7 Questions To Ask Yourself Before Making A Large Purchase

Considering a Large Purchase? Make a Plan!

You’re convinced: You really want that Coach handbag. Or maybe you just know that gigantic entertainment center will transform your weekends. So you swipe your card and the dream item becomes yours. You’re thrilled! 

That is, until a few weeks later when the credit card bill comes, and buyer’s remorse hits. You can’t help wondering: Was it really worth the price? 

Don’t get sucked in again! Before you say “yes” to a large purchase, ask yourself these 7 questions: 

1. Do I have cash to pay for this item? 

woman coming out of a store after purchase a television

This question will help you determine if you can really afford the purchase. You need to have liquid funds that can cover the cost of your item. Putting it on credit means you’ll be hiking up the price once interest is tacked on, and you’ll be reminded of a possibly regrettable purchase for a long time to come. 

2. Is this the best price? 

 

When making a large purchase, it’s important to comparison-shop by checking several online listings and some brick-and-mortar shops as well. Visit coupon sites like CouponCabin.com for automatic savings. Also find out the best season for buying this particular item and wait for a sale if it makes sense to do so. Finally, consider purchasing a previously owned item for less.  

3. How many hours of work will you need to do in order to pay for this purchase? 

 

Calculate the total number of hours you’ll need to work to pay for this “must-have” item. Is it really worth the price? 

4. How else can I spend this money? 

Think about the money you’re about to spend on this single item. What else can that money buy? A few weeks’ worth of groceries? A year’s worth of monthly dinners out? Take some time to think of other ways you can spend this money before making a final decision. 

5. Have you splurged recently? 

 

If you can afford it, there’s nothing wrong with an occasional pricey indulgence. But, when luxury purchases become a habit, it can spell disaster for your finances. If you picked up a designer handbag just last week, you may be best off waiting a bit before buying the one that’s caught your eye today. 

6. How often will I use this item? 

Yes, it seems essential today, but looking ahead, how often do you think you’ll really use this item? If you can see yourself only using this purchase a few times a year, you may want to re-think your decision. 

7. How much will this money be worth if I put it into savings? 

You have the funds for this purchase, but how much would that money earn if you saved it? Check out this investment calculator to get that magic number. The results might leave you pleasantly surprised. 

Here at Section 705 FCU, we have several long-term savings accounts that can help your money grow. Give us a call or stop by, and we’ll help you choose one that’s perfect for you! 

SOURCES:

https://www.frugalrules.com/questions-to-ask-before-a-large-purchase/ 
https://www.makingsenseofcents.com/2016/08/what-to-do-before-a-large-purchase.html 
https://www.thebalance.com/before-you-make-large-purchases-2385817 
https://www.google.com/amp/s/amp.businessinsider.com/sc/things-to-consider-before-major-purchase-2016-10 

KICK OFF A SAFE AND HEALTHY SUMMER

girl eating watermelonMemorial Day is the traditional start of summer in the U.S., and for many of us that means time spent outdoors, swimming, picnics and travel. Here are some tips to help keep your family healthy, happy and far from the ER this summer.

Not Looking Forward To Swimsuit Season?

If you’re wanting to lose weight, according to Lisa Lillien of the Hungry Girl website, don’t go overboard with crash diets. Instead, “make a few healthy tweaks to your eating habits.” Spend some weekend time prepping proteins and veggies, for instance. Then, when you want a freshly cooked meal, just throw the ingredients in a pan.
 
And have smart snacks around: jerky, protein bars, packs of nuts, fresh fruit. Eating more often might seem counter intuitive, but it can save us from making poor decisions at mealtime.
And on the topic of food: At picnics, make sure salads with mayonnaise stay in the shade. If they’re brought directly from refrigerator to table, help yourself. But don’t let them sit more than 15 minutes in the hot sun or you’re courting problems.

Water Inside

Hydration is always important, but with hotter weather, it’s even more important. Drinking lots of water is great for overall body function, and it keeps you from feeling unnecessarily hungry. Eight 8-ounce glasses of plain water every day will maintain moisture balance, but if you’re a big fan of caffeine, you should triple that amount.
 
Bonus: staying hydrated gives your skin a healthy glow.

Water Outside

We all remember being told “You’ll drown if you go into the water right after eating.” That’s too strong, but Sue Leahy, president of the American Safety and Health Institute, says that when we’re digesting food, “There’s less blood flow in your body and this takes away from strength. So if you really had to use your strength for undertow, you might have a problem.” Best bet is to wait half an hour after you eat, just like mom said.
 
