Your grandson’s calling – and he’s in bigtime trouble! He’s been kidnapped and being held for ransom, so he needs you to wire over money ASAP.
Before you wire over anything, stop! You’re probably being scammed. Here’s what you need to know about emergency scams and how to protect yourself. How the scams play out In an emergency scam, a target gets a phone call, email or text message pretending to be a close relative. The caller will claim to have been caught in hot water, which can be anything: a kidnapping, an issue with the police, a car accident or getting stuck overseas with no money. The caller will then ask the target to send over money pronto, using a wire transfer or prepaid debit card. While emergency scams are commonly played out with a grandparent of an alleged caller, they can also target the parents, uncles, aunts and siblings of the “caller.” Unfortunately, if the target follows the caller’s directions by sending over money, these funds will go into the scammer’s pockets. Red flags Here are some signs that can alert you to the possibility of an emergency scam:
Protect yourself Follow these tips to help keep yourself safe from emergency scams:
Stay safe!
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Q: I’m newly married and I just found out my partner brought a lot of debt into the marriage. Am I responsible for it?
A: Saying “I do”, generally does not make you accountable for your partner’s debt. Here are all your questions about debt and marriage, answered. Am I responsible for my spouse’s credit card debt incurred before marriage? You won’t be held responsible for debt your spouse has incurred before your marriage. The only exception to this rule is if you become a joint account holder during the marriage. If you take this step, you will accept ownership of the debt and be held accountable for repayment. Am I responsible for debts my partner incurs during our marriage? Most states, generally referred to as “common law states,” use a set of common rules to determine if you are liable for debt in a new marriage. In these states, you will not be held responsible for debt incurred by your partner unless the debt accumulated from a joint purchase with your spouse or it benefited the marriage. The remaining states, known as “community property states,” have different rules to determine responsibility for a partner’s debt:
What are joint debts? Joint debts are debts for which you and your spouse are both responsible. They include the following when both partners’ names are on the debt or loan:
How does a prenup change things? If you and your spouse decide to sign a prenup, you can assign responsibility for debts to the partner who incurred them. This way, if the marriage ends in divorce, the other party will not be accountable for these debts. How can we effectively manage debt during marriage? As always, communication and transparency are key to success. Speaking openly about each of your individual debts and financial circumstances can help strengthen the marital bond and allow you to make informed decisions about your joint and individual finances. If you know that your partner is bringing a lot of debt into the marriage, consider taking steps to protect your financial health. For example, you may want to maintain separate accounts and work together to create a plan for paying down debt. Finally, you may want to seek professional advice for managing debts during marriage. Use this guide to learn the ins and outs of debts and marriage, as well as how to navigate them successfully. It’s your bank or credit union on the line asking for your account information – or is it? It may actually be a spoofing scam!
Let’s take a look at spoofing, how it works and red flags that can alert you to a possible spoofing scam. What is spoofing? Spoofing is the criminal act of disguising a communication from an unknown source to appear as if it’s being sent from a trusted and known contact. The ultimate goal of spoofing is to get the target to share their sensitive information and/or their money with the scammer. For example, a spoofer may pretend to represent a victim’s credit card company and lead them into sharing their account details. Types of spoofing Cybercriminals have a variety of ways to pull off their spoofing. Here are the more common forms: Email spoofingIn email spoofing, an attacker sends an email message that appears to be from a known or trusted source. The emails often include links to harmful websites or attachments that will infect the victim’s device. IP spoofingIn IP spoofing, an attacker tries to gain access to a system by sending messages via a bogus or spoofed ID address appearing to be from a recognized, trusted source, such as one on the same internal computer network. Caller ID spoofingHere, attackers make a phone call to a target that appears to be from a known caller. The scammer will often pose as the victim’s bank or credit union. The victim, believing they are speaking with a representative of their financial institution, will not hesitate to disclose their account information and passwords. Facial spoofing In this most recent form of spoofing, a scammer uses a photo or video of a target’s face to simulate their facial biometrics. This enables them to unlock accounts that can only be opened by facial recognition. Website spoofing In website spoofing, a scammer creates a bogus site that looks just like a reputable site the victim frequents. Attackers lure victims to this site to steal their login credentials and personal info. Text-message spoofingIn this scam, also known as smishing, a victim gets a text message on their personal device that appears to have been sent from a trusted source, such as the victim’s financial institution, place of work or doctor’s office. Deepfakes and spoofing Deepfakes is a relatively new and dangerous tool for spoofers. A deepfake is a fake image, video or audio clip that has been edited to appear authentic. For example, a scammer may create a deepfake video using an image and audio recording of a celebrity to make it appear as if they are telling you to open a link or support a specific cause. Protect yourself Spoofing is a formidable danger for consumers across the economic spectrum, but with the right tools and knowledge, you can avoid falling victim to these scams. Here’s how to protect yourself from a spoofing attack:
Red flags Look out for these red flags that can alert you to a possible spoofing attack:
Stay alert and stay safe! It’s that time of year again: Time to clean out those closets, polish that furniture and clear out that clutter! Spring is also the perfect time of year to review your saving habits and spruce up your saving goals.
