Step 2 of 12 to Financial Wellness: Creating a Budget
Now that you’ve tracked your spending and kept a careful record of where your money goes over the course of a month, you’re ready to move on to the next step of financial wellness: creating a budget. Budgets play a crucial role in promoting financial awareness, which then helps to facilitate more responsible money choices. This discipline will benefit you individually, as well as all who are part of your household. Let’s get started by taking a look at how to create a budget and review some popular budgeting systems and how they work. Create a budget in 5 easy steps Budgeting systems While every kind of budget involves tracking expenses and committing to a maximum spending amount each month, there is a wide range of budgeting systems to fit every kind of personality and money management style. The traditional budget doesn’t involve much more work than the steps described above. After working out a number for every expense category, you’ll simply need to track your spending throughout the month to ensure you’re sticking to the plan. You can use a spreadsheet for this purpose, or utilize one of the popular budgeting apps, like Mint or YNAB, and do it digitally. The money-envelope system works similarly. However, instead of simply committing to sticking to your spending amounts for each expense category, you’ll withdraw the amount you plan to spend on all non-fixed expenses in cash at the start of the month. Divide the cash into separate envelopes, using one for each of these expenses. Then, withdraw cash from the appropriate envelope when making a purchase in that category. There’s no way to blow your budget with this system; when the money in the “Dining out” envelope runs dry, that’s all for this month! The 50/30/20 budget is simpler but requires more discipline. Set aside 50 percent of your budget for your needs, 30 percent for wants, and the remaining 20 percent for savings. Of course, you’ll need to make sure your income and expenses will work with this kind of budget. Does 50 percent of your income cover your needs? If yes, this budget allows for more individual choices each month and less accounting and tracking of expenses. A well-designed budget can provide its creator with a sense of financial security and freedom. When you stick to a budget, you’ll always know you have enough to get through the month and save for the future. Start budgeting today!
How to Celebrate Valentine’s Day on a Budget
Love is in the air and the money is flowing like heart emojis. According to the National Retail Federation, the average American spends $221.34 on Valentine’s Day each year. That’s a lot of money to spend on a one-day celebration!
Lucky for you, there are ways to enjoy a romantic evening with your partner without going into debt. Here’s how: Work with a budget Instead of spending mindlessly and regretting it afterward, designate a budget for all your Valentine’s Day expenses, and be sure to stick to it. In addition to helping you keep costs under control, working out a budget in advance will allow you to choose how to spend your money. You may decide to spend more on a gift and less on dinner, or maybe you’d rather skip both of these and splurge on a fun activity instead. Best of all, a preplanned budget means there will be no regrets spoiling the memory of your special day. Shop smarter with a sales app Check out shopping apps, like ShopSavvy or PriceGrabber, to score deals on that dream Valentines’ Day gift. The apps help you compare prices at online and in-store retailers, locate coupons for items you’re searching for and even bring up cash-back options to put money back into your wallet. Why pay full price when you don’t have to? Save on flowers Did you know that Americans spend close to $2 billion on Valentine’s Day flowers each year? Save on those beautiful blossoms with these tips: Bring down your dinner costs Don’t break your budget on a romantic dinner for two. First, consider dining in. Yes, we know your kitchen table isn’t the hottest place in town, but you can find another area in your home and turn it into a special spot for a special meal. Consider laying down a blanket in front of the fireplace for a picnic-inspired experience, moving a small table into the living room or even setting up a cozy corner in a rarely used room in your home, such as a storage room or guest bedroom. Cook up a storm, or order in — you’ll still save on restaurant costs by forgoing beverages, gratuities and other add-ons you end up blowing money on when you eat out. If you or your loved one are really looking forward to dining out, make it less expensive by learning how to beat the psychological tricks that restaurateurs play on diners to get them to spend more: Make something homemade Make a special treat for your special someone. Check out our video HERE to see how easy it is to make chocolate-covered strawberries and pretzels. Celebrate late If you dare, postpone your Valentine’s Day celebrations by a day or two for steep savings on all related expenses. You’ll find Valentine’s Day candy and greeting cards on clearance, gifts already marked down, and you won’t have to pay inflated restaurant prices for the same meal. Use these hacks to plan the perfect Valentine’s Day on a budget.