Children pose different problems. The National Safety Council says more than one in five drowning victims are 14 or under. Be sure to find age-appropriate swim lessons for your child, and don’t rely on lifeguards; never leave your child unattended.

Be Good to Your Skin

No one wants to look like a peeling tomato, but it’s not about appearances: just one blistering sunburn doubles your risk of melanoma. And it isn’t enough to just apply sunscreen – you have to apply the right kind (SPF 15 or higher) and frequently (every two hours). Studies show that most people don’t apply nearly as much protection as they should. That means a teaspoon for the face, and for the body, about enough to fill a shot glass.
 
If you forgot your sunscreen, or didn’t use enough, apply cooling botanicals generously, preferably at the first sight of a pink glow. The damage is done, but this will reduce peeling and inflammation.

Be Good To Your Eyes

At work or at play, when outdoors, wear sunglasses that block at least 99% of ultraviolet A and B. Sunglasses can help prevent cataracts, as well as wrinkles.

Watch For Heat Stroke

This is a big problem for outdoor workers who can’t take a break, and for older people who are in apartments with no air conditioning. But it can happen to anyone.
“The first sign is cramping in the legs,” says Sue Leahy. “Cool off and drink fluids until it goes away. Cramping – especially in the leg – is a sign the body is losing salt and electrolytes, and you should heed it.”

Get Debugged

Bugs love summer, too – all that exposed flesh. But they can transmit Lyme disease, West Nile, Zika and other illnesses. The American Academy of Pediatrics and the Centers for Disease Control and Prevention recommend using insect repellants containing DEET (10% to 30%), except on children younger than 2 months.

Move It But Don’t Lose It

The summer months are mobile ones, and not just in SRVs and station wagons. If your child travels by bicycle, skateboard or scooter, he or she needs to wear a helmet that meets CPSC safety standards. So do you, since children learn best by observing adults. Set the example. Never let children ride near moving traffic.
Children who are too young to have a driver’s license shouldn’t be allowed on riding lawnmowers or off-road vehicles. Children are involved in about 30 percent of all ATV-related deaths and ER injuries.

Fireworks

The Fourth of July is one of the biggest events of the summer, but emergency rooms brace for the upsurge in injuries every year. Fireworks can cause severe burns, blindness, scars or worse. Even sparklers, which you might think are safe, can reach temperatures over 1000 degrees. And they can start fires. The National Safety Council says that in a recent year, fireworks caused an estimated 15,500 reported fires, including 1,100 structure fires. Families should attend community fireworks displays run by professionals rather than using fireworks at home.

Need a little help to make this the best summer ever? Learn more about our Vacation Loan Special!

 
SOURCES:

SAVING ON MOTHER’S DAY

8 Mother’s Day Ideas that Will Save You Big Bucks!

woman reads Mother's Day cardQ: I love showing Mom how much she means to me, but with the money spent on a pricey bouquet, a nice gift and dinner out, I’m looking at an awful lot of spending! Is there any way to give Mom a Mother’s Day to remember without it costing a small fortune?

A: If you find yourself overspending on Mother’s Day, you’re not alone. The average American will spend close to $200 this month, all aimed at making Mom feel special. It’s wonderful to show your love and appreciation, but you don’t need to blow your budget to make that happen.

Read on for some low-cost ways to show Mom how much you care. 

Give Mom a stay-cation

Give your mother a day off – at home! Make arrangements for her to be completely free of all housework on her special day. There’s no laundry, cooking or cleaning for her today! Offer to assume the responsibilities of all her daily chores, being sure to tidy up as per Mom’s standards and to prepare all her meals. You can create a homemade gift card entitling the bearer to one full day of all household chores, and present it to Mom in the morning.

Give your mother a small vacation – she deserves it!

Go out – for free

Search your neighborhood forums for local attractions that don’t have an admission fee. You might get lucky with an interesting museum or a beautiful overlook point that’s just a small drive away. Otherwise, you can prepare a picnic lunch, bring along some balls and Frisbees, and spend the day at a scenic park together with the whole family. Pack a portable grill and some hot dogs to make it a full-day event!

Make some memories

Celebrate Mother’s Day with the most enjoyable trip of all: down memory lane. Spend some time gathering and editing the best home video footage you can find. Include major family milestones and memorable events and/or vacations. Put it all together and present your gift to Mom on her special day. Then, sit back with the rest of the family and reminisce togethelr about the good old times.