Here’s how to spring-clean your savings in five easy steps. Assess your saving habits First, take stock of how much you’re putting into savings each month. If you believe you should be setting aside more of your monthly income toward savings, look for ways to cut back on your discretionary spending. Spruce up those savings! Consolidate and simplify accountsNext, take a look at the places you keep your money. If you have multiple savings accounts, retirement accounts or investment accounts, consider consolidating them to streamline your finances and reduce the hassle it takes to manage them all. Be sure to compare fees, rates and other features before making changes. Clean up those accounts! Reevaluate your financial goalsWhat are your long- and short-term saving objectives? Do you still want to go after them? If not, consider setting new ones. Think of your future wants and needs, as well as small pleasures you’d love to enjoy in a few years, or even in a few months. Get those goals sparkling! Automate your savingsNow that you have your saving goals clearly defined, it’s time to make it happen by itself. Set up automatic monthly transfers from your checking to your savings account(s) so you never forget to feed your savings. Make that monthly transfer shine! Use the IRFCU AppBring your savings into the 21st century with the power of the IRFCU mobile app. Our app will allow you to track your savings, review and analyze your spending habits and help you stick to your budget without fail. Taking your savings to the digital level will make you more likely to stick to your goals. Spiff up those saving apps! Spring is in the air – it’s time to make your savings sparkle! Q: What changes can I expect for my retirement accounts and plans in 2024?
A: Here are some changes for retirement plans you can expect to see in 2024: IRA and 401k contribution limits increaseContribution limits for traditional and Roth IRAs are going up in 2024. The limit on annual contributions to an IRA rises to $7,000, up from $6,500. Catch-up contributions for taxpayers aged 50-plus are subject to cost-of-living adjustments (COLA), but these limits remain unchanged for 2024 at $1,000. The boosted contribution limits for IRAs are only available to account holders having a modified adjusted gross income (MAGI) below the set threshold for the year. Contribution limits are also going up for 401k and other employer-sponsored plans in 2024. To read the full scoop on these changes, check out the IRS site. 529 plans can now be converted to RothsIn December of 2022, Congress passed the SECURE 2.0 Act, allowing for a portion of eligible 529s to be converted to a Roth IRA, tax- and penalty-free. Here’s what you need to know:
Starter 401k plans are coming Starter 401k plans, or simplified employer-sponsored retirement plans, are being introduced in 2024. These accounts have lower contribution limits than a standard 401k, but auto-enrollment is required. In addition, employers are not allowed to make contributions to the account. For 2024, Starter 401k limits are set at $6,000 annually, with an additional $1,000 catch-up contribution allowed for account holders aged 50 and older. Employees can contribute an extra $500 to their 401k plan in 2024. Also in 2024, there are more exceptions allowing employees to tap into their 401k plans early without getting hit with penalties – though these distributions are subject to taxation. Updates to full retirement age (FRA) and Social Security paymentsFull retirement age and Social Security payments will see some changes in 2024. First, Social Security payments are jumping by 3.2% due to COLA adjustments. Social Security recipients will receive an average of $1,907 per month, up from $1,848 per month in 2023. Retirees receiving survivors or spousal benefits will also see an increase in benefits. The maximum Social Security benefit will be boosted to $4,873 in 2024, up from $4,555 per month in 2023. In addition, the Social Security tax wage base will see changes. The government will only tax the first $168,600 you earn. Finally, in 2024, $1 for every $3 earned over $56,520 will be withheld for retirees who reach their FRA and hit that amount before their birthday. In addition, retirees earning over $22,320 and falling under their FRA will have $1 withheld for every $2 earned. Use this guide to learn all about the changes for retirement plans in 2024. Are you making any changes to your retirement accounts in 2024? Your home will probably be the most expensive item you’ll ever buy. That’s why it’s of utmost importance that you time your purchase right and learn the best time of year to buy a home. Of course, market conditions, like mortgage rates and the general state of the economy, will significantly impact the price of your new home as well. Here are the best times of year to buy a home.
