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Tag: budgeting

 

Smart Tips for Safe Shopping This Holiday Season

 
 

posted on

December 15, 2025

The holiday shopping season is right around the corner. Before you know it, you will be shopping day and night, crossing items off your gift list, and filling the space under the tree with colorful packages and sparkly bows.

 

Much of that shopping will likely occur online, so you will want to take additional security measures to protect your credit cards and other payment methods. To enjoy a happy, safe, and secure holiday shopping season, follow these essential tips.

 

  • To stay safe when shopping online, start by assigning a single credit card for all your holiday shopping. If you have more than one card, check the rewards you will earn with each one and choose accordingly.

 

  • Avoid debit cards and use credit cards instead. Debit cards can be useful, but they can also be risky when you are doing a lot of shopping. If your debit card is compromised or has a problem, it will be your responsibility to contact your bank to recover the funds. Credit cards offer much better protection against fraud and unauthorized use, making them the safer choice for online shopping.

 

  • Create a spreadsheet of online purchases, amounts, and delivery information. Once you have started your online shopping, create a spreadsheet with all the relevant details. The spreadsheet should contain the name of the merchant, the total amount of the purchase, and any tracking numbers or delivery information. Having that spreadsheet in place will make online shopping and sticking to your budget significantly easier.

 

  • Keep a running tab of how much you are spending. The spreadsheet you created in the previous step has one additional benefit -- keeping you on track with all your spending. Maintaining a running total of your spending is crucial to avoiding the risks associated with credit card debt.

 

  • Cross off delivered items from your list. If you do a lot of online shopping, your porch will soon be filled with packages, making it a daunting task to keep track of all those deliveries. To avoid a costly oversight, return to your spreadsheet and cross each delivered item off your list.

 

  • Cross-reference your credit card bill with the spreadsheet you created earlier. Online shopping can be fun, but the bill is undoubtedly on the way. When that day comes, you can return to your spreadsheet, cross-referencing the delivered items and their prices to ensure you have not been overcharged.

 

  • Contact the credit card company and the merchant if there are any discrepancies. Hopefully, you will not have to worry about being overcharged for holiday gifts, but if you are, it is essential to contact the merchant and your credit card issuer as soon as possible. This is the best way to protect your rights and ensure that any necessary refunds are promptly issued.

 

  • Stick to well-known sites. As the holiday shopping season approaches, many new websites start popping up. It may be tempting to try out a new merchant, but the holiday season is probably not the time to do it. Sticking to well-known sites is the best way to avoid unpleasant surprises, so pay close attention when you shop.

 

  • Be aware of counterfeits. There are many phony products out there, and it’s important to be aware of counterfeits. If an online deal seems too good to be true, it may be a counterfeit item, so it’s best to pass and seek out the real thing instead.

 

  • Use caution when shopping on social media. If you are a frequent social media user, you’ll likely come across influencers and others promoting products. These activities ramp up even more during the holiday season, but exercise caution when buying through those sponsored links. It’s impossible to know if your favorite influencer genuinely loves the products they recommend or if they’re doing it for the money.

 

The holiday shopping season is here, making it the perfect time to get ready. Stay safe when shopping online this year by following the tips listed above.

 

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  

 

Avoiding overspending while holiday shopping: 6 Hacks to keep in mind

 
 

posted on

December 9, 2025

You want to stay in control of your spending when you shop for Christmas or at any other time. While it can help to tell yourself to stick to a budget, mere resolve often isn’t effective. When your resolve drifts, it can help to know what influences work on your mind to make it happen. This way, you have a better chance of retaining control.

Look out for excitement

Shopping is an exciting thing to do. Yet, feeling keyed up when you shop can make it harder for you to exercise self-control. You don’t even need to feel particularly enthusiastic to lose control; merely drinking coffee before you shop has been shown in studies to push consumers to spend carelessly. Shopping when you’re calm and composed is a better idea for responsible spending.

Don’t let the environment influence your buying decisions

Being in an environment carefully designed to facilitate buying can make not buying feel like the wrong thing to do. Rather than letting the store environment influence your buying decisions, train your mind to ignore the surroundings and focus on the importance of each purchase. To help make sure that the wonderful scents and aromas in the air don’t push you into regrettable buying decisions, you could even make a point of snacking on unglamorous foods like herbal cookies while shopping.

