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7 Tips to Help with Holiday Budgeting

Posted by Shana 
· Monday, November 18th, 2024 

‘Tis the season for festive lights, joyful gatherings, and the tempting allure of Black Friday deals just waiting to be seized! As we approach the whirlwind of holiday shopping, take the opportunity now to craft a budget that not only preserves the magic of the season but also safeguards your financial well-being.

With a few simple tips, you can weave a touch of financial finesse into your holiday plans without sending your budget into a tailspin. Unwrap the gift of savvy spending to ensure a season filled with joy and memorable moments.

  1. Make a List & Check It Twice

Start by making a list of everyone you plan to buy a gift for, including family, friends, colleagues, etc. Next, set a spending limit for each person or group on your list. Be realistic about how much you can afford to spend. Then, refer to this list throughout your shopping excursions. It will serve as your roadmap to ensure you’re not forgetting anyone and that you’re staying within your preset budget.

  1. Avoid Shopping Sprees

Black Friday is known for its incredible deals and limited-time offers. It’s easy to keep spending once you’ve already started. There’s even a name for it – the shopping momentum effect. While it can be easy to get swept up in the spending frenzy, it’s crucial to stick to your list to stay on budget and avoid overspending. If you feel the temptation to impulse buy setting in, take a few minutes to center yourself and review the items in your cart. This tactic will give you a much better chance of only purchasing the things you need.

  1. Don’t Forget Shipping Costs

You’ll likely be doing some online shopping this holiday season. Don’t forget to factor shipping costs into your overall shopping budget to avoid overspending. Shipping fees add up and can quickly catapult you from within budget to over budget, especially if you’re ordering from multiple retailers. Before you checkout, look for free shipping offers or coupon codes from the retailer to help you save. You can also use “ship to store” options when available to help you reduce the shipping costs.

  1. Get Creative

Don’t overlook the charm of a homemade gift! Handcrafted presents are guaranteed to be a meaningful and budget-friendly way to show your loved ones that you care. Think about how you can use your skills and hobbies to create personalized presents for everyone on your list. Your loved ones will surely appreciate the thought and effort you’ve put into their gifts.

  1. Don’t Procrastinate

Don’t wait until the last minute to start your shopping. When you put off your shopping, it’s almost guaranteed that two things will happen: 1) You’re more likely to overspend, and 2) You’ll undoubtedly settle for gifts that are less than ideal. Not to mention the added stress of trying to knock out your whole shopping list in a short amount of time! Start your shopping early to ensure you have enough time to make thoughtful choices within your budget.

  1. Plan Now for Next Year

Get a head start on saving for your holiday shopping next year by putting money aside throughout the year. Consider setting up automatic transfers into an account dedicated solely to holiday spending, such as a Holiday Club Account. You can deposit money into these special accounts during the year, and the funds are released in November – just in time for holiday shopping. They’re a great way to save without accidentally spending the funds throughout the year.

  1. Consider a Holiday Loan

Holiday loans are one of the best tools to stay within your budget. They function like a personal loan and provide you with a set dollar amount. This feature makes it easy to budget for holiday expenses vs. relying on credit cards. Plus, the interest rates are typically much lower than traditional credit cards. And with a set repayment schedule, you’ll avoid long-term debt as you head into the new year.

We’re Here to Help!

By sticking to your list and budget, you can make the most of Black Friday and holiday shopping without sacrificing your financial well-being. Follow these tips to survive this holiday season without overextending your budget.

If you want to learn more about holiday loans or how we can help you save money, we’re ready to help.  Happy holidays!

Categories : Financial, Loan Information

7 Ways to Leverage Your Home’s Equity for a Brighter Future

Posted by Shana 
· Tuesday, September 3rd, 2024 

Recently, home values have been trending upward. As your home’s value increases, so does your available equity. This current trend provides homeowners with the opportunity to leverage their home’s equity to achieve financial goals and build a brighter future.

The two most common ways to access your home’s equity are through a Home Equity Loan or a Home Equity Line of Credit, also referred to as a HELOC. Since both are secured loans, using your house as collateral, they typically offer more favorable rates and terms than unsecured loans, such as credit cards or personal loans.

Understanding how to put your home’s equity to work for you can be a game-changer for your financial well-being. Let’s explore seven ways to use your home’s equity to achieve your goals.

 

#1: Enhancing Your Home

If you’re a homeowner, you likely have a seemingly endless list of necessary repairs and renovation projects you want to complete. Instead of pulling from high-yielding investment accounts or resorting to high-interest loans or credit cards, consider tapping into your home’s equity to finance your projects.

By using your home’s equity to invest in upgrades, you will enhance your living space and likely to increase the value of your property at the same time – it’s a financial win-win!

 

#2: Consolidating Debt

High-interest debt can be a heavy burden on your finances, making it difficult to achieve your long-term goals. One smart way to tackle this issue is to consolidate your debt using a home equity loan or HELOC.

By combining multiple loans or credit card balances into one loan, you are left with a single, more manageable payment. Plus, you’re likely to lock in a much lower interest rate – providing immediate savings. With just one monthly payment and a better rate, you will have a much easier time paying off your financial obligations and can enjoy financial freedom even sooner!

 

#3: Investing in Education

Education is one of the most valuable investments you can make, whether it’s for yourself or your children. Using your home’s equity to fund a portion of these expenses can provide the opportunity to pursue higher education without significant financial strain. Using a home equity loan or HELOC to finance tuition or other learning expenses ensures that you and your family have access to the education they need to succeed.

 

#4: Financing Life’s Adventures  

Everyone deserves a break now and then! Sometimes vacations can feel like a luxury reserved for the fiscally privileged, but that doesn’t have to be the case. Fortunately, you can tap into your home’s equity to fund your family’s dream vacation without derailing your financial stability. Just make sure you find the right balance between indulgence and responsibility to avoid accumulating unnecessary debt.

 

#5: Celebrating Milestones

Life is full of significant milestones, like weddings and other big events. Though these celebrations are immensely joyous, they can also come with a hefty price tag. However, by utilizing your home’s equity, you can finance these milestones without sacrificing your financial well-being. Just remember to budget wisely and plan ahead to ensure these remain memorable moments for the right reasons – not because it drained your dollars.

 

#6: Covering the Unexpected

No one likes to think about unexpected expenses, but they’re one of life’s inevitabilities. Sometimes, life’s emergencies are bigger than our emergency funds – that’s when a home equity loan or line of credit can step in to save the day. Whether it’s a medical emergency or a sudden home repair, accessing your home’s equity can provide much-needed financial relief in hard times.

 

#7: Planning for the Future

Whether you want to start your own business or purchase an investment or vacation property, your home’s equity could be the perfect source of funding. With lower interest rates than most other financing options, you’ll be able to accomplish your goals without incurring high-interest debt or excessive borrowing costs.

 

We’re Here to Help!

Your home is more than just a place to live – it’s a valuable asset that can help you achieve many of your financial goals. By understanding how to leverage your home’s equity wisely, you can open the door to a world of possibilities and pave the way for a brighter future.

If you want to learn more about our home equity products or would like to determine how much equity is available in your property, we’re ready to help. Please stop by or call 732-634-0600 to schedule an appointment today.

 

 

 

*Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.

Categories : Loan Information