Winter As the traditional slowest season for the real estate market, winter will generally bring the lowest prices on homes. As one of the few buyers on the market, you’ll also likely have an easier time negotiating a better deal with a seller. Finally, the professionals guiding you through the home-buying journey may be more available to work with you during this slower season, possibly making the process quicker. Buying a home in the winter is not all fun and games, though. First, fewer homes for sale means slim pickings for you. If you’d like to have a wider selection of homes to choose from, winter may not be the best time for you to go house-hunting. Depending on the area of the country you live in, you’ll also be checking out homes and properties in less than ideal conditions. In addition, you’ll have fewer daylight hours to get a feel for the home’s true curb appeal and the amount of natural light that shines into it. Late spring The real estate market really blossoms in the spring. This is the time of year when you’ll see a large influx of new homes on the market. The warmer weather and longer days are ideal for scouting properties, inspecting roofs and exteriors of homes, as well as getting a feel for a community. You’ll also have a robust inventory of homes on the market to choose from. However, shopping for a new home during the warmer months of the year means competing with many other shoppers who can be interested in the same homes you are. This can lead to higher prices, fierce bidding wars and the inability to negotiate for a lower price. Lastly, realtors and title agencies can be swamped during this time of year and may have less time to work with you, resulting in a lengthier buying process. Early summer Early summer is peak real estate season in the U.S., and often sees the most homes sold out of the entire year. The weather is still warm and the days long, making for ideal home-shopping conditions. Shopping for a home in the summer means shopping the homes that are left over from the influx of spring. You may have slimmer pickings, but sellers will also likely be more eager to sell before autumn and winter arrive. Use this guide to learn the best times of year to buy a home. Q: I’m reevaluating the ways I use my credit and wondering if I’m doing it right. Which purchases should I charge to my credit card?
A: Your credit score, which is the key to long-term loans at favorable rates, employment opportunities and more, depends on your credit card usage. You want to make sure you use your cards, but you don’t want to spend more than you can pay. In addition, there are some purchases that are best off being made on a credit card. Here are six purchases you may want to charge to your credit card: Electronics and appliancesIt’s a good idea to pay for big-ticket items, like electronics and appliances, with your credit card. This will provide you with an insurance of sorts on these purchases, such as doubling up on the offered warranty. Some cards also offer price protection, which covers the difference if the price of an item drops after you’ve bought it. Car rentalsHere, too, paying with a credit card can provide you with a level of insurance on the car. The insurance likely won’t be as robust as temporary insurance you might buy through the rental service, but it will probably offer some collision coverage at no extra charge. Purchases made abroadWhen traveling and making purchases abroad, a credit card is usually your best way to pay. Cash has the risk of loss or theft and debit cards may have fees for transactions that are made outside the country. They may not even be accepted at some vendors. Credit cards from well-known issuers, on the other hand, are accepted almost everywhere and are a lot safer to carry than large sums of cash. In addition, many credit card companies offer a favorable exchange rate. Fixed monthly billsIf you’re looking for an easy way to build credit, pay a fixed monthly bill, such as a subscription or payment for phone or internet service, on your credit card each month. This will ensure regular transactions are made on your card. As long as you’re paying your credit card bill on time or early each month, you will show a pattern of responsible credit usage! Online purchases When shopping online, you’re usually best off paying with a credit card. Unlike other forms of payment, credit card transactions are always traceable and provide some coverage for fraud. Mobile phone bills Another good candidate for credit card payments is your monthly mobile phone bill. Many credit card companies offer some coverage for phones that are lost, damaged or stolen if the card was used to pay a specific number of bills and the cardholder is up to date on their bills. Use this guide to learn which purchases to charge to your credit card. Q: How can I prepare my teen for their first job?
A: Preparing your teen for their first job will help ensure their entry into the working world is as smooth and successful as possible. Here’s how to help your teen get ready for their first job. Talk about their goals Help your teen hash out their goals before looking for their first gig. Sit down with them and ask what they hope to achieve with their job. Defining their goals and expectations will help your teen find and keep the job that suits them best. Find out if they’re eligible Depending on your teen’s age and the protocols of local businesses, your teen may not be able to work at an official position just yet. Many companies only hire employees who are age 18-plus. If your teen is underage, you can guide them toward an unofficial position instead of a real job, such as mowing lawns, walking dogs or babysitting for neighbors. Share salary expectations It’s important for your teen to know what kind of paycheck they can expect to get at their first real job. Explain to your teen that people working for 20 years will earn more than someone working their first job. Talk to them about work experience and how they can anticipate their earning potential growing with the passage of time. Resume polishing Draft a resume with your teen. Ensure it provides info on their education as well as their professional goals and aspirations. Include special skills they possess, along with any extracurricular projects they’ve been involved in and organizations they volunteer for during their free time. Job hunt and application process Once you’ve narrowed down your teen’s skills and work goals, talk to them about effective job-search strategies, such as checking online job boards, visiting local businesses and networking with friends and family. Encourage them to explore part-time, seasonal or entry-level positions that match their interests. Once they’ve found a few possible job options, guide them through the application process, including sending their resume and follow-up emails. Interview prep To help your teen prepare for their first job interview, review common interview questions they can expect and come up with responses that will leave the best impression. Talk about finances Once your teen has landed a job, it’s time to talk finances. Here are some work-related money topics you may want to cover:
Your baby is growing up too fast and wants to look for their first job! No worries; you can still teach them a thing or two. Use this guide to help prepare your teen for their first job. There’s little in life that’s more frustrating than a computer that won’t do its job. But sometimes, like your own private miracle, a message appears on your screen. It says: “Technical difficulties? Click here for assistance.”
