Savings Archives - Page 3 of 3

5 Ways to Trim Your Fixed Expenses

When trying to trim a monthly budget, most people don’t even consider their fixed expenses; however, with just a bit of effort and research, most of these costs can be reduced.

1. Consider a refinance

Trim your mortgage payments by refinancing at a lower interest rate. It will cost a bit, but in some situations you can roll closing costs and other fees into your refinance loan. Plus, the money you save each month should more than offset these costs. A refinance is especially smart in a falling-rates environment or if your credit score has improved a lot.

2. Lower your property taxes

Taxes are inevitable, but you may be able to lower your property taxes by challenging your town’s assessment. Each town will have its own guidelines to follow for this process, but ultimately, you will agree to have your home reappraised for proving that its value is less than the town’s assessment. This move can drastically lower your property tax bill; however, if you have made improvements to your home, it may be appraised at a higher value, which could raise your taxes.

3. Change your auto insurance policy

If you’ve had the same insurance policy for several years, speak to a company representative about lowering your premiums. By highlighting your loyalty and excellent driving record, you may be able to get a lower quote. If your insurance company is not willing to work with you, it might be time to shop around.

4. Consolidate debt

If you have multiple credit cards with outstanding balances, consider a balance transfer. This entails opening a new, no-interest credit card and transferring all debt to it. The no-interest period generally lasts up to 18 months. You will now have just one debt payment to make each month. Plus, the no-interest feature means you can make a serious dent in paying down that debt without half of your payment going toward interest.

Another way to consolidate debt is to take out a personal loan at High Point Federal Credit Union. Our personal loans will allow you to pay off all of your credit card debt at once. You’ll only need to make a single, affordable monthly payment until your loan is paid off. Explore our current rates here.

5. Cut out subscriptions you don’t need

Take some time to review your monthly subscriptions to weed out those you don’t really need.

If you’re paying for a gym membership, consider just paying for classes you attend instead of the full membership, or springing for your favorite workout machine to use at home. Drop your cable service or downgrade to a cheaper plan by cutting out expensive channels you don’t watch often. Also, you might be paying for premium versions of apps you don’t need. Dropping these costs can give you more wiggle room in your monthly budget.

How to Create a Budget in 6 Easy Steps

If you’re always wondering how you’re going to pay the next bill, feel guilty when you indulge in overpriced treats and you just can’t find money to put into savings, you might need to create a budget.

A budget will help you gain financial awareness, which will help facilitate more responsible decisions.

Here are 6 easy steps to create a budget:

Step 1: Gather your financial information

Collect all your financial documents and receipts for three consecutive months. This includes all account statements, bills, pay stubs, receipts and more.

Step 2: Tally up your totals

Divide your documents into expenses and income. Then, list the corresponding numbers on a spreadsheet. As you work through these lists, include occasional and seasonal expenses, dividing their totals by 12 to spread them evenly throughout the year.

When you have your numbers, take a look at how they match up. If your expenses outweigh your income, trim your spending and/or look for ways to boost income.

Step 3: List all your needs

Take a look at how you’ve spent your money in the recorded time and identify all the actual needs. This includes fixed expenses like mortgage/rent payments, savings, insurance premiums and car payments; as well as fluctuating but necessary expenses, like groceries. To keep it simpler, list your fixed expenses first, followed by your non-fixed expenses.

As you list each need, write down its corresponding cost. When you’ve finished creating this list, add up the total.

Step 4: List your wants

Your next step is listing the stuff you love but can really live without. Include entertainment costs here, as well as eating out and expensive hobbies.

Here too, jot down the monthly cost of each item and tally up the total when you’re done.

Step 5: Assign dollar amounts to expenses

Open up a new spreadsheet, and copy your list of expenses, starting with the fixed-cost needs, then your non-fixed-cost needs, and finally your wants.

Next, assign a specific dollar amount to each expense category. If your budget allows, you can use the average amount you’ve spent in each category for the last three months to set the cap for that expense.

Continue until every dollar is accounted for and you have enough money in your budget to cover each need, want and occasional expense. If expenses outweigh income, you’ll need to trim some expenses for your budget to work.

Going forward, be sure to spend only the assigned amounts for each expense category.

Step 6: Review and adjust as necessary

Review your budget monthly to see if you’re staying on track. If you consistently overspend in a category, spend less in a different area so you have more money available to meet your needs.

The Credit Union Difference – A Look at Loan Interest Rates

One of the most beneficial advantages we offer our members here at Olean Area Federal Credit Union is lower interest rates on loans. Let’s take a look at some of the most popular loan types and how the rates at credit unions differ from the industry average.

Auto loans

Looking for a new set of wheels? Look no further than Olean Area Federal Credit Union! With rates that fall far below the industry average, you can sign confidently, knowing you’re getting a fantastic deal.