Don’t get too friendly with the sales staff

Being friendly with the staff may seem like the right thing to do at any store, but when you let that happen, it can make it hard for you to walk out without buying anything. Doing so may feel like you’re personally rejecting those people. While you want to be polite, you don’t want to get chatty.

Make two trips

If you go out to a store, look for things to buy, and then buy them right then, you’re likely to find it hard to tell the difference between genuine purchases and ill-considered ones. Instead, make a reconnaissance shopping trip to note down what products you want to buy and for how much, and then go home. After considering it for a day or two, you could revisit and purchase the items that still seem like a good idea. Having a rule about making no purchase decisions on your feet can be a great way to exercise clear-headed decision-making.

Only shop before payday

If you’re not good with money, it can be hard to think ahead and understand how overspending today could get you in trouble later on. For this reason, it can be a mistake to allow yourself to shop when you’re flush with cash after getting paid. Instead, allow yourself to shop only after you’ve paid every bill and put money into your savings funds. If you can’t think ahead with money, you don’t want to pretend that you can. You simply time your buying decisions so that you don’t have to think ahead.

Consider an alternative way to use the money

You may struggle with saying no to a specific purchase, but you might feel more confident about spending money in other ways. For instance, if you want to buy a dress worth $80, you might ask yourself what would happen if you were to put the $80 in a savings fund. Chances are that it would seem such an unglamorous thing to do that you wouldn’t feel good about it. This perspective could give you the little jolt you need to avoid making a purchase.

Buying too much can make life more complicated in many ways. When you’re able to put these mind hacks to work for you, however, you’re likely to come away with purchases that you feel good about, both in the moment and well into the future.

 

 

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 small model of a house is next to the credit union's logo.

Buying vs. renting a home: Which is right for your wallet and lifestyle?

 
 

posted on

November 15, 2025

For generations, home ownership was considered an essential component of the American dream. However, in recent years, financially savvy people are questioning whether it’s economically rational to rent, buy a starter home or to wait and buy their dream house. 

 

The housing market tends to shift a little each year, which changes the factors regarding housing choices. There are arguments both for buying and for renting, depending on your individual circumstances. To help you evaluate your own situation, consider these five important questions as you make the buy-or-rent decision. 

  1. How long do you plan to stay where you are?

Your intended length of stay has a huge impact on whether it makes more sense to rent or buy. There are many costs associated with the process of buying a home outside of the cost to purchase it–brokers’ and appraisal fees, title insurance, mortgage origination fees, and closing costs. The longer you remain in a house, the more time you have to spread out the costs. Selling the home within a few years may not offset the fees due to there not being enough appreciation. 

  1. Are you throwing money away on rent?

The primary argument in favor of purchasing a home is that you build equity in a valuable asset that can boost your long-term net worth. In contrast to this, paying rent each month seems like spending rather than saving. Rent may actually be less costly after factoring in all of the expenses associated with ownership. 

  • Property taxes 
  • Insurance 
  • Maintenance (it’s recommended to budget at least 1% of the value of your home each year to cover routine maintenance) 
  • Unforeseen expenses such as replacing a heating and cooling system or roof 

Focusing solely on the monthly mortgage payment versus monthly rent may be overlooking additional costs of ownership. 

  1. What tax savings can I expect with home ownership?

Traditionally, the costs of homeownership have been offset by tax savings generated by the mortgage interest deduction. Recent changes to the tax laws have lowered the cap on the amount of mortgage interest that can be deducted. Interest paid on home equity loans or lines of credit is still deductible provided that the money is used for improvement to the home. Before you make the decision to purchase, we recommend doing your homework on how current tax laws will affect you by reaching out to a certified tax professional. 

  1. Do house prices always go up?

The real estate collapse in 2007 showed us that home prices can suffer major declines. Before buying a home, consider how your finances would be affected if your home’s value increased slowly or not at all. Understand that buying a house with the intent of it serving as an investment can be risky. Do your research. Though houses do generally go up in value, they don’t always. It can help to think of your home as a place to live not just an investment. 