Leaving Your Job? Make Sure Your Wallet is Ready
One of the many pandemic’s lasting effects on the U.S. economy is the so-called Great Resignation of 2021. Employees are voluntarily leaving their jobs in droves. In fact, according to data from the Bureau of Labor and Statistics, a whopping 20.2 million workers left their jobs from May 2021 through September 2021. Reasons for the high turnover range from the availability of federal economic aid to general burnout, which reached a turning point during the pandemic. If you are considering becoming a part of the Great Resignation, it’s important to make sure your finances are in order before you give official notice at your job to cover any gaps in employment. Below, we’ve outlined some important steps to take before you leave your job. Review your savings Before giving up a steady paycheck, make sure you have enough savings to tide you over until you find new employment. Ideally, you should have an emergency fund with 3-6 months’ worth of living expenses to help you survive periods of unemployment, such as when you’re between jobs. If you don’t have this kind of money saved up, consider pushing off your resignation until you can put together a nest egg to help you get by without a paycheck. Check your benefits If your job includes employee benefits, like retirement funding, be sure to review them carefully before giving notice. Here are different options to consider for the most common employee benefits: Assess your risk tolerance Before accepting a new job, make sure you can handle a possible blow to your income. Many jobs will present new employees with the possibility of better pay in the future, while initially only offering a starting salary. How comfortable are you taking a risk with a new job that doesn’t guarantee as much financial security? Adjust your budget for your new salary If your new job comes with better pay, or you’ll be bringing home a smaller paycheck for now, you’ll need to adjust your budget accordingly. You may want to increase the contributions you make toward your investments or find a new place to park your cash, such as an SRI Federal Credit Union Savings Account, for the extra income while you decide on a more permanent strategy. On the flip side, if you’ll be earning less money now, look for ways to trim your budget so your paycheck can stretch to cover all your expenses. Leaving an old job and looking for a new one can be an exciting opportunity, but it’s important to make sure your finances are in order before taking that leap. Follow the tips outlined here before giving notice at your place of employment to ensure ongoing financial security.
Helpful Environmentally Friendly Tips for Saving on Heating Costs
As the outside temperature falls, we raise the temperature inside, and with it, heating costs go up, too. While peaceful white snowfall may be picturesque, the winter utility bills are not quite as pretty.
If you’ve been to a gas station or store recently, you’ve seen first-hand how the 6.8% inflation rate is affecting prices on just about everything nowadays. The smaller supply along with increased demand for fuel will really hit home as a result. Almost half of U.S. households use natural gas heat as their primary fuel source, which costs over 25% more than last year, and consumers are projected to spend 30% more than last winter, on average. The 41% of U.S. households that heat with electricity, which is up 6.5%, are slated to spend 6% more, according to the Winter Fuels Outlook 2021 report from the U.S. Energy Information Administration. The 4% of households that heat mostly with heating oil, or the 5% who use propane, could see even bigger cost hikes, between 43-54%. While we can’t change the weather or the economy, we can change our habits to be smarter for our budget and more environmentally friendly. Here are some practical ways to keep more heat inside your home and more money inside your wallet. Following a few of these easy-to-implement tips and hacks for saving on heat costs can make a big difference. Put them to good use so you can sit back and enjoy a cup of hot cocoa during this cold winter, content that you are staying warm and also saving money.