Unfortunately, if you follow these instructions, you’ll probably fall directly into a scammer’s trap. Here’s what you need to know about technical support scams and how to prevent yourself from falling victim. How the scams play out In a tech support scam, a target will get an email, text message, pop-up or even a phone call allegedly from a computer technician who works for a well-known company. The “rep” will offer to help with any computer issues they may (or may not) have. They’ll direct the target to call a specific number or click on an embedded link, which will connect them to the “rep” who can supposedly help them. Once connected, the scammer will ask the victim to pay for the services before they’re rendered using a wire, prepaid gift card or cryptocurrency. Once the payment is made, the scammer disappears. Red flags of technical support scams
What you need to know about tech support
Protect yourself Don’t fall for a tech support scam! First, if you run into technical difficulties with your computer, don’t wait for a rep to contact you to offer assistance. Instead, directly reach out to a trusted company. Also, if you believe there may be a problem with your computer, update its security software and run a scan to identify any potential problems. Finally, never provide an unverified contact with access to your device. If you’ve been targeted If you believe you’ve been targeted by a tech support scam, here’s how to mitigate the damage. If you’ve given a scammer remote access to your computer, update your computer’s security software, then run a scan and delete anything that’s flagged as a problem. If you’ve shared your login credentials with a scammer, change all your passwords. You’ll also want to report the scam to the FTC. Stay safe! Q: Should I start investing if I have debt that I am paying off?
A: Here are questions that can help you determine whether you should start investing before getting rid of your debt and various factors to consider when making this decision. How high is your interest rate? Your first consideration when making this decision is the interest rate on your debt. Credit card debt tends to hover at 20%, on average. The stock market, in contrast, has historically returned 10% for investors. When you run the numbers, investing money you could otherwise use toward paying down high-interest debt will generally not make sense. This is especially true when interest rates on credit cards are currently rising. If the interest rate on your debt falls under the 10% mark, it may be worthwhile for you to start investing while still carrying debt. Read on for additional considerations first, though. How much outstanding debt are you carrying? If your debt is so large it’s impacting your budget and making it difficult for you to get through the month, you’ll likely want to pay it off before you begin investing. Carrying a large amount of credit card debt can negatively impact your credit score. What kind of debt are you carrying? Not all debt is created equal. There are some good kinds of debt, which will ultimately increase your net worth or earning power. These include mortgage loans, auto loans, home equity loans that are used for home improvement projects and student loans. On the flip side is bad debt, which will not boost your equity or earning power, such as credit card debt and most personal loans. If you want to start investing but you’re still paying off your mortgage or your auto loan, don’t let these hold you back! As good debt, these loans should not have a negative impact on your credit score and general financial health as long as you continue to make full and on-time payments. What is your retirement timeline? It’s never an ideal time to carry outstanding debt, but it’s especially not recommended to bring debt into retirement. If you’re nearing the end of your working years and you’re still carrying debt, it’s probably best to work on paying it off before you begin investing. How can I invest and pay down debt? The good news is, you don’t necessarily need to wait until you’ve finished paying off all your debts before you begin investing. If you aren’t carrying a large amount of high-interest debt, here’s how you can start investing while paying down debt:
Use this guide to learn when and how you can start investing while still paying down debt. With the right tools and information, building a budget can be quick and easy. Here’s how to create a simple and practical budget for the time-strapped consumer.
