Organize Your Finances for the New Year
by: NerdWallet

A new year brings a chance to start fresh with just about anything. If your midnight toast includes a resolution to improve your financial health, here's how to make it happen.

Get on a budget

To get ahead, it's important to know where you stand and to create a plan with realistic goals such as a comfortable retirement, education and home ownership. Budgeting may sound old-school, but it's still one of the best ways to accomplish this. Start by totaling your income and subtracting your monthly expenses for a quick financial snapshot. Then set goals, reduce unnecessary spending and, if the situation calls for it, explore ways to increase your income.
Budgeting doesn't have be time consuming or complicated. Downloading a budgeting app to your smartphone lets you track spending and financial progress effortlessly in real time. To take the work out of saving toward your goals, you may also want to sign up for an automatic plan that electronically deposits an amount you choose from your paycheck or checking account into your savings account at regular intervals.

Prepare for the unexpected

Life can throw you some scary curveballs. Challenges like job loss, medical issues or property damage can leave you drowning in debt for years if you're not prepared. That's why it's essential to build an emergency fund that can cover at least three to six months of living expenses. Even if you can save only a little each month, with consistent deposits and compound interest you can eventually grow a sizable protective cushion.

Break free of debt

Making just the minimum payments on major debts means you're paying mostly interest and barely even chipping away at balances. One effective approach for eliminating debt is to concentrate your efforts on your highest-interest balance first, while still making timely smaller payments on all other obligations. Once this first debt is paid off, focus on the most expensive remaining balance, and continue this way till you're debt free.
When multiple debts are truly out of control, debt consolidation may provide some relief. This makes it easier to pay off debt faster and more affordably by streamlining multiple debts into one single lower monthly payment. Debt consolidation options include home equity financing, personal loans and zero-interest credit card balance transfers.

Maximize tax deductions

Researching tax deductions and gathering appropriate documents can help you avoid paying more tax than absolutely necessary. You may qualify for tax breaks including:

• Interest deductions for mortgages, home equity financing, business financing, student loans and loans for boats with living quarters.
• Deductions for other taxes paid, including sales tax, foreign taxes and self-employment tax.
• Home office and business insurance deductions.
• Deductions for monetary and nonmonetary charitable gifts.
• Pre-tax contributions to traditional IRAs and 401(k) plans.
• Lifetime learning credit.

Re-evaluate your investments

Life conditions change over time, so it only makes sense that investment and retirement accounts should be adjusted periodically. In early years, it's beneficial to favor an aggressive mix of securities, but as retirement approaches, gradually shift toward more conservative choices like bonds, CDs and mutual funds. It's also smart to examine your estate plan and make sure your will, insurance policies and beneficiaries are up to date.
Financial housecleaning kicks off the new year just right. Over time, things that seemed out of reach become affordable, and every unexpected expense won't seem like the end of the world. This change may be gradual, but by the next New Year's Eve toast your improved financial wellness will be something to celebrate.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

Not Your Grandpa’s Camping Trip
By: ItsJer

Take camping to another level and experience the great outdoors without having to ‘rough it’ - and no, I’m not talking about ‘glamping’ either. I’m talking about car camping! Vacation the cheap way by converting your ride into your own personal and private sleeping quarters. We’ll show you how to maximize your camping experience.

Money Saver

Roll your windows down and enjoy the breeze because autumn is here, and it’s the perfect weather to go on a camping trip! When your car doubles as your transportation and hotel, it’s the easy and smart way to go on a trip. Car camping also comes in handy for times you just don’t want to pay for a hotel, for events such as, festivals, concerts, etc.

Before you hit the road, we recommend purchasing this great gear to transform your ride.

Gear

• Car Mattress from TMART - $55.99. Prices vary depending on style, size, etc. The car mattress is made to be placed in the back seat of your car. There are options available for mattresses for truck beds.
• Portable Stove from PRIMUS - $139.95. For food that isn’t bonfire friendly. Again, prices vary so make sure you do your research!
• ENO Roadie Car Hammock Stand from AUSTIN KAYAK - $199.95 for those who are feeling adventurous and really want to be one with nature.

