Most Common Budgeting Mistakes

It’s no wonder that January is the number one month for people to begin new financial endeavors, and nearly a third of people surveyed by GoBankingRate said their 2016 goals include “saving more and spending less.” At Honor Credit Union, this is music to our ears, as we love helping members save their money! BUT the big question is HOW are these people going to stick to their budget and be financially successful? By having a fail-proof budget in place, and knowing what the most common budgeting mistakes are and how to avoid them!

Here are the top five mistakes (and how to avoid them!):

1.      Failing to set a realistic budget- Many times, people feel overwhelmed by how long it takes to tack expenses and set a budget. Make time to sit down and tackle this project, as it will only help you in the long run.

2.      Using the exact same budget every month- This is a big mistake, as expenses differ each month, depending on holidays, birthdays, vacations, energy costs during warmer or cooler months, or unexpected home or auto repairs. Plan each month one month ahead, so you can make be sure to allot money for these particular expenses that aren’t recurring.

3.      Never allowing for wiggle room-  If your budget is too set, as in every penny is set aside for some specific expense, you won’t have anything left to pay for that unexpected car repair or other surprise expense. Be sure to set aside some money for these extra expenses.

4.      Relying on credit cards- If you’re relying on credit cards to make payments on necessary expenses, but then failing to make payments towards the cards themselves, you’re just digging yourself a huge debt hole that you may not be able to get out of. To avoid this, use cash only for the first few months of your budget so you can see where the money is going.

5.      Quitting your budget too soon- Many times, people will stick to their budget for a couple of months, then quit. Don’t do this! Successful budgeting takes time. You need to mess up a little in order to figure out what you really need each month.

Remember- if you stick to your budget as closely as possible and make budgeting a part of life and a long-term commitment, you’ll ultimately end up financially successful!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

To hear 97.5 Y-Country's Mark Durocher and Honor's Kaylee Williams talk about New Year's Financial Resolutions, click on the Mason Jar Monday episode below!

 

Tax Time Tips

Tax Time 2016 is almost here, so it’s important to begin thinking about filing your tax return! But something most don’t consider when filing, are if mistakes are made. If you make a mistake on your tax return, it usually takes the IRS longer to process it, and they may have to contact you about that mistake before your return is processed, causing a delay in the receipt of your tax refund. And nobody likes that!

Here are a couple of tips to avoid common mistakes when filing:

1.      Tax season opens January 19^th, 2016- You can begin filing your tax returns immediately on this date!

2.      Deadline is April 18^th, 2016- Taxes are due this day. However, if you failed to do so, don’t fret- you can still file and receive your refund! If you are not due a refund and instead owe, the sooner you file, the less your late filing penalty fee will be.  The fee could be anywhere from 5% to 25% of your unpaid balance per month! If for some reason you can’t file right away, immediately file for a tax extension. This way, you have until October 15^th to file without penalties.

3.      When filing online, install anti-virus and firewall protections on your computer and encrypt tax files- This ensures thieves won’t get your personal information, and end up stealing any money you may be due!

4.      Remember to sign it!- Missed signatures are more common than you think, and this qualifies as an incomplete return- meaning it will be returned to you for a signature and the process will be delayed.

5.      Double check your social security number entry, name, & financial institution routing number/your account number, calculations (these are all simple but common errors). And, if you misspell, have a typo, or otherwise, your return will be returned to you and the process will be delayed.

If you are going to be e-filing your tax return, Honor Credit Union can help! Once tax season opens, we’ll have a link to TurboTax, an e-filing tax service, right on our website homepage for your convenience! AND if you decide to e-file with TurboTax through our website, all Honor Credit Union members will receive a discount- up to $15 off! For more details, visit honorcu.com.

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

New Year’s Financial Resolutions

 

First of all, Happy New Year, 2016 is here! If you haven’t yet, you’re probably thinking about some New Year’s Resolutions. And, statistically speaking, you probably have at least one financially related resolution that may include saving more, spending less, investments, loans, etc.