  1. Which option will have a greater impact on my overall wealth?

Make an accurate comparison between the financial impact of renting and buying by factoring in the complete costs of homeownership–not just mortgage versus rent payments–as well as how owning would affect your taxes. A rent vs. buy comparison can be done using the price-to-rent ratio, which is calculated by dividing the home value by the annual rent amount. If this number is less than 20, buying may be a better option for you. Conversely, if it is greater than 20, renting might be best. You can find online rent vs. buy calculators that let you plug in your own numbers to see the difference that buying or renting has on your long-term finances.

 

There are benefits and drawbacks to each option. Both are major financial and lifestyle decisions and there isn’t a right answer for everyone. Before signing a mortgage or lease, weigh the benefits and drawbacks of each choice. 

Benefits of owning a home 

Security and freedom are two reasons to purchase a home of your own. When you are the mortgage holder, you have the right to make changes to the property. There are financial benefits to home ownership as well. Most homes can increase in value over time, which means that your investment appreciates. 

 

In the first few years of making your mortgage payment, you’ll pay interest charges, which may be tax deductible. The longer you live in the home, the more principal you will be to pay off. As the balance of your loan declines, the equity in the home climbs. Owning a home also benefits your credit. Lenders perceive you as a good credit risk because your house can serve as security against future loans. 

Drawbacks of owning a home 

Buying a house is one of the largest investments many people will make in their lifetime. Along with the cost of the home, you are also responsible for the monthly payment of principal, interest, taxes, and insurance (what is referred to as “PITI”). It takes quite a bit of pre-purchase cash before you even step foot in the door. Because of the upfront expenses and monthly outlay, homeownership is not for everyone. 

Benefits of renting 

A sense of freedom is also associated with renting, but in a different sense. With a renting scenario, the only commitment you have is the security deposit, first and last month’s rent, and monthly rent. The landlord is responsible for most of the property’s upkeep, which greatly reduces expenses. 

Drawbacks of renting 

An absence of equity is the primary problem with renting a property versus owning it. The money you pay each month builds the owner’s (aka “landlord”) net worth instead of yours. Most rental properties have rules you have to follow and the agreement you sign binds you to any restrictions, such as no pets or a specific number of people who are allowed to live in the home. 

 

Attitudes have shifted in terms of homeownership and the best advice we can give you is to assess your financial circumstances and lifestyle needs to decide if renting or buying is for you. 

 

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. 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 smiling piggy bank stands next to a figurine of a house with keys, representing saving for homeownership.

Saving for Homeownership

 
 

posted on

October 15, 2025

For most people, buying a home is both an exciting and challenging venture—it is the quintessential American dream. However, because of the high costs involved, saving for home purchase takes commitment, research, and sometimes sacrifice. This fact sheet will provide general information on the costs involved and the types of expenditures you will need to save for in order to buy your first home. 

 

The down payment 

The down payment will be the most significant outlay of your pre-purchase costs. The rule used to be that you needed to put down 20% of the purchase price, and you would obtain an 80% mortgage. Today, homebuyers can buy a home with as little as three to five percent down. If you do put less than 20% down, you will probably have to purchase private mortgage insurance, which will cost you between .5% to 1% of the loan amount until your equity reaches the full 20%. Keep in mind that the more you put down, the less your mortgage payment will be. 

 

Earnest money 

Earnest money is a cash deposit you make when you submit your offer, which proves to the seller that you are serious about wanting to buy the home. Your real estate broker will deposit the money into an escrow account, and if your offer is accepted, it will be applied towards the down payment. If the offer is rejected, it will be returned to you. Typically, the earnest money deposit will be about two percent of the price of the home. 

 

Closing costs 

Closing costs include all fees required to execute the sale transaction, such as attorney fees, title insurance, appraisals, points, and tax escrows. Typically, these fees are paid up front. The average cost is three to five percent of the purchase price. 

 

Post-purchase reserve funds 

You may also need to prove to the lender that you have some reserve funds to protect against potential cash flow problems. This not only is assurance for the mortgage holder, but is also for your peace of mind. Post-purchase reserve funds should be at least two to three months’ worth of housing payments. This money is recommended to be in a savings account and accessible without penalties for early withdrawal (though money in a retirement account can also be counted toward the reserve requirement). 

