budgeting – The Wonderful World Of Wauna

How to keep your holiday budget merry and bright

Peruse the aisles of most stores, online or otherwise, and you’ll see it: holiday deals.

Yes, whether or not you’re ready, the holiday season has officially begun. And while this time of year can be a great opportunity to connect with family, it can also be traumatic for your finances…if you’re not careful.

So, how do you buy for everyone on your list without slaying your budget? Try these tips:

Make a game plan with your partner

Communicating about finances is key, and it’s especially important around the holidays. For couples who share accounts, make a gift list and set spending limits. This way you can avoid those tense conversations about dipping too deep.

Also, review your checking and credit card accounts so that you don’t get too wrapped up in the holiday spending spirit. Set realistic goals. Can’t pay off purchases immediately or in a short amount of time? Re-assess your plan.

Comparison shop online

One of the perks of online shopping is the ability to research. Before you click “buy now,” compare by checking the price across different retailers. It might be listed full-price on one site, but on-sale on another.

Also look for free shipping. If you spend enough time researching different retailers, you may find a discount on delivery.

Rewards points to the rescue

If your credit card has a rewards or points program, check the rules. You may be able to apply your earned points towards purchases at major retailers like Amazon, Best Buy, Macy’s and more. True, you’ll give up the points, but avoiding holiday debt might be worth it. Take a peek at our Rewards card and the amazing promotion going on through the holiday season.

Experiences may mean more

Whether or not you’re on a tight budget, sometimes the best gifts are low-cost, personal gestures. After all, it’s hard to find presents for people that they’ll actually love. So, rather than spending a ton of cash, give a framed photo or cook a delicious meal for a family member or friend. A one-of-a-kind experience is more memorable than a gift you can easily buy from a store.

Five habits that can ruin your budget

Budgeting So you’ve set a budget and on paper it looks fabulous. You’ve created different spending categories and what seem like reasonable limits. Yet, somehow it just doesn’t quite work month after month. Sound familiar? It’s frustrating, but there are fixes.

The first thing to do is double check that your budget is reasonable, given factors like income and goals. If everything looks set up for success, then ask yourself if any of the following habits are derailing your master-plan:

1. Impulse purchases
If you’re prone to buying items on a whim, this might be your culprit. Even if it’s a coffee a day or pack of gum every time you’re standing in line at the check out counter, those costs add up. It’s an even bigger problem if you can’t walk into a store without buying all the amazing things, whether you need them or not. The key thing to think on is want vs. need.

2. Blurring the line between needs and wants
All budgets are loosely based on allotting your spending between needs (mortgage, bills) and wants (entertainment, eating out). In theory, the division between the two categories is clear. However, in the moment, the line can get blurry.

For example, you might justify treating yourself to dinner at a restaurant because you had the worst day ever, even if the meal is going to exceed your “eating out” limits for the week or month. Remember, budgets don’t have to be a bummer. Allow yourself small adjustments here and there, but be sure everything adds up. If you spend more in one category, spend less in another. Easy peasy.

3. Not tracking your spending
Unless you can remember every single purchase you make throughout a budget cycle, review your spending regularly. If it’s hard to work this task into your normal routine, set a schedule for yourself, e.g. every three days, spend two minutes looking at your checking account activity. Super tip: setting reminders on your phone is an easy way to make this a recurring event. With our U-Banking platform, there are plenty of awesome savings tools you can start using today.

Whenever you see an expense you don’t remember or didn’t plan, make sure you add it to your total costs for the week, month, or whatever timeline you’ve set.

4. Failing to comparison shop
If you always take the first deal you find when shopping, you’re probably spending more than you have to. Next time, do a little comparison shopping to see if there’s a better offer. This is especially true if you’re buying online. With the intense competition between online retailers, it’s always worth your time to shop around for better prices.

5. You don’t automate your savings
Putting money into your savings account may be the most important part of your budget. However, if you transfer it manually, you may forget or avoid doing it because you’ve over-spent in other areas.

Savings The solution? Set up recurring transfers from your checking to your savings account through U-Banking. Designate a day (preferably just after you get paid) and a predetermined amount, then let technology do the rest. That way, you’ll always hit your savings goals every month.

Budgeting doesn’t have to be a chore or something you frown over. With a few thoughts and easy steps, you’ll smile when you notice the extra bucks at the end of your timeline.

Watch out for those Grinches this Holiday Season

https://waunafcu.org/blog/equifax-breach-part-2/ — Watch out for Grinches

The National Retail Association reports that 164 million Americans will go shopping this Thanksgiving week, including on Black Friday, Cyber Monday, and on Small Business Saturday and Sunday. All in all, the average consumer is expected to spend $967 this year.

