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!
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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. 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. 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? Q: I’m in deep with credit card debt. It feels like I’ll be paying off these bills forever. Is there an end to credit card debt?
A: Yes, you can break free! With the right tools and the willingness to work hard, you can dig yourself out of credit card debt and live debt-free. Here’s how. Assess your debtFirst, review all your open credit card accounts. For each one, jot down the total owed, as well as the interest rate. Tally up the total so you have a number to work with, but hold onto your list for later reference. Negotiate with the credit card companiesNext, reach out to the credit card companies behind your debts to ask about lowering your interest rate or even negotiating to have some of your balance knocked off. Be open about your commitment to pay off your debt and any financial challenges you may be facing. Choose your debt-kicking methodThere are two primary methods for paying down debt:
Review each method and choose the one that suits your lifestyle. Then, reference the list you made in Step 1. Write down your debts in the payoff order you’ll follow. Maximize your paymentsNext, start maximizing your monthly payments toward the first debt on your list. To do this, review your budget and look for ways to cut back. Don’t be afraid to make drastic lifestyle changes as you work on paying down debt. Remember, this is temporary! Another way to find extra funds for your debts is to boost your income by asking for a raise, looking for a better-paying job or a side hustle. As you focus on the first debt on your list, be careful not to neglect the minimum payments on your other debts. Consider debt consolidationIf you have a lot of debt across high-interest cards, consider debt consolidation through an unsecured loan. You’ll use the loan to pay off all your credit card debt, and then you’ll have just one monthly payment to make toward the loan. You’ll likely enjoy a lower interest rate as well. But, only go this route if you know the loan won’t land you deeper into debt. To take out an unsecured loan at Ingersoll-Rand FCU, call, click or stop by today. Use the tips outlined here to kick your debt for good. Q: I’m an avid sales shopper, but after so many Black Fridays spent fighting crowds to chase down deals, but often coming home disappointed, I’m wondering if it’s all worth it. Should I give up the Black Friday shopping?
A: Black Friday has long been hailed as the biggest shopping day of the year, but consumers are rethinking that title. Let’s look at the pros and cons of being a Black Friday shopper so you can make an informed decision. What are the advantages of Black Friday shopping?
What are the disadvantages of Black Friday shopping?
Q: Holiday shopping season is here, but I can’t pay for it all! What’s the best way to fund my holiday shopping?
A: When it comes to covering the cost of your holiday shopping, you have several choices. Let’s take a look at some options and explore the pros and cons of each so you can make an informed decision. Credit cardsFor many shoppers, the most obvious way to pay for a purchase you can’t cover now is with a credit card. Pros:
SavingsDipping into savings to pay for your holiday purchases can free you from sky-high interest charges, but comes with drawbacks. Pros:
Unsecured/holiday loanAn unsecured loan, also known as a personal loan or holiday loan, is a loan that’s taken out with no collateral. Pros:
Holiday club accountWhen you open a holiday club account, you’ll make regular contributions toward your set goal throughout the year, and then have funds you’ll need for covering your holiday purchases when the season arrives. Pros:
For many people, the mere mention of the word “money” spurs feelings of stress and anxiousness. In fact, a Bankrate study of nearly 2,500 U.S. adults found that 70% of respondents feel stressed about their finances. At the same time, living a financially responsible life can help one maintain optimal mental health. In observation of May being Mental Health Awareness Month, let’s take a look at the connection between money and mental health.