 

Cost breakdown 

So how much money will you need to come up with to buy a home? The actual figure depends on many factors. You may have to save more or less for the same home depending on current interest rates, whether you get a fixed or an adjustable rate mortgage, repayment terms, and your credit rating. Other expenditures you may want to save for are landscaping, immediate repairs, redecorating, furnishings (particularly if you are moving into a much larger space), and moving expenses. 

 

Example for a $300,000 Property: 

20% Down payment $60,000 
3.5% Closing costs $10,500 
3 Month reserve fund* $5,625 
Total estimated pre-purchase costs $76,125 

 

* $1,875 per month for Principal, Interest, Taxes and Insurance. Example based on a 30-year fixed mortgage, 6% interest, $2,436 annual property tax and $2,796 annual homeowners insurance. 

 

Educate yourself 

Obtaining high quality, objective home ownership education is essential for first time homebuyers.

 

The Department of Housing and Urban Development (HUD) can put you in touch with the nearest housing counseling professional in your area by calling (800) 569-4287. You will learn how to develop a reasonable savings goal and time frame, how large a mortgage you qualify for, and the approximate price range in which you should be looking. You will also be given feedback about your credit score, and what you need to do in order to make improvements. Suggestions may include increasing income, paying down debt, closing unused accounts, paying collection accounts, correcting errors, and making timely payments for a specific time period. 

 

Review your spending plan 

Analyze your current financial position by reviewing all assets and liabilities. Do not overlook any source of funds. Include all checking and savings accounts, CDs, stocks, mutual funds and savings bonds. Retirement funds such as a 401k or an IRA can be counted toward the reserve requirement. You may even be able to borrow against your 401k plan and use the proceeds toward the down payment (check with your human resources department for details and restrictions). 

 

Prepare a cash flow spending plan to determine how much you can realistically save each month. You may choose to sacrifice some expenses or delay the purchase of non-essential items in order to meet your monthly goal. 

 

Save effectively 

Some good techniques for effective saving include: 

  • Set up direct deposit with your employer, where a portion of your income is siphoned directly to a savings account. What you don’t see, you don’t miss. 
  • Track your spending. Awareness leads to diligence and thrift. 
  • Get the family involved. It is easier to save when everyone is excited and working towards the same goal. 
  • Tape a photo of the home or type of home you are saving for on the refrigerator or computer. It will be a constant reminder of your objective. 

Ultimately, saving for a home is a choice. If you find your savings plan to be unfeasible, consider extending the time frame. 

 

Conversely, if you really want to stick with the original time frame, you may want to buy a home that has a smaller purchase price—and buy “up” later. The idea is not to abandon the dream, but to reassess, reorganize, and reengage! 

 

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. The payment example displayed above is intended for educational purposes only and does not depict SRP’s current offerings. Membership required. SRP is federally insured by NCUA. 

 

Article Credit: BALANCE  

A jar full of coins next to a notepad for listing monthly expenses.

Five easy ways to cut monthly expenses

posted on

October 1, 2025

Ever notice how your monthly expenses always seem to equal whatever salary you’re making, even after you get raises? The phenomenon is called “lifestyle creep,” and it can keep you from reaching all kinds of financial goals, from paying down debt to saving for retirement.

 

One way to get lifestyle creep under control is to have any future raises you earn directed into savings. Consider diverting the raise to savings via direct deposit or increase the percentage that you contribute to your retirement account.

 

While you are waiting on that raise, here are a few things you can do right now to cut your monthly expenses. 

Make a budget 

The first step toward cutting expenses is to make a budget, so you know exactly where your money is going. Start with major categories, like rent or mortgage, utilities, transportation, meals, clothing, and entertainment. Then break it down even further to ferret out items that are ripe for reducing. Many people, for example, are surprised to learn just how much they pay for pricey lattes and snacks from restaurants and vendors that would cost a fraction of that amount if they were made at home or purchased at a grocery store. 

Lower your mortgage payment 

The biggest monthly expense for many people is their home mortgage. If you haven’t examined that loan since you bought your home years ago, it’s quite possible that you could save a lot of money – both now and over the life the loan – if you refinance at a lower interest rate. To know whether refinancing makes sense, you’ll need to add what you’ll spend on closing costs into the calculation of your new monthly payment. 

