How to Hatch Your Own Financial Nest Egg

Many people know the importance of having a nest egg available. Accidents happen, home improvements pop up, and each December, people spends hundreds (if not thousands) on holiday gifts. For Florida residents and anyone who lives along the coast, we also know how important it is to prepare for the inevitable tropical storm to blow in.

The problem comes when we try to begin saving for a nest egg. Spending wisely and staying on budget are, actually, very difficult things to do. Even if the $5 you spend each day on your morning cup of coffee adds up over time, it seems to take far too long to make a lasting impression. You’re left waiting and–worse yet–without coffee.

So how do you do it? How can you realistically save up a nest egg without drastically altering your lifestyle? Check out some of our ideas below:

Conduct a Spending Appraisal

Track your spending closely. For at least a month (the longer, the better) track everything you spend–everything. A spare few dollars doesn’t seem like much at one time, but they add up. The best way to see this is to keep track of it all. Knowing how much they add up and where they are being spent is a crucial starting point in observing your spending. Find extra help on our website with our financial calculators.

Open a Saving Account

And contribute to it regularly. If you are able, set up an automatic withdrawal on your payday. Think of it as paying a bill to yourself. After a few months, you won’t even notice the difference in your paycheck. It might seem silly, but you’d be surprised at how much you can save by stockpiling spare change and loose dollar bills at home, then depositing them into the bank each month.

Comparison Shop

This is one of those tips that seem simple enough, but it is easy to fall into a comfortable pattern of spending more out of convenience. Shop around for the best deals. Try something new, like visiting a new grocery store or researching different insurance options. Complacency and comfort tend to cost people a lot of money without them realizing it.

Work to Reduce High-Interest Debt

If you have a loan or a credit card with an interest rate in the teens, it can be hard to get ahead of the minimum monthly payment. If you have multiple loans or debts, focus your payments on the one with the highest interest, even if it has more of a principal balance than your other bills. It might take you longer to become debt-free, but you will save more money in the process.

Skip Your Yearly Vacation

This one is tough for some people. We work hard, so naturally, we want to play hard. If you are really dedicated to saving, however, skipping a yearly vacation can save you lots of cash. Try instead to have a staycation at home, or choose somewhere less pricey to vacation, such as a local park or campground.

Find a Cheaper Apartment

Another option that may not seem appealing to many people is to move into a less expensive apartment or house. This will save you money right away, but it is a lifestyle change and will require a commitment. Just remember that the commitment is temporary. Think of the money you are saving and search Pinterest for fun ways to decorate a small space.

Starting a nest egg fund can be difficult, but once you make a couple changes for the better, the savings will pile up fast. Commit to making a real change and stick to your plan. You’ll reach your goals before you know it.

If you’re looking for some added financial advice, contact our staff at First Choice Credit Union.

Family Financial Resolutions for 2017

As the New Year approaches, it is time to reflect on and reform your life. First Choice Credit Union wants to help with some positive resolutions you can keep in 2017. These financial resolutions for you and your family are geared towards securing a bright future for your home, health, and happiness.

Save For Retirement

The question of when to start saving for retirement is always answered the same way: yesterday. If you haven't already begun a 401k or similar retirement investment plan, you owe it to your family to get started. When retirement age rolls around, you do not want your children to be burdened with the task of taking care of you financially.

Write Your Living Will

If you have children or a house or anything of importance to pass on when you die, you must write a will. Wills are not very expensive and they can save your family a huge headache if anything should suddenly happen to you. As the saying goes, it is better to be safe than sorry. Writing your will is a financial responsibility often overlooked by young families.

Talk With Your Kids About Finances

It comes as no surprise that the majority of parents do not talk with their children about money nearly often or honestly enough. Your children can learn to be better with money if you make financial conversations a resolution in your home. This article is a great guide to introducing finance and monetary lessons from age 3-18. It even includes activities that will drive the lessons home with your kids.