Break out the s’mores, campfire stories, and go where the road takes you, without having to pay for a hotel or buy an expensive trailer! Use this money saving tip for your next road trip or festival!

Is Fall the Best Time to Buy a House?
by: NerdWallet

Sometimes it's smarter to buy certain items according to the season, like sweaters near the end of  winter and swimsuits in late summer. But what's the best season for buying a house?
The answer: the fall. As temperatures cool and trees shed their leaves, enough factors break in the buyer's favor to make it the No. 1 season for homebuying. Here's why.

Less competition

Many homebuyers are families who want to minimize a move's effect on their kids' schooling. They want them to start at a new school on the first day, not midyear. And so if their spring and summer searching didn't work out, they might well wait for the next go-round. This means fewer buyers bidding on the same houses you're interested in and more negotiating power when you do. (A chart in this article shows how home sales drop starting in the fall.)
Of course, this works both ways: Sellers might not want to uproot their families in the middle of the school year either. But while this brings housing inventory down, you might just find it easier to focus and pinpoint exactly what you really want in a home.

Sellers are more motivated

Spring and summer are the high seasons for homebuying: Days are longer, the weather's nice, and open houses are well-attended. And that means sellers can sit back and be a bit choosier with offers.
But as Labor Day recedes in the rearview mirror, sellers start to wriggle in their seats. The prospect of trying to sell during the holiday season or, more likely, waiting until the next year, is dispiriting. And so these sellers can become, in a sense, settlers — willing to reduce their prices and conditions. There is some variation by region, but overall in the U.S., prices have peaked by the end of August.
Buyers can use this increased motivation to their advantage, offering less and asking for more during negotiations.

Taxes and discounts

Buying a home costs a lot of money but comes with good tax breaks as well. The IRS allows deductions for the interest you pay on your mortgage, on the premiums you might pay for mortgage insurance, on property taxes and more, including some of these that went into your closing costs. Buying a home in the fall means seeing those tax breaks sooner, the following April.
Also, much like those motivated sellers, many homebuilders discount their inventories during this time of year to help them meet year-end sales goals.
The decision to buy requires serious consideration of where you are in life, what your goals are and how much you can afford. But if you are indeed ready, buying during the fall can be a good call. Just try to find time in between football games.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

Make Some VROOM for a New Car
by ItsJer

The beginning of school is right around the corner! Don’t be the parent with the embarrassing car in the carpool lane. Instead, we’ve got some advice on how you can roll up in a car that both you and your kids will be proud of!

Before buying, first consider:

·         Pre-owned or New? While searching for a car, buying new usually is the more desired route. But, used cars, especially well-maintained cars, can be just as exciting as a new one. Find a financial institution that offers the same low-rate for both new and used cars.

·         Insurance Costs. The idea of getting a new car (new or used, either one because it’s new to you) means you could forget about other costs, like insurance. The type of car you want or the purpose you want it for (sport, family, etc.) will change your rate. When you have an idea of what car you want to purchase, get an estimate from your insurance provider.

·         Add-ons. Personalizing purchases is all the rage these days. The display car at the entryway of the dealership looks real nice, but the standard version is missing the rims, sound system and custom seats. Before you buy, you have to take into consideration how much the additions will cost you. This also applies to pre-owned cars that you would like to upgrade.

·         Extended Warranty.  You need to ask yourself if it’s worth it. What will it really cover? How often do you plan on driving it? Do you plan on having your car for five years or more? Once you answer these questions, it will help you decide if you should get extra protection.

·         Pre-Approved? You should’ve already set a budget range. If you get approved before you go to the dealership, you can have a better idea of what your budget will be.

·         Kid Approved? It is important to get your kids’ approval on the choice of your new car, because after all, they will be dropped off in front of the entire school. More importantly, you need to make sure your car is kid friendly. If you don’t have kids yet and are planning on it, make sure it’s kid safe.

·         Test Drive. Last but not least, make sure you test drive your potential new car. You want to feel comfortable before you drive off the lot.

To make your searching process easier, use the Member Auto Center to research cars, locate preferred local dealers, get auto advice, and much more!

Don’t embarrass your kids this school year. Whether it’s to get rid of the hunk of junk, or just for an upgrade, your kids will be happy to be dropped off at the front with your new wheels - just don’t kiss them good-bye.

