How to Invest Your Dollars Towards Your Community

As consumers, we are always hearing about how we can spend our money more “wisely.” Yet, most of the time, it’s just big box stores tempting you to splurge your hard earned cash on things you could do without. Instead of throwing all of that money away on temporary items, why not invest those dollars into your beloved community? Here’s a few ways you can really spend wisely- by showing your community some TLC.

1.     Spend deliberately. Forget internet deals and clearance racks at the mall. Shop locally and independently. When you buy coffee at the mom & pop shop down the street, you’re supporting small, community businesses. Spending at these special hidden treasures in your community helps it thrive. That cup of joe you bought? That revenue is going to pay for the shop owner’s daughter’s dance classes at the studio on Main Street. This way, your dollars are from the community, going back into the community.

2.     Donate, Donate, Donate! There are TONS of nonprofit organizations that make immense contributions to communities. Animal shelters, food banks, thrift stores, and more, all make a community what it is. And they are all always looking for funding to keep going. The best part? They help the people and animals in your community that are in real need. Donate a certain amount each month to the organizations that mean the most to you.

3.     Join a Credit Union. Credit unions offer numerous financial products that can help people maximize their incomes and increase their savings. Another plus? Credit unions are owned by their members, and are not-for-profit financial institutions. Many times, because of this, credit unions invest in the communities they have branches in. They want to keep their members happy, and members love the communities they live in. Credit unions may host fundraisers for non-profits, absorb certain costs for organizations, or just donate money or time to organizations or events that are important to the community.

No matter what you choose to do with your money, it is never a bad decision to invest in your community. After all, you DO live there.

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to Honor's Kaylee Williams and Y-Country's Mark Durocher discuss how to invest in your community, click on the Mason Jar Monday episode below!

 

 

Three Smart Ways To Use Your Home’s Equity

When talking about home equity, many people become stumped. But, it’s actually quite simple. It’s the difference between your home’s value on the market, and what you still owe on it. If you're a homeowner, you may be able to use this equity as collateral to borrow money! There are two ways you can do this:  1. Home equity loans immediately advance you a single sum of money and usually require payments over a fixed period at a fixed interest rate OR 2. Home equity lines of credit give you the option of borrowing money as you need it, up to the amount your lender approves for you. Rates vary, so your payments may vary. If you have equity, here are a few smart ways to use a home equity loan!

 

1)      Debt Consolidation – This is a good option if you have several balances on several credit cards or other loans. By consolidating multiple balances into a single home equity loan, you can simplify your life and find that you may have a dramatic reduction in your borrowing costs. But be careful- debt consolidation only works if you have self-discipline. If you run your cards again and rack up those balances yet again, you’ll be in worse shape.

2)      Home Improvement– If you’re thinking about getting new counter tops or renovating your bathroom, a home equity loan is perfect. However, consider the long-term economic value of the project and how long you expect to stay in your current home and enjoy the results!

3)      Covering A Big Expense- Getting married?  Sending your child to college?  Whatever your big expense coming up might be, a home equity might be the solution to paying for it.  You can use some home equity loans for literally anything, so think bigger picture than just home improvements!

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

The Rising Tide of Consumer Debt

Written by Honor CU Guest – Greg Hildebrand, Honor Financial Group Financial Representative

We’ve talked a lot the last couple of weeks about ways to save money this time of year from back to school expenses to cutting costs in the kitchen.  The fact of the matter is, though, that this time of the year can be an expensive one for many families.  Consumers are borrowing again, making a big economic splash.  Spending does help the economy, but too much debt can harm you!  Here are four common areas of debt and some tips to manage them:

1.     Mortgage Debt: $8.05 TRILLION in debt nationwide!  Owning your own home is a huge accomplishment and is something you should be proud of.  Keep an eye on interest rates and consider refinancing at lower rates.

2.     Student Loan Debt: Over $1.08 TRILLION! As of a study completed by the Federal Reserve Bank of New York, this area of debt was the biggest percentage increase with over a 5% increase in the year prior.  If you have student loans try making payments sooner than your loans become due and try to pay more than the minimum amount to save on some interest.

3.     Auto Loan Debt: $863 BILLION!  Spending on items like a new vehicle helps you get from A to B and also helps the economy rise.  As you incur this debt, though, determine if you can make additional payments towards your principal amount to pay off your loan faster.