Create An Emergency Fund

Families can often feel the stress of stretching their dollars. However, if there's one thing it is important to save for, it is an emergency fund of 3 to 6 months worth of your family's expenses. If catastrophe hits your family or the breadwinner loses their job, this emergency fund will ensure your family never feels the extreme stress of surviving on nothing.

These four financial resolutions will help you secure a successful future for your children and life. Do not let another year go by without improving your financial situation! For any questions or help with financial matters, please visit First Choice Credit Union; we love making a difference in our members' lives.

The Many Advantages of Being a Credit Union Member

Credit unions offer many of the same services as banks; chiefly checking, savings, and investment accounts, consumer and mortgage loans, and credit cards, as well as a variety of other services. Have you ever wondered, if banks and credit unions offer many of the same services, what are the differences between these two financial institutions? In honor of International Credit Union Day, which took place on October 20th, take a look below to see some of the stark differences between credit unions and banks:

Community

At a bank, you are more likely to be received with an impersonal greeting and long lines. Even when you are finally received by a teller or banker, you are often subject to rerouted inquiries and you have to jump through hoops in order to get answers to simple questions. With a credit union, which is owned and operated by its members, you are more than a number or a bank account. At a credit union, you will be more likely to be greeted with a friendly smile and by someone who knows you and your financial story.

Better Perks

With an emphasis on community, credit unions typically offer exceptional perks for their members. These perks can range from providing individual health insurance to offering community involvement opportunities to financial advisory courses that can help you control your budget, improve your credit, or help you recover from unexpected expenses and financials downfalls. This makes it clear that credit unions are dedicated to the development and enrichment of its members.

Better Customer Service

With credit unions, customers are always first because the focus is on members, not profit. This is why policies and plans are often more customer friendly than compared to banks. With a smaller community, customer service is bound to be more responsive and personal.

Better Rates

At a credit union, you are more likely to benefit from generally better rates. With no ATM fees, lower transfer fees, a higher rate of returns on savings, lower interest rates, and better overdraft policies, you will save more money than you would with a national bank. These same rates will be higher at a for-profit bank. With higher savings, this can be reason enough to opt for a local credit union.

Greater Flexibility

Credit unions are typically better than banks in assessing borrowers for loans. They are also more willing to work with your credit history than banks. Banks have a reputation for refusing to work with individuals who have blemishes on their credit reports. Credit unions, on the other hand, are more willing to look at that bigger picture work with you in spite of your credit score. If you are looking to refinance or are interested in a mortgage but have poor credit history, a credit union may be the best option for you.

For more information on what First Choice Credit Union has to offer to you, visit First Choice Credit Union today.

Preparing for Bad Weather: Hurricane Matthew

For anyone that lives along the coastline, the threat of hurricanes and tropical storms is very real and a continued cause of concern. Even with the advancements of science and detection tools, we can only give estimates of a storm’s arrival and ferocity.

Hurricane Matthew was the strongest hurricane to hit Haiti in 50 years and is expected to land on Florida’s shores Late Thursday. Florida Governor Rick Scott wants people to leave while they can. He has already declared a state of emergency in every Florida county. In an interview Monday morning, he was quoted to say, "Right now, the projected path is a little off the coast, but it can change at a moment's notice. When that happens, we're not going to have a lot of time to get ready."

Below are some tips to prepare for Hurricane Matthew:

Before the Storm Arrives

It seems likely that many Florida (as well as other states) will be asked to leave their homes. As Bill Karins, meteorologist for NBC News Tweeted Monday that Hurricane Floyd evacuated millions, but remained 100 miles offshore. Matthew is expected to be around 50 miles offshore, so evacuations are sure to follow. You can find updated evacuation zones here. Before you leave:

• Fill your car’s gas tank
• Protect windows with plywood boards or storm shutters
• Secure outdoor objects like grills or furniture—anything that can be moved by high winds
• Learn the evacuation routes—where will you be going and how will you get there. If you  find yourself in an evacuation zone, don’t wait, evacuate immediately!
• Plan for your cash needs. Access to cash could be limited in the period leading up to and after a storm.
• Check local weather reports often; either on radio, television, or the internet. If possible, download an app for your smartphone or device.

