saving money

How Do I Give Myself an End-of-Year Financial Review?

/ destinationscreditunion / Leave a comment

Q: With 2020 drawing to a close, I’d love to give myself an end-of-year financial review before it goes.  Where do I begin?

A: Giving yourself an end-of-year financial review is a wonderful way to check on the progress you’ve made toward your goals, highlight areas needing improvement and update your accounts, funds and investments. Here’s all you need to know about this important end-of-year ritual.

Step 1: Review all your debts and create a payoff plan

Take a few minutes to list all your debts and their interest rates. Have you made any real progress toward paying them off this year? Or have you stuck with minimal payments each month, leaving the actual balance to pile up since you’re mostly just paying for interest?

If your debt needs some help, you have two primary options for how to proceed:

  • The avalanche method. Focus on paying off the debt with the highest interest rate first, and then continue to the debt with the second-highest interest rate. Move through the list until you’ve paid off all debts.
  • The snowball method. Work your way through your debts, starting with the lowest-balance debt. Then, once it’s paid off, apply the payment that was previously committed to that debt to your new lowest debt. Repeat through the rest until all debts are paid off.

For both methods, be sure to pay the minimum balance on all your other debts each month. Try to boost your income and/or trim your monthly spending for extra cash and use it toward the first debt you are paying off completely.

Step 2: Automate your savings

Review your savings from 2020. Have you reached your goals? Have you forgotten to put money into savings each month?

Going forward, make it easy by automating your savings. Give us a call at 410-663-2500 ext 124 to set up an automatic monthly transfer from your checking account to your savings account. [You can also set this up through your online and/or mobile banking with us.] This way, you’ll never forget to put money into savings again.

Step 3: Review the progress you have (or haven’t) made on financial goals

Have you made measurable progress toward your financial goals in 2020?

Take a few minutes to review your past goals, taking note of your progress and determining how you can move toward achieving them.

Step 4: Review your retirement account(s) and investments

As you work through this crucial step, be sure to review the following variables:

  • Your employer’s matching contributions. Are you taking advantage of this free money, or leaving some of it on the table?
  • The maximum IRA contribution limits for 2021. You will likely need to make adjustments for the coming year. If you don’t have an IRA, open one now.
  • Management fees and expense ratios for your investments. Fees should ideally be less than 0.1%.
  • Your stock/bond ratio and investing style. You may want to take more risks in 2021 or decide to play it safer this year.
  • Your portfolio’s balance. Does it need adjusting?

Step 5: Create an ICE Binder

The events of 2020 underscored the importance of making plans in case one becomes incapacitated for any reason. Create an In-Case-of-Emergency (ICE) Binder to hold all your important documents in one place in case the unthinkable happens. Because of the sensitive nature of the information it holds, be sure to keep this in a safe place where it will not fall into the hands of identity thieves.

Include the following in your binder:

  • Medical information
  • Account information
  • Child care and pet care details
  • Online accounts and passwords
  • Insurance policy documentation and details
  • Investment accounts and details
  • A copy of your life insurance policy
  • A copy of your living will
  • A copy of your last will and testament

Step 6: Set new financial goals for 2021
As you finish reviewing your financial progress of the past year, look forward to accomplishing greater financial goals in the coming year.

A great way to turn dreams into reality is to set goals that are SMART:

Specific

Measurable

Attainable

Realistic

Timely

Here are some goals you may want to set for the coming year:

  • Create a monthly budget before January. Be sure to include all expense categories. Review on the first of each month and tweak as necessary.
  • Review the week’s spending with your partner each Friday night.
  • Pay off your largest credit card bill by 2022.
  • Start a vacation fund in February.
  • Cut out two subscriptions you don’t really use by mid-year.
  • Slash your weekly grocery bill by 10% before May.

If you need help with anything from developing a budget to reducing debt/improving credit, contact our HOPE Inside financial wellbeing coach. There is no cost to you.

Destinations Credit Union wishes you a financially healthy New Year!

Your Turn: Do you have any additional steps for your own end-of-year financial review? Share them with us in the comments.

Sources:
https://www.14news.com/2020/11/14/make-ends-meet-financial-year-review/
https://steppingstonestofi.com/end-of-year-financial-review/
https://moneyning.com/better-yourself/how-to-conduct-a-financial-year-in-review/

Save Money This Holiday Season with These DIY Gift Hacks

/ destinationscreditunion / Leave a comment

Love the holidays but hate the Santa sticker shock that follows? No need to spend your way into debt this Christmas. Keep costs down and make the holidays more meaningful by gifting your loved ones with personalized homemade presents. From pamper-me packages crafted with care, to home décor that costs just a few dollars, to home-baked goodies that say “I love you,” the sky’s the limit when you DIY! Here are 13 homemade gift ideas from across the cyber-verse collected for Destinations Credit Union to help get you started.

Sugar cookie sack

Everyone loves pulling freshly baked cookies out of the oven, but who wants to bother with measuring and mixing all those ingredients? Make it easy for your loved one with this adorable sack of sugar-cookie mix. Decorate the sack to make it personal, and you’ll have a heartwarming gift costing less than $10.

Fleece blanket

Help your friends and family gear up for winter with a cozy fleece blanket. If you’re handy with a needle, you can design a deluxe version of this fuzzy piece of heaven; otherwise, keep it simple, sweet and oh, so cheap.

Pedicure kit

Has your friend been pining for a pedicure? Gift them with all they need to make their nails sparkle with a “for your mistletoes” nail kit! Fill a $7 Mason jar with polishes, filers, a buffer and everything else they need for a spa-at-home experience.

Wall clock

Dress up a flat circle of wood with some beautiful material, attach a clock kit and voila — homemade designer décor for just a few dollars! This clock makes the perfect gift for the friend who’s just moved into a new home or dorm room. Learn how to make your wall clock here.