If you haven’t figured out exactly what you’d like to work on financially in 2016, here are a couple of things to think about:

1.       Did you have good saving habits last year?

It doesn’t matter if you make 20K or 100K, you can’t accomplish your financial goals if you spend all of your money. The best way to increase savings is automatically making payments to yourself. Have a set amount or percentage automatically go into your savings account from every paycheck you receive.

2.       Were you financially responsible?

Late or skipped payments not only generate fees and interest charges, but they also can damage your credit score. A low credit score means higher interest rates on future financial endeavors, denial of loans, and a lot more negative stuff. Be responsible in 2016- always make payments on time, or better yet, make these payments automatic, too!

3.       What’s your debt like?

If you’re like the majority of Americans, you probably have some sort of financial debt. If you carry too large of a debt balance, and only make minimum payments, this can negatively impact you as well. Try working with a financial planner to get yourself on track, spend less and save more, and make a budget, and stick to it!

Follow these tips, and you could make 2016 your best financial year yet!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

To hear 97.5 Y-Country's Mark Durocher and Honor's Kaylee Williams talk about New Year's Financial Resolutions, click on the Mason Jar Monday episode below!

 

How To Make 2016 Your Best Financial Year

Something many of us still have trouble with when budgeting is curbing our frivolous spending and remembering to pay ourselves first! But these are crucial steps towards reaching a goal of personal financial success. To get a leg up on your finances for 2016, start by finishing 2015 with a big financial bang!

Follow these steps:

1. Start automated payments (if you haven’t already!)

• If you’re a spender, not a saver, and have trouble making your payments every month because of this, start automatic payments. This way, your payments are made on time, and you find your credit score going up while your frivolous spending and loan amounts go down

2. Get a financial advisor

• Not everybody is money savvy, but everyone is responsible for their own money. Call up your local credit union and begin talks with a financial advisor. They can help you ensure your future financial success.

3. Create small, specific, yet achievable, savings goals

• Make SMART goals (Specific, Measurable, Accurate, Realistic, Time-bound). Be sure you KNOW what you are saving for (pay off a credit card, save for a trip, etc.) as this makes it easier to attain your goals.

4. Ditch those Friday nights OUT with friends, and opt for Friday nights IN

• People are more likely to spend if their friends are spending. Eliminate the problem by avoiding those spending traps by opting to stay in, instead of going out.

 

Keeping your finances in check can be easy as pie, if you put your mind to it. Keep your money on your mind, and you’ll see your nest egg grow as a result!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

To listen to Y-Country's Mark Durocher and Honor Credit Union's Scott McFarland talk about having your best financial year yet, click on the Mason Jar Monday episode below!

 

Stop Spending Money….And Start Spending Time

Every year, it seems more people are spending much more money on gifts, holiday décor, holiday meals, and the like. Even if you’re normally perfectly sensible about money, the holiday season can send us all into a spending frenzy! But it doesn’t have to be that way- Christmas can be just as special without all the spending of money.

Here are some tips to make your season merry and bright, without handing over cash!

1. Spend time instead- Make all homemade ornaments and decorations & decorate with the kids, have a home-based wine and dine with friends, or just relax at home with Christmas movies and snacks!
2. Have a potluck Christmas dinner- Invite friends and family over for a big feast, but have each person bring a traditional Christmas dish. You never know how many yummy family recipes are out there until you have a good ol' fashioned potluck!
3. Buy experiences for people instead of traditional presents-  Buy gift cards for experiences like movie theaters, children’s museums, snow mountain passes, indoor sports, etc. Making memories through fun experiences can be much more valuable than another pair of socks any day!

Don’t let the holidays deplete your savings account- Buy or make meaningful, inexpensive gifts as presents, and remember- Time spent together, enjoying each other’s company is the best kind of spending!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

Don’t Do These Four Things If You Want To Save Money

You’re focused on spending less and saving more – especially with the expensive holiday season fast approaching.  You try to be smart with purchases and put money in to your savings each month.  But what if all that effort and hard work you’re putting in is backfiring?  Avoid doing these three things to make your mission to save money more successful:

1.     You spend TOO MUCH time trying to find the best deal.  You know that saying, time is money?  Well, it’s true!  Be diligent, but if every time you find a good deal you spend so much time making sure it’s the best deal that the good deal actually passes or is sold out, you really didn’t save anything did you? Do your research when you’re shopping but don’t over-analyze to the point of missing out on savings!