So, whether you brave the mall, keep it local, or get caught up in the online shopping frenzy this holiday season, it’s important that you keep yourself safe from the bad guys out there.

Here are a few tips and tricks to help!

Spend Wisely

How much are you shelling out to spread that holiday cheer? Wauna Credit Union wants you to find that perfect gift, without spending yourself silly. Here are some simple guidelines:

Make a list of people you want to buy gifts for and stick to it.
Set a budget limit. As they say, “It’s the thought that counts.”
Use the best credit card. As a not-for-profit cooperative, we can offer lower interest rates on credit cards than many profit-driven financial services providers.

Protect your credit cards

As a smart consumer, you can shop with confidence this holiday season. But be weary of fraudsters and scams that are all too prevalent.

Keep a list of all your account numbers in a safe place, just in case you need to report it if one is lost or stolen.
At the cash register, protect your PIN by blocking the keypad from view of others. We suggest resting your fingers on other keys as you enter your PIN.
Do not use public wireless networks for online purchases.
Use our online account monitoring service and immediately report any suspicious activity to us.
Shop on sites with https:// in the URL, and be sure that an icon with a lock appears to the left. The “s” stands for “secure” and indicates communication with that site is encrypted.
Type the merchant’s address directly into your browser; avoid links.
Use complicated passwords with at least eight characters. Include numbers, special characters, and upper and lower-case numbers.
In addition, keep the antivirus and security software updated on your computers and mobile devices.
We also recommend that you don’t store your payment information on shopping sites or shopping apps.
Finally, take a look at our guide concerning the Equifax breach as well. You can view it here.

Shop Safely

Don’t let the Grinch steal the whole season either. When you go shopping, park in well-lit areas. Walk to and from the stores with your head up and be watchful. Thugs look for people who are not paying attention. Keep your keys in your hand so you can hit the panic alarm if you need to. Unfortunately, ‘tis the season for pickpockets, too. Probably a good idea to keep wallets in zipped purses and front pockets.

Compare Online Deals

What a wonderful time-saver online shopping is! We know a lot of sites will claim to have great deals, particularly on Black Friday and Cyber Monday, but they may not have the lowest price. If you find something you like, do a little comparison shopping by using sites such as Google Shopping or Pricewatch.com.

Give Yourself a Gift

Invest in “you” this holiday season because hey, you deserve it. Open a new savings account, take financial education classes, or look for low interest loans to help you achieve your financial dreams this coming year. Come see us or visit us online for all of those dreamy possibilities.

7 Bad Financial Habits You Need to Break Right Now

Bad money habits are more difficult to steer out of than other automated behaviors like driving a car. Why? Financial peace of mind is a much more subtle reward than the satisfaction of navigating a half-ton piece of metal through city streets without death or injury.

Still, every person who is good at money learned good habits, which means you can, too. “What we know from lab studies is that it’s never too late to break a habit. Habits are malleable throughout your entire life,” Charles Duhigg, author of “The Power of Habit,” told NPR.

Here are seven financial habits you should break before you go broke. Young Millennial in red hoody running down an empty road

1. Stop spending more than you earn

Who do you think you are, the U.S. government? America’s fiscal deficit is projected to be $559 billion in fiscal year 2017, according to the Congressional Budget Office.

How is your own personal deficit? About one in five Americans spend more than they earn and 38% break even, research from the National Financial Capability Study shows. Your goal must be to join the 40% of Americans who spend less than they earn.

2. Stop ignoring your bills

Here’s how not to handle your obligations: When a collection agency calls, you pay the bill. This kind of financial firefighting only guarantees you’ll veer from crisis to crisis as your credit score burns.

Payment history carries huge weight on your financial future; more than one-third of your credit score is judged by your ability to pay your power bill, car insurance and credit cards on time. If you can’t, work out a payment plan with your creditor before it goes to collections.

3. Stop using your credit cards like free money

Credit cards are a weapon in your financial arsenal. Like all armaments, they can be used in strategic defense or to shoot yourself in the foot. Too often, it’s the latter — the average U.S. household with credit card debt has $16,748 of it.

Lady looking in window That plastic in your pocketbook is the greatest enabler of bad money habits, allowing you to spend on a whim and forsake all budget plans. Sticking to a budget should be your most faithful money habit.

4. Stop thinking you’re not smart enough

Today, consumers must take control of their own financial lives, whether it’s understanding health insurance or guiding their own 401(k) plans to invest for retirement. Even so, during the rollout of the Affordable Care Act, many consumers struggled to understand basic health insurance terms such as “deductible,” a survey by the Kaiser Foundation found.