How do financial struggles impact mental health? There are lots of ways money troubles can influence one’s mental health:
How does financial stability impact mental health? Now, let’s explore how financial stability can impact one’s mental health:
The link between money and self-worth Unfortunately, too many people link their self-worth to their financial situation. This can lead to feelings of inadequacy and low self-esteem when experiencing financial struggles. However, it is essential to recognize that self-worth is not tied to financial success. Instead, focus on developing yourself as a person in ways that are not related to your financial situation. Set personal goals, practice self-care and seek fulfillment in areas outside financial success. Debt and mental health Debt is often the most significant financial problem that people face, and it can have a strong impact on mental health. Research shows that people who are in debt are more likely to experience mental health problems like anxiety, depression and even suicidal thoughts. People who’ve been caught in the debt cycle may feel like they are trapped in their situation with no way out. This can lead to feelings of hopelessness and despair. Debt can also cause a great deal of stress, which can lead to physical health problems such as high blood pressure and heart disease. If you are struggling to escape from under a mountain of debt, there are steps you can take to kick your debt for good. Consider consolidating it through an unsecured personal loan that may include one low-interest, and possibly lower, debt payment each month. You can also pay off one debt at a time by maximizing your monthly payment toward that debt until it’s paid off, which is often called the “snowball method” of debt payoff. If you choose this route, be sure to continue making all your minimal monthly payments on your other debts as you focus on the one. Managing your finances for improved mental health Are you struggling with money challenges that are negatively impacting your mental health? Here are ways you can improve your financial and mental health:
TikTok Inspo: How do you maintain your mental health and financial wellness? Share your best tips in a 15-second video. With inflation at record highs, many Americans are finding it difficult to stick to a budget. After all, when groceries have leapt in price and household staples can be double, or even triple, what they cost just a year ago, how can the same amount of money get you through the month?
Sticking to a budget during times of high inflation is challenging – but not impossible. Here are five ways to budget while in times of inflation. 1. Plan your grocery purchasesGroceries can take a huge bite out of a monthly budget. Fortunately, there are ways to trim your grocery bill, even when prices are soaring. First, shop your pantry and fridge before hitting the store. You may not remember exactly what you have at home, and doing a quick scan of your food items can help you stick to purchasing only what you need. Next, plan your week’s dinner menu before shopping so you can pick up exactly what you need for the week in just one go. The fewer trips you make to the grocery, the less you’ll spend on impulse buys. Also, when you have the ingredients you need and plans in place for dinner each night of the week, you’ll be less likely to make a last-minute decision to indulge in takeout or fast food. Consider joining a club store at this time as well. You’ll need to spring for a membership, but you’ll enjoy steep savings on groceries and other products. Just be careful to only buy what you need, no matter how cheap an item might be. Finally, don’t forget to shop sales and to couponize. Use apps like Reebee, Checkout 51, Flipp and Grocery IQ to stay in the know of what’s on sale in each store, and to download coupons for even bigger savings. 2. Consider an energy auditWith winter approaching and the cost of energy sources still climbing, this can be a good time to have an energy audit performed on your home. An audit will help identify energy drains around your home, such as air leaks near your windows and doors, so you can fix them to make your home more energy-efficient. You can also take additional measures toward saving on energy costs, such as switching all lightbulbs to LED bulbs, unplugging electronics when not in use and setting your thermostat a little lower during winter, and a bit higher in the summer. 3. Choose your indulgenceEveryone needs to treat themselves to something special every now and then, but with costs rising on restaurant meals, movie tickets and clothing, something’s gotta give. Take a closer look at your just-for-me purchases of the last few months, and try to narrow them down to just one or two treats. You can swap them with an enjoyable activity that doesn’t cost much, such as a hike or bike ride, or cut them out completely. Alternatively, you can find ways to trim the cost of your indulgences. For example, if you love dining out but restaurant meals are destroying your budget, you can decide to eat out but skip the desserts and wines, or opt for a midday meal so you can take advantage of lunchtime specials. 4. Switch your auto insurance planIf you’ve had your auto insurance policy for a while and you’ve maintained a good driving record during that time, there’s a good chance you can save a bundle by switching to a new insurance plan and/or provider. Reach out to a representative at your current insurer to discuss your options. Ask about raising your deductible in exchange for a lower premium, reducing overall coverage or negotiating for a safe driving discount. After obtaining a quote, call several other providers to get competing quotes. You can choose to go with your lowest offer, or call back your present provider and ask them to match it for your continued business. 5. Pad your incomeAs always, when income doesn’t meet expenses, you have the choice of trimming expenses or boosting your income – or you can do both! In addition to following the cost-cutting tips outlined here, you can also look for ways to increase your income. If your paycheck is suddenly not enough to support your lifestyle, consider asking for a raise. Your workplace may have already given you a cost-of-living raise to reflect rising inflation last year, but this may prove to be insufficient as costs have continued to rise. Don’t be afraid to ask for another raise at this time. In addition, you can look for other ways to pad your monthly income. Find a side hustle, like driving for a ride-share company or consulting for hire, which you can do at your leisure on weekends. Ask your workplace about taking on additional projects on an as-needed basis for additional pay. Open a small service business doing something you love and excel at. Every extra dollar earned counts! Times are hard for the average American consumer, but with careful planning, you can ride out the record-high inflation rates and keep your budget intact. Use the tips shared here to get started. Your Turn: How are you adjusting your budget for inflation? Share your tips and hacks with us in the comments. Q: I’m always worried about money during the holiday season, and with inflation soaring, I’m more stressed than ever. How can I save on holiday shopping this year?
