LOVING YOUR BUDGET

Many times when we hear the word budget, we think limitations and lack of freedom. There goes my lifestyle. But I’ve found it to be the opposite. I found that having a budget has given me freedom. It’s allowed me to splurge, save and not stress so much.

Where to start?

First things first, do you have a budget? If not… that’s where we need to start, we need to create one. If you are fortunate enough to have taken this step in creating a budget, then you’re one step ahead but not off the hook. We’re going to make some adjustments to your already made document so be sure to have it out and handy.

With this process it’s important to keep in mind that not all budgets are created equally as we all have different expenses, wants and needs. It’s also important to keep an open mind. Don’t stress yourself out when you realize you dine out often and don’t beat yourself up when you see how much your phone bill is.

Honesty Pays!

When working with your budget it’s important to be honest with yourself and write down all of your expenses, ladies that means your nail appointments and gentleman that means hobbies too. If you are honest, there are no surprises at the end of the month when it comes to your money. By being honest with yourself, you are creating a budget that works for you. If you leave out expenses, you’re cheating yourself.

First and foremost, gather all of your receipts from the month prior. Ladies that means trips to the nail salon and gentlemen that means any movie, video game or music you purchased. And, if you don’t have the receipts pull up your credit card and debit card statements. Oh and grab a highlighter you’re going to need it.

Next, categorize all of your purchases and expenses. Blow is an example of a budget sheet that could help you see the categories.

Source: Pinterest 

Write in all of your monthly expenses under actually amount. This will allow you to see firsthand how much you are spending on your bills, food, shopping and many other expenses. Use this as an eye opener. Now, take your income and subtract it from your expenses. Are you overspending? Under spending or just making ends meet? This is about where you can identify areas where you can cut back and make changes.

Reality

You’ve now created a budget! Way to go! Now here comes what I think is the hard part… sticking to it! I’ve found the best way for me to keep from going over my budget is it to keep away from the mall by shopping smart with discounts and deals that I find around town.  Believe me, having a budget doesn’t mean you have to give up everything you enjoy. It just means you have to find different ways. 

It’s okay to love your budget. I do!

^Alysha 

IT'S A MONEY THING: CHECKING ACCOUNTS

Our world has become full of technology. Everywhere we turn, we hear, “There’s an App for that.” But not everything has become digital. Take for instance your checking accounts, while there might be some digital components, like mobile banking, and even check capture, there is one other component to our checking accounts that seems to get forgotten… Checks. That’s right checks still exist.

You might think check writing is a thing of the past, but, check writing is an art, and it’s important to know and understand how to write a check as well as how checks are processed.

For me, writing a check allows me to see the true value of something. It allows me to physically write out the numbers and that makes me stop to think about my spending habits. If you are always out shopping and making purchases, it’s so easy to swipe your debit card and within a few hours you forget how much you spent. But, with check writing you become more aware of your spending habits.

Just like check writing makes you aware of your habits, so does balancing your checkbook. Balancing your checkbook has become a thing of the past… but it needs to be a thing of the future. Balancing your checkbook is all about keeping track of your financial transactions, it’s about writing down what you spend and what you make. This gives you a more accurate idea of your account balance and it’s also a great way to help you avoid unnecessary fees, overdraft fees and it’s an easy way for you to view errors or fraudulent activity on your account.

Check out this month’s “It a Money Thing” as Jen learns the art of check writing and tips to stay on top of her finances.

^Alysha 

Understanding The Basics of Investing

Many of us have heard of people investing money into the world and then using that as a way to get rich. Some of us have probably even considered trying to make money that way ourselves.

Despite the risks, there are several compelling reasons to make investing a part of your overall financial plan. Through investing you can preserve your wealth by overcoming the effects of inflation, help save for long-term goals, and gain an additional source of income. These benefits are even more rewarding if you start at a young age. The stock market, however, is well known for having its set of myths that typically prevent people from making investments. Myths are typically created by individuals who never learned everything there is to know about the stock market and how to make the best investments. Let’s explore some of these.

Myth: By taking a chance on a risky investment and some stroke of luck, you can wake up the next day as a millionaire. You have to risk everything in order to get a worthwhile reward.

Reality: Serious investing requires a lot of time. There is an entire education behind active trading. To invest without any prior research would be similar to taking your chances in the lottery. Becoming educated on the stock market in combination with staying up to date on world factors that affect economy can make investing less about taking a gamble and more about making calculated decisions.

Myth: For every investing success story, there’s an accompanying horror story. Investing is so scary and so unpredictable that it’s simply not worth the risk.

Reality: Risk and losses are both very real outcomes of investing. HOWEVER, after making smart, thoroughly researched investment choices, your next best protection against risk and volatility is the amount of time you have for your investment to mature. The narrower your investment time frame, the more vulnerable you are to sudden and often unpredictable changes in the market. A long term investment has lower risk because there will be time for the stock to recover from market declines.

Myth: Playing it safe means measly returns.

Reality: Time is compound interest’s best friend. Together, they can really put your money to work. Even products with a relatively low expected yield can accumulate a lot of wealth over long periods of time. This is why even playing it safe can still be worth it in the long run.

