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Ready to take control of your finances in 2024?
Amazingly, the calendar has once again turned its page, and we find ourselves standing at the threshold of a brand new year.
As 2024 begins, many of us will set resolutions to change certain aspects of our financial lives, such as saving money, reducing debt, improving our credit scores, or even funding a long-awaited home improvement project.
Fortunately, if you find yourself in need of some guidance and assistance in achieving these goals, Mid Oregon is here to help. And what better way to start taking control of your finances than by creating a financial fitness plan.
MAKE A SAVINGS GOAL
Set up a specific but realistic goal. Perhaps 2024 is the time to focus on building your nest egg for emergencies, retirement, or simply peace of mind. If you see a tax refund in your future, use part of that money to give yourself a head start. Use a savings goal calculator, such as Mid Oregon’s Savings Goals tool in Digital Banking, to see how much you’d have to save each month. Or, explore the variety of savings options Mid Oregon offers (see below). Whatever you want to save for, set a goal and then work toward reaching it.
MAKE SAVINGS A PRIORITY
Saving sufficiently for the future—whether that’s tomorrow or years from now—is crucial. From regular savings and high-yield savings accounts to share certificates, Mid Oregon offers a variety of savings options and strategies to cater to your unique needs:
- Share Certificates—Enjoy higher returns on your investments and keep your money safe and local. We have amazing rates right now so take advantage of our latest special.
- High Yield Savings Accounts—Savings account with a variable dividend rate that increases as the balance increases (minimum balance $1,000).
- IRA Accounts—Build your future and your nest egg faster with attractive rates of return and choices to fit every budget and savings goal.
- Saver’s Club Certificate—Set your goal and the amount you want to save every month. It’s ideal for saving for something special or not being caught short during the holidays.
MINIMIZING DEBT
If reducing debt is on your agenda for the year, Mid Oregon can also assist you in navigating this challenging journey. We offer a variety of loan options designed to help you consolidate your debts and manage them more efficiently. Consider applying for a home equity line of credit (HELOC) to consolidate debt or build an ADU for extra income. How about transferring your high-interest rate credit card balance and take advantage of our no balance transfer fees? By working with our knowledgeable loan officers, you can develop a customized plan to tackle your debts strategically, potentially saving you money and reducing your financial stress.
CREATE A BUDGET
A budget can feel daunting, especially if you have never done one or it has been a long time. But having a budget allows you to better control your money, instead of it controlling you. You will also feel more confident if faced with a financial setback. Begin by writing it all down—every dollar you spend. From the daily coffee, to treats for our four-legged friends and monthly subscription costs, it all adds up. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses and prioritize the rest. You can jumpstart your budget by applying basic percentage rules:
- The 80/20 rule is one of the more simplistic rule where you use 80% of your budget for needs and wants, then save the other 20%. Rather than having a variety of categories, you simply divide your expenses and savings into these two buckets.
- The 70/20/10 rule allocates 70% monthly bills and daily spending, 20% for savings and 10% for debt payments.
- The 50/30/20 rule allocates 50% of your income toward needs (housing, transportation, utilities, groceries), 30% toward wants (eating out, streaming services, hobbies or entertainment), and 20% towards savings (emergency fund, extra debt payments)
- The 30/30/30/10 rule is another popular method you can try. This budget breaks down into 30% housing, 30% expenses, 30% debt/savings, and 10% for entertainment/fun.
MY CREDIT SCORE—YOUR MOST IMPORTANT NUMBER
Improving your credit score is another crucial aspect of financial wellness, and Mid Oregon can help you navigate this process. Many of us don’t keep track of our credit scores, but having a good score influences the type of financial options available to you—including interest rates on loans.
Mid Oregon has a free, secure option that can help you take charge of your credit. CreditSavvy (My Credit Score) on our Digital Banking platform can help you improve your score, and monitor for potential fraud. When you enroll, you receive anytime, anywhere access to your credit score. Plus, you’ll receive simple, straightforward tips that you can use to improve your score. In addition, you’ll enjoy these other features:
- Articles on ways to improve your score.
- Information on how your score compares to other consumers in your area.
- Credit Simulator Tool. Try different what-if scenarios to see how they’ll affect your score—before you make a change!
- Free credit monitoring. Sign up to receive alerts on new accounts or inquiries on your credit report.
- Special offers tailored to your good credit that can reduce your interest rates and save you money!
For those who are interested in building or repairing their credit, we off resources such as secured credit cards and credit builder loans, designed to assist in creating a positive credit profile and boosting your creditworthiness.
GET A FREE FINANCIAL CHECKUP
Mid Oregon recently introduced a powerful resource for getting a handle on your finances—Financial Checkup in Digital Banking—an empowering new addition to our My Credit Score family.