Used Car Loan, 48 months:

Average industry rate: 5.44%APR (Annual Percentage Rate)

Average credit union rate: 3.50%APR

Used Car Loan, 36 months:

Average industry rate: 5.39%APR

Average credit union rate: 3.37%APR

New Car Loan, 60 months:

Average industry rate: 5.10%APR

Average credit union rate: 3.45%APR

New Car Loan, 48 months:

Average industry rate: 4.99%APR

Average credit union rate: 3.32%APR

You can explore current Auto Loan Rates at Olean Area FCU by clicking here.

Credit Cards

Why pay a steep interest rate on a new credit card when you can get one at Olean Area Federal Credit Union at a rate that’s nearly two points lower than the national average?

Average industry rate on new credit cards: 13.15%APR

Average credit union rate on new credit cards: 11.54%APR

Click here to discover current credit card rates offered by Olean Area FCU!

Home Equity Loans

Looking to fund a home renovation or expansion? Consider a home equity loan, or a home equity line of credit (HELOC) at Olean Area Federal Credit Union.

Home Equity Loan, 5 years, up to 80% of the home’s value:

Average industry rate: 5.21%APR

Average credit union rate: 4.65%APR

Home Equity Line of Credit, up to 80% of the home’s value:

Average industry rate: 5.05%APR

Average credit union rate 4.56%APR

Home Loans

When you apply for a home loan at Olean Area Federal Credit Union, you’ll enjoy personalized attention throughout the loan process, quick, professional service and interest rates that beat the industry average no matter what kind of mortgage you choose.

30-Year Fixed-Rate Mortgage:

Average industry rate: 3.79%APR

Average credit union rate: 3.71%APR

15-Year Fixed-Rate Mortgage:

Average industry rate: 3.36%APR

Average credit union rate: 3.23%APR

5/1 Year Adjustable Rate Mortgage (ARM):

Average industry rate: 3.79%APR

Average credit union rate: 3.28%APR

3/1 Year ARM:

Average industry rate: 3.74%APR

Average credit union rate: 3.26%APR

1 Year ARM:

Average industry rate: 3.61%APR

Average credit union rate: 3.48%APR

Discover current mortgage rates offered by Olean Area FCU by clicking here.

Unsecured loans

When you need a bit of extra cash for a reason that doesn’t fit neatly into any other category, consider taking out an unsecured loan at Olean Area Federal Credit Union.

Average industry interest rate on fixed 36-month personal/unsecured loans: 10.21%APR

Average credit union interest rate on fixed 36-month personal/unsecured: 9.28%APR

You can find out about your unsecured loan options by calling an Olean Area FCU lender at (716) 372-6607, or by filling out the “Contact Us” form.

What School Doesn’t Teach You About Money

With the new school year either here or just around the corner, it’s time to fill your shopping carts with No. 2 pencils, protractors and all the goodies the kids will lose by the second day of school. If they’re headed off to college, it can be even more exciting. But, instead of needing you to replace their pens on day two, your college-aged child will probably be calling to ask for money by then.

It’s such a ritual that, at this point, many of us don’t really question it. But how much do our kids actually know about money? You might want to only include the lessons you taught them, because their school probably didn’t teach them much at all.

Common core and other national guidelines don’t include requirements for teaching budgeting skills, how to balance a checkbook, or even explanations of basic concepts such as credit, loans or mortgages. Basically, the last time your children learned about money at school, it probably involved finding out how many apples and oranges they could buy in some middle school math word problem.

We talked to some credit union members about the lessons they want to pass on to their kids, and below you’ll find some of our favorite lessons to teach your kids.

Pay yourself first

No one else is going to make you a financial priority, so don’t make them your financial priority.

If you want to know if you can afford something, check your budget. When you have to check your checking account, you can’t afford it.

If you reconcile your accounts every month, you’ll have a pretty good idea how much is actually in each account. Plan ahead. Make a budget. Execute the plan by sticking to that budget.

Take risks while you’re young

You can afford to be more aggressive with your retirement and college funds while you have plenty of time to make it back up, so don’t be afraid to push those funds a little bit. That said, not saving for retirement is not a risk. It’s just a bad idea.

Make sure the Joneses are keeping up with you

It’s easy to get lost trying to compete with your peers and almost as easy to ignore those consumer pressures entirely. But what about the third option? Instead of ignoring their financial situation, check in every now and then to see if they need help. Our communities are better when we care about each other.

Whether your kids are in diapers or their kids are wearing them, it’s never too early or too late to teach financial literacy. Make sure you’re instilling the right lessons, and check back in with Olean Area Federal Credit Union, because we’ve always got plenty of resources for young people to learn the lessons they aren’t getting in math class.