A: If you’re worried about making it through the holiday shopping season in the midst of record inflation, you’re not alone. A recent survey shows that 59% of American shoppers are stressed about buying holiday gifts this season due to higher prices. However, with some careful planning and budgeting, you can enjoy stress-free holiday shopping. Here are seven easy ways you can save during this holiday season. 1. Shop early It’s always a good idea to do your shopping early in the season so pressure and crowds don’t cause you to make decisions you’ll come to regret. This year, experts are urging shoppers to hit stores earlier than normally planned so they can take advantage of early season sales. Many big-box stores are struggling with a supply surplus thanks to an inflation-triggered decline in demand. This will likely lead to sales events to make room for more up-to-date inventory. You can take advantage of this surplus by shopping these sales and saving on your holiday purchases. 2. Set a budget Budgets are for holidays, too. Sit down before doing your shopping to build a reasonable budget for your holiday shopping. Factor in current prices when working out your budget. Of course, this is only half the work – you’ll need to stick to that budget for it to be worth anything. Make this easier by allocating a specific amount for every gift, shopping with cash and/or reviewing your budget frequently as you do your holiday shopping. 3. Shop with a list Instead of hitting the stores blindly, create a list of every gift you plan to buy for friends and family. You can browse online stores for inspiration, but resolve not to start shopping until you have a complete list. You’ll be far more likely to stay within budget when your purchases are pre-planned. 4. Leave some last-minute shopping for Green Monday While it’s best to do the bulk of your shopping early in the season, you can leave some last-minute gift-shopping for Green Monday, which falls on Dec. 14 this year. This is when retailers make their final pre-holiday markdowns. Be prepared for slim pickings, though, so don’t leave any specific gifts for this late in the season. 5. Think outside the box when planning your gifts If ever there was a holiday season to get creative with your gifting, this is it. Retail inventories are full of products that were backed up during the post-pandemic supply-chain disaster. Think furniture, home decor and more. While much of this may not make for typical holiday gifts, there’s no real reason you can’t delight a loved one with a new office chair, exercise bike or coffee organizing station. 6. Give gift cards Protect your gift list against inflation by giving gift cards. You can find discounted cards on sites like GiftCardGranny and CardCash, or use cash-back apps to earn them at no cost. Gift cards are easy to shop for, easy to budget for and always appreciated by the receiver. 7. Use apps to save In 2022, there are so many apps that can help you spend less on your shopping, and even put money back in your pocket. Here are some money-saving apps you might want to download ahead of this shopping season:
Your Turn: How do you plan to save on holiday shopping this year? Share your best tips and hacks in the comments. It’s back-to-school season, and that means you’ve got a list of stuff a mile long to buy. The good news is that you don’t need to break the budget during the second-biggest shopping season of the year. There are lots of ways to save, and if you plan your shopping well in advance instead of frantically rushing to get everything done at the last minute, you can save a lot of money. Below, we’ve compiled seven back-to-school shopping hacks to get you started.