On a similar note, you can give Mom the gift of priceless memories by creating a family scrapbook. Use patterned cardstock, your best family photos, ticket stubs and other fun mementos to help Mom remember old times. If Mom’s a grandmother several times over, you can even have each family member – or each grandchild – design their own page for Grandma.

Look for bargains online

If you can’t get around spending money on Mom’s gift, search for seasonal discounts online before spending a penny. You’ll find excellent Mother’s Day deals on Amazon, Coach, Kohl’s and other major retailers, sometimes as steep as 84% off retail price.

Best Buy puts a twist in the discount game by rewarding you for money you spend on Mom. Choose something from the site’s “Top Tech for Mom” section and you’ll get a savings coupon that’s valid until late June – just in time to help you save on a gift for Father’s Day.

Have a family movie night

Spend a relaxing day at home binge-watching Mom’s favorite movies together. Prepare lots of fresh popcorn and all of Mom’s best snacks, pour her a glass of her favorite drink, and get comfy on the couch. Remember: Mom is in charge of the remote! It’s her day, after all.

Look for restaurant deals

It’s always cheapest to eat your own home-cooked food, but if you know your mom is looking forward to a dinner out, look for local restaurant deals before deciding on a place to eat. Lots of eateries offer special Mother’s Day deals or even free menu items just for moms.

To keep costs down while still enjoying takeout food, order your dinner in. You’ll save on beverages and service fees without the hassle of preparing your meal. Be sure to set the table with Mom’s best china – and to do the dishes when you’ve finished eating.

Go easy on the flowers 

Flowers are always appreciated, but they can cost a bundle! Save on Mom’s bouquet by shopping around for the best Mother’s Day deals. Save even more by purchasing your flowers in the supermarket and arranging them in a vase or pitcher you already have in the house.

Game night

For a fun family activity that puts the focus on Mom, turn your favorite games into Mother’s Day material. Love trivia? Put together a list of random questions about Mom’s life, hobbies and daily schedule and play a super fun game of Trivial Pursuit. Pass around the most hilarious pictures you can find of Mom and let everyone take a stab at guessing when and where they happened. Get creative and host the family game night that Mom will always remember.

Showing Mom how much she means to you doesn’t have to strain your budget at all. With a bit of research and proper planning, you can give Mom some priceless memories she’ll cherish forever.

Want more ideas like this? Connect with Section 705 FCU on Facebook, Instagram, Twitter, or YouTube!

SOURCES:

http://www.frugalfanatic.com/save-money-on-mothers-day/
https://www.google.com/amp/amp.timeinc.net/fortune/2016/05/08/mothers-day-deals
https://www.grandparents.com/money-and-work/saving-and-investing/monday-money-savers-mothers-day

7 Ways to Spring Clean for Extra Cash

a women going through her book case to donate unwanted books

Spring Clean for Cash!

When that first delightful spring breeze starts blowing, you know it’s time to get your house in shape.

The warmer weather and the brilliant sunshine pouring through your windows can fill you with boundless energy. You’re going to banish those dust bunnies! Every piece of useless clutter must go! You are on a mission to turn your home into a sparkling palace that is completely free of junk. 

But there’s more than just a neat house awaiting you at the end of all that hard work. Here’s how you can spring clean your way to riches – well, almost. You won’t become a millionaire from your junk, but you’ll put some spare cash in your pocket just by taking a few extra steps while clearing out the clutter. And that’s always a good thing! 

1.) Trade in your electronics 

Don’t throw out that digital camera or printer just yet! Gather all the old gadgets and devices you no longer use and bring them to your local electronics store. They’ll likely offer you a gift card for your treasures. 

Some larger chain stores, like Best Buy, even run a retail-collection program to help you responsibly dispose of your old electronics. You’ll earn a gift card that can help you save money on your next purchase.  

2.) Get cash at the consignment store 

Your outdated clothing from the ‘90s might just be someone else’s idea of high fashion today. We’re looking at you, neon jeans! Instead of filling your local dumpster, bring your old clothing to the neighborhood consignment shop and see what they’re willing to take. If you’re open to traveling a bit, you can search for consignment chains that might be a little further out, like Plato’s Closet for teens and 20-somethings; Clothes Mentor which resells designer clothing for all ages; and Once Upon a Child, a chain that specializes in children’s clothing and toys. 

You can also look up consignment shops online, like ThredUp, Tradesy or Poshmark. And if all else fails, there’s always eBay! 

