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Step 2 of 12 Toward A Debt-Free Life: Don’t Dig Yourself Deeper

When you’ve dug yourself deep into a pit, the only way to get out is to stop digging. This month, focus on not racking up more debt. Stop using your credit cards. Skip your weekly trips that usually have you buying too many non-essentials.

Instead, start brown-bagging your work lunch and brewing your own coffee. Get into the habit of spending only on essentials so you can make real progress toward paying down that debt.

Don’t forget to make the minimum payments on every line of credit and loan you have open. Neglecting your debt will only pull you deeper into the pit.

Taking Steps Toward Financial Improvement For The New Year

Q: I’d like to focus on improving my finances in 2020, but there are so many areas that need attention. Where do I start?

A: The start of a new year is a wonderful time to make important changes in your financial life. Lucky for you, you don’t have to go it alone. Artesia Credit Union will walk you through some financial improvements you can make this year and continue to guide you every step of the way.

We’ve broken down some of the most popular financial resolutions into concrete steps and outlined the ways Artesia Credit Union can help you implement each change into your life.

Build a budget

Why it’s crucial: Creating and sticking to a monthly budget will force you to be accountable for your spending while giving you a clear idea of your financial reality.

In 3 steps:

  • Track your spending over three months.
  • Using a spreadsheet, a pen and paper or a personal finance app like Mint, divide your expenses into categories, such as mortgage, groceries, etc. Use an average of the last three months to set a reasonable spending limit for each category.
  • Going forward, track your spending and be sure to stick to your preset limits for each category.

If your budget reveals your monthly income doesn’t cover your expenses, or you find you’re overspending in any area, look for ways to cut back.

Get out of debt

Why it’s crucial: Carrying long-term debt can mean paying exorbitant amounts of interest for years on end. It can also devastate your credit score.

In 3 steps:

  • Make a complete list of all your outstanding debts in order from smallest balance to largest.
  • Review your monthly budget and look for ways to cut back. Alternatively, you can look for ways to increase your monthly income.
  • Work on paying off your smallest debt with the money you trimmed from your budget, or with the extra income you’re pulling in. Once you’ve paid off that debt, move on to the second-smallest. Repeat until you’re completely debt-free.

How Artesia Credit Union can help: If you’re carrying multiple high-interest rate debts, consider taking out a consolidation loan to simply things. This way, you’ll only have one low-interest loan payment each month. It may even reduce the total amount you’ll pay each month. Speak to a loan officer at Artesia Credit Union today to discuss this option.

Start saving

Why it’s crucial: According to the Federal Reserve, 40 percent of Americans can’t cover a $400 expense. Living without a safety net means a relatively small, unexpected expense can throw off your finances and force you into debt. Aside for paying for emergencies, savings can help fund your long-term plans, goals and dreams.

In 3 steps:

  • Review your monthly budget to identify your biggest spending traps. Then, find ways to cut back, such as shopping with cash only, cancelling subscriptions you never use or initiating a “financial fast” one weekend each month, in which you spend no money.
  • Use all money saved to open an emergency fund and a long-term savings fund at Artesia Credit Union. It’s best to focus primarily on your emergency fund until you have 3-6 months’ worth of living expenses stashed away.
  • Set up an automatic monthly transfer from your Artesia Credit Union checking account to your Artesia Credit Union savings accounts so you never forget to feed your savings.

How Artesia Credit Union can help: We offer many different types accounts including Savings, Checking, Money Market, Share Certificates and IRA’s so your money has an excellent opportunity for growth to suite your individual needs.

Maximize your retirement contributions

Why it’s crucial: Many workplaces offer to match 401(k) contributions. These contributions aren’t taxed and they come off your paycheck, which is taxed, making participation an excellent decision. Your 401(k) withdrawals will be taxed in the future, but the compound interest your fund will accumulate until then will more than offset this cost.

In 3 steps:

  • Speak to an HR representative at your workplace to find out about your current 401(k) contributions.
  • Identify how to best maximize your 401(k) contributions going forward.
  • If you have any other retirement funds, such as an IRA or a Roth IRA, also review your contributions to determine if you are making the maximum funding allowed.

Let Artesia Credit Union help you meet your money goals this year. Together, we can make this the year you take control of your finances and start working towards a financially comfortable future.

ALL YOU NEED TO KNOW ABOUT REMOTE CHECK CAPTURE

In a world where you can order almost anything using your mobile phone, it makes sense that Artesia Credit Union offers mobile banking services for our members. You can now check your account balance and transfer funds between accounts, all from the comfort of your home. 

One of the most convenient features we offer through our mobile banking service is Artesia Credit Union Remote Check Capture app. All it takes to deposit a check is a few minutes of your time and a phone with internet access. 