Bubble bath gift set

Who doesn’t love a relaxing bubble bath? This gift makes it possible with a complete bubble bath kit, including chocolate, bath salts, a candle, soaps, a pouf and more. Learn how to create your own at Sugar and Charm.

Instagram picture frame

Round up your friend’s best Instagram snaps of the year with this creative desktop frame. This gift will make them smile all year long.

Infused vodkas

Flavor your own vodkas and give your friends a unique gift they’ll enjoy for days to come. Choose between classic flavors or experiment with brave new ideas, like spicy citrus and cucumber tarragon. Get the tutorial for infused booze here.

Money tree

Who says money doesn’t grow on trees? Give the gift of cash with an adorable holiday-themed presentation by rolling up stacks of bills into tree boughs. Learn how here.

Recipe box

This one is for the friend who dreams of starring on “Chopped.” Fill this personalized, decorated recipe box with their own best recipes and add a few new gems for their collection. They’ll think of you every time they cook up another storm. Check out Club Crafted to get the full tutorial.

Snowball bath bombs

Bath time is fun again with these peppermint-infused bath bombs! Package inside plastic ornaments for a real holiday treat.

Rainbow candles
We’re all spending more time at home these days, and what better way to light up a cold winter evening than with these gorgeous rainbow candles? All you need for these eye-catching creations is a bit of time and some old crayons.

Painted picture frames

Dress up dollar-store picture frames with colored chalk paint for the perfectly memorable gift. Learn how at Make Your Mark.

Reindeer gift card holder

This holiday-themed card holder is the perfect present for that friend who owns a collection of gift cards and needs a place to keep them safe. You can also use it to dress up a gift card and make it more personal. It’s made out of leftover toilet paper rolls and basic craft materials you likely already have at home.

Keep the stress out of the holidays this year with our DIY gift hacks. It’s all the shared love with none of the debt. Plus, creating these gifts will keep you busy as you ride out a quarantine or avoid crowded malls during these pandemic times. Who knew holiday gifts could be so much fun?

Your Turn: What’s your favorite DIY gift hack? Share it with us in the comments.

Sources:
https://homehacks.co/75-cute-inexpensive-diy-gifts/
https://www.goodhousekeeping.com/holidays/gift-ideas/g1266/handmade-gifts/
http://www.fabricpaperglue.com/2012/05/1-supply-3-projects-decorative-gift_10.html

The Credit Union Difference: A Look At Loan Interest Rates

/ destinationscreditunion / Leave a comment

As a member of Destinations CU, you enjoy the many benefits we offer, including woman showing calculator results to a couplepersonalized service; convenience; a voice in the way your credit union operates; and higher general earnings on your savings.

One of the most significant advantages we offer our members is lower interest rates on loans. Our loans offer you the best of both worlds, with an easy application and qualification process, plus a quick turnaround from beginning to end. Most importantly, though, when you take out a loan through Destinations CU, you’ll enjoy more savings on the interest rates throughout the life of the loan. That means your loans cost you less.
Let’s take a look at some of the most popular loan categories and how the interest rates at credit unions differ from the industry average. (All data has been pulled from the NCUA’s annual analysis of credit union and bank interest rates.)

Auto Loans
Looking for a new set of wheels? Look no further than Destinations CU! You won’t be under pressure to overspend or make a rash decision like you might be at the dealer’s lot. Instead, speak with one of our representatives who will be delighted to help you identify how much you can truly afford while in a relaxed and pressure-free environment. You’ll be working directly with the lender, so you won’t get duped into a deal that includes inflated rates that go directly toward someone’s commission. Most importantly, with rates that fall far below the industry average, you can sign with confidence, knowing you’re getting a fantastic deal.

Used Car Loan, 48 months:
Average industry rate: 5.55%APR (Annual Percentage Rate)
Average credit union rate: 3.75%APR

Used Car Loan, 36 months:
Average industry rate: 5.50% APR
Average credit union rate: 3.61% APR

New Car Loan, 60 months:
Average industry rate: 5.22% APR
Average credit union rate: 3.69% APR

New Car Loan, 48 months:
Average industry rate: 5.10% APR
Average credit union rate: 3.57% APR

Here at Destinations CU, we offer new or used car loans beginning at 2.99% APR*.  Apply online or call to speak to a Loan Officer.

*Monthly payment per $1,000 borrowed at 2.99% APR is $17.97 for 60 months and $22.14 for 48 Months.

Credit Cards
Why pay steep interest rates on a new credit card when you can get one at Destinations CU at a rate that’s nearly two points lower than the national average?

Average industry rate on new credit cards: 13.61% APR
Average credit union rate on new credit cards: 11.80% APR
Here at Destinations CU, we offer credit cards for our members with an interest rate as low as 9.50% APR. See full disclosures here.

Home Equity Lines of Credit
Are you looking to fund a home renovation or expansion? Or, do you want to tap into your home’s equity and take out a secured loan you can use any way you’d like? Consider taking out a home equity line of credit (HELOC) at Destinations CU. Check current rates here.

Home Loans
When you apply for a home loan at Destinations CU, you’ll enjoy personalized attention throughout the loan process, quick, professional service, and interest rates that beat the industry average no matter what kind of mortgage you choose. Visit our First Mortgage Center to check current rates and borrowing options.

According to a report by CUNA, the closing fees for mortgages taken out through credit unions average $200 less than those taken out through banks. That’s $200 in your pocket at a time when you’ll need to cover all kinds of moving-related expenses, from new furniture, light fixtures and touch-ups on your new home to moving costs.

Personal/Unsecured loans
When you need a bit of extra cash for a reason that doesn’t fit neatly into any other category, consider a personal loan at Destinations CU. The application process is quick and easy, and you can use the extra money any way you please, from funding a dream vacation to paying for wedding expenses to covering the costs of adopting a child. With modest interest rates, you’ll enjoy an affordable payback plan throughout the life of the loan.

