Develop A Winning Budget Strategy On Any Income

It happens every year. As the snow melts, people everywhere turn their collective attention to basketball tournament brackets in hopes of winning big in the office pool, or pulling for WVU & FSU. But what if you could extend that rush of winning to last all year?

With a little planning, you can prioritize your budget to score big by creating your own budget bracket! To do that, it’s important to identify your “Fixed Expenses” and “Flexible Expenses.”

Fixed Expenses

Fixed expenses are those payments that you make each month that you have little-to-no control over. Examples of these payments include: Rent or mortgage,

health insurance, car insurance, student loans, etc. These can be adjusted when you sign up or switch services, but otherwise these payments do not change and must be paid.

Flexible Expenses

These are the things that you spend money on monthly that you can be changed. It’s important to understand Need vs. Want in this situation. There are things that you need to survive (groceries) and then there’s things that you want but can live without (fun money). Why aren’t the Needs in the Fixed Expenses category? Because you can adjust what kind of groceries you pick up, how often you eat out at restaurants, etc. But hobbies and a social life can also be as important.

Bracket Time

To create a bracket, you will first need to determine your monthly income: how much do you make each month? The next step is to subtract all your Fixed Expenses from that total. What remains is what you will be working with for the bracket.

Then sit down and write out as many monthly flexible expenses as you can think of, and aim to have at least 16. Flexible Expenses examples include: groceries, hobbies, going out, internet, new clothes, gas for your car, cellphone, savings, etc. Place them randomly into a selection bracket, and run through each section. Is “cellphone service” more important than “new clothes?” How about “groceries” over “happy hour?”

The winner doesn’t necessarily get the rest of your monthly income, but those who make it further in your bracket are your priorities - the things in your life that matter most. Start with the winner and determine your spend towards that each month, then work backwards from there. Usually the important things like food and internet will be at the top, and the things that are not as important filter to the bottom. It should be the same for budgeting.  

It gives you some perspective on where your money goes each month, and it can also give you a cap on how much you want to spend. If you give yourself a budget and follow it, you can limit yourself from overspending on things that may not be an actual priority for you. Having some money left over to go into your account is also a good idea for any unexpected payments or emergencies.

March Madness doesn’t need to end with March, and you can do this exercise year round. And you’re not alone if you’re looking to save big. Fairmont Federal Credit Union is courtside with you. Visit us at  www.fairmontfcu.com, call 304-363-5320 or stop in the nearest branch location today!

Sources:

https://www.daveramsey.com/blog/march-madness-budget-basketball

https://www.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf

https://www.mycreditunion.gov/tools-resources/Pages/Personal-Budgeting-Worksheet.aspx

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 Have a Worry Free Vacation

As summer begins, thoughts turn to the kids being out of school, warm weather and getting away for a vacation.. Preparing for a fun getaway adventure requires careful planning and preparation to ensure you enjoy happy memories for years to come.

Before you leave home

• Cover your bases – Make copies of all credit cards, travelers checks, identification and medical information that you will be bringing with you on your travels. Keep one copy with you and leave the other at home.
• Bring limited cash – Contact credit/debit card companies- So they are aware of your travel dates and possible purchases outside of your normal routine. You may even want to stash some extra cash in case of inconveniences or you lose your wallet.
• Give limited info on luggage – Don’t put your address on your luggage tags. Instead write your phone number as a method of contact.
• Check your home before you leave – Secure all windows and doors and arm your alarm system before you head out of town. Set automatic timers for your lights and turn on a radio to create the illusion that someone is home. Additionally, consider adjusting your thermostat and water heater for vacation settings.
• Don’t post on Social Media -  Post your vacation pictures when you return home. Announcing your plans on social networks can alert unwanted visitors to your home.
  

On your trip

• Use room safe – Only take the cash and credit cards you need for the day. Put your other spending money in your room safe. Additionally, do not leave any valuables such as computers, wallets or jewelry out in the open.
• Know where you are going – Before you venture out, ask the hotel staff if there are any areas you should avoid.
• Keep valuables hidden in car – Never leave souvenirs, wallets or other items that might catch the eye out in the open in your automobile. Lock them in the trunk or put them in the glove box.
• Use small denominations – Don’t display large amounts of money when making a purchase and keep the dominations to $50 or less.
  