Review your income and expenses Most budgeting plans recommend tracking income and expenses for three months. If you’re pressed for time, though, you can choose to look at one month and review your spending and income throughout this time. Review your checking account details and credit card statements to see where your money went and what funds came in. Compare income and expenses Hold up your two numbers from the previous step and see how they compare. If your income outweighs your expenses, you’re doing great! If it falls short, you’ll need to trim your expenses in the next step or look for ways to boost your income. If the numbers balance each other out, it’s still a good idea to trim expenses to leave some budget wiggle room. Assign a dollar amount to every expense category Next, review the ways you spend your money and assign a dollar amount to each category. Include fixed and changing expenses as well as savings contributions. If you’re pressed for time, you can make your categories more broad. For example, instead of setting a separate number for groceries, work lunches and dining out, you can set a larger number for all monthly food expenses. If your income does not cover your expenses, or just barely covers them, look for ways to trim the fat however possible. Jot down your dollar allocation on paper, or create a digital version of your budget and upload it to your personal devices for easy access. Use technology Harness the power of technology to help you track and manage your expenses well. A budgeting app can make tracking your monthly spending super-easy. You can upload your budget to the app and track expenses throughout the month. The app will let you know how much you’ve spent in each category and warn you when you’re approaching the limit. Live with your budget You’re ready to live with a budget! Remember to keep your monthly expense categories in mind as you spend throughout the month. If you find it too hard to keep track of your spending throughout the month, the money envelope system can make it easier. Simply withdraw cash amounts for each non-discretionary expense category in your budget at the start of the month and only use the money in these envelopes to pay for these costs throughout the month. Review and adjust Your budget is up and running! Review your spending plan regularly to see if it’s still working for you and adjust as needed. Budgeting doesn’t have to take a lot of your time or be overly complicated. Use this guide to learn how to create a practical, easy budget that works. In today’s world, where many people spend hours of each day browsing the internet, staying safe online is paramount. The web is rife with scammers employing sophisticated tactics to get at your money and information. Fortunately, with protective measures, you can easily avoid unsafe websites.
Here are six ways to tell if a website is safe. Look for an SSL certificate Secure websites have an SSL, or a Secure Sockets Layer. An SSL is a digital certificate that verifies a website is authentic and will automatically encrypt all personal information and financial data. There are two primary indicators of an SSL, and both are clearly visible in the site’s URL:
Evaluate the URL structure Review the URL carefully. Are there misspelled words? Does the URL mimic a well-known site? Scammers often lure victims by creating bogus sites that look like they represent well-known companies. However, careful scrutiny of the URL will reveal basic spelling errors that give the scam away. Look for the company’s contact info Legitimate companies are eager to have you connect with them for any reason. They’ll generally display their contact info on their home page or provide a link for easy access. Scammers, on the other hand, try to keep themselves as invisible as possible. You likely won’t find any tabs that say “Contact Us” or “About Us” on their website. Check the spelling and graphics Authentic companies will take the necessary steps to make a professional impression on site visitors. Scammers, on the other hand, will not. Use their carelessness to your advantage by looking out for spelling mistakes and typos throughout the site. You can also be on the lookout for cheap design elements, including recycled images and logos that are poorly created. Each of these clues can signify a scammy website. Heed your device’s security warnings If you put a site’s address into your computer, and a warning pop up alerting you that the site you’re attempting to access is unsafe, don’t ignore it. Unless you’re absolutely sure the site is secure despite the warning, it’s best to not advance to the site. Opt out of sites that flood you with pop-ups Scammy websites will try luring you into downloading malware through pop-ups and embedded links. Sometimes, the links will be used to generate ad revenue through clicks. Whatever the intent, it’s important to know that reputable sites will not flood your screen with pop-ups and random links for you to click. If you encounter a site like this, you’re likely looking at a scam. Exit the site, close your browser and have your security system run a scan on your device. Stay alert online and stay safe! It’s tax refund season! How are you going to be spending the pile of cash that Uncle Sam’s giving back?