Average industry interest rate on fixed 36-month personal loans: 10.31% APR
Average credit union interest rate on fixed 36-month personal/unsecured: 9.46% APR

You’ll always benefit when you choose Destinations CU. As a not-for-profit, member-owned cooperative, our only goal is your financial wellness. Speak to a Loan Officer today about taking out a low-interest loan of any kind.

Your Turn: Which low-interest loans are you currently enjoying from Destinations CU? Tell us about it in the comments.

Should I Refinance to a 15-year Mortgage?

/ destinationscreditunion / Leave a comment

With mortgage rates falling and financial experts predicting an unstable future for the couple looking at computer.screeneconomy, lots of homeowners are rushing to refinance their mortgages to lock in low rates. One increasingly popular option is to refinance a conventional 30-year mortgage into a 15-year loan.

Borrowers may be wondering if this is a financially sound move to make for their own home loan.

We’ve researched this option and worked out the numbers so you can make a responsible, informed choice about your own mortgage.

When refinancing can be a good idea

The primary attraction to a shorter mortgage term is paying off your home loan sooner, typically at a lower interest rate. This can help you increase your home equity faster and can mean paying thousands of dollars less in interest over the life of the loan. Therefore, refinancing to a shorter-term loan makes the most sense when interest rates are falling.
It’s also a particularly good idea for homeowners who can easily afford to increase their existing monthly mortgage payments. In addition, homeowners whose home values have increased since they financed their original mortgage will be more likely to qualify for a 15-year loan, since they will have a lower loan-to-value ratio —how their home’s current value compares with their current loan balance.

How much money can I save?

There is no quick answer to this question, as there are several variables at play in each refinance. To provide a basic idea of what a shorter-term home loan can mean for your finances, let’s take a look at how the numbers would work out in a 15-year refinance on a conventional home loan.

As mentioned, a 15-year loan generally carries a lower interest rate than a 30-year loan. If national interest rates are falling when you refinance, and/or your credit has improved since you bought your home, your interest rate can be even lower. According to Bankrate’s most recent survey of the nation’s largest mortgage lenders, on Dec. 6, 2019, the benchmark 30-year fixed mortgage rate was 3.74 percent and the average 15-year fixed mortgage rate was 3.16 percent.

Let’s assume you refinance your fixed $300,000 mortgage with an interest rate of 4.5 percent to a 15-year loan at an interest rate of 3.5 percent.

If you kept your existing mortgage unchanged for 30 years, you’d be making 360 payments over the life of the loan at $1,520.06 a month, not including taxes, insurance and other fees.

Toward the beginning of the loan, an overwhelming majority of your monthly payment will go toward interest, with less than $400 going toward your principal. By the time you pay off your loan, this ratio will reverse itself and the majority of your payments will go toward the principal of the loan. Most importantly, over the life of your loan, you will have paid $247,220.13 in interest.

Now let’s explore what these payments would look like if you refinanced this loan to a 15-year fixed-rate loan at a 3.5 percent interest rate.

Over 15 years, you would make 180 payments of $2,144.65. Over the life of the loan, you’d be paying $86,036.57 in interest payments, bringing significant savings of $161,183.56. You’d also be chipping away at your principal at a far quicker pace, with $1,269.65 of your very first payment going toward the principal of the loan.

If these numbers are exciting you about getting your refinance process started, take a step back and slow down. First, these numbers may or may not translate directly to your own situation. In the above example, savings are calculated over 30 years, but you may be nearing the halfway point of your 30-year mortgage. A refinance can still be a good idea if it can get you a lower rate for the remainder of your loan, but your interest savings will be significantly less than those described above. Second, your interest rate may not be a full point lower after a refinance, as it is in our example. This, too, will afford you less savings.

There are other crucial factors to consider before jumping into a 15-year refinance. Read on for a review of some of the more important variables to think about when making this decision.

What will a refinance cost?

Refinancing your mortgage is not cost-free. Expect to pay a minimum of 2.5 percent of your new loan in closing costs and other fees.

Here are some of the possible fees you can expect during the refinance process:

  • A fee for pulling your credit
  •  fee for processing your paperwork
  • Lawyer fees
  • An inspection fee
  • Discount points, each of which are equal to one percent of your home loan, which will give you a lower mortgage rate
  • An appraisal fee
  • A surveyor fee
  • Title search fee
  • Title insurance

Before you get started on the refinance process, it’s a good idea to tally up these expenses and see how much it would cost you to refinance.

You might be offered the option of refinance at no cost. This means your closing costs will be rolled into your new mortgage payments. This can make financial sense if it means saving money in the long term, but it’s a good idea to work out the numbers before you continue with the process.

Finally, your existing mortgage may have prepayment penalties, which can cut into the amount you’ll save by refinancing. Find out about these fees before you set the refinance process in motion.

When refinancing to a 15-year mortgage is not a good idea

If you’re convinced that a 15-year refinance is right for you, make sure to consider this crucial factor before going ahead with the refinance: Your monthly mortgage payments will increase significantly after a 15-year refinance. In the example above, the mortgage payments increased by $624.59 a month. Your own payments may see a similar change, and any increase will impact your finances.

If you’re financially responsible, you won’t consider this move unless you are confident you can afford to meet this increased mortgage payment. However, you may not realize that tying up your spare cash in your home’s equity can be a risky move. It can make more financial sense to first build an emergency fund with 3-6 months’ worth of living expenses, and to increase your retirement contributions. If you’re carrying any high-interest debt, you’ll want to pay that down, too, before moving ahead with a refinance.
Increasing your monthly mortgage payments can mean leaving you with a tighter monthly budget and very little breathing room. Make sure you are fully prepared to swallow these costs before you go ahead with a refinance.

