New Horizons Credit Union Blog

Buy Now, Pay Later (BNPL) services have become increasingly popular, especially around the holiday season, offering an easy way to split payments over time. However, while BNPL services can provide flexibility, they come with both benefits and potential risks. Let’s take a closer look at the advantages and disadvantages of using BNPL services: Advantages 1. Immediate Access to Purchases: With BNPL, you can get the items you need or want right away, even if you don’t have the full funds available upfront. This can be particularly helpful for big-ticket purchases or last-minute holiday shopping.  2. Budget-Friendly Installments: BNPL services divide your payments into smaller, manageable installments. This allows you to fit purchases into your monthly budget without disrupting your cash flow or breaking the bank all at once.  3. Interest-Free Periods: Many BNPL options offer interest-free payment terms, meaning if you pay off your balance within the designated ...

As the year draws to a close, it’s the perfect time to reflect on the knowledge you've gained and how to apply it to your financial well-being. Investing can be a powerful tool for growing your wealth, but it’s crucial to understand the associated risks and whether investing is the right choice for you. Here are some detailed tips to help you get started on your investment journey: Define Your Risk Tolerance Before diving into the world of investing, it’s vital to assess your risk tolerance. This means considering how much financial risk you’re willing to accept, given the possibility of losing some or all of your investment. Ask yourself questions like: How would I feel if my investments dropped significantly in value? Can I afford to wait for a potential recovery, or do I need access to my funds sooner? Understanding your risk tolerance will guide you in selecting investment accounts that align with your comfort level and financial situation. Define Your Investment Goals ...

Whether you’re a high school student, a college graduate just stepping into the world of adulthood, or someone who’s been navigating adult life for years, it’s crucial to start thinking about retirement. The reality is, it’s never too early or too late to begin saving for your future. Taking action now can set you up for financial success down the road. Here’s how you can get started: Contribute to a 401K If your employer offers a 401(k) plan, take advantage of it! Contributing to a 401(k) is one of the most effective ways to save for retirement. Many employers provide matching contributions, which is essentially free money for your future! If you’re already contributing, consider increasing your contribution rate to maximize your savings potential. If a 401(k) isn’t available through your employer, look into opening an Individual Retirement Account (IRA) or other investment options through your credit union.  Create an Emergency Savings Establishing an emergency savings a...

Achieving an excellent credit score may seem like a daunting challenge, but with the right strategies, it’s more attainable than you might think! By actively managing your debt and using your credit cards responsibly, you can pave the way to a healthier credit profile. Here are some effective tips to help you reach your credit score goals: Have Several Credit Cards and Keep Them Active Having 1-3 credit cards and using them responsibly can significantly boost your credit score. By regularly using a couple of cards for recurring expenses—like subscriptions on one and gas on another—and paying them off in full and on time each month, you demonstrate your ability to handle multiple accounts effectively. Just remember, the goal is not to max out your cards, but to manage them wisely. Work on Paying Down Debt Actively paying down debt is a key factor in improving your credit score. Whether you choose to tackle your smallest debts first (the Snowball method) or go after the largest o...

Achieving financial stability means understanding when and how to indulge responsibly. If your bank account only covers next week's bills and payday is still weeks away, it might be wise to hold off on that impulse purchase. However, once you establish a solid financial foundation, you'll have the tools—like budgets and savings accounts—to set aside money for those well-deserved treats! Here are some tips to help get you started: Budget, Budget, Budget! Before you splurge, ensure you have a robust budget in place. Take the time to calculate your monthly expenses and income to guarantee you’re covering your bills on time while also setting aside funds for emergencies and savings. Create a "Just for Fun" Budget Allocate a portion of your paycheck for fun expenses, such as vacations and little splurges. This dedicated "Just for Fun" budget can help you indulge guilt-free! Consider opening a Vacation Savings Account with NHCU to streamline your savings ...

Paying yourself first is a crucial financial strategy that emphasizes prioritizing your savings and retirement without neglecting your necessary bills and debts. This approach helps you develop the habit of ensuring your future self is financially secure. Here are some practical tips to help you cultivate this habit: Asses Your Spending Start by evaluating your current expenses. Calculate whether your paycheck can cover both your necessary bills and your savings goals. Don’t hesitate to make adjustments as needed; flexibility is key. Determine How Much to Save Once you’ve assessed your spending, it’s time to decide how much to set aside for yourself. A popular guideline is the 50/30/20 rule: allocate 50% of your income to essential expenses, 30% to savings, and 20% to discretionary spending. If you receive a raise, be sure to revisit and adjust your savings contributions accordingly. Identify Your Savings Goals Create a list of short- and long-term savings goals to clarify ...