Save it for a Rainy Day!

How to Quickly Build Up Your Rainy Day Fund

Money grows on the tree of patience - Proverb.

Everyone has that one, special container that’s kept in a private place in their home. It holds a few extra dollars that you didn’t spend while you were buying your weekly groceries. It contains a pile of spare change you collected when you were recently cleaned out your car. That’s right; it’s your rainy day fund.

Every rainy day fund naturally means that there’s going to come a day when you’re going to spend that precious, carefully stored money. How did you always envision spending that money? Maybe it’s buying a sleek new laptop. Perhaps there’s a trip you’ve always dreamed of taking, and this saved money will turn that dream into a reality. You might have even had your eye on a brand new car.

But then, the unexpected occurs; your current car needs to be fixed, a repair is needed on your home, a larger-than-planned bill needs to be paid. Soon that rainy day fund is quickly depleted, and you’re saying goodbye to that trip to Florida with kids, or that new car.

But never fear, there are plenty of ways to quickly restore that precious fund so you can spend the money how you want to spend it! Here are a few of our favorite ways that you can be saving money for your next rainy day:

Understand its Purpose

Having a specific definition of what this money will be used for is the best way to ensure you are working towards that goal. Maybe you want to refurnish the basement for the kids to use. What will the costs be to do that? Now picture the outcome and how happy everyone will be. Having a vague outline of how you will spend that money will only encourage your to be more frugal and less impulsive with your purchases.

Be Honest With Yourself

It’s time for some self-exploration—think about your current spending habits and have an honest conversation with yourself on how they can be changed. Make the commitment to yourself to alter how you save; it will let you reach your goal quickly.

Spend Extra Income Wisely

It’s tempting to treat yourself to a night on the town, or splurge on an expensive purchase, but think before you splurge.  If extra income comes your way, put it in your rainy day fund right away, before the temptation to spend it kicks in.

While going on vacation, getting a massage, or buying that golf membership is a fun way to spend that extra money saved, sometimes practicality and responsibility have to take over. That rainy day fund would make a big difference in a Savings Club Account at Fairmont Federal Credit Union. You can save up for something specific, such as auto expenses, home insurance and,  yes, even that dream vacation very easily with an account like this. Not only is there no minimum balance required, but you can earn dividends with regular savings, make unlimited deposits and withdrawals, and you don’t have to follow a payment schedule. It doesn’t get much better than that.

For more information on our Savings Club Accounts and how they can help you save for your rainy day fund, trust your friends and experts at Fairmont FCU. Visit our website for more information on how your rainy day fund container can become an electronic banking account instead.

Learning to Love Budgeting

Most people cringe when they hear the word “budgeting.” But when it boils down to it, budgeting is just a plan for your money. Budgeting means you’ll be spending with purpose before the month begins, and it won’t limit your spending freedom, but give you more. Budgeting is all about being intentional about where your money goes, and will give you a clear plan and picture about where your money is going.

1. Budget to zero: This means that before the month even begins, you’re making a plan and giving every dollar a name. It doesn’t mean you have zero dollars in your bank account, just that your income minus all your expenses will equal zero.
2. Budget together: If you’re married, you and your spouse should sit down and make sure you’re on the same page about your budget. Remember, since you’re a single unit, it’s not your money or my money, but our money.
3. Every month is different: Some months you’ll need to save for school supplies, and others you’ll have to save up for a vacation you’ve been wanting to take. Make sure you’re adjusting your budget accordingly to accommodate for these changes.
4. Start with important categories first: Giving and saving should be at the top of your list, along with food, shelter, utilities, basic clothing and transportation. Once those necessities are taken care of, you can fill the rest of the categories in your budget.
5. Pay off your debt: If you have debt, paying it off needs to be a top priority. You can use the debt snowball method and Baby Steps to get rid of debt as fast as you can, and stop letting it rob you of your income and budgeting plan.
6. Trim things out: If you’re on a tight budget, you can start to cut certain things out, such as your cable or dining out. You can also shop at discount clothing stores, and budget out meals before you go grocery shopping.
7. Cut up your credit cards: If you have a credit card, and are really committed to sticking to your budget, you need to ditch the credit cards. Having no credit card debt will mean no more minimum payments you need to make each month.
8. Make a schedule: Set specific dates to pay bills, and buy your groceries on a set day every week, or twice a month. When you know what to expect and when to expect it, you take a lot of stress and potential pitfalls out of the picture.

Let Fairmont FCU help! Use online banking and schedule your payments to pay your bills on specific dates and to set-up savings goals.  You can also open club accounts for specific items like insurance, auto expenses, education, etc and the best part is the club account is tied to your membership ID/account number making it easy to transfer funds or set-up automatic transfers to each designated club. For details or to apply online visit www.fairmontfcu.com, stop in any full service office or call 304.363.5320, option 1.  #WeAreFFCU #wvcreditunionscare #onceamemberalwaysamember

How to Declutter Your Life in 2018

What do you like to do in your down time? Perhaps you enjoy settling in on the sofa and reading a good book. Maybe you prefer to go on a walk or take a bike ride in your neighborhood. Whatever your favorite method of relaxation is, one answer we don’t hear a lot of is cleaning or organizing the house. Let’s face it—there’s a bunch of other things we’d rather be doing in our spare time than scrubbing our bathrooms or cleaning the kitchens. But you have to admit it, once you actually do, doesn’t it feel amazing?

There’s really no better time than now to de-clutter your life; after all, a new year means a new you.  Having a closet in your home full of mystery contents or a drawer with too many miscellaneous items is so last year. This is 2018; this is going to be your year where your life has minimal chaos and excessive order.

It sounds a lot scarier than it is; after all, we’re always afraid of some potential, hidden problem we’re going to find. But getting your finances in better shape, particularly with tax season right around the corner, is going to be the most therapeutic and beneficial way to get a fresh start in 2018.

Here are a few things we consider to be helpful to declutter your financial life in 2018:

Pay Bills Immediately

Never receive a bill, set it aside, and pay it later. Not only are you adding extra steps to your process, but you are just adding more paper to an already growing list of bills. Instead, open your mail as you are in your home office, and pay your bills immediately with a computer in front of you. Better yet—set up automatic online payments as you work on that computer.

Buy a Shredder

Bills like credit card statements and bank statements don’t need to be saved; often your bank will easily be able to access that information online for you. We recommend you go for a cross-cut shredder to help declutter your files.  

Ditch Paper Receipts

There’s an app we are loving right now that will easily declutter your life in 2018. Foreceipt Receipt Tracker is a great way to take pictures of your receipts and organize them digitally, set budgets, and track your spending. It’s an easy way to both store the information you need while significantly cutting down on paper.

Organizing your storage, re-evaluating your financials, or cleaning out your closet doesn’t have to mean that book that you’ve been reading gets abandoned. Decluttering your life and sorting out your bills means bringing a renewed balance between your professional life and your personal life. For more information on how to start the new year right by better financial organizational tips, contact your friends and experts at Fairmont Federal Credit Union.  Call 304-363-5320 or visit one of our locations today.