4.     Credit Card Debt: $683 BILLION!  Consumers are spending again using credit cards, but the good news is they are doing it more mindfully.  Make sure you are mindful of the debt you accumulate on your credit card and try to pay off higher interest rate cards first.  Consider consolidating credit card debt if you have more than one credit card to make your payments more manageable.     

 

If you have questions and would like to meet with a financial advisor, Honor Financial Group is a great first step.  Give us a call to set up an appointment today.  And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

Not NCUA Insured -Not Credit Union Guaranteed -May Lose Value
As it pertains to the portion of the broker/dealer disclosure above, when read you should say, "Investments are not NCUA Insured, not credit union guaranteed and may lose value

Pinchin’ in the Kitchen- Save Money In Your House’s Hotspot

For many, cutting back in the kitchen sounds scary. But, it doesn’t have to be. Pinching pennies while cooking is simple, and will save you a ton of dough in the long and short run. Check out these quick tips and put them to the test!

1)      Cook frugally – Don’t make too much, unless you KNOW you and your family will actually eat leftovers. Too often my mother cooks very large meals for only a few people. Then, she’ll put all of the leftovers in Tupperware for everyone to take to lunch the next day, or to make a meal out of later. The trouble? This never actually happens. Either the dogs get a tasty meal a week later (consisting of congealing gravy, old meat, etc) or it all goes into the trash because it isn’t safe to eat anymore. A ton of money, thrown into the trash. You know your family, and you know how much they eat. If Dad eats two portions of everything, measure that out. If you eat one portion, measure that. If the kids eat ½ the recommended adult serving, measure that out, too. Then no one overeats, and there aren’t tons of plastic tubs in your fridge that will sit there for a week then go bad.

2)      Splurge on utensils–Basic kitchen utensils (forks, spoons, knives, spatulas, etc.) are obviously essential for cooking. However, if you tend to buy the cheapest version of each, they will wear down quickly, and you’ll make another trip to the Dollar Store to purchase the same ones again. It’s a vicious cycle, and money wasted. Instead, find good, sturdy, lasting utensils, and take good care of them. You’ll probably never have to buy any ever again, and the “good ones” are worth every penny.

3)      Always keep food staples at hand- I’m talking flour, sugar, oil, your favorite spices,… you get the idea. Ingredients that you can make practically any meal out of every day. Another tip- buy these in bulk. They are much cheaper that way, and since you use them a lot, it’s worth it.

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Getting Your Game On With Your Credit Union

Finally, it’s time- for FOOTBALL! The leaves are getting ready to turn, the air is just a bit cooler, and it’s almost back to school time. Families around the country are gearing up for their kids’ big games on the field, purchasing much needed uniforms and equipment. Although there’s a ton of excitement centering around high school sports, the fact is, kids’ sports are EXPENSIVE. But, the uniforms and gear don’t HAVE to cost more than season tickets to a professional sporting event. Check out these helpful hints on how to save money on your kids sports this year.

1)      Volunteer Your Time – If you volunteer to coach, manage the concession stand, or even wash the players’ uniforms, you could get a big break on sports fees. Check with your school district or the head coach and see if there’s anything like that available. If there isn’t, offer your time for whatever they might need in exchange for discounts. You never know if you don’t ask! Plus, it’s a great way to spend time with your kids or see them play when you might otherwise not be able to.

2)      Buy Second-Hand, & Negotiate– When it comes to uniforms, cleats, balls, bats, gloves, etc., buying used is your best option. Kids change their minds at the drop of a hat, so you don’t want to spend $100 on Johnny’s football cleats, and then have him quit two weeks later, rendering those pricey shoes useless.  And kids grow- FAST. Next year, that expensive uniform probably won’t fit Johnny anymore, seeing as how he grew 5 inches. You’re better off hitting up a garage sale, thrift store, or even eBay. While you’re shopping at the thrift shops, be sure to negotiate. If you’re buying an older kid’s uniform, shoes, and sports accessories from last year, ask for a price reduction.

3)      Carpool- Transportation to games and practices can be significantly costly if your child’s activity is far from home. A 30 minute round trip drive twice a week can quickly put a dent in your gas tank. Instead of driving your child by yourself every time, try organizing a carpooling system with other parents. You’ll save a bundle!

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!