Boat Shopping for First Timers
How to Finance a Boat without Going Underwater
by: ItsJer

The HOT weather is here, but fear not, we’ve been preparing for this all year. Living so close to the coast means it’s time to ditch the wheels and ride the waves until fall. Being a first time boat owner can be scary, but we’re here to throw you a life ring so you don’t rock the boat and sink in debt.

Step 1: Knowing the Cost of a Boat

The air is hotter, the water is warmer, and the only pedal you’re going to put to the metal is the one on your new boat. But before you dive into this new financial adventure, know the REAL cost of a boat.

Before you buy, consider:

• Cost of gas or diesel
• Taxes
• Boat storage, summer/winter
• Boat upkeep and maintenance
• Additional equipment
• Boat insurance, if necessary
• Registration fees

Step 2: New or Used?

Benefits of buying new:

• Secure feeling

o   New boats should run smoothly and without any issues

• Warranty

o   If maintenance is necessary, you have backup

Benefits of buying used:

• Find a quality boat for less

o   Recommendation, hire a marine surveyor to look at the boat you’re interested in. This will save you a headache later on.

Step 3: Financing

The water is calling your name, but before you make your purchase we have some advice for you.

Don’t be deceived:
Boats usually have a longer life than cars, which is why most financial institutions and lenders offer longer terms for boats. This seems like a very attractive offer because it can significantly lower your monthly payment. Well-maintained boats can last for years but if the upkeep is slacking you are literally paying the ultimate price. Remember, it is always best to get the lowest term within your budget.

Don’t get tricked:
Boat loans at financial institutions are not very common. When you find a boat loan at a financial institution, the rates are usually very competitive. If the financial institution doesn’t offer a boat loan, their next best option is a personal loan. However, don’t get tricked into using a personal loan from a financial institution UNLESS the interest rate is competitive. There are also a number of boat lenders to choose from.

Our last and final piece of advice, do your research! You are ready for the water, but is the water ready for you? Time to kick back, put your feet on the railing and coast through summer on your new boat!

Defending Yourself Against Identity Theft
By: NerdWallet

As technology advances, you can be sure that identity thieves are not far behind. Here are some common methods cyberthieves use to steal your personal information and how you can increase your security while shopping or banking.

Phishing/vishing

Your email messages may not be quite what they appear to be if you're targeted by a phishing scam. Phishing is the act of sending fraudulent emails that seem to come from familiar businesses. These messages contain links to phony websites designed to steal personal information either directly or through malware and keyloggers. Often you'll see a problem referenced with a request to click on the link provided to correct it. Once you've entered your information, ID thieves can access your accounts.
Vishing is the telephone version of phishing. Callers are sometimes bold enough to suggest the victim call back to verify authenticity. But the vishers don't actually hang up; instead they play a recorded dial tone to make the victim believe he's making a call.

Debit and credit card fraud

Most shoppers love the convenience of plastic, and identity thieves use this to their advantage whether it involves skimming, phishing, vishing, malware, mail theft or just looking over a victim's shoulder to steal account numbers. When debit cards are compromised, it's particularly alarming because fraudulent purchases drain your checking account instantly.

BEC scams

Business email compromise, or BEC, scams have cost companies more than $1.2 billion. A phony email from a CEO requesting that funds be transferred per attached instructions is sent to an employee. Because the email appears to come from the employee's superiors, and because the message so closely resembles requests this employee receives regularly, the transfer is often made without question. The money then ends up in overseas accounts that are almost impossible to trace.

Tips to protect yourself

To even further reduce fraud risk:

• Install the latest editions of antispyware, antivirus, firewalls and browsers to all devices, and password-protect them.
• Use strong passwords for all accounts and change them frequently.
• Monitor accounts and credit reports to detect fraud early
• Don't use public Wi-Fi networks for financial transactions.
• Keep cards away from public view, and shred personal documents before discarding.
• Opt in for two-factor authentication on accounts.
• Turn off bluetooth and near field communication when not in use.
• Don't click on email links. Type full web addresses to access business websites.
• Never share sensitive information with unsolicited callers or email senders.
• To verify calls, hang up for at least one minute to insure the first call is disconnected.
• To protect your business from BEC scams, use a two-step verification process for all money transfers. Verbal confirmation is also wise.