Get an insurance checkup 

If you have a car, you absolutely must have car insurance. But it pays to shop around periodically to make sure you’re getting the best deal. If you have a decent emergency fund on hand in case of an accident, one way to lower your premiums is to increase your deductible. Also be sure to examine your policy for “extras” you may not need. For example, you could be paying for roadside assistance both through your insurance policy and through AAA. 

Examine your auto-payments 

Putting your regular bills on auto-payment can be a really smart way to protect your credit rating by ensuring you’re never late with a payment. However, if auto-pay causes you to keep paying for items or services you don’t really need or use, it’s no bargain. A few common culprits include unused gym memberships, subscriptions to magazines that aren’t read, and cable or satellite TV plans that include loads of premium channels that are rarely watched. 

Cut the cord 

If you’ve already ditched your land line, good for you! If not, doing so is one of the quickest and most pain-free ways to trim your expenses. Most all of us have our cell phones with us all the time anyway, and if you really like the feel of a traditional phone in your hand, a VOIP (Voice Over Internet Protocol) plan that provides phone service over the Internet is a lot cheaper (free in some cases) than traditional land line service. 

 

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 collection of seashells, such as conch, starfish, and clamshells, on smooth white sand.

Money-smart travel: save now, live it up later

posted on

September 1, 2025

When you think about it, planning is one of the best parts of taking an exciting vacation. Putting your dazzling itinerary together and daydreaming about all the amazing things you’ll see can really get the juices flowing. However, if you haven’t planned for the financial impact of your trip, money concerns in the months after your excursion can tarnish your happy memories. 
 

It might seem like a strange time to be thinking about vacationing, but preparing well in advance can help relieve the stress and strain of paying for your travel. That, in turn, frees you up to focus on all the fun parts of getting ready for your excursion. 

Here are a few pointers for assembling funds to ease your mind before, during, and after your incredible vacation adventure. 
 

A price tag for paradise 

Creating a trip free from financial stress starts with knowing how much the journey will cost. Clear several hours on your schedule to get a complete grasp on the entirety of your outlay. Though it may seem daunting to stare down such a big number, ultimately, it can give you peace of mind knowing you won’t have to worry about months of supersized credit card bills after you return home. 

Calculate before you vacate 

Once you know the grand total for your getaway, it’s time to start your plan to make it happen! Divide the cost by the number of months until your departure; this is your monthly magic number. 

Ponder your pillars 

As with so many financial goals, making your adventure a reality comes down to the four pillars of personal finance: expenses, income, assets, and debts. If the monthly magic number is more than what you can currently put toward your vacation fund, don’t fret. It just means you’ll need to make a few adjustments in one or more of the areas below. 

Pillar I: Expenses 

Planning for your vacation is a terrific time to review your monthly spending plan. Typical areas of emphasis for clearing up space include dining out, entertainment, and subscriptions. But no one knows your situation better than you, so go over your expenditures to see which areas of spending money are a lower priority. 

 

A recent study found that the average American spends $1,200 per vacation. By challenging yourself to trim just $100 per month in expenses, you could potentially pay for a whole extra trip each and every year without having to worry about generating additional income. 

Pillar II: Income 

This one can be a bit trickier. If you can work a few extra hours at your job, consider using the overtime to rev up your travel fund. But you don’t want to spend 50 weeks of the year miserable just to have two weeks of bliss. Income is an excellent area for creative thinking. What things would you enjoy doing to get more cash rolling in? 

Pillar III: Assets 

Many people find happiness in accumulating memories instead of material possessions. If you think you might fall into this category, consider bulking up your trip savings by liquidating unwanted items via online auction sites, social media marketplaces, or an old-fashioned garage sale.  

Some big-picture thinking might be in order too. If your home or vehicles are more than you need, downsizing your life a bit could mean more magical travel moments in your future and less stress about affording them. 

Pillar IV: Debts 

When measuring the monthly costs affecting your ability to save, consider the impact of carrying expensive credit card debt from month to month. The interest you pay each month on unsecured debts could help you get to that special place faster or maybe even enjoy a more deluxe experience once you’re there. 

Set it and forget it 

Trying to remember to put money away for your vacation every month isn’t likely to be your best strategy. Instead, setting up a savings account specifically for your trip and having money automatically deposited from each paycheck into that account gives you a simple and guaranteed way to amass the funds you need. 