12 Steps to Financial Wellness-Step 1: How to Track Your Spending
Tracking your spending is the first step toward greater financial awareness and overall financial health. But, mastering this skill is easier said than done. How can you track every dollar you spend when you make multiple daily purchases? We’ve outlined how to track your spending in 3 easy steps. 1. Choose your tools Tracing every dollar’s journey isn’t easy, but with the right tools you can make it quick and simple. Choose from one of the following money-tracking techniques: 2. Review your checking account and credit card statements carefully Along with one of the tools listed above, you can track the purchases you make with plastic by reviewing your monthly checking account and credit card statements. You can access these online by logging into your account and downloading. 3. Review and categorize your purchases At the end of the month, use your chosen tool to review all the purchases you’ve made throughout the month. When completing this step, don’t forget to include any automated payments you rarely think about, such as subscription fees and insurance premiums. Use the tips outlined here to successfully master the skill of tracking your spending. Stay tuned for more steps
New Year, New Money Habits: How to Stick With It in 2022
If you’re like most people, you likely start each year with a list of resolutions to help you improve various aspects of your life. The list may include resolutions to help you become more physically fit, further your career growth and improve your personal relationships. Another category of resolutions you may make centers on those that affect your finances. If the latter is true, there’s probably a good chance that your list of resolutions for the new year looks the same, year after year … after year. Yes, it’s easy to come up with ways you can improve at year’s end, but seeing those resolutions through and actually making them happen is another story entirely. Spend less, save more, pay down debt — how can you make 2022 the year you actually stick to these and other financial resolutions? Below, we’ve compiled a list of tips that can help you keep your financial resolutions throughout the new year. Set measurable goals Don’t just resolve to be better with money this year. Set realistic, measurable goals to help you stay on track and to ensure you’re actually making progress. For example, you can resolve to increase your spending by a certain amount by the time you hit the mid-year point, decide to trim your spending in a specific category by a set percentage or promise to pay all your bills on time for the entire year. Bonus tip: To make it easier, keep those goals SMART: Specific Measurable Achievable Relevant Time-based Spend mindfully Creating a budget can take some time and lots of number crunching, but it’s not the real challenge of financial wellness. The hard part comes when you’ve got to actually stick to that budget and make it part of your life. And one reason many people don’t end up keeping their budget is because they spend money without consciously thinking. Resolve to be more mindful about your spending this year, which means actually thinking about what you’re doing when you swipe that card or hand over that cash to the cashier. You can accomplish this by taking a moment to think about what you’re purchasing and how much you’re paying for it. You can also set yourself up for better success by staying off your phone while you complete your in-store transactions. Bonus tip: To make this easier, use this calculator to determine how much you actually earn in an hour, and to see how much of your work time you’re “spending” when you make a large purchase. Is it really worth the price? Partner up with a friend According to MyFitnessPal.com, dieters who share their food diaries with a buddy lose twice as much weight. It’s basic psychology: When we know we have to answer to someone else, we’re more likely to stick to our resolutions — and this works for financial resolutions as well. Choose a friend who is in a similar financial bracket as you are and has a comparable relationship with money. Also, it helps if they have similar resolve to set and stick to those financial resolutions together. Set up a weekly time to review progress (or regression) you each have made, and make sure you both come prepared with details and proof to show how you’ve handled your money. Bonus tip: To make it even easier, you can use a money management app, like Mint, to help you track your spending, find your weak areas, and stay accountable for your friend. Write it down In an era where some people can go without touching a pen and paper for days, writing down New Year’s resolutions can seem obsolete, but that doesn’t mean it shouldn’t happen. The act of putting your financial resolutions into writing will help to imprint them on your memory. Plus, you’ll have a list of your resolutions to reference throughout the year to help keep you on track. Bonus tip: Writing doesn’t need to be physical in order to count. You can use a resolution-tracking app, like Strides, where you can record, track and reference your New Year’s resolutions at any time with just a few quick clicks. Sticking to your financial resolutions isn’t easy. Follow the tips outlined here to make 2022 the year you truly get your finances into shape.