At Fairmont Federal Credit Union, we offer our members a variety of credit and debit card options, many which offer rewards benefits. Contact us to find the right option for your needs. 

Giving Graduates the Financial Tools for Their Future

With graduation comes the promise of new beginnings, big and small. Students are planning summer trips, planning graduation parties and getting ready to go off to college. Funding this new road often requires graduates and their families to become creative with their finances. While scholarships, grants and funds from a summer job might help to ease some of the burden, often graduates need to apply for student loans to cover the remaining balance.

 

Types of Loans

While financial aid is generally lumped into the all-inclusive description “student loans,” there are actually several different options. For the most part they are divided into federal and private loans. Federal loans typically have lower interest rates and offer several repayment options; however, there is a limit to the amount of money that can be borrowed depending upon the grade level the student is in school. 

 

Many times after scholarships, grants and federal loans, students still have a deficit which requires them to apply for private loans to cover the balance. Private loans come from individual lenders and require a credit check for approval. These loans have a variety of different interest rates and limited repayment options.

 

Payment Process 

Once college graduation occurs, loan providers typically provide a six-month grace period before repayment starts. It is important to get organized during this period to ensure you are prepared to start payments. If you have several different loans, talk to your loan service providers about specific repayment options and determine the best plan for your financial picture. Additionally, consider setting-up auto payments so that you don’t have to keep track of multiple payments. Some private lenders might also lower your interest rate if you choose this option.

 

Loan Forgiveness

Depending upon your career choice, you might have a federal loan forgiveness built into your employment. This means that all or some of your loan might be canceled if you stay with the employer for a certain period of time. Volunteering for organizations such as the Peace Corps or AmeriCorps, working as a non-profit attorney, or starting a career as a teacher or medical professional are some examples of post-college paths that might offer this benefit.

 

If you are a recent graduate, contact the professionals at Fairmont Federal Credit Union to discuss your student loan options.  

Youth Learn Life Lessons with Mad City Money

For most kids, money management and strategic financing happens during a game of Monopoly or stretching the $20 their parents gave them to spend at the mall. Since 2008, Fairmont Federal Credit Union has been visiting local high schools to provide a crash-course for students on the up’s, down’s, and unexpected events of real-life finances, in a safe, fun environment. The program has reached over 1,700 students and the reactions are always eye-opening.

With the life-simulating game  “Mad City Money,” students are “transported” to the future with their fellow classmates and, much like real-life, randomly given a life-situation. Some students have just graduated college. Some are married with children while others are single parents. All have bills to pay. Some have credit card debt, others have medical bills, while others must make payments on student loans.

For the next three hours, students must build a budget based on their financial situation, select necessities like housing, food, childcare, and clothing through nine different merchants. All transactions are paid through a debit card and budgets must be regularly balanced, all while navigating the financial pits and peaks typical of real-life. The “Fickle Finger of Fate” falls upon many students, introducing sudden, and unexpected financial setbacks students must address and overcome.

Following this simulation, student’s reactions were of surprise and new-found appreciation for money management. One lesson the students said they learned was the importance of saving and having backup plans, with one student saying,”you should save for emergencies.” Another concept students recognized was the importance of knowing the difference between wants and needs. One student said, “you should make wiser choices by getting what you need first, and then if you have money left over you can buy things you want.”

Finally, many students expressed respect for the financial responsibilities their parents face. “I have a new appreciation for what my parents do now,” said one student while another simply stated, “I don’t like being an adult.”

In March alone, Fairmont FCU reached nearly 200 students through the Mad City Money simulation, providing an opportunity to learn important lessons on responsible financial management and planning. With nine locations across West Virginia, Fairmont FCU is a non-for-profit financial organization that is owned and operated by our members. We offer a range of banking services including checking and savings, online and mobile banking, direct deposits, personal loans, business loans, mortgage loans, and more.

To find a Fairmont Federal Credit Union near you, visit www.fairmontfcu.com or give us a call at 304-363-5320 for more information.