Let’s take a closer look at remote check capture and mobile deposits. 

What is remote check capture? 

Remote check capture is a way for you to deposit a check into your ACU Checking or Savings Account from a distant location using a mobile device with internet access. You can be practically anywhere in the world and make your deposit at any time. 

The process is simple: You’ll sign into our mobile check deposit app and prepare your check for deposit. Tap on the Deposit A Check icon and the app will guide you through snapping a picture of both the front and the back of the check. You’ll also be asked to verify the check amount. Once you’ve made the confirmation, your check will be submitted for deposit into your account. 

It’s that easy. 

The benefits of remote check capture 

1. Convenience. As mentioned, with remote check capture, you can make your deposit anywhere, at any time.

2. Speed. Your check will generally clear more quickly through a mobile deposit than it will through an ATM deposit.

3. Accuracy. You’ll be asked to confirm the check amount for accuracy. On the small chance that an error happens, you’ll still have the physical check, which you can then deposit at Artesia Credit Union. 

Some facts you may not know about remote check capture 

A. Deposit limits. For your safety, the maximum amount you can remotely deposit in one go is $10,000.00.

B. Bounced checks. Just like a confirmed check deposit can end up bouncing several days later, if we cannot collect the funds, a mobile deposit can also be returned for the same reasons.

C. Holds on checks. Any checks deposited after our evening cutoff of 4 p.m. will be placed on hold until the next business day. 

But is it safe? 

We take many precautions for ensuring your personal information is protected throughout the remote check capture process. 

First, no one can sign into your Artesia Credit Union mobile deposit account without knowing your strong, unique password. 

Second, our mobile app does not store your check images in your phone. Once your check has been submitted, the image is erased from your phone and stored only in our own software. 

Finally, if an error occurs, you’ll always have the physical check to deposit if necessary. 

Artesia Credit Union Remote Check Capture is quick, easy and safe. Try it today! 

Artesia Credit Union Icon

 

SOURCES:

https://www.thebalance.com/mobile-check-deposits-vs-atm-deposits-315007

https://www.bankrate.com/banking/5-crucial-facts-everyone-should-know-about-mobile-check-deposit/amp/

https://www.digitalcheck.com/history-of-rdc/

7 SIGNS YOU’RE LIVING BEYOND YOUR MEANS AND HOW TO FIX THEM

1. You’re carrying a credit card balance from month-to-month 

If you have a high credit card balance and you’re paying just the minimum each month, you can end up carrying this balance for years while paying a lot in interest. You might also be tempted to make more purchases on this card since it already has a balance. 

The fix: Try to make double payments and stop using the card until the debt is paid off. 

2. You stress about bills 

Monthly bills should be fixed into your budget. You should be able to pay them easily without any stress. 

The fix: Take a look at your monthly budget and find ways to cut back. 

3. You can’t save 5% of your monthly income 

If you can’t put away at least 5% of your monthly income into savings, you’re living beyond your means. 

The fix: Again, trim your expenses and restructure your budget to include at least 5% for savings. 

4. You don’t have emergency and rainy-day funds 

Ideally, you should have an emergency fund to cover major unexpected expenses, and a rainy-day fund for small expenses you can anticipate. 

The fix: Start building your funds now by putting away as much as you possibly can each month. 

5. Your mortgage payment eats up more than 30% of your monthly income 

Most financial experts agree that your monthly mortgage payment should not exceed 30% of your take-home pay. 

The fix: You have two choices here:

  1. Find ways to boost income. Seek a raise at your current job, freelance for hire or find another side hustle for extra cash.
  2. Scale back your mortgage payments. Consider a refinance. [Speak to a home loan counselor at (credit union) to see if this is right for you.] If your mortgage is crippling your budget, consider downsizing to a smaller and cheaper place.

6. You lease a car you can’t afford to buy or finance 

Can you afford to pay for or finance your car? If the answer is no, you’re in financial trouble. 

The fix: Downgrade your vehicle to one you can actually afford. 

7. Your financial decisions are influenced by your friends’ spending habits 

Thanks to the hyper-sharing culture of social media, the pressure to keep up with the Joneses is stronger than ever. If you find yourself making financial decisions based on your friends’ choices, you’re likely spending more than you can afford. 

The fix: Stop looking over your shoulder and keep your eyes on your own life and your own wallet. 

If you’re in over your head, we can help! Stop by today and our staff will be happy to guide you out of any financial mess. 

 

 

SOURCES:

https://www.google.com/amp/s/www.hermoney.com/invest/financial-planning/warning-signs-of-living-beyond-your-means/amp/

https://www.investopedia.com/articles/pf/08/in-over-your-head.asp

https://rockstarfinance.com/7-signs-that-you-might-be-living-well-beyond-your-means/