So are you ready to begin your own success story as an investor? In this month’s “It’s a Money Thing” video, learn the basics of investing by following Jen on another adventure as she seeks advice from a world famous rich guy!

^Alec 

SURFS UP ON LOAN BASICS

It’s a good feeling when we know that we are able to pay for everything we have to pay for on our own. However sometimes, when something unexpected comes up or you simply want to spend more money than you have on a certain item, we will naturally want to lean towards taking out a loan. 

Loans are extremely common and can be a huge benefit in someone’s life. However, it is important that before applying for a loan, you fully understand how they work. Not understanding how they work could lead to poor planning for paying it back which can result in a variety of consequences when missing a payment or even defaulting on the loan. 

This month’s “It’s a Money Thing” video is targeted towards teaching you all the basics about taking out a loan. Find out about the different types of loans and how they all work. Surf’s up dudes and dudettes!

^Alec

What Is Your Money Persona?

How do you look at money? Money is something that is handled and viewed very differently depending on who you ask. Some people may see money as a source of freedom where others may see money as a source of anxiety. Each person carries a persona in the way that they tackle finances.  In fact, most people carry a combination of personas. It is important to identify which type of persona you are so that the next time you are making financial decisions, you can play into its strengths while avoiding its weaknesses. We have split the most common money beliefs into 4 personas. So which one sounds like you?

Relate to Multiple Personas?

Great! As mentioned before, a majority of people can relate to more than one persona and that is okay. It is normal to relate to any and all of these views about money because money is something extremely important to all of us. Just like anything else in life, however, keeping a healthy balance of habits is key to success! So keep an eye out for the strengths and weaknesses of each persona and you will get more bang for your buck, and more satisfaction in your life.

^Alec

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GO PRO WITH YOUR FINANCES

Today, outdoors and motorsport enthusiasts all over the world are gravitating close to compact sports action video cameras such as GoPro Cameras. This is largely due to the fact that they allow you to capture every amazing experience with crystal clear quality from some of the best perspectives that you just can’t get with other methods of recording.

I compete in automotive motorsports and several of the drivers including myself utilize compact action cameras as a crucial tool. Using these cameras we can record and analyze several driving techniques which we can then use to improve our routine when it comes time for competition, and greatly improve our overall performance. Without these cameras to use as a tool, it can be very difficult to manage all the different aspects that go in to setting a fast lap time. There are several other types of tools out there but for most people, including myself, monitoring activity with your own eyes is still the best way to stay ahead of the game and make corrections where necessary.

Similar to racing, when it comes to finances it can be very difficult to keep track of all the aspects that go into maintaining proper money management. However there are tools that assist with finances similar to the way action cameras help out professionals in motorsports. FinanceWorks is an application created by Digital Insight that allows people to manage their finances such as checking, savings, credit cards, and loans all within the Credit Union’s online banking site. With FinanceWorks you can live your life while capturing all of your financial action from the best perspective. Then look at where you can make your corrections and adjust your financial management techniques in order to get the best plan possible and stay ahead of the game. This is one of the reasons that FinanceWorks is provided by Tropical Financial Credit Union as part of the online banking program. We want our members to always have the best perspective of their financial activity so that they have the tools needed to GoPro and conquer life’s toughest financial challenges.

-          ^Alec

                

Ready For College and Life on Your Own?

The moving boxes are unpacked and you’ve completed all your college checklists. Being on your own for the first time can be exciting and full of new experiences.  There probably won’t be anyone over your shoulder telling you how to spend your money, so you’ll also want to make sure you’re financially ready.

Here are three ways to be prepared:

1. Create a personal budget

Without your parents there to pick up all the tabs, you’re going to be buying more stuff on your own. It will be important to know how much things cost beforehand, so you don’t overspend. Take some time to figure out the costs beyond tuition and textbooks such as lab fees, gas and food that won’t fall under your school meal plan.

Write out a tentative budget that shows how much you could spend each month. As part of the budget, set aside a little cash for an emergency savings fund. This could help pay for unexpected costs, like parking tickets or laptop repairs.

2. Choose your checking options

After you’ve written a budget, you’ll want to keep track of your money to make sure you’re following your plan. One of the easiest ways to do this is to set up a checking account that offers online banking. In doing so, you can monitor where your money is going seven days a week by reviewing your account on your smartphone or computer.

Consider top checking account perks such as debit cards with purchase rewards, and accounts with no monthly service charges or minimum balance requirements. Financial institutions like TropicalFinancial Credit Union offer products for young adults that have all these features.

When you’re just starting out, it’s easy to slip up and spend more than what’s in your account. Look for institutions with forgiveness programs that discount the first few overdraft fees each year, and don’t charge extended overdrawn balance charges.

3. Weigh the benefits of establishing credit

If you’re responsible with your money and have regular income, now could be a good time to open your first credit card and establish a positive credit history.

Apply for a card that accepts first-time borrowers and offers competitive interest rates. If you manage your account well, it will be reflected on your credit report, which could make it easier to buy a car or home in the future.

Leaving home for college, you need to know how to handle your money. By setting a budget and choosing the right financial accounts, you’ll have the tools you need to do so.

Margarette Burnette, NerdWallet

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