Learn the lexicon of finance to manage your money better.

“I used to catch myself saying, ‘Investing is hard. I just don’t understand it.’ This gave me permission to avoid learning how to invest,” wrote Ann Marie Houghtailing, author of “How I Created a Dollar Out of Thin Air.” “Now I say, ‘Investing is a skill. You just have to start small.’”

5. Stop making it hard to save

Old habits die hard, and one of the oldest habits is using checks to pay bills or make savings deposits. “Personal finance habits take longer to change than the way you might switch from one smartphone to another. That’s because money is so important to us,” Fred Davis, a professor of Information Systems at the University of Arkansas, told Marketplace.

Set up automatic transfers for bill payments. Also automatically have 10% or more of your paycheck sent directly to your savings account. These two steps will go a long way toward building good money habits and credit scores with little effort.

Two young men giving Spock Live Long and Prosper s

6. Stop complaining about your paycheck

Whatever energy you’re spending complaining about the size of your paycheck takes energy away from finding ways to improve your bottom line. Think you’re being underpaid? Negotiate a raise or at least talk with your boss to understand what’s needed to see a bump in pay. If you’re valued, your supervisor will see the implicit threat that you may leave for a higher-paying job. Start looking for that more lucrative gig while you’re at it.

In the meantime, investigate ways to build other streams of income and seek ways to improve your skills.
7. Stop thinking more cash brings happiness

OK, money does bring happiness, but only to a point. Purchasing experiences and giving to charity have a much longer shelf life for our well-being, research suggests.

Replace bad habits with good ones

Breaking your go-to financial routines will take time and effort. Subbing in habits that improve your bottom line — paying bills on time, using technology and Woman sewing increasing your income and savings — will be worth the work in the long run.

5 Financial Resolutions for the New Year

A brand new year provides the perfect opportunity to make meaningful life changes, including improved financial wellness. These five financial resolutions can help get your year off to a promising start.

1. Get on budget

Take charge of your finances by creating a budget. Start by calculating after-tax income and subtracting fixed monthly expenses. Then allocate portions of the remaining income for savings, important goals and a few things that just make you happy. If this sounds complicated, relax; today’s user-friendly budget apps can take a lot of the pain out of the process. To further simplify money matters, consider setting up automatic bill pay, an automatic savings plan and separate savings accounts for specific goals.

2. Build an emergency fund

Without a solid cushion, any unexpected job loss, medical challenge or serious property damage could lead to lasting financial hardship. An emergency fund with three to six months’ worth of expenses can protect your standard of living and offer peace of mind. Commit to making consistent deposits to this fund even if you can only spare a small amount each month. Because you may need to tap into emergency cash at a moment’s notice, choose a vehicle that gives you easy access, such as a savings or money-market account.

3. Prepare for retirement

Retirement may not be on the immediate horizon, but when the time comes it may well last 20 years or more. You’ll probably need somewhere from 70 to 90% of your final-year income for each year of retirement, and it’s unlikely that Social Security will be sufficient. Saving such a sizeable sum takes decades, so it pays to start early. Put as much as you can afford into tax-advantaged Roth or traditional IRAs, and if your job provides a 401(k) plan, contribute the maximum employer-matched amount.

4. Improve your credit

You likely know that credit scores affect financing approval and interest rates. But the influence of those three little numbers actually stretches much further. Prospective employers and landlords frequently check credit, so low scores may mean missing out on the best jobs and apartments. Credit scores also may affect insurance premiums, mobile phone offers, vacation costs, and even whether utility hookups require a cash deposit. For top scores:

Pay all bills on time.
Keep credit card balances at no more than 20% to 30% of the credit limit.
Carry a mix of debt types such as credit cards, auto loans and personal loans.
Monitor credit to catch and correct any errors or problems.

5. Knock down debt

Even with a great job, high-interest debt can sabotage financial health. To dig out from under this burden, consider concentrating efforts on your highest interest debt first while continuing to make timely smaller payments on all other obligations. When the first balance is satisfied, focus on the most expensive remaining debt and continue this way until you’re debt-free.

If debt from multiple sources is unmanageable, debt consolidation may help you regain control. This approach streamlines debts into one payment, often with reduced interest and a lower monthly cost. Depending on your individual situation, home equity financing, personal loans or zero interest balance transfer credit cards may be effective debt consolidation choices.

Smart money resolutions boost financial stability not just immediately but over the long haul as well. The bonus takeaway is the confidence that all life’s remarkable milestones and challenges won’t break the bank.

Another great blog from our friends at Nerdwallet!