2.    You buy cheap stuff.  Often times, we try to save money by purchasing the cheapest option available.  Not a bad thing in some cases, but in others that lowest price tag comes with the lowest quality.  Depending on the item you are hunting for keep quality in mind.  Don’t spend more money having to replace something every month if you would have just gone up one price bracket and been able to keep that option for a year or more.

3.    You buy things because they’re on sale.  A good deal can be hard to pass up, but did you really need that item?  Money spent is not money saved any way you cut it.  Avoid purchasing something just because it’s on sale if it’s not something that you really needed in the first place. 

4.    Your savings is a little too accessible.  Technology can be a beautiful thing, but with it comes the need for additional discipline.  It is as easy as a few swipes on your smart phone to transfer that hard earned savings in to your checking account when you’re at the store staring at that new item you just have to have.  If you find yourself tempted like this often, maybe make it a little harder to make that transfer.  Utilize the tools available in online banking to set some limits for yourself and make your savings stay in savings.  

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 Best Personal Finance Apps

In today’s world, gone are the days of paper and pencil budgets. Now, all you have to do to keep track of your personal finances are an app or two downloaded onto your smartphone. According to Benzinga.com, here are the top five personal finance apps and what they can do for you.

1.    Money Destop-(within Honor CU app) integrates multiple accounts (including bank, credit, loan and retirement accounts) into one place, provides trending information and can document budgeting plans.

a.     Positives: Free, suggests financial institutions with higher savings rates, credit cards with lower interest rates, provides graphics and saving alternatives, provides free credit score, allows manual input of cash transactions.

b.     Negatives: what negatives? J

2.    Honor CU Mobile Banking- check balances perform transfers and much more. Just go to our site and click on the It’s Me 24/7 Online Banking logo. You’re also able to check out any information on our website with Mobile Banking, giving you access to not only your account but information on Honor’s other products and services whenever/wherever you want!

a.     Positives: Free, low rates, can deposit checks without going to the bank, see all information about your account, apply for loans, etc.

b.     Negatives: what negatives? J

3.    BillGuard - pulls all your credit/debit transactions and sends you alerts of potential fraudulent charges. It also alerts you if a retailer experiences a data breach and if you shopped at that merchant during the breach period.

a.     Positives: Free, can flag and dispute charges through the app, evaluates your spending habits and finds relevant coupons.

b.     Negatives: Is best used in tandem with another app because it only focuses on transactions and threats vs. being a comprehensive personal finance aide

4.    Personal Capital- tracks investments by account or asset class, and allows you to compare your portfolio to major indices. The app offers investment checkups and 401(k) and mutual-fund fee calculators.

a.     Positives:  Free, offers a unique view for investors while still providing information on basic personal finance.

b.     Negatives: While it is a top-notch security function, the app is a "read-only service" and does not allow for funds to be moved within the app.

5.    Better Haves: Designed for couples as an accountability spending and budgeting system. Virtual envelopes are filled with money and as spending occurs. it keeps expenses organized and easily tracked.

a.     Positives: Free, has the ability for multiple people to view the same information from different devices, provides real time updates. The envelope system sends reminders to both users when envelops are getting low and spending in that area needs to be more closely monitored.

b.     Negatives: Still fairly new and has a few minor kinks that need to be tweaked. Involves a lot of interaction with the app.

6.    Shoeboxed- provides a way to easily keep up with cash spending in addition to credit/debit card spending. Based on pictures of your receipts, Shoeboxed collects and organizes spending habits.

a.     Positives: Creates shareable expense reports, broad range of import and export methods including pictures, email, and scanning.

b.     Negatives: Not updated in real time. Because everything is verified as accurate by a Shoebox team member, each receipt can take up to an hour to become live in the app.

c.     Cost options-DIY: Free; Lite: $9.95/month after free trial; Classic: $29.95/month after free trial; Business: $49.95/month after free trial; Executive: $99.95/month after free trial.