If You Get Caught in the Storm

If you have nowhere else to go, cannot evacuate in time, or for any reason find yourself within the storm, follow the following precautions where possible:

• Stay in a secure room away from windows
• Don’t use a landline phone, candles, or electronics that need to be plugged in
• Remain indoors, even when the eye passes over—the storm isn’t over, and you don’t want to be caught outside.
• Prepare the proper supplies such as:
• Fresh water and nonperishable food for three days
• A first aid kit
• A flashlight and spare batteries
• A battery powered TV or Radio and spare batteries
• Any needed medications, as well as pain relievers  and personal hygiene products
• A fully-charged cell phone with extra battery or external charger

After the Storm has Passed

• Report any downed power lines in your area and stay away from them
• Use stored food and water
• Be patient - it may take awhile for things to go back to normal
• Help your friends and neighbors where possible. Not everyone may have had time to prepare

It is not yet determined when and where Matthew will strike. At First Choice Credit Union, we encourage our Members to prepare early. If necessary, we will make every attempt to provide emergency announcements regarding our hours through following TV and radio stations as well as our Facebook Page:

• WPTV Channel 5
• WPBF 25
• WPEC 12
• La Ley and Fiesta
• WRMF
• WIRK

We wish everyone safety during the storm.

Improving Your Credit as a Young Adult

We are all assigned numbers; social security numbers, personal identification numbers, checking account numbers - lots of important numbers to remember and protect. One of the most important numbers is your credit score, the number that tells lenders how capable you are to repay a loan. Your credit score can determine the financial options that are available to you in the future.

What is a Credit Score?

Credit scores range from 300 to 850. The higher your credit score, the more trustworthy you appear to lenders, and the more likely you are to be approved for a loan. There are a few different ways you can check on your credit score. The most popular and reliable is the FICO (or Fair Isaac Corporation) scoring system. To determine your score, a few basic categories are taken into account: payment history, accounts owed, length of credit history, new credit, and credit mix. Each of these categories might hold different weight for different people.

Payment History

Your payment history generally makes up 35% of your credit score—the largest and most influential component of your credit score. The best thing you can do to keep or build good credit is to pay your bills on time. This shows lenders that you are reliable.

Accounts Owed

This section refers to the amount of money you owe and represents around 30% of your credit score. College student reading this are probably thinking “30%? Oh, no! I knew studying abroad was a bad idea…” However, it’s not as simple as you might think; having a lot of debt doesn’t always equal low credit scores. For example, if one person owes $5,000 on multiple lines of credit and has all their credit cards maxed out, they will have a lower score than someone who owes $50,000 but has not reached their limit or has other available lines of credit.  

Length of Credit History

At about 15% of your credit score, the length of your credit history can be very important. FICO scores will measure how long your oldest (and newest) account has been open and the overall average of all your accounts. Having a longer credit history is important, but if you have good scores in other categories, even a short credit history can result in a good credit score.

Credit Mix

The variety of accounts that make up your credit is known as a credit mix. This makes up about 10% of your credit score. Having a good credit mix means having many different lines of credit, such as retail accounts, credit cards, or installment loans (like mortgages, student loans, or car loans).

New Credit

New Credit is the amount of recently opened accounts and makes up the last 10% of your credit score. This means if you have recently taken out a mortgage or a pack of student loans, your credit score may be (perhaps temporarily) lower, especially if the loans were taken over a short period of time.

So, What Does This Mean for Young Adults?

Young adults - especially recent grads - tend to think that they are more financially stuck than they really are. The one factor they dwell on is debt. Actually, having debt is not as crippling as you might think. As long as you can manage your payments, debt will not necessarily ruin your credit report.

Students also tend to think that paying off their loans quickly will improve their credit score. Actually, it can have the opposite effect. Lenders make money off of interest, so sticking to your payment plan will often help your score more than getting rid of your debt fast. Missing a payment, on the other hand, will definitely hurt your credit score. And defaulting on a student loan can be downright crippling. If you’re having issues repaying your loan, talk to your lender before it gets out of hand.