New Year, New You: Financial Fitness for 2017

2017 is here, and with it, the commercials for gym memberships and fitness clubs. They all proclaim the same basic message: that the new year is the time to fashion a new you. In addition to physical fitness, this year, take the steps to creating your financially-fit self. Taking stock of just what sort of shape you’re in and toning up those areas that need attention will get you on the road to fitness in no time!

Make sure these financial “muscle groups” are given a workout:

• Check your credit report and score. Knowing how attractive your financial situation is to would-be creditors is a valuable guide for what you’re doing right, and what needs improvement. It’s also a necessary tool for making sure all accounts are legitimate and in good standing. Check for any accounts that you don’t recognize, as this could indicate you’ve been a victim of identity theft.
• Set concrete goals. Whether it’s setting aside more of your paycheck for retirement, building your emergency fund, paying down debt, and/or reducing your discretionary spending, having tangible goals to work towards will help you stay on track. Many Americans--even high earners--don’t have $1,000 in savings to cover an emergency, let alone the recommended 6 months of living expenses saved for major life events such as a job loss or health crisis. For more ideas on making New Year’s financial resolutions, check out our Resource Center or look over our "Emergency Financial First Aid Kit".
• Make sure you’re well-insured. Most people think of auto and health insurance, but what about life insurance, homeowner’s or renter’s, disability and long-term care insurance? Many of these forms of overlooked insurance are relatively affordable, and protect you in case of an emergency. To find out more information and how you can save money on insurance check out, TruStage.
• Meet with a financial planner. Despite the myriad online tools and resources, we have today, sitting down with an expert and getting a second opinion is still invaluable. Sometimes, just speaking about the state of your finances and goals  followed by  feedback from a professional puts everything in perspective.

Fairmont Federal Credit Union is here for you to reach your 2017 financial fitness goals! For more financial tips and tools, our online Resource Center contains helpful budgeting calculators, security and fraud awareness information, helpful links, and much more.

Fairmont Federal Credit Union is a non-profit financial institution in West Virginia that serves anyone living or working in Marion, Monongalia, Harrison and Taylor Counties and several select employee groups (SEGs) in Preston County. We are owned and operated by and for our members. Our services extend to savings, checking, IRAs, home mortgage loans, and more. Please visit our website or call (304) 363-5320 today for more information!

Fairmont Federal Credit Union Keeps You Sane this Holiday Season

It’s the most wonderful time of the year—the time when city sidewalks are dressed in holiday style, sleigh bells ring, and baby, it’s cold outside! Yes everyone—the holiday season has arrived! Something else that has arrived with the holiday season is holiday shopping.

For many, that means many trips to your local mall or department store, in search of the perfect gifts for everyone on your list. With plenty of people to buy for and not enough hours in the day, it is understandable to become flustered. But one aspect of holiday shopping that should not make you stressed is how you are going to pay for your gifts. Because you are a valued member of Fairmont Federal Credit Union, you know there are plenty of ways that you can pay for every gift this year.

As you begin making your list (and checking it twice), here is our own list for you, that must be used in order to maintain your sanity this holiday shopping season! This is how FFCU can keep you as stress free as possible during your one (or many) Christmas shopping trips this year!

Use your FFCU Debit Card

Your FFCU debit card is a convenient solution to pay for all of your shopping needs this season!  Choose debit or credit to pay for that sweater for Grandma and those toys for your nieces!

Take Advantage of Visa Checkout

With Visa Checkout, all you do is click, pay, and be on your merry way! Not only is your data guarded with multiple security layers, Visa Checkout is also easy for you to use. With just one password, you can securely make your payments with a single login from any device! Sounds like the gift that keeps on giving!

Monitor Your Spending On the Go with Online Banking and Mobile Banking

Online banking allows you to manage your account by viewing transactions and reviewing purchases! Not close to a computer during your holiday shopping spree? Mobile banking is the solution for you—simply download the app and get all the benefits of online banking right from your phone!

Need Cash? Visit a Surcharge Free ATM

Fairmont Federal Credit Union is pleased to offer over 55,000 ATMs where YOU don’t pay a surcharge! Our website gives you detailed information about where these ATMs can be found, check it out to find an ATM near you!   www.fairmontfcu.com/locations