Take inventory Don’t set foot in a single store without first checking to see what you have at home. You may have stocked up on lined paper in the spring, or maybe you bought some autumn wear for your child at the end-of-season sale last year and you’ve put it in storage until you’d need it. Keep a running list of everything you find so you know exactly what you have before you spend a dime on new supplies and clothing. Shop tax-free Many states offer a sales-tax holiday sometime during the summer, and if you use these days to shop for big-ticket items, like a new laptop or pair of school shoes, you can shave a significant amount of money off the final price. You can find a list of sales-tax holidays by state here. Shop with a list And we’re not talking about the list of required supplies your child’s school or teacher has sent home. When shopping for anything, especially with kids and teens, it’s best to start out with a clear goal of what you plan to buy. This way, you’ll be less likely to overspend and come home with bags of stuff you don’t really need, along with lots of buyer’s remorse. Make a list before hitting the mall, the school supplies store and even before shopping online. Divide and conquer The circulars are packed with specials on school supplies all summer long. The problem is that, while one store is offering a crazy-low deal on crayons this week, another store is running a super sale on pencils – and the stores are across town from each other. You don’t want to spend all weekend hunting down supplies, and you don’t want to lose all your savings to fill the tank of your car either. Keep your savings, and your sanity, by teaming up with another school mom. Divide the school supply list between the two of you, pooling costs and paying back as necessary. This way, while one of you can go pick up the crayons at half-price in Walmart, the other can load up on marked-down pencils in Staples. Let your kids choose some items on their own Teach your kids a lesson in budgeting by allowing them to shop for one or more of the costlier items they need now on their own. For example, you can have your middle-schooler choose and pay for their own backpack. Set a reasonable budget together, but let your child do the actual choosing and paying on their own. They’ll learn how to make responsible money choices and so much more. To encourage thriftiness, you can offer to allow your child to keep the change. Save some stuff for later Yes, your child will be starting school soon and they’ll need some supplies and clothing before the big first day. But the stores won’t be going anywhere, and there’s no need to purchase a complete autumn wardrobe before Labor Day. Waiting a bit for the mid-season sales will save you a ton of money. As a bonus, shopping without the pressure of having everything ready for the new school year will help you make better money choices. Scan receipts to get cash back Put more money back in your wallet by scanning or uploading your receipts to cash-back sites or apps. Some popular cash-back apps include Coupons.com, Dosh and Ibotta. It’s like getting paid to shop! It’s back-to-school shopping season, but that doesn’t mean you need to spend yourself broke! Cash in on savings with these hacks and get your shopping done without breaking your budget. Your Turn: How do you save on back-to-school shopping? Share your favorite hacks in the comments. With shorter days approaching, bringing more hours of darkness along with them, it’s more important than ever to brush up on ATM safety. Using a compromised machine can mean risking identity theft and/or having cash stolen. With this simple machine, all it takes is a few short minutes for a victim’s life to be completely ruined.
Here at Ingersoll-Rand FCU, we take our members’ safety very seriously. We use multiple protective measures to keep you, your information and your money safe when you use one of our ATMs. We keep our machines well-lit, have security cameras in place and we’re careful to place them in areas with lots of foot traffic to keep isolation to a minimum. However, it’s important for you, as the member, to be aware of basic ATM safety so your transactions are never compromised. As with all banking platforms, you are the first and best defense for protecting your personal information and your money. Here are 10 tips to help you keep your ATM transactions completely secure. 1. Keep your PIN private. Your personal identification number should always be kept personal. Don’t share this number with anyone and don’t write it down anywhere or keep it stored in your phone. It’s also a good idea to choose a unique PIN for all your accounts and to change your number once a year to keep it fresh. 2. Check the ATM for a card skimmer. Scammers are experts at hiding their tracks and often do so by attaching a card skimmer to the payment terminal of an ATM. The skimmer fits right over the card slot and will read the card information as soon as it’s inserted. It is then passed onto the criminal, who may be hiding just a few hundred feet away. Sometimes, a skimmer is instead placed over the keypad to pick up the PIN. Look for a skimmer by checking to see if the card slot feels loose, is colored differently than the rest of the machine, or if the keypad is too thick or looks newer than the ATM. 3. Bring a buddy. A lone target is always more vulnerable. If possible, and especially if you’re using an ATM late at night, bring a friend along. 