Staying informed and adopting smart fraud prevention practices will go a long way toward protecting your identity. Between your efforts and your bank's security, you should be able to stay a step ahead of identity thieves.


© Copyright 2016 NerdWallet, Inc. All Rights Reserved

Graduating into Debt

By: ItsJer

Your gown is dry cleaned, your diploma is framed, and now you’re left with the lingering question of “now what?” Whether you’re graduating high school, college, vocational school or graduate school, we are here to help.

High School Graduates

First off, we would like to say “Congratulations! You did it.” We are here to calm your nerves because as you know, higher education comes with a huge price tag – we feel for you. We are going to break down how to get the most bang for your buck and introduce ways you can lower your costs.

Scholarships

Say whaaattt? Yes, you might have missed the window for a majority of these scholarships, but it doesn’t mean you missed every opportunity. Use https://www.scholarships.com/ to help you find scholarship offers. You can receive scholarships all the way through graduate school. This website also helps you find grants, offers free information on financial aid and college admissions, and more!

AMOCO Federal Credit Union offers a chance to win scholarships (4) and paid summer internships with the credit union each year. Details are posted on the website in January and you can apply up until the age of 22.

Community College

Enrolled at a Community College?

If you decided to go this route, it’s a smart one. Community College can save you a ton on classes. You can always transfer after a year or two, if that’s what you desire.

Enrolled at a University?

If you are already enrolled in a university, you can always do community courses on the side. The benefit of taking classes at a Community College is that they offer all basic classes for a fraction of the price. Also, most credits transfer over (confirm with your guidance counselor).

Books

As a newbie to the college life, you might feel obligated to buy books. Professors regularly preach about how you will not survive their class if you don’t have their book. Don’t stress, you have options!

• http://www.chegg.com/ - rent your books for the whole semester and for cheap!
• Library - majority of the time your college library will have the same books you need available for rent. Always check the library before buying.
•  Find a friend - or make a friend. Splitting the cost with a fellow student will save both of you extra dollars.
• College bulletin boards - These are spread throughout the campus and can be found in different buildings; the welcome center, the fitness center, etc. Students from previous years always post flyers about their books for sale.

Student Loans

There are a variety of student loans to pick from. Research, research, research.

What to look for when choosing a student loan:

• The credibility of the loan provider. Always choose a trusted company.
• The repayment plan. How long after you graduate do you have to start paying back your loan? How many years will you get to pay off your loan?
•  Interest. How much interest will accumulate over the life of your loan?

Consider all these factors before making a decision.

Work-Study Program

If your institution offers the Federal Work-Study program, use it to your benefit. This program allows students to fulfill a part-time job at the institution, and earnings will go towards your tuition and other education expenses.

All Other Graduates

We would also like to congratulate you on your accomplishments. The sting of reality is about to set in. As much as you don’t want to be an adult, it’s too late. Don’t worry though! Just take our money advice.

Defeating Student Debt

Not only have you graduated from your chosen higher education, you have also graduated into debt – womp, womp. Here are a few tips to defeat your debt!

·         Pay frequently.

o   Check with your loan provider to make sure early payments will not be penalized. Paying frequently will help prevent rising interest.

·         Check your repayment plan.

o   Loan providers usually offer you the opportunity to change your repayment plan. As years go by, financial situations can change. Make sure you have the best plan that fits your needs.

·         Pay more than you owe each month.

o   Again, check to make sure that early payments will not be penalized. When you have extra cash, pay it towards your student loan. Paying more than you owe each month will decrease your debt and help you pay it off faster.

·         Consolidate your debt.

o   Simplify your bills into one easy payment.

Budget Routine

With great debt, comes great responsibilities. As an “official” adult, you have more responsibilities. Read our previous blog on how to be an expert at budgeting.

There you have it graduates, tips and tricks on how to handle school debt! Freshmen, you no longer have to feel like a fish out of water, and adults, you no longer have to be scared about student debt! 