3.) Trade in your video games 

If you’ve got a serious gamer at home who always needs the latest and greatest, consider trading in your old games at GameStop. You’ll get a store credit that will help support this relatively costly habit and you’ll get rid of that huge pile of video games at the same time!  

4.) Sell old books 

Books take up lots of room, and if no one’s reading them, why not get rid of them for good? Look up your closest Half Price Books locations and bring your collection over to them in exchange for a tidy sum. 

If you’ve got a stack of textbooks lying around, earn back some of the money you shelled out for them by selling them online on BookFinder, Cash4Books or eCampus. 

5.) Sell your expensive electronics 

If you’ve got some older smartphones or laptops that are in decent condition, they should be able to fetch you a pretty penny. Try selling your stuff on Gazelle.com. They offer free shipping, and once your item is officially logged by the company, you’ll get paid via check, gift card, or PayPal. It’s an easier, faster option than selling on Craigslist or eBay. 

6.) Get cash for unused gift cards 

Do you have a pile of gift cards you will never use? It’s time to get rid of the whole lot – and make some money on the side! There are loads of sites that offer a gift-card exchange service, and though you may not make back the full amount, you’ll usually land a decent offer. Besides, if these cards were originally given to you as gifts, any money you make off them is extra. 

Try your luck with your gift cards at giftcard.com, giftcardgranny.com or tradya.com to fatten up your wallet with greenbacks instead of useless cards. 

7.) Donate to charity 

Donating unused clothing toys, or electronics to charity might be the easiest way to get rid of clutter. You’ll be helping out a worthwhile cause and making someone else happy with your belongings. As an added bonus, donating goods to charity will earn you a tax deduction, so long as you keep your receipt. Thrift shop chains like Goodwill and the Salvation Army will happily accept clothing that’s in decent condition, all kinds of housewares, used furniture, toys, gadgets and more. 

You’ll be making someone else’s day and earning a tax break at the same time. 

Spring cleaning is a chore that’s gotta be tackled with lots of energy, time, and hard work. With a bit of extra planning, you can earn some cash in return for the work. 

Connect with us on Facebook, Twitter, or Instagram!

SOURCES:

https://www.google.com/amp/s/www.gobankingrates.com/making-money/spring-cleaning-tips-ways-make-money-already-have/amp/
https://money.usnews.com/money/blogs/my-money/articles/2016-03-02/5-ways-to-make-money-off-your-spring-cleaning
https://www.frugalforless.com/make-money-cleaning/

6 COMMON TAX MISTAKES TO AVOID

Image of Uncle SamIt’s Tax Time!

It’s that time of year again! Get ready to break out the calculator and pencils; dig out the enormous pile of receipts, tax forms, and pay stubs, and get to work. Whether you choose to go it alone, use a tax-prep computer program or hand it all over to an accountant, start with checking out our handy list of common mistakes people make on their tax returns.

1.) Faulty math

One of the most common errors on filed taxes is math mistakes. A small miscalculation can throw off all your numbers and get you into trouble with the IRS. However you choose to prepare your taxes, be sure to triple-check the math before filing.

2.) Name changes and misspellings

When preparing your taxes, you’re thinking about numbers, but don’t forget to pay attention to everything else on your form! If you use a name that’s different than the one the IRS has on file for your Social Security number, or even if you spell it wrong, that can mean trouble for you and your taxes. If you’ve recently changed your legal name, be sure to let the Social Security Administration know.

3.) Omitting extra income

Many people neglect to include secondary sources of income on their tax forms. This may include freelance work and any other side work they may have done throughout the year. If you’ve taken any side jobs in 2017, fill out a 1099-MISC and file it along with your taxes.

4.) Deducting funds donated to charity

Charity laws are complicated! First, only donations given to an organization with a tax-exempt status can be deducted from your taxes. Second, if you’ve donated food items or used clothing, they had to have been in decent shape to be eligible for a write-off. Finally, calculate the value of your non-monetary donations according to what they would be worth if you’d sell them now. Don’t forget to include those charity tax receipts when you file!

5.) Using the most recent tax laws

The current administration has made some major changes to the tax code. While most of these changes won’t take effect until you file your first taxes for 2018, there are some changes that are effective for this year, including the following:
  • The standard deduction increased to $6,350 for single, $9,350 for head of household, and $12,700 for married filing jointly.
  • The maximum earned income tax credit increased to $6,318.
  • The maximum income limit for the EITC increased to $53,930.
  • The foreign earned income deduction increased to $102,100.
  • Annual deductible amounts for Health Savings Accounts increased for individuals only, to $3,400.