Before you blow your refund on a sinfully expensive weekend, take a step back and try to determine the best approach you can take with this money. To help you get started, we’ve compiled this list of eight financially responsible ways to use your tax refund this year. 1. Build or boost your emergency fund Having a strong emergency fund is a crucial part of your financial health and stability. If you don’t have a fund with three to six months’ worth of living expenses set aside to cover unexpected events, work on setting one up now. Use some of your tax refund to start building your emergency fund or boost an existing one. 2. Pay down high-interest debt High-interest debt can kill the best of budgets. If you’re carrying outstanding debt with high interest, consider using some of your tax refund to pay it down. 3. Invest in your educationIf you’ve been looking for a way to advance your career and increase your earning potential, this may be your chance. Consider furthering your professional education by allocating some of your tax refund to career workshops, conferences or additional certifications. 4. Feed your savings It’s always a good time to boost your savings, and tax refund season is no exception! Set aside a portion of your refund for your long-term savings to help you get closer to your financial goals. 5. Prepay your mortgageMaking an extra mortgage payment or two can be a great way to free up some money for the long term. Reducing the principal can have an exponential effect on your loan since so much of it goes towards interest over the life of the loan. 6. Make home improvementsSpending some, or even all, your tax refund on improvements that increases the value of your home is an investment in your equity. Similarly, using some of these funds to increase your home’s energy efficiency can pay off for years to come. 7. Start or contribute to a college fundIf you have children, or plan to start a family in the future, consider allocating a portion of your tax refund to a college savings fund, such as a 529 savings plan. Contributions to a 529 plan may be deductible on your state taxes, and earnings are tax-free when used for qualified education expenses. 8. Invest in your retirementIf eligible, consider allocating a portion of your tax refund to your employer-sponsored 401(k) or an IRA. The earlier you start investing for retirement, the more you can potentially accumulate for your golden years. Use our list for some financially responsible ways to use your tax refund. Q: I’m in a bad financial place now, and I sometimes run out of money before the end of the month. Can I neglect my savings for now until my finances improve?
A: For many individuals grappling with financial challenges, the idea of saving money can seem like an unattainable luxury. However, neglecting your savings when the going gets tough can make things even more difficult down the line. Here’s why you should continue saving through financially challenging times and practical steps for making it happen. Why you should continue saving when the going gets tough Be prepared for emergencies Life is a roller coaster ride, and you never know what’s waiting for you just around the bend. Having a financial safety net will help you weather nearly any eventuality with your finances intact. Build financial discipline If money is tight now, chances are you can stand to be a bit more disciplined with how you spend it. Setting aside money for savings each month, even if it’s just a tiny bit, can help foster financial discipline and cultivate a mindset of planning for the future. Practice reaching financial goals When there’s barely enough money to get through the month, saving up for something big can seem ridiculously out of reach. However, setting and reaching small financial goals can be a powerful motivator for fiscal responsibility. How to save during times of financial difficulty Start small Experts recommend putting upward of 20% of one’s monthly income into savings, but if you’re struggling just to make it through the month, you can ignore this advice. Instead, start small, with as much as you can manage a month, and work your way up from there. Look for ways to trim discretionary and non-discretionary expenses If you feel like you’ve already exhausted all opportunities to trim the fat, think again. Look for unnecessary subscriptions, expensive products that can be swapped for cheaper generics and DIY options instead of paying for services and products. Next, review your non-discretionary expenses. Reach out to your insurance companies to negotiate for a lower premium or shop for a new, cheaper plan, and do the same with your phone and internet service providers. Look for ways to conserve energy and make an effort to carpool or move more and drive less to decrease fuel costs. Boost your income Another obvious way to improve your financial circumstances is to make a sincere effort to bring more money home. You may be working a full-time job, but devoting even a few hours a week to a side hustle can make a big difference in your monthly budget. Consider freelancing for hire, working for a ride-sharing company over the weekend or hiring yourself out as a consultant in your chosen field. Explore government assistance In times of financial hardship, it’s essential to be aware of government assistance and support programs, such as food stamps. These programs may provide temporary relief, enabling you to allocate a portion of your income to savings. Seek financial guidance If you find yourself struggling to make ends meet, consider seeking professional financial guidance. Financial counselors or advisors can help you create a realistic budget, explore options for debt management and provide personalized strategies for saving. Use the tips here to learn why and how to save during times of financial stress. As a member of IRFCU, you can meet with our certified Financial Counselors for free.
Here are some reasons you should take advantage of that! Personalized Guidance: Financial counseling within IRFCU involves one-on-one sessions with our experienced professionals. These experts take the time to understand the individual member's financial situation, goals, and challenges. The advice provided is tailored to the specific needs and circumstances of the member, offering a personalized approach that generic financial advice often lacks. Holistic Financial Planning: Financial counseling encompass comprehensive financial planning. Members can receive guidance not only on individual aspects such as budgeting or investing but also on how these components fit into an overall financial plan. This holistic approach helps members create a roadmap for achieving their financial goals and ensures that different aspects of their financial life are considered in tandem. Risk Mitigation and Protection: Our counselors can assist members in assessing and mitigating financial risks. Whether it's protecting against market volatility, planning for unforeseen events, or ensuring adequate insurance coverage, these professionals can help members develop strategies to safeguard their financial well-being. Education and Financial Literacy: Financial counseling sessions serve as opportunities for education and enhancing financial literacy. Members can gain a better understanding of financial principles, saving strategies, and debt management. Improved financial literacy empowers individuals to make more informed decisions, fostering greater financial independence and confidence. Navigating Life Transitions: Life is filled with transitions such as buying a home, starting a family, or planning for retirement. Financial counselors can guide members through these life stages, helping them make sound financial decisions during critical junctures. Whether it's adjusting budgets or planning for a child's education, financial counseling can provide valuable support. Confidentiality and Trust: IRFCU prioritizes confidentiality and trust. Members can feel secure knowing that their financial information is handled with discretion and professionalism. Establishing a trusting relationship with on of our financial counselors can lead to more open discussions about financial goals and challenges. We have Financial Counselors in Athens and Wysox. Are you ready to take advantage of the Free Financial Counseling offered by IRFCU? A recent report by Social Catfish, an online investigation service, found that the U.S. is the most scammed country in the world.