Frame your mind 

Spend all too much time daydreaming about relaxing on that beach or climbing those ancient ruins? You can put that spirit to work for you. First, make the background image on your phone a picture of your dream trip. Then any time you’re tempted to make an impulse purchase, pull out your phone and let the dreamy picture help keep your eyes on the prize. 

Flex your flexibility 

If circumstances change and you’re just unable to save the monthly amount you initially anticipated, consider pushing back your travel dates. It may be a bummer to think about delaying your getaway, but waiting until you have the money before you travel can mean not having to pay tons of interest on the cost of the trip. Not only does that save you money, but it can also help you take the next trip after this one sooner. 

Many happy returns 

If you find it challenging to save, there’s no need to feel shame about it. If you use your tax refund each year as your travel fund—and that strategy works for you—keep it up. It’s better to rely on a tax refund than a performance bonus because the latter may or may not happen in any given year. 
 

When you’ve got the financial aspect of your vacation figured out, the fruity drinks taste sweeter, the exotic dishes are more delicious, and the relaxation is more delightful. You deserve that. 

 

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

 

Article Credit: BALANCE 

Three stacks of coins of increasing height, topped with a bit of soil and small plant sprouts growing from them, to represent building wealth.

Daily Habits That Make Building Wealth Easier

posted on

June 16, 2025

It is easy to think of wealth as something that happens overnight. The media often emphasizes rags to riches stories, forgetting how rare those scenarios are. News sites share stories of happy lottery winners, reports that overlook the enormous odds ticket buyers face.

 

Given these misperceptions, it is easy to see why so many people haven’t taken the steps that could help them achieve their financial goals. Goals that may seem unattainable. With discipline and hard work, building wealth is possible. Here are a few strategies and everyday habits that can make wealth building easier.

Pay yourself first

Pay yourself first, or “PYF,” is perhaps the most effective wealth-building habit and one of the easiest to implement. With this simple strategy, you direct part of every paycheck to a savings account, mutual fund, or other investment vehicle, forcing yourself to live on less than you make.

Know how much is in your accounts

There is a reason why financial institutions make so much money on overdraft fees. A shocking number of account holders have no idea how much money is in their account. As a result, they are blindsided when writing a check or withdrawing cash from an ATM sends their balances negative. Knowing how much is in the account is an essential first step toward controlling unexpected costs and taking control of your finances.

Prioritize fee reduction and demand real value for your money

Those who manage to build wealth know that prioritizing fee reduction is a vital first step and that every dollar not spent on management costs is one more dollar that can be invested. The wealthy, and those on their way, always demand value for the money they spend on their investments.

Deposit (or invest) raises, bonuses, and other found money

If you want to build wealth, start by putting bonuses and other found money in a savings account or investing the cash in a mutual fund or other low-cost investment. When wealth builders get extra money, they avoid lifestyle inflation, opting instead to beef up their savings and investment accounts.

Take advantage of tax savings

From 401(k) contributions to IRA accounts to health savings accounts, some types of investments have a double and even triple advantage. One of the most effective ways to build wealth is to prioritize investments that offer tax savings and the promise of tax-free withdrawals. Consult a tax advisor to determine the best strategies for your situation.

Develop multiple streams of income

One of the fastest ways to build wealth is to bring in extra money, which starts with developing multiple income streams. That could be a side hustle, a home-based business, or even rental real estate. The idea is to generate extra cash, money that can be saved and invested.

Save on everyday purchases

People who are successful at building wealth look for ways to save money on everyday purchases. These people choose generic and store-brand products when they go grocery shopping. You might even see them scanning the racks of the local thrift store for gently worn designer duds and used but still pristine furniture and home décor.

Take the long view

Building wealth will be a slow and steady process unless you are the one in several million who buys that winning lottery ticket. If you want to succeed, it pays to adopt the long view, saving consistently, taking calculated risks, and tracking your progress over time.

Conduct an annual financial review

Successful wealth builders know where they stand and where they are going. So they conduct annual reviews of their finances, including emergency savings, investments, insurance, and all other expenses.

 

Building wealth is not an easy process; in many cases, it is not fast either. If you want to build wealth for the long term, start today, and adopt these smart habits that can help you succeed. The strategies listed above can help you get started, one dollar, and one day, at a time.

 

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 lemonade stand is pictured to represent seasonal income.