Financial Literacy for Kids
By: NerdWallet

No matter how enthusiastic you are, trying to formally teach finance to kids is a tall order that is likely to make their eyes glaze over. Hold their attention by keeping money lessons relevant, age-appropriate and a bit playful.

First finances

Preschoolers can grasp that money is exchanged for stuff. Teach them the names of coins, and as their counting ability develops, explain their values. Playing “store” lets them gain skills as they “buy,” “sell” and even “price” household items.
Begin giving your children a small allowance so they can experience money in the real world, and appoint them as valuable “assistants” on your shopping trips. They'll feel important while clipping coupons and helping you find items on the shelves.

Grade-school growth

Early grade school kids can understand goals, saving and budgeting. Have them create and decorate wish lists and give them four containers for allowance labeled “spending,” “saving,” “investing” and “giving.” The spending jar is for inexpensive things kids want, such as candy or stickers. The savings jar provides a place to save for wish-list items, while the investing jar builds overall savings. The giving jar can encourage compassion as kids contribute to charities that are meaningful to them, or save to buy presents for family members.
Bring kids along when you visit a branch of a financial institution, explaining that the institutions keep your money safe and even pay you for letting it rest there. Make sure they understand the automated teller machine doesn't spew free money and only releases cash you've already put in your account. By the later grade-school years, kids should graduate to their own savings accounts. Look for those with no fees and full parental access.

Middle-school money

Middle schoolers are ready to be included in appropriate family financial discussions about basic living expenses and savings goals. Wish lists can be swapped for goal charts, and you may want to offer to match your children's savings as an incentive to help them make a special purchase.
Most kids this age enjoy the experience of running a garage sale where they can set prices, make change and bargain with customers. They'll have fun earning extra cash while you clear out space at home.

Teen finances

In the teen years, introduce savings certificates, bonds and securities as investments. You may even want to give your teens a small amount of money and let them choose mutual funds or exchange-traded funds to invest in. Encourage teens to work part-time and help them open a student checking account that has a debit card, mobile access and low or no minimum balance or maintenance fees. Consider downloading a mobile financial app to help them track spending and savings. When tax time comes, let them fill out their own return with your supervision and guidance.
No matter what the age, odds are kids would still rather play computer games than listen to you discuss money. Rather than get discouraged, introduce some fun financial apps and games. The experience kids gain through your efforts and a little help from technology will pave the way for a lifetime of financial savvy and success.


© Copyright 2016 NerdWallet, Inc. All Rights Reserved

For the LOVE of Money

by itsJer

Spring is here, which means wedding season is upon us. If you haven’t heard by now, “relationships are hard work.” Especially when talking about money. We have compiled money advice for new couples to help unveil smart financial decisions.

I “Like” You Phase

Congratulations! You have graduated from ‘forever alone’ to ‘relationship goals.’ In all seriousness, new relationships can take a toll on your wallet, especially if you’re the one trying to do all the impressing. Dates don’t have to leave your wallet empty. When your budget is getting low, get creative.

Our advice: Plan a creative date.

·         Museums. Check out their website before you go, you can always find days to go at a discounted price or for free.

·         Picnics. Yes, they are still a thing. Enjoy the beautiful weather and surprise your date with a carefully crafted course.

·         City parks. City parks are usually always free and well maintained. Parks are also pet friendly, show your special someone you’re an animal lover.

·         Cook a nice meal. This definitely saves a few extra dollars and earns you a few bonus points as well.

From “Like” to “Love”

In this stage of your relationship you are either thinking about marriage, engaged or newly married. You are getting invited to more weddings and baby showers than house parties and summer trips. Fear not, by now you should be an expert in balancing your finances and knowing how much of your partner’s money you can spend – wink, wink.

Our advice: Planning is everything! Get ready for all the money changes that are about to happen.

•  The big day. Weddings are a big deal with an even bigger price tag. Borrowing from a Home Equity Loan is a smart way to finance a wedding - hint for parents. Choose from a variety of terms and low interest rates that are often tax deductible (consult your tax advisor).
• Moving in together. Finding a home is just as exciting as it is stressful. Consider financing your home with a financial institution that has a variety of term options and low rates.
• Oh baby. Houses and weddings are expensive, but they won’t be taking money away from you the rest of your life. Start your children off on the right financial foot. Open a savings account as soon as possible. Establishing an account early on will grow their savings and will include long-term benefits like earning member loyalty offers at an early age.