4. Be aware of your surroundings. As you use the machine, it’s crucial to be aware of your surroundings and to look for anything suspicious, like characters lurking nearby or dark cars parked in the area for far too long. 5. Use your body as a shield. Never let an ATM you are using be in easy view of a criminal. Stand close to the machine to block it from view and cover the keypad with your hand while you input your PIN. This way, no one will be able to steal your information just by watching you complete your transaction. 6. Have your debit card ready to be used. Make sure you can remove your card in just a few seconds when you reach the ATM. Those precious few moments of rummaging through your purse or wallet until you find your card can give a criminal the time they need to make their move. 7. Put away all cash as soon as you complete your transaction. If you’re making a withdrawal, be sure to move all cash out of sight as soon as the machine spits it out. Have your wallet or an envelope ready so this takes as short a time as possible. Never count cash in public; you can check that you’ve received the right amount when you’re safely in your car. 8. Lock all doors and roll up passenger windows when using a drive-thru ATM. If you’ll be remaining in your vehicle to complete your transaction, keep it as secure as possible. 9. If you suspect foul play, leave immediately. If something, or someone, looks suspicious, cancel your transaction, grab your card and leave the area as soon as you can. 10. Be sure to take your receipt. Don’t leave any evidence of the transaction you just completed. If you think you’ve been the victim of ATM fraud, report it immediately. If you report the scam within two days, your liability is capped at $50. Stay safe! Your Turn: How do you protect your information and your money when using an ATM? Share your tips with us in the comments. As 2021 draws to a close and we prepare to usher in 2022, take a moment to go through this year-end financial checklist for ensuring your finances are in order before the start of the New Year.
Review your budget Is your monthly budget still working well for you? Are you stretching some spending categories or finishing each month in the red? Take some time to review your budget and make any necessary changes. Top off your retirement plan If you have a 401(k), check to see that you are taking full advantage of your employer’s matching contributions. If you haven’t contributed as much as you can, you have until the end of the year (Dec. 31, 2021) to catch up; to a limit of $19,500. If you turned 50 this year, you are eligible for an additional catch-up contribution of $6,500. If you anticipate getting a holiday bonus, consider putting this money toward your debt. Likewise, if you have an IRA, you have until April 15 to scrape together the maximum contribution of $6,000, with an additional $1,000 if you are age 50 years or older. Check your progress on paying down debt Give your debt an annual checkup by reviewing your outstanding debts from one year ago and holding up the amounts against what you now owe. Have you shed debt from one year ago, or is your debt growing? If you’ve made no progress, or your debt has grown, consider taking bigger steps toward paying it down in 2022, such as consolidating your debt with a [personal/unsecured] loan from Ingersoll-Rand FCU. Get a free copy of your annual credit report The end of the year is a great time for an annual credit checkup. It’s a good idea to review your statements each month to check for fraudulent charges, but you can also request a free copy of your credit report from all three credit agencies once a year. Get your free annual credit reports here, and take a close look at each report. Look for accurate, updated information and any errors, like charges you don’t remember making, or other signs of possible identity theft. If you find any wrongful charges, be sure to dispute them immediately. Review your investments and asset allocation Take some time at year’s end to rebalance your portfolio and to see if your asset allocation is still serving you well. You may need to make some changes to your mix of stocks, bonds, cash and other investments to better reflect the current state of the market. Review your beneficiaries Has your family situation changed in the past year? If it has, be sure to switch the beneficiaries on your accounts and life insurance policies to accommodate these changes. Complete open enrollment and select your employer benefits The end of the year coincides with open enrollment for health insurance policies. This is your chance to select the employer benefits you want for the coming year. If you miss this window, you will be stuck with the benefits you chose last year or with no benefits at all. Review your tax withholdings It’s a good idea to review your W-4 annually and see if the amount of tax being withheld from each paycheck needs to be adjusted. If you’re not a numbers person, ask your accountant for help. Changing up the numbers just a bit can make a significant difference in your tax bill at the end of the year. Or, if you usually get a large refund, adjusting the amount withheld can mean enjoying a larger paycheck throughout the year instead of giving the government an interest-free loan to be paid back in one lump sum at year’s end. The doors are closing on 2021 and it’s time to give your finances a full checkup. Use this checklist to make sure your money matters are in order before the start of 2022. Your Turn: What’s on your financial checklist for the end of the year? Tell us about it in the comments. |
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