Are you ready to make the move to a shorter-term loan? Speak to a representative at Destinations Credit Union‘s First Mortgage Center today to learn about our fantastic home loan options.

Your Turn: Have you refinanced to a 15-year mortgage? Tell us about it in the comments.

Sources:
Bankrate.com
Money.com
Mybanktracker.com
Themortgagereports.com

All You Need To Know About Share Certificates

/ destinationscreditunion / Leave a comment

If the lump under your mattress is getting uncomfortably big and you’re looking for a two women looking at a laptop and bank statementsafer, more lucrative place to park your savings, look no further than Destinations Credit Union. As an institution that’s completely devoted to your financial wellness, we offer several secure options for savings, including Destinations Credit Union Savings Accounts, High Yield Accounts, Holiday Clubs, and Vacation Clubs.

Another excellent option we offer our members to help their savings grow is our share certificates and referred to by banks as CDs. These unique accounts offer the best of both worlds when it comes to your savings. First, you’ll be giving your money a greater chance at growth than it would have in a typical savings account. Secondly, you are not subjecting your savings to the inherent risks and potential for loss that accompanies investing in the stock market.

Let’s take a closer look at the way this fantastic savings product works and why it might be the perfect choice for you.

What is a Certificate?

A share certificate is a federally insured savings account with a fixed dividend rate and a fixed date of maturity. The dividend rates of these accounts tend to be higher than those on savings accounts and some money market accounts. Generally, there is no monthly fee to keep the certificate open.

However, unlike a savings account, your money will be tied up in a certificate. A typical certificate will not allow you to add any money to the certificate after you’ve made your initial deposit. You also won’t be able to withdraw your funds before the maturity date without paying a penalty.

Terms and conditions of Certificates

As a member of Destinations Credit Union, you can open up a certificate today. However, there are some basic requirements that must be met before you can do so, including a minimum opening balance and a commitment to keep your money in the account for a set amount of time.

The minimum amount of funds you’ll need to deposit to open a certificate will vary widely from one financial institution to the next and also depends upon the term you choose. Some institutions will accept an initial deposit as low as $50 for a certificate. Others, such as a “jumbo” certificate, will demand an opening balance of $100,000. In general, the more money you invest in a certificate, the higher rate of interest it will earn. At Destinations Credit Union, you can open a certificate with as little as $500 at an Annual Percentage Yield (APY) between 1.40% and 2.25% (as of 9/30/19 – rates are subject to change without notice) .

Certificate term lengths also vary greatly among financial institutions, with most offering a choice of certificates that run from three months to five years. Typically, certificates with longer maturity terms will earn a higher rate. Here at Destinations Credit Union, we offer our members certificates that can be opened for just 6 months or as long as 5 years.

To hear more about our certificate terms and rates, speak to a Destinations Credit Union representative today.

Is a savings certificate for everyone?

While keeping your savings in a certificate can be an excellent option for your money, it is not for everyone. Before you go this route, ask yourself these important questions:

  • Do I have an emergency fund set aside to help me get through unexpected events or circumstances?
  • Do I anticipate needing to access these funds during the life of the certificate?

Remember: Your money will be tied up in the certificate and you will not be able to access it without paying a penalty. A certificate works best for people who have money set aside for a rainy day and are fairly certain they will not need to access the funds in the certificate until its maturity date.

Why keep your money in a certificate?

Here are some of the most popular reasons people choose to open a certificate:

1)     Low risk. While nearly every investment carries some sort of risk, your money is always safe in a certificate. With each Destinations Credit Union certificate insured by the National Credit Union Administration up to $250,000 and independently insured up to $250,000 by Excess Share Insurance, you can rest easy, knowing your money is completely secure.

2)     Higher dividend rates. Certificates offer all the security of savings accounts with higher yields. It’s more for your money, just for choosing to invest it in a certificate.

3)     Locked-in rates. There’s no stressing over fluctuating national interest rates with a certificate. The APY is set when you open the account and is locked in until its maturity date. Instead of playing guessing games, you can determine exactly how much interest your money will earn over the life of the certificate the day you open it.  Plus, with Destinations Credit Union, we offer the opportunity to bump up the rate one time during the term of the certificate if rates rise.

If a certificate sounds like the perfect choice for you, stop by Destinations Credit Union today to learn more. We’re committed to giving your money its best chance at growth.

Your Turn: Have you chosen to keep your savings in a certificate? Tell us why you chose this option in the comments.

SOURCES:
https://www.nerdwallet.com/blog/banking/cd-certificate-of-deposit/
https://www.thebalance.com/cd-basics-how-cds-work-315245
https://www.businessinsider.com/5-things-no-one-knows-about-cds-2012-10

DIY Halloween Décor

/ destinationscreditunion / Leave a comment

Don’t blow big bucks on your Halloween décor when you can two children making halloween craftsDIY for a fraction of the price! Check out our list of creative, fun and inexpensive projects to make your home the spookiest haunt on the block.

The mummified door

All you need for turning your front door into a bona fide mummy is a generous amount of toilet paper and a bit of masking tape. This project is easier with a helper, so get your kids or your significant other in on the fun!

First, open your front door to a 90-degree angle. Take a roll of toilet paper and tape the first piece to the upper right-hand corner of the door. Then start wrapping your door tightly from top to bottom, carefully pulling the ends through the crack between the door and the doorpost. If you’re working with a partner, it’s easiest if each person stands on opposite sides of the door as you pass the toilet paper back and forth. Use the masking tape as necessary.

Once your door is completely wrapped, secure the end of the toilet paper roll to the door with another piece of tape. Your door is now mummified! To dress it up, stick on some supersized felt or googly eyes.