Whether you’re dating or purchasing your first home, we would like to congratulate you and wish you well. Remember, money can cause a strain on partners; but use these tips to minimize the stress so you can enjoy a loving and lasting relationship!

How to Avoid a Holiday Hangover

The holidays are here, which means gaining five pounds of food weight, losing five pounds of money weight, and doing it all with the people you love the most. Before you get lost in the holiday mayhem, we have money tips to help you avoid a holiday hangover and to save you a few pounds.

Taking Advantage of Deals

Like any savvy shopaholic knows, Black Friday and Cyber Monday have the best deals and steals for both online and in-store shopping. If you didn’t take advantage of the deals or haven’t fulfilled your holiday shopping needs, don’t worry there are still ways to be a smart holiday spender. As Christmas approaches, companies will offer great perks for the holidays, especially credit unions. Being a member-owned institution gives credit unions the advantage to be more flexible with their offers. If you are not a member of a credit union, you might want to consider joining because they offer some serious holiday helpers.

Helpers:

• Low Credit Card Rates: Many credit unions will offer a lower credit card rate during the holiday season, November – December. Some credit unions will even keep the same interest rate on qualifying purchases for months after December. Check with your credit union, to make sure you aren’t missing out on this deal.
• Holiday Loans: It’s obvious that at a financial institution you can get a loan, so what makes a holiday loan different? Usually a holiday loan will have a low fixed rate with an easy payback.
•  Skip-a-Payment: A few credit unions will offer a chance to skip-a-payment during the holiday months. Skipping a payment will allow you to have some extra dough for gifts.

Now that you have the money, it is time to go shopping. If you missed the shopping madness don’t get discouraged, there are still many retailers offering discounted prices. If you are looking for specific items, research them online first to make sure you are getting the best deal. December is also the month for giving, and many companies offer easy, free sweepstakes. Try your luck and enter, you never know what you might win!

I Just Got Paid...Why Am I Broke?
by ItsJer

Budgeting can be a bit of a “B” word. Bothersome, that is. Which is why we have created a list of good practices to help you overcome bothersome budgeting.

Whether you’re learning the ropes of handling money, or have fallen off the horse and need to grab the reins on your money situation, AMOCO is here to help. Kiss the days of getting a paycheck and spending it all on rent because you waited until the absolute last minute goodbye. Here are four tips to get you on track:

Positive Mentality

The first step before you encounter any obstacle or adventure is to have a positive mentality. Many people think budgeting inhibits a person’s spending habits, when in reality it’s a practical approach on how to spend realistically. Positive thoughts breed positive results, it’s the basic law of attraction.

Need Versus Want

Speaking of basics, let’s get back to them. A sure way to find out what you essentially need versus what you want just to make your friends jealous, is to get off social media – just kidding, that will never happen. OK seriously though, one sure way is to make a two-column list. Label one side “What I need to Survive” and the other “What I Wish I had to Make My Friends Jealous.” Establishing a division will help you see the importance of where your money should go.

Habits

Habits, this might be the most important tip of them all. You have to establish positive financial habits to overcome bothersome budgeting. To start, you have to face another “B” word; Bills. Add up all your monthly bills together. Bills should include: rent, auto loans, student loans, etc. Divide the total amount you owe in bills in half and put that portion of your paycheck into safe keeping, a savings account perhaps? The left over money is yours to spend, but why not save it for a rainy day? When the time comes to pay your bills, you will have enough to kiss the “B” word goodbye until next month. Continue this ritual monthly so you can pay for your essential needs and not stress about money, yay! Winning!

Be proactive

Remember when I said to put that money into a savings account? For this whole process to work you must be proactive. Establish a savings account strictly for bills. Do not touch this account until it is time to pay your bills. Wouldn’t it be nice to have a financial institution that allows you to open up as many savings accounts as you like and make as many transfers between accounts as you like? I don’t know of any banks that would do this without fees, but I do know of one credit union.

All that said, budgeting doesn’t have to be your enemy. Practicing smart financial habits now will help you become the money wizard you were born to be.