6.) Signing your forms

If you’re filing through the USPS, be sure to put your signature wherever necessary, and get a mailing receipt. If filing online, you can use a PIN instead. Most places that require a signature will need to be dated as well.
 
Check your forms for errors before submitting and file with confidence.

Connect with us on FacebookInstagramTwitter, or YouTube!

 

Energy Saving Tips When Buying New Appliances

Limiting Household Appliances’ Energy Use Can Save You Big Bucks!

Ecologists are always searching for ways to save our environment. Focusing on energy-efficient appliances is one aspect of this endeavor.
washing machine and dryer

Photo Credit: http://ow.ly/SQGS30j5gio

In fact, 30% of the charges on your electric statement stem from your appliances. That’s why the government and many appliance manufacturers are replacing standard devices with new energy-saving models.
 
Is one of your appliances on the blink? Before running out to purchase a new model, consider if it’s worth contacting a technician to fix your machine. Since prices for electrical appliances have decreased over the years, it might be worthwhile to buy a new model. Besides, the costs of a new part for your old apparatus and the technician’s visit can be high.
 
Also, remember that the new energy-efficient appliances will save you money on a monthly basis.

What Does Energy-Efficient Mean?

In simple terms, this means the process that is used to make the appliance function is using less energy.
Now that you decided to go with a modern, energy-efficient refrigerator, how can you be sure you’re getting the best product at the most cost-effective price?
 
Here are some tips to guide you in your search:
 
1. Determine the total cost. The first thing to consider is the operating cost. This amount, along with the actual purchase price, should give you the real cost of the appliance.
 
2. Check the energy rating. There are several reliable rating services that provide information about appliance energy consumption. The federal government uses the Energy Star Standard sticker to inform consumers of the operating cost and the annual energy consumption of each appliance.
 
3. Select the right size appliance. Running a large machine – even the most energy-efficient one – uses more electricity than a compact one.
 
4. Look for economy choices. Many dishwashers and washing machines offer a variety of different cycles. If you find one with an economy cycle, you’ll save money when you only need to wash a small load of clothes or dishes.
 
5. Stay Simple. When it comes to choosing a refrigerator, go easy on the add-ons. Top-to-bottom fridge/freezer models are more energy efficient than side-by-sides. Features like water dispensers, ice-makers and auto-defrost use lots of extra electricity. This holds true for self-cleaning ovens, too.
 
6. Contact your utility supplier for the latest ways to save on utility charges. With today’s smart devices, appliances can be programmed to use less energy at certain times of the day.
 
7. Check out your home. Hire a home assessor to identify ways you can save on your overall energy and water costs.
 
8. Comparison shop. Never buy the first model you see. Household appliances are not cheap, and to find the most energy-efficient one at the best price, you’ll need to comparison shop. Don’t pay for the name in a specific model; compare the details of each machine.

Connect with us on FacebookInstagramTwitter, or YouTube!

 

3 Steps to Strong Passwords You Can Remember

Passwords are the house keys to your online accounts, and when they’re hacked, intruders can break in and wreak havoc.

Women typing on computer

Photo Credit: http://ow.ly/SBlC30gQ8mN

To create strong passwords, you have to strike a balance between making them difficult for others to guess and making them easy enough for you to remember. Many people favor simple ones at their own risk: “123456” and “password” have remained the two most common passwords for six years, according to password security company SplashData.

Unlike many other security measures on websites, a password is one you have full control over. And given that over 1,000 data breaches happened in 2017 alone, according to the Identity Theft Resource Center, it might be time to strengthen your passwords. Here’s how.

How to make a foolproof password

1. Start with a sentence

Despite the “word” in “password,” it’s better to think of starting with multiple words. Some websites require only six or eight characters for passwords, but that doesn’t mean it’s a recommended length.

» MORE: How to make online banking more secure

When it comes to passwords, “longer is better,” says Richard Crone, a payments expert and CEO of Crone Consulting LLC. “And the way to do that is to use a sentence structure.”

Pick a sentence that’s memorable but doesn’t have details that relate too closely to you. Avoid using birthdays or the names of pets or family members, and feel free to be creative. Here’s an example: “cats do not like cucumbers.” Then, take out the spaces, “catsdonotlikecucumbers.”

“It’s really the length and the unrelatedness that gives you the best protection,” Crone says.