The good news is, with the right information, you can protect yourself from being part of next year’s stats. Let’s take a look at some of the significant findings of the report, and how you can keep your money and your information safe. Who gets scammed the most? With an astounding 466,501 online scams in 2022, the U.S. leads the world as the country with the most scam victims per year. Of the 50 states, California had the most online scam victims in 2022, at 80,766. North Dakota takes the prize for the lowest number of scam victims, at just 703. Among age groups, teens and children have seen the largest percentage increase in money lost. Victims in the under-20 age group lost $210 million in 2022, compared to $8.2 million in 2017. Seniors still hold the place as the most victimized group, though, with their overall losses totaling $3.1 billion. How much money was lost to scams in 2022? A record $10.3 billion was lost to online scams in 2022, up from $6.9 billion in 2021. This was an increase of 277% from $2.7 billion in 2017, according to the FBI Internet Crime Complaint Center. When factoring in estimated unreported scams, the total money lost to online scams in 2022 jumps to $200 billion. In addition, the average loss per victim per incident was $12,859, up from $8,142 in 2021. Unfortunately, only 4.2% of stolen funds were recovered. Where are people getting scammed? Social Catfish found that most online scams happen on Facebook (32%), Google Hangouts (16%), WhatsApp (16), Plenty of Fish (16%) and Instagram (14%). How to avoid scams Keep your money and your information safe with these protective measures:
A new year is approaching, so now is the perfect time to take stock of your career and set new goals for the coming year. Setting well-defined and achievable objectives can help you reach new levels of success and growth in your career. Let’s take a look at five professional goals you can set for the new year.
Learn a new skill Whatever your level of employment, there’s always room for improvement and personal growth. Resolve to learn or improve a professional skill this year to help advance your career. Take some time to analyze your current skill set to find room for improvements and then find an online course or instructional video to help you learn something new. Move up in your careerDon’t be afraid to be ambitious this year. Review your current position and determine the best way to achieve real career growth. This can translate into a promotion at your job, striking out on your own or leaving your workplace for a new position elsewhere. Write down your goal and then break it down into the steps you need to take to make it happen. Set a timeline for each of your steps so you can review it throughout the year and make sure you’re on track for it to happen. Increase your productivityBoosting your productivity will turn you into a valued employee who gets more done in less time.Take stock of your current work practices, looking for areas to change for increasing your productivity levels. For example, if you often get sidetracked while answering your email, you can resolve to answer messages only twice a day, or even once an hour. Blocking out time for this specific task can help you keep your focus throughout the day. Also, consider taking steps to avoid distractions, like turning off social media notifications on your phone while at work, or even using an app blocker like ColdTurkey. Network moreIf you struggle with meeting new people or just want to gain more professional goals, the easiest way to do so is by attending networking events. Developing connections is important to make advancements in your career because you never know when a referral or advice will be useful. If you find it difficult to network, start by connecting with coworkers you don’t speak to often. This is an easy way to build your confidence to attend events and meet others. To make your goal measurable, set a specific number of people to build relationships with throughout the year. Say yes to opportunitiesDon’t be afraid to accept new career challenges! Resolve to say yes to all, or at least most, new opportunities you are offered this year. You may just find that taking more chances opens up the door to career growth that is far beyond your dreams. Use this guide to set professional goals for the new business year that will help your career grow and thrive. Q: Is it ever OK to give in to the urge to splurge?