Lastly, having a good credit mix is often lost on young adults. Even if you are not ready to take out a mortgage on a home, taking out a variety of credit lines is important. One such example can be taking out a car loan.

At First Choice Credit Union, we have flexible young adult car loan options. We accept loans for older models, offer various loan amounts and terms, and are less stringent on income and employment options. If you are looking for a good first step in improving your credit mix, this could be a perfect option for you. Apply online, or contact First Choice Credit Union for more information.  

How You Can Save Money as a College Student

Headed off to college soon?

With all the excitement and happiness that goes with pursuing an education, it can be hard to grapple with the reality of financially supporting yourself as an adult. How can you balance earning a degree without going broke? Read our tips below to get you started on the path to financial independence.

Work in school. Whether by having a part-time job or work-study, working throughout college will provide a few things. First, you will earn extra money for rent and books. Secondly, working can help you gain experience and develop essential professional skills that will look great on future resumes. Third, it will help you develop a strong work ethic that will take you far in your professional career.

Learn how to be financially smart and independent. Working hard will earn you lots of money but if you don’t have the right financial habits, you won’t be able to hold onto that hard-earned money. To start with, track your current saving and spending habits. Are you being smart with your money habits or are you scrambling to pay rent every month? Learn to save, budget and invest. Find resources from your school, credit union, family and online to develop and maintain financial habits.

Stick to a budget. As a result of learning to be financially savvy and self-sufficient, learning to budget will be your greatest asset. At the beginning of each month, budget all your bills and necessities — rent, schoolbooks, gas and more — to prevent overspending on your credit card and blowing your savings. Budget in a little wiggle room in order to treat yourself without feeling too guilty.

Get used, not new. From clothes to books to dorm room furniture, there are plenty of resources for you to find quality, used items at a steep discount. Check online, at secondhand stores and college social media pages. There’s always someone looking to get rid of a mini-fridge or to sell a textbook from Bio 101. Buying used will save you hundreds on school and lifestyle expenses so get thrifty.

Be responsible. Got a credit card? Use it as little as you can, and pay it on time, every time. Track your accounts and spending habits to avoid overdrafts. Consider if you really need cable television, a gym membership and multiple fast food trips in a week. Being responsible now can save you tons of money, protect your credit score and set you up for life after college.

With all the educational and lifestyle expenses that come with college, it can be overwhelming to balance earning a degree and supporting yourself financially. Follow these tips, and speak to our experts at First Choice Credit Union for information on student and car loans, as well as checking and savings accounts for students.

Quinceañera Loans to Help Celebrate Your Daughter’s Big Day

For a young woman, a quinceañera marks the landmark moment when she transitions from childhood to adulthood. Celebrated in different ways across the world, this special birthday is a once in a lifetime event for a young woman. A grand affair, the expenses of a quinceañera can quickly spiral into an expensive bill. Even with a well-intentioned and firm budget, many quinceañeras end up costing as much as a small wedding. How can you make this grand celebration a dream come true for your daughter without spending a fortune?

To help relieve your family of some of the financial burden of a quinceañera, First Choice Credit Union offers a quinceañera loan that focuses on special low rates. This can make the cost of a dress, accessories, venue, photographers or videographers, invitations, decorations, and food significantly more affordable. Securing a First Choice Credit Union Quinceañera Loan can help you be proactive in your celebration planning.

To help celebrate and as an added bonus for loyal members, First Choice Credit Union will provide a 1% discount off an already low and unsecured interest rate.

First Choice Credit Union will also provide $25 dollars to help open a savings account for the special birthday girl. This means that your daughter can mark this special rite of passage with a rite of responsibility. While planning the special event, take this opportunity to teach her about financial security and responsibility by including her in the budgeting process and encouraging her to help save for the big event.

First Choice Credit Union offers wonderful customer service and excellent loan rates for every need. First Choice Credit Union members can apply online or call (562)-641-0100 for more information on loans.

For quinceañera celebration ideas, take a look at Budgeting for a Quinceañera Party and the Top 10 Quinceañera Themes of 2016.