Don’t Answer Calls from These Area Codes
Robocalls have got to be one the most annoying inventions of the 21st century. Unfortunately, those phone calls can do a lot more than disrupt your dinner to send you running to the phone just to hear about an offer for an extended warranty on your car. Using sophisticated spoofing methods and dogged persistence, they can swindle unsuspecting targets out of hundreds, or even thousands of dollars, using nothing but a phone. In fact, according to data from Trucaller, Americans lost close to $30 billion to phone scams in 2020. Technology has made it far too easy and cheap for scammers to place a huge number of robocalls in seconds. New robocall platforms can make up to 5,000 simultaneous calls a second for as little as a dollar. Even if only 10 of these phone calls have their desired effect on the targets, the scammers have pulled in a solid profit. Here’s what you need to know about phone scams and how to avoid them. Traffic pumping According to federal law, rural carriers are allowed to charge wireless and long-distance carriers higher fees for calls to local subscribers. To earn a quick buck – or a few hundred – rural carriers partner up with chat lines, adult entertainment numbers and “free” conference call service providers, as well as other numbers that are based overseas. Their goal is to artificially inflate the call volume in the home area codes of the rural carriers so they, in turn, can bill the wireless and long-distance companies an exorbitant amount of money and give the chat lines a kickback, too. This is known as “traffic pumping.” The bad news for private consumers is that their wireless or landline provider will pass the higher cost structure onto them. Sometimes, the caller will be warned of a higher charge, but other times, the consumer will believe these calls are completely free – until the bill arrives. Area code alert: The 712 area code and the 218 area code are infamous for traffic pumping. The one-ring scam In this ruse, scammers use robocalling technology to call wireless numbers and hang up after only one ring. The scammers are hoping the target will be curious and careless enough to return the call. If they do, they will likely be calling a number in the Caribbean, which can cost them up to $30 a minute. A prevalent one-ring scam that originates in Japan brings that cost up to $50 a minute! Whenever you receive a call from an unfamiliar number, it’s best to let it go to voicemail instead of picking up. Curious enough to return a one-ring call? First Google the number to see who the caller is. If it’s a scammer, you’ll likely find some warnings posted online when you look up the number. Area code alert: The FTC warns consumers about returning one-ring calls from these area codes: When an unfamiliar number comes up on your phone screen, you’re better off waiting for a voicemail to determine if you have a legitimate caller before calling it back. You can also Google the phone number itself. If the number is a scam, chances are good that others will have posted warnings about it online. Protect your phone If the robocalls are driving you crazy, there are steps you can take to limit the amount that reach your phone. First, place your number on the Do Not Call list. You can also reach out to your phone service provider to ask about robocall blocking functionality they may offer, though you may need to pay for this extra service. Finally, consider using a robocall-blocking app, like Hiya, YouMail or RoboKiller. Think twice before picking up the phone from an unknown caller, or returning a call from an unfamiliar number. Stay safe!
‘Tis the season to shop until you drop-or until you go broke. But you don’t have to overspend.
There’s no need to rack up a huge credit card bill or go into debt just to cover your holiday expenses. Enjoy a stress-free season by keeping your spending in check with these six tips: 1. Create a detailed list of all your expenses Don’t leap into your holiday shopping armed with nothing but a credit card. Before you hit the mall or start browsing, sit down and draw up a complete list of every holiday expense you can anticipate. Include all gifts, holiday décor, travel expenses, charitable donations and food costs. Try to keep this list as trim as possible by cutting out any non-essentials and using stuff you may already have in storage from previous years. Bonus points for any homemade gifts! 2. Determine how much money you can spend Once you have all of your expenses written out, work on finding a magic number that will cover everything on your list and that you can realistically afford. Ideally, this money should come from funds you’ve set aside just for this purpose. 3. Divide and conquer Next, assign specific amounts of money in your budget for each expense category and for every person on your gift list. For example, you can decide to spend $300 on your preteen daughter’s gifts and to donate $100 to charity this season. Again, make sure your numbers will work from both a financial and practical perspective. 4. Track as you shop You’re ready to hit the mall! As you shop, keep a careful account of exactly how much money you’ve spent for each person and in each expense category. It’s best to use cash or a debit card when shopping and to review your budget often to make sure you’re staying on track. This way, you’ll know how much you’re spending and you won’t be hit by awful “Santa shock” come January when you need to pay those credit card bills. To make this job easier, use an app designed for this purpose. A common favorite is one called Santa’s Bag. The app allows you to set a budget for each person on your list and then makes tracking the amount you spend super simple. It will even warn you when you’re nearing your preset spending limit or when you’ve gone over budget. 5. Shop smartly and spend less Keep your spending to a minimum by following these hacks: 6. Let SRI Federal Credit Union help If you’re having trouble covering your holiday expenses, or you want to get a head start on next year’s costs, let SRI Federal Credit Union help! Here are three ways we can take the financial stress out of the holiday season: Don’t let financial stress ruin your holiday cheer this year. Follow our tips to keep your spending down, and stop by SRI Federal Credit Union to see how we can help!
