things don’t have to be expensive. Keep your budget on track with frugal date nights and watch your relationship and savings account grow.

 

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA. Article Credit: BALANCE

 

4 Signs You Need to Clean Up Your Finances

 

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4 Signs You Need to Clean Up Your Finances

 

It’s easy to see when your house needs cleaning: clothes are on the floor; dirty dishes are stacked in the sink. But it may be a little harder to know when to "tidy up" your finances. Here are a few signs:


1. You’re living paycheck to paycheck

If you barely make ends meet at the end of the month, it’s time to buy yourself some wiggle room for unexpected events. Start by cutting back on at least one major expense and putting that money into an emergency fund. The goal of an emergency fund is to be able to cover a three-month period of unemployment, at minimum. Consider downsizing to a smaller home or apartment, going from a two-car household to one, or commuting by bus or bike. Getting a side gig is another way to boost your emergency funding.


2. You’re not saving for retirement

According to Northwestern Mutual’s 2018 study, 21% of Americans have not saved for their retirement. If you’re one of those people, it’s time to start. Your goal should be to save 15% or more of your monthly income for your retirement. If you’re not used to saving, going from 0 to 15% might be hard. So, start small and simply set aside $50 each month. Increase that amount when you get a raise or get a better handle on your expenses.


3. You’re carrying credit card debt

There is good debt—mortgages for homes and loans for education—but there is also bad debt. Credit card debt is the worst kind of debt you can have, and the longer you carry it, the more money you end up losing in interest. If you’re up to your chin in credit card debt, maybe it’s time to create a budget and move to a cash-only system until your debt is under control.


4. You don’t have a budget in place.

Do you follow a budget? Many Americans don’t, even though it’s probably the most effective way to manage money. Without a budget in place, you’ll have a hard time seeing where your money is going, where you’re overspending, and where you can make changes.


If any of these signs apply to you, it’s time to clean up your finances and learn how to manage your money. You’ll be thankful in the long run.


This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

Article Credit: CUNA

Habit Stacking: The Secret to Sticking to Your New Year's Financial Resolutions

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Every January, we set lofty financial resolutions. Save more. Spend less. Finally, stick to a budget. But by February? Let’s just say the motivation fizzles out faster than the New Year’s sparklers. Sound familiar?

 

Coming up with the things we’d like to improve or change in our lives is the easy part – keeping those resolutions is where the real work starts. When life gets busy and motivation fades, our goals often get pushed to the back burner, and that’s why having a strategy is essential.

 

One tool that’s risen in popularity over the years is habit stacking. It’s an easy and effective way to gain momentum when it comes to any goal, even financial ones.

 

What Is Habit Stacking?
Habit stacking is exactly what it sounds like: stacking a new habit on top of an existing one.

 

Think of it as piggybacking on something you’re already doing or using the buddy system by pairing a new habit with an existing habit.

 

For example:
• After you brew your morning coffee, you check your bank balance.
• After you pay a bill, you transfer $5 into savings.
• Before brushing your teeth at night, you review your daily spending.

 

Attaching a new habit to an established habit (or inserting it into an existing routine) makes it easier to remember and implement during those beginning stages than starting a new routine from scratch.

 

It doesn’t require you to rely on willpower or force yourself to remember or schedule your new habit. Your morning coffee becomes a trigger to check your finances. Paying a bill becomes a cue to save a little extra. Over time, these small actions add up.

 

You’re not just sticking to your resolutions—you’re building new financial habits that last.

 

Here Are Four Easy Habit Stacks You Can Use Today To Reach Your Financial Goals

  1. Morning Coffee + Check Your Bank Balance
    Most of us can’t start the day without that first cup of coffee (or a cold energy drink). This ritual is the perfect “buddy” for a new financial habit. While you brew your coffee, take one minute to log into your banking app and check your balance or scan for unusual transactions. It’s a quick way to stay on top of your finances and set the tone for mindful spending all day.
  2. Online Shopping + Save While You Spend
    We all love a little online shopping, especially with post-holiday sales everywhere. Here’s a twist: every time you make a purchase, transfer a small amount—say $5—into your savings account. It’s like giving yourself a gift that keeps on giving. Think of it as a necessary self-induced tax.
    Bonus: you’ll think twice about unnecessary purchases when saving is part of the process.
  3. Paying Bills + Find Savings Opportunities
    When paying a bill, take an extra minute to review the expense and ask, “Can I reduce this?” Maybe you can switch to a cheaper phone plan, bundle insurance policies, or cut back on streaming subscriptions. It’s a simple habit that can save you hundreds over the course of the year.
  4. Evening Routine + Review Your Spending
    Before brushing your teeth or settling in for the night, take two minutes to review the day’s spending. Did you stick to your budget? Are there any adjustments you need to make for tomorrow? This nightly check-in keeps your finances at the forefront of your mind and helps you track your progress.

