New Horizons Credit Union Blog

Now that you have a solid grasp of budgeting, the next step may be tackling your debt. In this article, we will explore two effective repayment strategies: the Avalanche Method and the Snowball Method, helping you determine which approach aligns best with your financial goals. The Avalanche Method Also known as the Debt Stacking Method, the Avalanche Method prioritizes paying down high-interest debt first while maintaining minimum payments on lower-interest debts. How to implement the Avalanche Method: Organize your debt by listing them in order of interest rate, from highest to lowest. Make all the minimum monthly payments and put extra money towards the debt with the highest interest rate. After the first debt is paid off, allocate the extra funds towards the next debt. Repeat until all your debt is paid off. The Snowball Method In contrast, the...

Last month, we emphasized the importance of tracking your spending as the first step toward financial wellness. This month, we’re diving into how to build a budget that will help you accurately monitor where your money goes, getting you one step closer to achieving your financial goals! Determine Your Income The first step in creating your budget is to establish your monthly income. Pull out your pay stubs to calculate your earnings after taxes, and don’t forget to include any additional income sources. This total will form the foundation of your budget. Calculate your Monthly Expenses Next, take a close look at your spending. Review your bank statements from the last 3-6 months and categorize your expenses into necessities and discretionary spending. Essentials might include rent or mortgage, groceries, utilities, and insurance, while discretionary spending could cover takeout meals, vacations, and shopping. This analysis will help you see what’s left over each month....

Managing your finances can feel overwhelming, but with a few simple strategies, you can gain clarity and take control of your spending. Here are some tips to help you get organized and make informed financial decisions. Check Your Statements Regularly Start by keeping a close eye on your monthly statements. Tracking your expenses helps you understand where your money is going and identify areas where you can cut back. Consider signing up for e-Statements to receive your statements securely and earlier, making it easier to stay on top of your finances. Categorize Your Expenses Organizing your expenses into categories can provide a reality check on your spending habits. For example, if you discover you’re spending $100 a month on takeout, that might inspire you to reconsider those choices and redirect that money toward paying off debt. A little awareness can go a long way! Create a Budget Once you’ve tracked and categorized your expenses, it’s time to create a budge...

Everyone counts down the years, days, and minutes until they can retire. But before you retire, there are six important steps you need to take to retire worry free. 1. Define Your Retirement When you define your retirement, you think about what it is you want to accomplish. Do you want to travel the world, the states, or stay at home and relax? Do you want to make improvement to your home, or sell your home and purchase an RV? When you know exactly what it is you want to do when you retire, you will have an easier time transitioning from work to retirement life. 2. Take Stock of Your "Assets" This is an important step because you're taking a look at all the money you have. Look at how much you have in your savings accounts, retirement accounts, stocks and bonds, and any other savings accounts you may have. This will give you a better idea on how much money you can allocate to everything you want to do. 3. Create a Retirement Budget Creating a budget...

Saving can be a little intimidating when you don't know where to start. But remember, the biggest mistake you can make is not saving. Below are a few tips to help you get started with saving. 1. Track Your Expenses The first step to start saving is to track your expenses. Figure out where your money is going, how much you are earning and spending, and how much you have left over. If you use a credit card, you can get a chart with your expenses broken down where you can see what you're spending your money on. Once you figure out where all your money is going, categorize it so it's easier to see where you're spending most of your money. Use this to create a budget in step two. 2. Create a Budget Now that you have your categories, create a budget so you can minimize spending. Categories should include things like: rent / mortgage car payment / car maintenance bills doctors appointments clothes food Remember, your ex...

If all of your kids have gone to college, living on their own, or started their own family, you are now considered an empty nester. Though a little bit sad, you can make the most of it! Downsizing is a big step for empty nesters, but it can save you a lot of money that you can use for other things like trips with your partner or family vacations every now and then. Read on for some downsizing tips for empty nesters. 1. Let go of items you don't need anymore. If you're moving to a smaller house, townhome, or apartment, you are going to need to downsize. Gather your kids, if you can, to help you sift through the items in your house and let them keep the things they want. If there is something of sentimental value you would like for them to keep, now is a great opportunity to do so. When you're going through your belongings, it's hard to want to get rid of things. Keep in mind this rule of t...

You may think this new year scammers will finally give it up and get a real job, right? Unfortunately, scammers will always be around. That's why we need to keep ourselves on alert and know what a scams look like to avoid getting scammed. Below are a few scams you need to watch out for in the New Year. Common Signs of a Scam:   1. A Sense of Urgency   2. Obvious Spelling Mistakes   3. Too Good to be True deals   4. Asking for Personal Information   5. Contact You Out of the Blue 1. Phishing Scams The Oxford Dictionary definition of Phishing is the fraudulent practice of sending emails or other messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers. For example, you receive an email claiming to be from Amazon. They tell you your account has been compromised and you need to enter your email and password through the link they provided so...