Thanksgiving Hacks To Save Time, Stress And Money
Thanksgiving prep stressing you out? Wondering how you’re going to get everything done in time for the big day and stick to your budget at the same time?
We’re here to help! Whether you’re traveling home for the holiday or hosting a houseful of guests, we’ve got you covered. SRI Federal Credit Union is proud to present 15 clever Thanksgiving hacks to save you time, stress and money as you prepare for Turkey Day. 1. Book your flight early If you’re flying home for Thanksgiving, book your flight as early as possible – preferably in September. According to travel app, SkyScanner, booking a Thanksgiving flight in September can save you 4 percent off the ticket price. 2. Travel light You likely won’t be gone for long. Plus, if you’re going home, you can always dig up something to wear if you haven’t packed for every occasion. Why waste all that time packing and pay for extra bag-checking? 3. Get an accurate guest count as early as possible If you’re hosting, this should be your first step – even before you start thinking menus and recipes. Find out exactly how many guests you’re expecting for Thanksgiving dinner so you don’t overcook or need to run out at the last minute for more groceries. 4. Plan your menu early Draw up an exact menu as early as possible before you start stocking up on ingredients. This way, you won’t pick up random food items just in case you may end up needing them. 5. Take stock of your pantry and fridge before shopping Don’t buy a thing until you know what you already have at home, this way you won’t be unpacking three cans of pumpkin filling from your grocery bag only to find you already have four cans sitting in your pantry. 6. Shop early and shop the sales Most supermarkets spread their sales weeks before the big day.. Save big by picking up what you need, as it gets marked down in the weeks leading up to Thanksgiving. As always, be sure to monitor coupon sites like Coupon.com, Flipp.com and RetailMeNot, as well as local circulars, to see what’s on sale before hitting the stores. 7. Use a cooler as a fridge As you cook your way through your menu, refrigerator space will become a precious commodity. Make room by using a cooler to store bottles of salad dressing and condiments you don’t need for Thanksgiving. Fill the cooler two-thirds of the way with ice so your banished foods don’t go bad, and keep it in the garage until your fridge is roomy once again. Use the space these items leave behind in your fridge to store the dishes you’ll need for the great feast. 8. Use pennies instead of pie weights You need to pre-bake your pie shells before filling them, but you don’t want the shells to puff up and crack. Professional bakers recommend using a pie weight to keep this from happening, but there’s no need to waste money on yet another kitchen gadget. Instead, line your pie shell with foil and then fill the center with pennies or dried beans to keep the dough weighed down as it bakes. 9. Keep your mashed potatoes in your slow cooker No one wants cold and lumpy mashed potatoes with their turkey, but how do you keep yours soft and smooth when every burner on your stovetop is occupied in the hours leading up to Thanksgiving dinner? With this hack, of course! After preparing your potatoes, spread some butter on your slow-cooker insert, add some heavy cream or milk and then pour in the potatoes. Keep the temperature low and stir occasionally to keep the spuds soft and creamy. 10. Use aluminum foil instead of a roasting rack There’s no need to rush out and buy a pricey roasting rack so your turkey can cook evenly. You can get the same results by fashioning a rack out of aluminum foil. Twist some foil into thick ropes and weave them across the bottom of your roasting pan until they’re strong enough to hold your bird. 11. Spray-paint plastic fruit instead of springing on expensive décor You can find fake fruit for super-cheap at dollar stores-or you may already have some at home. Spray-paint the fruit in gold, silver or any colors that match your décor for a festive look that doesn’t break the budget. 12. Buy a frozen turkey Frozen turkeys are a lot cheaper than their fresh counterparts, and if you prepare it well, no one will be able to tell the difference. 