The bat chandelier

Are those real bats hanging from your chandelier? This spooky centerpiece will add just the right touch to your Halloween tablescape!

For this project, you’ll need the following supplies:

  • 12-inch metal wreath form
  • 14-inch metal wreath form
  • Black spray paint
  • Black glitter felt
  • Black bead thread
  • Black tulle
  • Sewing needle
  • Hot glue (optional)

Here’s how to turn your wreaths into a chandelier being attacked by a swarm of bats:

  • Spray paint the wreath forms in black.
  • Cut out bat shapes from the glitter felt. Use this bat template to make this part easier.
  • String the bats together using the black bead thread.
  • Cut out two strips of tulle that are large enough to cover the wreath forms. Fold one piece of tulle in half, and attach it to the smaller wreath form by sewing it on, or using hot glue. Repeat with the larger wreath form.
  • To make a hanger for the top circle, tie one strip of tulle to opposite ends of the circle. Repeat with another strip of tulle.
  • Use the thread to attach the smaller wreath form to the larger one in multiple places, so when the 14-inch form is lifted, the 12-inch form hangs below it. Make sure the attachment is secure.
  • Hang your chandelier by attaching it to a light fixture or to a hook.
  • Tie the strung bats to the hanging chandelier until you have an entire family of bats soaring across your house.

Glammed-up pumpkins

Get ready to dazzle the neighborhood with your cluster of studly pumpkins! All you need to turn your gourds into sophisticated centerpieces is black acrylic paint, white acrylic paint, paintbrushes and round, gold studs. For the studs, you can use cheap costume jewelry. Gold thumbtacks will also do the trick.

To dress up your pumpkins, start with stripes. Take one pumpkin and use the white paint to create stripes on every other ridge or raised section of the gourd. Let the paint dry for at least 30 minutes.

When the paint has completely set, use the black paint to fill in the remaining spots until you have black and white stripes covering your entire pumpkin. How’s that for chic Halloween décor?

Now you’re ready for your studded pumpkin. Simply press your gold studs into a pumpkin, creating stripes that run parallel to the natural lines on the gourd. There’s no mess or extra tools involved, and the entire projectshould take just a few minutes. Prettied-up pumpkin, done!

Create several of each glammed-up pumpkin and set them up together for an adorable centerpiece or an outdoor decoration.

Floating light-up witch hats

This one takes a bit more time, but the end result is a real show-stopper on your front porch!

Here’s what you’ll need:

  • 6 cheap witch hats. Depending on your porch space, you may want to make more or fewer floating hats. Adjust all quantities for this project as necessary.
  • Fishing line (Approximately 18 feet)
  • A long needle
  • 6 LED light sticks. Look for a battery-powered, lightweight LED light stick that has a clip. Battery-powered tea lights will also work well.
  • Safety pins
  • 6 outdoor Command hooks

To hang your witch hats:

  • Decide where you’re going to hang your hats, measuring spaces as necessary.
  • Attach the Command hooks to the ceiling of your porch. Let the hooks set for 15 minutes.
  • String three feet of fishing line onto the needle. Push the needle through the outside point of a witch hat and gently pull it to the inside of the hat, being careful not to pull the line all the way through.
  • Remove the needle from the inside of the hat and tie the fishing line around a safety pin.
  • Use a safety pin to attach the fishing line to a light stick, making sure it’s secure.
  • Tie a loop around the other end of the fishing line (on the outside of the hat) and hang it on a Command hook.
  • Repeat with the remaining hats and lights.

Your floating witch hats are ready to scare the living daylights out of the neighborhood!

Tip: Your LED lights will likely not last for a full month. You can turn yours off each night, or leave the floating hats up all month and only turn on the lights on the night of Halloween.

Make Halloween décor a family project this year instead of an expensive shopping trip. It’s fun, creative, and easy on the wallet!

Your Turn: Do you have a fabulous DIY Halloween craft? Share it with us in the comments.

SOURCES:
https://www.dashofsanity.com/best-50-diy-halloween-decorations/
http://eastcoastcreativeblog.com/2013/10/fall-halloween-porch-decor.html
https://www.brit.co/chic-pumpkins/
https://crazylittleprojects.com/25-halloween-decoration-ideas/

How Long Does It Take To Become A Millionaire?

/ destinationscreditunion / Leave a comment

A million dollars. For many people, it’s the pinnacle of financial success. Fostacks of $100 bills forming stepsr others, it’s just the first stepping stone toward their outrageous dreams. But how long does it take to actually reach that goal? How much would you need to save on a monthly basis to net a cool million? And, most importantly, is achieving millionaire status even within the realm of possibility for most Americans?

If you’ve ever seriously considered these questions with the intention of implementing the answers in your own life, or you’re simply curious, we’ve got the inside scoop. We’ve crunched the numbers and worked out the math to help you find out exactly how long it takes to become a millionaire.

Who wants to be a millionaire?

Believe it or not, a million dollars is approximately four times the median net worth of retirement-aged people in the U.S. Even more incredible, a net worth of a million dollars is well within the reach of most Americans. You don’t need a six-digit salary to make it to the millionaires’ list; all you need is enough time and a sound investment strategy.

How long does it take?

There is no pat answer to this literal million-dollar question. The amount of time it will take you to become a millionaire depends on the following factors:

  1. The amount of money you invest
  2. The rate of return on your investment

The table provided here gives you an idea of how much you’d need to save, and how many years it would take you to reach $1 million, at various rates of return.