In Conclusion:
Starting small and slowing incorporating new habits into your current routines is what makes this strategy so effective.

 

You don’t need to overhaul your life or spend hours trying to live a completely different lifestyle. Focusing on one or two habits that take less than five minutes helps you build consistency.

 

Consistency helps those new baby habits graduate and grow into automatic, seasoned habits that can show next year’s resolutions the ropes!

 

Slow and steady wins the race! Let’s turn those ambitious financial goals into manageable actions that we can stick with long after January is over. One cup of coffee, one bill, one step at a time. You’ve got this!

 

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

Article Credit: BALANCE

Giving During the Holiday Season

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Emotional Giving, it’s More Than Money

Let’s set the stage… you’re home on a Friday night watching your favorite sitcom, and suddenly there it is… the familiar sad song combined with images of mistreated animals. Now, instead of laughing, you’re tearing up and reaching for your computer or phone to make a donations.

 

Here’s another scenario… lunch is being catered at work today. You ask the source of the generosity and discover it was sponsored as part of the kickoff to a charity campaign. You’ve already eaten the food, so now you feel obligated to give to the charity.

 

Giving happens for a variety of reasons, but for many, it’s done in pursuit of a better life. A better life for the person or group you are giving to and an improved feeling about yourself for knowing you have helped others. Though the beneficiary of the donations may vary, the motivation to help is shared among the people that give.

 

Giving for “Healthy” Reasons

When the University of California, Berkley studied giving, the research found that elderly individuals who volunteered for two or more organizations were 44% less likely to die over a five-year period. In a Johns Hopkins University study, it was found giving improves physical health and longevity by reducing stress. In addition, the University of Tennessee reported lower blood pressure for givers compared to their peers who do not donate.

 

Social Connection of Giving

When individuals give, they become connected to the cause they’re supporting. In that respect, givers tend to be more socially conscious and feel a connection to the people they’ve helped. Of course, human connection can be complicated, but connected people generally want the best for each other.

 

More Than One Way to Give

 

Your money

Whether you’re writing a check or swiping your credit card to donate, make sure the organization you are supporting has been thoroughly vetted. Researching how much their CEO is paid, the employees’ payroll, the overall impact of the organization, and the way they spend their donations will paint a picture of how their organization operates.

 

Employees are essential, administrative tasks must be done, and an organization cannot run without significant maintenance costs. Still, donors want to see the money they’ve given reach the people needing help. We would like to fund a new project or outreach; however, keeping the old initiatives alive is important too. Perhaps consider donating to an existing program with proven, ongoing results.

 

Your possessions

Many organizations keep a wish list of items they’re hoping to receive. These donation lists are usually on their website or may be available by request. The wish lists usually include everyday items that could help their organization.

 

Your time

If you’ve got budget constraints, consider volunteering. For most organizations, volunteers are harder to find than donations. Why? Because a donation can be a one-and-done transaction, but volunteerism cuts into the most valuable human resource: time. Volunteering reduces administrative costs and preserves resources. Ongoing volunteerism is a great way to alleviate stress for the organization’s employees. Every task performed by a volunteer allows the staff to concentrate on using their specialized skills. Even what seems to you like a small contribution can make a big difference.

 

Volunteering can create a connection and sense of gratitude few other tasks can. Plus, the people you meet while volunteering are some of the most hard-working and dedicated people around. Although their mission may vary, people who choose to work for a nonprofit have a shared passion for improving the world.

 

Your commitment

Ongoing donations are the lifeline of charitable and nonprofit organizations. It’s estimated that acquisition costs for new donors range between $.50 to $1.00 for every new donor dollar. Additionally, only 23% of donors are attracted to give a second time. Ongoing donors reduce the need to spend time and money on fundraising campaigns, advertising, and events, allowing the staff to concentrate on the actual work. After all, if the amount spent to attract donors detracts from accomplishing the organizations mission, the people needing assistance will receive less help.

 

Reasons this Season

The holiday season is packed with events needing volunteers and donations.  You may join team members of SRP Federal Credit Union, your credit union in Augusta, Ga. and the CSRA, out volunteering this holiday season! You may donate because of a passion you feel for a cause, because you’re thinking of looming deadlines for tax-deductible gifts, or you may just have some extra money to share. Whatever your motivations to donate may be, the organization you give to will be appreciative of your contribution. Whether it’s your time, money, or both, the staff at these charitable organizations and nonprofits understand the significance and sacrifice of your donation.

 

This article is for informational purposes only. Membership required. SRP is federally insured by NCUA.

 

Article Credit: BALANCE