2. Avoid using real words

Change how your sentence looks by removing all the vowels, or only use the first one or two letters of each word. Don’t use dictionary words, which makes your password easier to guess.

The previous example becomes “cadonolicu” if you’re using the first two letters of every word in that sentence.

3. Mix in numbers, symbols and uppercase letters

Bring in a variety of characters to your password. Some websites have minimum requirements so you need to use at least one capital letter, one lowercase letter and a number. You might have to add a symbol like a period or exclamation point, too. As you mix it up, don’t repeat letters, numbers or symbols right next to each other.

By capitalizing some letters, replacing the “l” with an exclamation point and turning an “o” into a zero, the sample password becomes “CaD0No!icU.”

Use a password manager

The steps above help when you’re creating one really strong password, but remembering a dozen or more such passwords might make your head spin. That’s why you might want to consider using a password manager such as LastPass or Dashlane. There are free options, but some features are available only for purchase.

Think of a password manager as a bank vault that creates and stores long and complex passwords so you don’t have to. The only password to know is the one that unlocks the vault. Once you type that one, you can log into whatever online accounts you decide to keep on the password manager.

If you don’t use an online password manager, consider writing down complex passwords and storing them in a safe place such as a locked cabinet at home or in an encrypted file on your computer. These passwords should be difficult to access as well as to guess.

A password is “like scrambled eggs,” Crone says. “The more you fluff it up and spice it up, the better.”

The article 3 Steps to Strong Passwords You Can Remember originally appeared on NerdWallet.

Connect with us on FacebookInstagramTwitter, or YouTube!

Why Do I Need To Get Preapproved For A Loan?

 
Q: I’m in the market for a new home, and everyone I talk to, from friends to financial advisors, suggests I get preapproved for a mortgage before I start house hunting. Why is this so important?
house with sold sign

Photo Credit: http://ow.ly/MP2m30gxTCA

 

A: You’re actually on the receiving end of great advice. When looking to take out a large loan, whether it’s for purchasing a home or buying a car, having that preapproval in hand before you start your search is crucial.

Depending upon the type of loan, the process of getting preapproved for a loan can take time. The lender will begin by asking for your financial history and other personal information. If you have a co-borrower, the lender will need this information about them as well.
 
You’ll be asked to provide your Social Security Number (SSN) and for permission to allow the lender to access your credit report. If the information you provide is satisfactory, as is your credit report, the lender will begin constructing the details of your loan. When they have determined how large of a loan you will be eligible for, they will grant you a preapproval letter. The letter will also detail your estimated interest rate on the loan, though that will sometimes also depend upon the specifics of your purchase, such as the year and condition of a car or appraisal on a home.
 
Having your preapproval letter will shorten the loan process significantly when you’re actually ready to take out the loan. However, that is only a small benefit of getting preapproved before you start “shopping.”
Here are some other advantages of getting preapproved for a loan:

1.) You’ll know what you can afford

Your preapproval will tell you exactly what you can afford. This way, you’ll avoid being disappointed later when you have your heart set on a certain home only to be told you can’t swing it financially. Knowing how large a loan you’ll qualify for will simplify your search and get you into your new home or car sooner.
Be sure to calculate other monthly costs, such as property taxes, home insurance and increased auto insurance rates when determining the actual amount of money you’ll need to shell out each month.

2.) Don’t get taken for a ride

Picture this scene at a car dealership:
 
Salesperson: So, you’re here to buy a new car! What are you looking for?
You: Well, I want something with a smooth ride and –
Salesperson: Got it. And how much of a monthly payment can you afford?
You: Weeelll, I think I can swing up to $200 a month, but I’d rather something closer to $150 if you —
Salesperson: Step right this way please! Let me show our new line of Camrys at just $205 a month! They have the most luxurious feel and the ride is smooth as butter!
 
What happened here is, quite simply, a salesperson looking to make the most money out of a customer. When you’re unsure about how much you can spend, the dealer will capitalize on your uncertainty and try to sell you a car that just barely skims the maximum amount you’ve decided you can afford.
 
Also, when you name a monthly payment you can manage, the dealer will work with that number instead of talking about the price of the car. They may try to inflate the payment with charges and fees just because they fit within your named payment amount.
 
In contrast, when you show up at the dealer with a preapproval in hand, the salesman will have to show you cars with price tags that fit within your loan amount.
 
Don’t get taken for a ride; get your preapproval before you set foot in the dealer shop!