Monthly Savings Years to $1 million with 10% annual returns Years to $1 million with 8% annual returns Years to $1 million with 6% annual returns Years to $1 million with 4% annual returns
$100 44.5 52.9 65.7 88.6
$500 28.8 33.4 40.1 51
$1,000 22.4 25.5 29.9 36.7
$1,583 18.4 20.7 23.8 28.4
$2,083 16.2 18 20.4 23.9
$3,166 13 14.2 15.8 18
$4,166 11 12 13.2 16.8

The amounts used after the $1,000 mark in this table represent the numbers that single and married employees can contribute to their IRAs and 401(k) plans, with $4,166 representing the collective maximum monthly contributions for a married couple. Note: Maximum contributions, as of 2019, are set at $19,000 a year for 401(k)s and $6,000 a year for traditional IRAs.

If you already have a tidy sum saved up, and/or you’d like to see how long it would take you to reach a million by socking away a monthly amount that is different than any amounts shown on this table, you can input your own formula into this calculator to get the answers you need.

Getting started

Now that you’ve determined how long it will take you to reach your first million, don’t waste any time getting started. If you’ve made this your goal, the sooner you begin investing, the less money you’ll have to put away each month, and the sooner you’ll reach $1 million.

The easiest and most basic starting point for your million-dollar prize is to maximize your contributions to your employer’s 401(k) and your own IRAs and HSAs. Next, look into investing with a low-cost index fund, mutual fund or lifecycle fund.

If you can’t spare the money you’d need for investing enough funds to achieve your goal, take some time to review your budget and to plug up any expensive holes. Look for pricey habits you’d be better off giving up, subscriptions you can do without and entertainment costs you can trim without feeling the pinch. It might not be easy to make all those changes, but with a million-dollar finish line in sight, you should have all the motivation you need to start living a financially responsible life today.

Two neglected factors

One crucial factor most people forget about when trying to invest their way toward a million dollars is the rule of inflation. Simply put, a million dollars today does not have the same value as a million dollars 30 years from now. When you adjust for inflation at 3 percent a year, $1 million in 2020 would need to grow to $2,427,262 to have the same purchasing power in 2050. For this reason, you may want to tweak the amount you invest as a way of accounting for inflation. This way, you can be sure you have a true $1 million at the end of your investment timeline.

Another point that is often overlooked is the fact that no one can accurately predict the future. There’s no way to know what life events you’ll experience over the next three decades. Some of those can significantly affect your finances in either direction, such as windfalls, expensive medical emergencies, market crashes and the like. It may end up taking you a lot less time than you’d anticipated to reach $1 million, or you may never get there at all.

Are you ready to start investing your way toward one million dollars? Speak to a representative at [credit_union] today to discuss our investment and savings products, as well as get some beginner investment advice. You can be a millionaire!

Your Turn: Do you dream of being a millionaire or did that goal never make it on to your bucket list? Share your thoughts with us in the comments.

SOURCES:
https://www.fool.com/amp/retirement/2019/07/14/how-long-does-it-take-to-become-a-millionaire.aspx
https://www.moneyhelpcenter.com/how-close-are-you-to-being-a-millionaire/
https://www.daveramsey.com/blog/how-to-become-a-millionaire
https://www.financialsamurai.com/how-long-does-it-take-to-become-a-millionaire/
https://www.cnbc.com/amp/2017/05/19/how-long-it-will-take-you-to-become-a-millionaire.html

Should I Go Solar?

/ destinationscreditunion / Leave a comment

Q: My summertime electric bills are sky-high. For this reason, I’m really thinking aboutsolar panel installation on roof having solar panels installed on my roof. I figure it’s gotta help me save on energy costs, but I hear they can be super-expensive. Should I go solar?

A: Solar panels are popping up on roofs all across the country. This year, with a 30-percent federal tax credit on solar panels extended until the end of 2019, solar panel installation is especially popular. It’s also incredibly effective: A solar panel system can lower a three-digit energy bill to less than $10.

But, are they worth the price? Let’s take a closer look at the cost-effectiveness of solar panels and highlight some important questions that will help you determine whether a solar energy system is the right choice for your home.

The dollars and cents of going solar

Most residential homes will need a five-kilowatt solar panel system for meeting their energy needs. According to the Center for Sustainable Energy, this will cost homeowners between $15,000 to $25,000, or $10,500 to $17,500 after the federal tax credit.

That’s a whole lot of money! Let’s take a look at four ways you can pay for your solar panel system:

  1. Cash. If you can afford it, paying for your panels upfront will bring you the biggest return on your investment since, after the initial startup fees, your panels likely won’t cost you a penny. Depending on your system and your general energy consumption, your solar panels can reduce your electric bill by 70 to 100 percent. This means most systems will pay for themselves in five to seven years.
  2. Lease agreement. Solar leasing is available in about half of the country. Like a car lease agreement, you’ll pay a monthly rent instead of an upfront fee for your panels. The leasing company will then install your panels and collect the federal tax credit, as well as any government incentives available in your state, on your behalf.

    Leasing solar panels is generally not recommended for several reasons. For one, after the lease agreement is over, the company will either remove the panels or charge you full price for the privilege if you want to keep them. You also may end up saving less on your energy costs than you assumed since many leases contain an escalator clause, which increases lease payments by 3 percent a year. Finally, a leased solar panel system can scare off potential homebuyers should you decide to sell your house before the lease is up.

  3. Solar loan. If you’d rather not lease your panels but you don’t have the cash available to pay for them upfront, you can take out a loan created just for the purpose of funding this purchase. A secured solar loan will use your home as collateral and offer tax-deductible interest, while an unsecured solar loan will likely have higher interest rates. Prepare to pay high origination fees with any kind of solar loan as well.
  4. Home Equity Loan or Home Equity Line of Credit (HELOC). Excluding cash, the most financially responsible way to finance your solar panel purchase is through a loan or a line of credit taken out against your home’s value. Speak to a Loan Officer at Destinations Credit Union to learn about the low startup costs and interest rates on our home equity lines of credit. Interest is often tax-deductible (talk with your tax professional), and the funds you need can be available to you in very little time.