Making the Money Work When Your Income is Seasonal

posted on

June 1, 2025

Flexibility, built-in vacation time, freedom—seasonal work has many natural benefits. But it also comes with its own challenges, especially in making its financial side work for you. Most of the available financial advice assumes a steady income stream each month. But that doesn’t help much if you have to plan for extended periods without a lot of cash rolling in.

 

Use these pointers to make sure your money situation is what you need it to be, no matter the season.

Take advantage of all incentives

With labor shortages common in the US, many employers offer several incentives – from retention bonuses to transportation reimbursement and beyond – so weigh your options and go with the employer offering you the best total package. Keep track of all offers mentioned to make you get everything coming to you.

Know your monthly expenses

This can’t be overstated: the biggest key to successful money management with seasonal work is understanding your baseline monthly expenses. Knowing what you need to survive and have a decent quality of life throughout the year ensures you don’t encounter too many anxious moments when money is tight. Once you know your basic monthly expenses, you can start calculating how much you’ll need each month during your off time.

Do the calculations

Multiply your monthly baseline expenses by the number of months you don’t plan on having income (or much income) over the coming year. Once you have that number, divide it by the number of months you will be working. Now, you know how much you need to save as a bare minimum total during your work stretch.

Utilize multiple savings accounts

In addition to being a time of earning, your heavy work months should also be a time of saving aggressively. To keep all your savings goals straight, set up accounts to stash money for your upcoming monthly expenses and anything else approaching the horizon. That could include vacations, tax obligations, home repairs, or other outlays of cash.

Do a new budget with each transition

On top of diminished income, your life during the times when work isn’t plentiful may have other differences when it comes to expenses. Taking the time to do a new budget each time you transition into and out of your busy work times will help you keep your spending in a place that keeps you safe and secure.

Prioritize emergency savings

With variable income, you’re even more susceptible to the negative effects of a sudden, unexpected expense. Even if you’ve covered all your core expenses, you’re not assured of a smooth transition time until your next larger gig. Without a steady income stream, a big surprise can lead to a big crisis. You may not be able to save enough to cover every emergency right away. Still, putting money away is a good idea to ensure less turbulence when that inevitable curveball comes.

Stay wary of credit card usage

If unforeseen events arise and you find yourself looking to a credit card to cover your necessities, understand that this should be a wakeup call that your finances are in a precarious position. Mounting credit card debt, especially for someone with inconsistent income levels, is not sustainable and should be treated as a sign that significant changes need to be made to your overall financial plan.

Be conscious of stress-related expenses

When you’re in the thick of a busy work season, you’re probably looking to work as many hours as possible. When you have a little time off during this hectic stretch, you might be looking to make the most of your leisure time to blow off some steam. Whether it’s lavish food and drink, a retail therapy session, or another type of splurge, these big spender moments might feel good at the time, but they can be costly to your overall financial wellness in the months ahead. Try to plan some low-cost activities ahead of time for your relaxing hours, so you’re not as tempted to go hog wild.

Time your more considerable expenses carefully

If you’re like many seasonal workers, you may keep yourself motivated during the tougher moments by thoughts of treating yourself once working days are put on hold for a while. It could be a nice trip somewhere or a lovely little gift to yourself. It’s wise, though, to hold off on treat until you’ve done a full assessment of where your money’s at before making a big purchase. You don’t want to start your leisure time by creating a more tenuous financial situation for the months ahead.

Avoid check-cashing businesses

If you get paid with a check for your seasonal work and rely on a check-cashing business to get at your hard-earned money, please reconsider your options. Having a checking and savings account with a local credit union, or bank will help you keep more of that money you put so much effort into earning.

Take advantage of available assistance

Contact your state’s unemployment office to determine if you might be eligible for unemployment benefits during the period in which you’re not employed. Additionally, you may also qualify for help through the Temporary Assistance for Needy Families (TANF) program. For other programs that might be available in your area, dial 211.

Don’t neglect your retirement

Many employers make retirement savings easy with a set-it-and-forget-it plan like a 401(k). Saving for your golden years may be a bit more complicated if you plan on continuing with seasonal work. However, remember that an Individual Retirement Account (IRA) and other options are available. Take advantage of the opportunity to put the power of time to work for you.

 

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

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