3.) Be taken seriously

A car dealer will take you a lot more seriously when you wave that preapproval in their face, since having that information in hand shows you’re ready to buy.
 
When purchasing a home, the same rule holds true. A realtor will be able to assist you more efficiently when you know exactly how much house you can afford. They may also give you better service since you’re showing that you’re serious about buying a home. In fact, many realtors refuse to show homes to buyers who don’t have a preapproval in hand.

4.) Know you have financing you can trust

When you show up at the car dealership with a preapproval from your credit union, you know the deal is in your best interest. Many auto shops have access to several financing options and they’re almost always going to put customers into financing options that are in their own wallet’s best interests.

5.) Purchase your dream home

A preapproval makes you a valuable customer. It also helps you stand out from the pack. If you’re looking to buy a home in a competitive market, you may be competing with several other buyers for the same house. Having your preapproval will give you a leg up on bidding wars. A seller will be more eager to work with someone who’s already started the mortgage process. You can end your search sooner with a preapproval!
 
In the market for a new home or car? Don’t forget to call, click, or stop by Section 705 Federal Credit Union to hear about our fantastic rates on mortgage and auto loans!

Connect with us on FacebookInstagramTwitter, or YouTube!

 

A Different Breed Of Diversification: What Multiple Certificates Can Do For You

Earn More with a Share Certificate!

Coins

Photo Credit: https://pixabay.com/en/money-home-coin-investment-2724241/

For planned savings, share certificates (aka “savings certificates” or “certificates”) are a great option. They allow you to earn a pretty good return on your money while keeping it accessible enough to use for major expenses. If you’re planning on buying a house or a car, keeping your down payment money in a certificate can help it grow toward your goal a little faster.

 
What if, though, you’re saving for both of those things? It’s difficult to make partial withdrawals from a certificate, and doing so can hurt your earnings. Let’s take a look at three ways to solve this problem, and consider the pros and cons of each.

1.) Lump it all together

One option would be to put all your savings goals into one certificate. You’d take your house down payment, your car funds, your vacation savings and your rainy day money and put them all in a single certificate. This strategy is simple and straightforward.
 
The good
 
First, there’s only one statement to keep track of each month. At tax time, you’ll only have one document that shows the dividends you’ve earned, and you won’t have to track down multiple pieces of paper to figure out how much you’ve got saved. You can make withdrawals when it comes time to achieve your savings goals, and put the remainder into a new certificate at that time. Sometimes, larger sums of money earn better rates, so lumping all your money together can improve your return over the long haul.
 
The bad
 
Because all the money is in one pot, it can be difficult to determine how close you are to each goal. You’re also stuck on the time frame of your shortest-term goal. If you want to buy a car in a year from now, you can only get a one-year term to save for everything, including the house you want to put a down payment on in five years. That short-term rate may not be as good as you could get otherwise.
 
The bottom line
 
If all your savings goals are on a similar time frame, or if simplifying your financial life is your foremost priority, a single certificate for all your savings is a good idea.

2.) Different certificates for different goals

In this slightly more complicated approach, you would open one certificate for your car down payment, one for your house savings and one for your emergency fund. These would all be held in different certificate accounts, and would earn interest separately.
 
The good
 
Since each of your savings goals are in individual accounts, you can get better rates by locking long-term goals into long-term certificates. Instead of keeping all your money tied to the term of your shortest goal, you can stagger your terms to meet the individual needs of all your goals. This will allow you to lock in better rates and make more strategic withdrawals at the time you need the money. Dividend rates change over time, so multiple certificates allow you to avoid the risk of missing better rates, since you have more opportunities to re-lock rates.
 
The bad
 
The variable interest rates can make figuring your earnings difficult, and the multiple accounts can create some confusion when tax filing time arrives. Having multiple accounts also might keep you from getting the best dividend rates, which are reserved for larger balances. So-called “jumbo” certificates can magnify returns if your savings exceeds a certain amount. You may also have an emergency that requires you to dip into savings; in these instances, you may have difficulty accessing a significant portion of your money.
 
The bottom line
 
Multiple certificate accounts offer a combination of flexibility and security that would be helpful for those with a diverse range of goals.

3.) The ladder

A certificate “ladder” is a strategy that uses multiple long-term certificates opened at regular intervals. The objective of a ladder is to secure the best rates possible while ensuring some money is still available at regular intervals. For example, a five-year ladder involves buying a series of certificates so a five-year account is maturing each year.
 