Are solar panels for you?

Ask yourself these questions before you make a decision:

  1. Which way does my roof slant? In the United States, south-facing roofs are the best recipients for solar energy. Next up is west-facing, and then east-facing roofs. North-facing roofs are the least desirable for solar.
  2. How much sunlight does my roof get each day? Are there obstructions, like neighboring homes, trees or hills that block the sun from reaching your roof? It’s best for sunlight to hit your panels for a minimum of five hours a day.
  3. How large is my roof? An average residential solar system will need 20 panels to receive sufficient sunlight, which comes to roughly 500 square feet of roof space.
  4. What type of roofing do I have? The cheapest and easiest solar panel installations work on roofs made of asphalt shingles or corrugated metal.
  5. How old is my roof? It only makes sense to install your panels on a roof that has many more years of life left. Otherwise, you’ll need to pay to have the panels removed and then reinstalled when you replace your roof. Similarly, it’s not worth installing panels if you plan on moving out of your home within the next decade or so.
  6. How expensive is my electricity? The higher your local electricity rates, the more cost-effective your solar panels will be. You can determine the rate you pay per kilowatt hour by looking at your most recent energy bill.
  7. Are there any government incentives in my state? Aside from the  federal tax credit mentioned above, many states offer their own incentives for going solar. You can check for any available state credits on the  database of state incentives for renewables and efficiency.

The bottom line

Should you go solar? At the end of the day, it’s your call. If you can afford to pay for the panels or take out a HELOC to help fund the purchase, and all other factors are in your favor, you may want to consider getting solar panels. Especially consider it while the federal tax credit is still active.

However, if you don’t think you can afford another monthly payment and you don’t believe solar panels would be in your best interest, you can find other ways to cut back on your energy costs without going solar.

Your Turn: Is your home solar-powered? Tell us what drove this decision and how your solar panels are working out for you in the comments.

SOURCES:
https://www.washingtonpost.com/lifestyle/home/considering-getting-solar-panels-here-are-the-right-questions-to-ask/2018/03/09/3190c71a-20c0-11e8-94da-ebf9d112159c_story.html%3FoutputType%3Damp
https://www.nerdwallet.com/blog/finance/save-money-putting-solar-panels-roof/
https://www.tdworld.com/commentaries/5-reasons-why-i-don-t-have-solar-panels-my-roofyet
https://www.consumerreports.org/energy-saving/real-cost-of-leasing-vs-buying-solar-panels

Do My Child’s Activities Really Need To Make Me Go Broke?

/ destinationscreditunion / Leave a comment

It’s back-to-school season and you’re just about ready to zip that backpack closed before children with uniforms posing for cameratossing that supply list into the trash. You’ve been shopping for weeks to get the right pencils and pens, binders and the dozens of other must-haves. This, of course, is in addition to the perfect school shoes and autumn wardrobe. But now you’re done, done, done! Your sanity and your budget are ready for a breather – at least until the holiday shopping season starts.

But then your darling daughter comes home breathless from school telling you she’s made it onto the school’s soccer team. She’s thrilled and can’t wait to start attending practices and games! Oh, and did she mention she’ll need some money for her uniform and equipment?

Before you can finish digesting this piece of news, your son barrels through the door and announces he’s decided to take drum lessons. It’ll only be, say, $600 for the drum set, plus the price of lessons. But that’s not a big deal for you, is it?

Extracurricular activities are an important part of a child’s development. They allow students to shine in ways that may not be possible for them in the classroom. Plus, it helps kids step out of their social circles to forge new and lasting friendships. They serve as a creative outlet and can improve your child’s physical and cognitive health. If you have a real prodigy in your family, they may even be your child’s gateway to a college scholarship, and possibly a lucrative career.

But there’s no getting around the truth: Extracurricular activities are expensive. If you’ve got several school-aged children at home and each one wants to participate in two activities, you can be looking at an investment as high as $10,000 or more because of fees, equipment, uniforms, instruments and supplies.

No worries, though; you don’t have to choose between your budget and your children’s happiness. Here are some ways you can save on your kids’ extracurricular activities this year:

  1. Limit the number of after-school activities you allow for each child

If you’ve got several over-ambitious young ones at home, consider limiting extracurricular activities to just one per child. You’ll actually be doing your children a favor by forcing them to pick one activity of focus where they’ll be channeling all their energy in one direction.

They’ll also be more dedicated to perfecting their game or hobby when they own their choice. Plus, it’ll be easier for them to keep track of just one practice and performance schedule – and a lot easier on your carpool calendar, too! Finally, you’ll help your children avoid taking on too much so they are less likely to wind up neglecting their schoolwork or not having any time to spare for family and friends.

  1. Register early

Lots of children’s sports programs offer discounts of up to 30 percent just for signing up early. Speak to your children about after-school programs and sports teams months before the official season launch so you can register early and snag those early-bird specials. You might also be able to net a discount by pre-paying for the entire season instead of paying on a monthly basis.

  1. Purchase used equipment

Save big on sports gear by purchasing gently used equipment from sites like PlayItAgainSports and SidelineSwap. Some of these sites also allow you to sell your own used equipment.

  1. Swap equipment

If you have friends with kids who are (or were) also into sports and music, see if you can swap equipment and instruments from year to year. Maybe your friend’s son was into guitar last year and baseball this year, while your daughter’s interests ran in the opposite direction. Swapping with friends allows you to save on expensive equipment while putting your own unused gear to good use.

  1. Rent musical instruments

If you’ve got budding musicians at home, consider renting the instrument they’ve taken up this year. There’s no way to tell if that burst of passion they’re currently nursing for the oboe is just a passing phase or the beginning of a hobby that will last a lifetime. Why blow hundreds of dollars on an instrument only to see it lying forgotten in the attic in a few months time? Some instruments, like the French horn, can cost as much as $1,000 but can be rented for as little as $50 a month.