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 hear 97.5 Y Country's Mark Durocher & Honor Credit Union's Scott McFarland talk about personal finance apps, click on the Mason Jar Monday episode below!

 

Living A Simple, Frugal Life

Living a simple and frugal life has a different meaning for every individual. A common understanding of the phrase “living simply” translates to eliminating everything except the essentials in life. However, adopting a simple lifestyle isn’t as easy as it seems. Here are a few tips to get you started if you’ve decided to simplify your life and live more frugally:

1.    Identify what is important to you. Figure out what is most important to you in life, and what is essential to living. Food? Shelter? Yes. Cable TV? 12 different social media sites? Not so much. Figure out what you need to have, and devote most of your money and time to those particular things. Eliminate everything else.

2.    Evaluate your commitments. What do you have going on in your life? Lunch out with co-workers on Mondays? Girls’/guys night every Wednesday? Figure out what you just can’t give up and what those commitments cost. Then allot yourself an allowance and curfew for these particular commitments and stick to them! Drop everything else that doesn’t give you value.

3.    Evaluate your time. How do you spend your day? As in, what do you do the moment you wake up until the moment your head hits the pillow? Figure out your priorities, and see if what you do every day is in line with those priorities. If it’s not, eliminate the things that aren’t and focus on what’s important. Then, redesign your life!

4.    Spend on what you need, not what you want. Sure, once in a while it’s fun to treat yourself. But do you really need that new pair of shoes? You have plenty of perfectly good pairs sitting at home. Do you need to eat out again, or could you go home and make a delicious meal from what’s already sitting in your fridge? Learn the differences between want and need.

Remember- simplicity and frugality in life is a journey, not a destination. It takes time and commitment. So make sure you’re ready to take the steps necessary. It’s better to take one step forward than two steps back!

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!

Halloween On A Budget

Alright before we get in to saving money for the most frightening holiday of them all, we need to SHARE THE LOVE!  If you haven’t seen Honor’s video submission for a Share The Love credit union competition featuring The Humane Society of SWM, United Way of SWM and the Michigan Youth Opportunities Initiative, stop what you are doing and go to Honor’s website right now. (www.honorcu.com).  In the lower left hand there is a link directly to our video so you can watch and VOTE!  We could win up to $25,000 grand all for charity!

Ok…now back to Halloween savings….

Halloween can be a scary, silly, totally fun holiday, especially when you have an incredible party to attend! But, if you’re the host of that spooktacular party, chances are you spend a bundle just throwing it for everyone, and causing yourself a lot of financial stress in the process. It’s officially the season of Halloween so by following these tips and starting you planning now you can save a few while throwing a scary bash!

1. Create Ambience: Forget the fancy fog machines and expensive black lights. Play scary movies or music in the background instead! Download free Halloween iTunes tracks, or pick up a couple of cheap Halloween CDs from the thrift store.
2. BYOB: Bring Your Own “Boos”. If you’re planning on having alcohol at the party, play on a Halloween pun by encouraging guests to bring their own beverages – adult or not!
3. Decorations: Stock up on cheap items that go a long way, like small pumpkins and caution tape, but don't forget the power of DIY. Ghosts made out of milk jugs and spiders crafted out of black paper are both time and cost effective!
4. Night hour: Consider hosting your fete later in the evening, past dinnertime. This way, you won't have to provide elaborate dishes but can stick to appetizers like chips and veggie plates.
5. Costume contest: The most important part of any party aren't the decorations, but how much fun people have. Tell guests ahead of time to expect a costume contest so they'll be dressed in their best. It'll add a competitive but fun element that makes for the most memorable of Halloween parties.

Don’t forget to have fun! It IS your party…so enjoy it! Be sure to put some thought into your costume. Oh, and don’t forget, DIY is just as great as store-bought (but a lot cheaper!)

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 throwing a Halloween party on a budget, click on the Mason Jar Monday episode below!

 

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!