The good
 
A ladder is very flexible and it helps to lock in the best available rates. Long-term certificates have the best rates, regardless of size, and a certificate ladder lets you take advantage of them. It also protects you against the usual problem of long-term certificates. When rates change, you have the flexibility to reinvest and secure those rates.
 
The bad
 
Setting up a certificate ladder can require some very careful planning, and the minimum investment is much higher. Instead of needing the minimum deposit for one certificate, you need the minimum deposit for five of them. Additionally, only one-fifth of your savings are available at any one time. If you’re saving for a large single goal, this can complicate matters considerably.
 
The bottom line
 
Ladders are a complex strategy that can maximize returns for those who are saving for flexible goals like vacations, home renovations and vehicles.
 
Whatever your financial plan, certificates have an important role to play. They make saving for your goals, near and distant, easier. If you want to discuss how certificates can fit into your savings portfolio, call, click or stop by Section 705 FCU today!

Interested in more stuff like this? Connect with us on FacebookInstagramTwitter, or YouTube!

 
Sources:

International Credit Union Day: Dreams Thrive Here

Are you as excited as we are to celebrate International Credit Union Day?

Dreams Thrive HereICU Day – celebrated on the third Thursday of every October since 1948 – will be on October 19, 2017. The day has been designated as an occasion for credit unions all over their world to recognize the history behind the credit union movement, its spirit and its philosophy. It’s a day to share your experiences as a member and to reflect upon all the benefits you enjoy by being a part of your credit union.

It’s also a day to have fun! Credit unions vary in how they commemorate the day, with celebrations that may include parades, picnics, contests, fundraisers or free promotional materials at the credit union’s local branch. At our credit union, we’re planning to a whole day of fun!

Each year, CUNA and the World Council of Credit Unions chooses a theme for ICU Day. The theme for 2017, selected via an online poll of credit union professionals, is “Dreams Thrive Here.” As a credit union member, you can testify to the absolute truth of this statement. Credit unions do help your dreams thrive, because they make them possible.

You already know how wonderful it is to be part of a credit union, but in the spirit of ICU Day, let’s take a quick look at four factors that make a credit union outstanding and allow your dreams to thrive.

1.) Members first

As a member of a credit union, you own a piece of the organization. Credit unions are not stuck answering to Wall Street – we only want what’s best for you. This keeps our focus in the right place. Instead of working on earning the biggest profits, we can focus on offering superior member service and policies that are as member-friendly as possible. You’ll have a say in the way your credit union runs, and if you find yourself in a difficult situation, you’ll find representatives who are willing and happy to help you.

2.) Lower fees

Banks earn a significant portion of their profits through their fees. While a credit union will also have fees attached to certain products and services, these tend to be lower than similar fees you’ll find in a bank. What all this means for you is lots of money saved just by choosing to trust the credit union with your money.

3.) We’ve got your back

Everyone has their ups and downs. If you’re going through a rough patch, a credit union is willing to work with you through that challenging time. While a bank is more likely to turn down a borrower with a poor credit history, a credit union member representative wants to help you out. Loan officers will be happy to meet with you and work to find a loan that best suits your needs. If necessary, representatives are also here to help you learn the basics of budgeting and money management, often offering programs to help you gain control over your budget and cover unexpected expenses.

4.) Better interest rates

When you open a savings account or a CD, one of your biggest concerns is the interest rate. You want your money to grow as much as possible.

Lucky for you, credit unions offer higher interest rates on savings accounts and lower interest rates on loans. You read that right – remember, they want what’s best for you! Since they’re not focused on making a profit, they only need to cover operating costs. All the money they save by focusing on what matters to you is passed down to the member via these favorable interest rates. This means you can save on any loans you may need and that the money in your savings accounts will be earning at a higher rate, just because you chose Section 705 Federal Credit Union.

As you can see, we’ve got lots to celebrate!

Here at Section 705 Federal Credit Union we’re gearing up for a fun-filled, memorable day. Join us on Oct. 19 for a gift basket drawing, wheel of prizes, contents and refreshments as together we celebrate everything that makes a credit union special. Can’t wait to see you there!

SOURCES:
https://www.woccu.org/networking_education/icuday
https://www.woccu.org/newsroom/releases/2017_International_Credit_Union_Day_Theme_Announced
https://www.cuna.org/Marketing-And-Member-Education/Member-Events-And-Promotions/International-Credit-Union-Day/International-Credit-Union-Day/
https://www.cuinsight.com/press-release/2017-international-credit-union-day-theme-announced