A: Life is boring when you follow all the rules, all the time. Yes, even the money rules. Fret not, because you sometimes can, and should, give in to the urge to splurge. Here’s when and how to indulge responsibly. When you’re feeling overly deprived If you’ve been strictly sticking to essential-only purchases for a while, you may feel super-deprived. This can prompt you to overthrow your budget and trash all your hard work to this point. To avoid this, allow yourself to make a conscious decision to splurge on a large purchase or experience, even if it doesn’t necessarily fit within your budget. Be honest with yourself and your recent spending to determine whether you should be splurging at this time. When there’s an opportunity you may miss It can also be OK to splurge when there’s a massive sale on an item you need to buy anyway and waiting it out means missing out on significant savings. It’s important to note, though, that this applies only to needs and items you’ve been saving to buy. When it’s a quality item that will outlast a cheaper version Sometimes, a splurge is an investment for the future. Here are some circumstances where it may be a good idea to go for the more expensive option:
When it’s a once-in-a-lifetime occasion Another time you may want to go over budget a bit is when you’re celebrating a once-in-a-lifetime occasion. Your wedding, the birth of your first child and your college graduation are all celebrations that deserve to be honored. This doesn’t mean you need to swipe your way into deep debt, but you can forgive yourself for overspending a bit on these occasions as you know they will not present themselves again for additional overspending. Indulge responsibly
When do you give in to the urge to splurge? Q: Help–tax season is coming! How do I best prepare?
A: It’s great that you’ve started getting ready for tax season way before the deadline, but it sure can be overwhelming. No worries, though; we can help! Here’s how to prepare for tax season. Gather your documents The first step in prepping for tax season is to gather all the necessary documents. Depending on your personal circumstances, these can include:
Store all your documents and receipts in a folder, binder or digital file so you can access them whenever necessary. This will help ensure you don’t miss any deductible expenses. Prepare your personal information In addition to your income information, you’ll need the Social Security number and date of birth of each dependent you claim. It’s a good idea to have this info, and any other details your tax preparer will need, ready before you start your return. Review tax law changes The tax code changes every year, and some of this year’s modifications may impact your tax situation. Be sure to review the most recent updates so you can take advantage of any new deductions or credits. Determine your filing status Your filing status determines the tax rates and the standard deduction you’re eligible to take. Choose the status that best fits your situation. The most common filing statuses are:
Learn the deadlines It’s important to be aware of tax filing deadlines. For most individuals, the deadline to file federal income taxes is April 15th. If the 15th is on a weekend or holiday, the deadline is typically extended to the next business day. Choose your filing method You can file a paper tax return and mail it to the IRS, use tax prep software like TurboTax or H&R Block, hire a professional tax preparer or e-file your return on your own. Plan for next year Finally, use the tax season as an opportunity to plan for the future. Consider adjusting your tax withholding to avoid owing large sums at tax time or receiving large refunds. You’re ready to file your taxes! How do you prepare for tax season? Introduction
As the new year begins, many people set resolutions to improve their lives, and one common goal is getting a handle on finances. If you find yourself carrying the burden of debt from the previous year, January is the perfect time to make a fresh start and work towards a debt-free future. In this blog post, we'll explore five practical ways to lower your debt and pave the way for a financially healthier year ahead. Create a Realistic Budget The first step towards lowering your debt is understanding your financial situation. Take some time to create a realistic budget that outlines your monthly income and all your expenses. Categorize your spending, and identify areas where you can cut back. By having a clear picture of your finances, you can make informed decisions about where to allocate your money and how much you can allocate towards debt repayment. Prioritize High-Interest Debts Not all debts are created equal, and focusing on high-interest debts can save you money in the long run. List all your debts along with their interest rates, and prioritize paying off those with the highest interest rates first. This strategy, known as the debt avalanche method, minimizes the amount of interest you'll pay over time, helping you become debt-free faster. Negotiate Interest Rates Contacting your creditors to negotiate lower interest rates can significantly reduce the amount you owe. Explain your situation and provide any relevant information that supports your case, such as a history of on-time payments or a change in financial circumstances. While not guaranteed, creditors may be willing to work with you to establish a more manageable repayment plan. Generate Additional Income Boosting your income is an effective way to accelerate debt repayment. Consider taking on a part-time job, freelancing, or selling unused items to generate extra cash. Allocate this additional income specifically towards debt repayment to make a more significant impact on reducing your overall debt load. Build an Emergency Fund While it may seem counterintuitive to focus on saving when you're trying to reduce debt, having an emergency fund can prevent you from accumulating more debt in the future. Unexpected expenses are a part of life, and having a financial cushion can help you avoid relying on credit cards or loans when the unexpected happens. Start small and gradually build up your emergency fund over time. Conclusion January is a month of new beginnings, and there's no better time to take control of your finances and work towards a debt-free future. By creating a realistic budget, prioritizing high-interest debts, negotiating interest rates, generating additional income, and building an emergency fund, you can set yourself on the path to financial freedom. Remember, the key is consistency and commitment. Small changes today can lead to significant financial improvements tomorrow. Here's to a debt-free and financially prosperous year ahead! |
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