13. Buy in bulk You can save a ton on your ingredients by buying in bulk. If you can’t see yourself using up a mammoth sack of potatoes or an enormous amount of cranberry sauce, find a friend who is also hosting Thanksgiving dinner and ask about splitting the cost and the item. You’ll still save a ton off the regular price. 14. Skip the appetizer Appetizers can take a ridiculous amount of time to prepare, and you don’t want your guests filling up on miniature fried wontons before you bring out your turkey with all the trimmings. Consider skipping the appetizer this year and just starting with a tossed salad. 15. Cook most things from scratch Convenience is important, especially when your to-do list outpaces your available time, but some shortcuts are just not worth the cost. Instant mashed potatoes and store-bought gravy don’t come close to the authentic version and can be a real waste of money. Sometimes, though, if preparing something yourself means purchasing a pricey item for a small end-product, like pumpkin pie filling or cranberry sauce, you’re better off going with the premade stuff. If you don’t think you can possibly do it all without buying as much premade as you can, split the smaller items on your to-do list with a neighbor or a friend who is also hosting dinner, and share the goods. We promise not to tell your guests. Wishing you and yours a wonderful Thanksgiving holiday from all of us here at SRI Federal Credit Union.
4 Scams to Watch Out for this Black Friday and Cyber Monday
Black Friday has traditionally been the day that kicks off the holiday shopping season, sending hordes of crowds surging through malls and big-box stores all over the nation. Unfortunately, it’s also been a day that kicks off the season of shopping scams. Here are four scams to watch out for this Black Friday and throughout the holiday shopping season: In this ruse, a scammer posing as an Amazon representative will call a target to notify them about an alleged problem with their Prime account. The victim will be prompted to download a tool on their computer or mobile device. That “tool” will give the scammer remote access to “help them resolve the problem” that is at hand. If they comply, the victim will then be instructed to log onto their banking account, supposedly so the caller can be compensated for their time. Unfortunately, doing this will give the scammer direct access to the victim’s accounts. Phishing emails are nothing new, but they can be difficult to spot among the barrage of promotional emails flooding inboxes during this time of year. Here are two common variations of phishing scams: The coronavirus pandemic has forever changed the way Americans shop. It’s resulted in the volume of U.S. online purchases increasing steadily, according to the Census Bureau’s quarterly e-commerce reports. Scammers are well aware of this, and they’ve been quick to capitalize on the opportunities to pull off delivery scams, especially this time of year. Delivery scams generally take the form of a message appearing to be from UPS, FedEx or another delivery service, informing the victim of a “delivery issue” with an order. They’ll be asked to confirm or update their information with the provided link. Doing so will give the scammer access to their financial information and open the door to identity theft and more. In another variation of the delivery scam, a victim will be asked to pay a fee for covering a customs charge or tax. Of course, these fees are invented by the scammer, who will gladly pocket the money. Another scam whose prevalence has spiked with the increase in online shopping is the non-delivery scam, which involves a purchased gift that never arrives. The victim, likely lured in by an ad promising a super-low price on a desired item, rushed to complete the purchase without researching the seller. Unfortunately, the seller then disappears and the victim has no way of notifying them about the no-show or requesting a refund. How to avoid Black Friday scams Follow these tips to keep your shopping free of scams: Stay safe! Your Turn: Have you been targeted by a Black Friday scam? Tell us about it in the comments.