If your child is convinced they’ve found their instrument of choice or you’ve already been renting one for a while, you can purchase gently used musical instruments from resale sites like Craigslist and eBay or through Reverb, a site devoted to selling used musical instruments.

  1. Volunteer your time

If you’ve got the time to coach or manage a team, or even just to walk around selling refreshments during games, you might be able to nab a discount on the program’s fees and equipment.

Don’t let a tight budget stand in the way of your child’s creative and physical development. By making smart, frugal choices, you can turn your children’s dreams into reality without draining your wallet.

Your Turn: How do you save on your children’s extracurricular activities? Share your own tips and tricks with us in the comments.

SOURCES:
https://www.goodhousekeeping.com/life/parenting/g27678115/back-to-school-hacks/
https://www.moneycrashers.com/save-extracurricular-activities-kids-after-school/
https://www.parents.com/parenting/money/saving/11-ways-to-save-on-after-school-activities/

The Ultimate Smart Shoppers Cheat Sheet

/ destinationscreditunion / Leave a comment

You’ve already perfected your monthly shopping schedule to get the best possible pricescouple looking at new appliances throughout the year: linens in January; luggage in March; household appliances in May; patio furniture in September and wedding dresses in December.

But, did you know you should be timing your shopping throughout the week as well? That’s because each weekday brings its own deals and specials. There are some items you can get the cheapest on Wednesdays, others that are best bought on Fridays and still others that will see their biggest markdowns on Sundays.

Here’s the ultimate cheat sheet for your weekly shopping.

Sunday: Large household appliances

Does your refrigerator need replacing? Looking to swap out your oven for a newer model? Home improvement stores, like Lowe’s and Home Depot, tend to mark down their large appliances on Sundays.

Monday: Deals on wheels and electronics

If you’re in the market for a new car, hit the dealer’s lot on Monday. Car dealerships are busiest over the weekend, and the comparative quiet of a Monday will put you in a favorable position to negotiate a great price on a new car. Don’t forget to get preapproved for your loan and use Destinations Credit Union’s car buying service to get great rates and terms!

You’ll also want to check out the large chain stores for discounted electronics on the first business day of the week. Stores like Best Buy offer exclusive manufacturer rebates on Mondays, which can significantly lower the price of an expensive product.

Tuesdays: Houses, airline travel and more

Tuesdays are the recommended weekday for making an offer on a house, particularly the first Tuesday of the month. This is when most sellers will review the activity surrounding their home from the last month and be more open to accepting an offer that’s considerably lower than their original asking price.

If you’re looking to fly in the near future, book your flight on a Tuesday morning. According to data analyses performed by travel-planning company Skyscanner, airlines mark down flight prices by 15-25 percent late each Monday evening. By Tuesday morning, competing airlines will offer matching or lower prices, giving you the best selection of affordable flights.

Tuesdays are also great for purchasing computers online from major retailers, like HP or Dell. Don’t look for discounted MacBooks, though, as Apple rarely marks down its products.

For a terrific way to end your Tuesday, go see a movie. Tickets to the latest blockbusters are usually discounted during the mid-week slump.

Wednesdays: Groceries, discounted apparel and fuel

Forget the weekend grocery run; the best time to restock your pantry and fridge is on Wednesday. Most supermarkets roll out their new sale events on this day, rearrange their aisle end-caps and slap discounts onto perishable products that are left over from the beginning of the week, such as meat, poultry and cheese. If you can swing it, shop early to take full advantage of the sales. Feel free to load up on the marked-down perishables, which will still be days away from their sell-by date. Stick them in the freezer if you won’t use them before they go stale. You’ll also get the biggest bang for your buck in the produce aisle on Wednesdays, when most groceries set out a fresh display of fruits and vegetables.

If you’re a fan of discounted quality clothing, you’ll want to hit TJ Maxx and Marshalls on Wednesdays, as this is when these stores post their new markdowns. Old Navy also features new discounts on Wednesdays.

Unless gas prices are on a downward spiral, fill ‘er up on Wednesday! Weekly gas hikes will take effect over the weekend, often as early as Thursday morning.

Thursday: Clothing, shoes and handbags

Get first dibs on weekend clothing sales at the big-name stores by hitting the mall late on Thursday. Shop for matching footwear with in-store coupons, which also debut on Thursday. Then, complete your new look with a new handbag, which see steep online discounts each Thursday.

Friday: Accessories

Pick up your costume jewelry, belts and scarves on Fridays to score the best prices. According to Lifehacker, online accessories see an average discount of 42 percent on the last workday of the week.

Saturday: Books and yard sale treasures

Amazon offers discounts on books and e-books on most Saturdays, so you’ll want to check out the e-tailer giant at the beginning of the weekend for the best selection at the best prices.

Saturdays are also prime time to pick up treasures at neighborhood yard sales and thrift stores. You’ll get the best picks in the early morning hours, but you’ll score the hottest deals later on in the day when the owners are itching to get rid of all their wares and close up shop.

Your Turn: Is there a weekday shopping hack that has worked for you? Tell us your secret shopping strategy in the comments.

SOURCES:
https://www.thekrazycouponlady.com/tips/money/back-to-school-shopping-hacks.amp.html
https://www.aol.com/article/lifestyle/2018/07/29/the-best-day-of-the-week-to-go-grocery-shopping/23491169/
https://www.dcrstrategies.com/shopping-guide-best-days-of-the-week-to-buy/
https://www.thekrazycouponlady.com/tips/store-hacks/retailer-clearance-markdown-cheatsheet.amp.html
https://www.rather-be-shopping.com/blog/2014/06/09/insider-tips-on-store-markdowns/