Financial Checkup takes you through an anonymous, 15-minute questionnaire to organize your information on income, debt, and expenses. Simply answer a few questions about your income and current debts. In just minutes, you will receive a thorough analysis of your financial situation, including tips by leading financial experts to help manage your debt and build a budget.
PASS ON UNNECESSARY PURCHASES
It’s easy to lose track of how much money you spend on items you do not need. It might be on sale or “fit perfectly on the table corner.” Keep in mind that these unnecessary purchases can affect your bottom line. Get disciplined by identifying your needs vs wants. Do you need the newest smartphone or do you merely want it? Think about giving yourself a 24-hour cooling-off period between the time you see an item and when you make the purchase. If you’re shopping online, consider putting the item in your shopping cart and then walking away until you’ve had more time to think it over. In some cases, you might even get a coupon code when the retailer notices you abandoned the items in your cart. Turning down something you want now may be difficult, but the reward will be greater savings later.
BECOME A FAN OF AUTOMATION
- Digital Banking to ease financial tasks, saving you time and increasing your efficiency.
- Automatic overdraft protection. In a few easy steps, you can link your savings account to your checking to have a little added cushion in the event your expenses get a bit tight.
- Automatic loan payments. Your monthly loan payment will automatically be deducted from a linked checking or savings account.
- Setting up auto pay. This is a great way to save you time, hassle and offer peace of mind knowing your bills are paid promptly every month.
- Automate your savings: Direct deposit your paycheck into multiple accounts, including one for each of your savings goals.
As we embark on another new year, it’s essential to remember that achieving your financial goals requires dedication, discipline, and sometimes, a helping hand. Mid Oregon is committed to being that helping hand for you, providing the resources, expertise, and support needed to make positive changes in your financial well-being. So, take advantage of our offerings, and let this year be the one where you turn your financial resolutions into accomplishments.
Want to know more? Read additional Mid Oregon blog articles about goals, budgeting, and debt consolidation.
Stay Safe While Spreading Joy: How to Avoid Gift Card Scams
Gift cards are trendy—to give as well as to get. Using one is a convenient way to treat someone to dinner at their favorite restaurant, to purchase at their favorite store, or to give them cash. Unfortunately, scammers also love gift cards and have come up with creative ways to convince you to purchase cards for them.
In 2021, consumers reported over $148 million lost to gift card scammers. Consumers have reported being contacted by the IRS, Social Security, and power companies and told they owed penalties. Others say Amazon or Apple got them to pay to continue service. Some say they were contacted by law enforcement and told to pay a fee to avoid a warrant. The reasons are endless.
In most cases, the scammer attempts to scare or alarm you, claiming that something terrible will happen if you don’t pay them immediately. They want you to act quickly so you don’t have time to think it through or check the issue further. You are told payment must be made using a gift card instead of a check or online payment, and you don’t need to mail the card; simply tell them the serial and personal identification numbers on the back.
Here are a few more scenarios gift card scammers use:
Relative in distress
You receive a call from someone claiming to be a loved one, usually a grandchild. They tell you they have had an accident or are stuck in a foreign country, unable to get home. They ask you to send money immediately using a gift or a prepaid card.
Clergy members
They claim they are raising money for a worthy cause. They contact you by phone, text, or email, ask you to purchase gift cards, and give them the numbers.
Resale or auction sites
Once you have shown interest in an item, the scammer will offer a discount if you buy it with a gift card. You give them the number and never get the item you purchased.
Tip: Be suspicious if a government agency, legitimate company, or loved one asks you to pay them with a gift card. If you’re unsure, contact the agency or company using their official website, not a number provided in the questionable message. If someone claims to be a relative, contact the immediate family and ask them to verify that a payment is needed.
Like cash, getting the money back is difficult once a gift card is given to someone. You are not protected from fraud like you are with major credit cards.
What to do if you gave a gift card to a scammer
If you bought a gift card and gave someone the numbers off the back of the card, that’s a scam. Use your gift card and gift card store receipt for these next steps:
- Report the gift card scam to the gift card company right away. No matter how long ago the scam happened, report it. Use the How To Contact Gift Card Companies list below.
- Ask for your money back. Some companies are helping stop gift card scams and might give your money back. It’s worth asking.
- Tell the FTC at ReportFraud.ftc.gov. Every report makes a difference.
Be safe and enjoy this holiday season!
Want to know more? Read additional Mid Oregon blog articles about online security and fraud protection.
As a reminder, Mid Oregon will never initiate a call asking for personal or account information via phone, text, or email.
Financial Tips to End 2023
As you prepare to bid farewell to another year, you may be reflecting on the past eleven months and looking at the goals you set for yourself in 2023. Did you achieve what you wanted? Did you grow personally, professionally, and financially?
Financially, perhaps you added to your emergency or college fund or finally paid off that credit card bill. If so, congratulations! On the other hand, perhaps you went off course and did too much impulsive shopping or had to replace good ole Bessy, your faithful vehicle from 2001. If so, don’t be too hard on yourself. Life can get busy, and it’s easy to lose track of our financial goals.
Before flipping the calendar, review a few year-end financial tips before saying goodbye to 2023.
Review your financial goals
Take some time to assess your financial goals and see if you’re on track to achieving them. This can help you prioritize your financial decisions and make any necessary adjustments before the year ends.
Maximize your retirement contributions
If you haven’t already maxed out your contributions to your retirement accounts, such as a 401(k) or IRA, consider doing so before the year ends. This can help you take advantage of tax benefits and boost your retirement savings. You can contribute a portion of your earnings to a 401(k) account tax-free, subject to annual limits set by the IRS. Maximizing your 401(k) makes sense, however, if you are struggling financially or have better retirement savings options, maxing out your 401(k) may not be in your best interest.
Review or update beneficiary designations
Now is the time to make any needed updates to the beneficiary portion of your bank accounts, retirement accounts, life insurance policies, annuities, etc. Doing so will avoid your estate going through probate, which is costly and time-consuming.
To help keep track of your beneficiaries, write down their names along with the date. If the beneficiary has a common name, consider including the person’s birthdate and social security number, along with their relationship to you. Also, be sure to designate a contingent beneficiary in the event your primary beneficiary passes away.
The key to ensuring your beneficiaries receive what you intend is to be well organized:
- Keep your life insurance records in at least two places—preferably one inside (with other financial records or legal papers) and one outside the home (safe deposit box, trusted relative or professional).
- Ensure your documents have complete details (dates, policy numbers, the amount of the death benefit, the name of the agent who sold you the policy, etc.).
- Ensure your beneficiaries know where to locate the documents after you’re gone.
Review tax deductions, credits and withholdings
Before the year ends, review any tax deductions or credits that you may be eligible for. This can help you minimize your tax liability and potentially increase your tax refund. Did your marital status change or did you add a new family member to your household? Did you receive unemployment compensation or experience a job loss? These questions help determine your tax withholding amounts. If you want to calculate how much withholding you will need in order to avoid paying taxes in the coming year, you can use the IRS’ handy Tax Withholding Estimator tool.
While we are on the subject of taxes, start prepping for your returns by ensuring your financial institutions and employers have your correct contact information. Start gathering the documents you’ll need to file your 2023 taxes (prior returns, receipts, bank and credit card statements), as well as any applicable W-2, 1099, 1099-G (for unemployment) or 1098-E (for student loans) documents.
When it comes time to file your taxes, remember that Mid Oregon members receive discounted pricing for Turbo Tax and H&R Block through our Love My Credit Union Rewards.
Review your insurance needs
Health insurance, life insurance, homeowners insurance and auto insurance—the types of insurance you may need seem endless. To ensure you have the proper coverage, consider any changes in your circumstances that may require adjustments to your coverage.
Reviewing homeowners insurance
Homeowners insurance premiums can fluctuate for numerous reasons such as weather/climate disasters or increasing crime in your area.
Fortunately, there are steps you can take to help decrease the cost of your premium:
- Increase your deductible.
- Consider using the same insurance company for your homeowners and auto coverage. Bundling your insurance can significantly lower your premium.
- Home improvements, such as removing dry brush around your property (we do live in a fire-prone state) may help decrease your premium.
Also, if you accumulated more possessions since the time you purchased your policy, reevaluate your homeowners policy to be sure it covers everything of value.
Reviewing auto insurance
Every state has minimum car insurance requirements. Review the types of coverage Oregon requires and explore potential rates and discounts, or work with a professional to get an affordable rate.
When determining how much you should pay, car insurance companies determine your premium by considering your age, driving record, the type of vehicle you drive, where you live, and credit score (check your free score using Credit Savvy in your Mid Oregon Digital Banking platform).
However, that doesn’t mean you can’t do things to help lower your car insurance cost:
- Increase your deductible.
- Bundle your insurance policies.
- Review your type of coverage. Do you still have full coverage from when your vehicle was new and you were making loan payments? If it is paid off and a few year’s older, you might consider switching to lesser coverage. Review how much you need and get quotes from a few different companies.
- Look for other discounts:
- Good driving record, vehicle’s antitheft devices and safety features.
- Miles driven each year. If you are one of the many people with previous office jobs who now work from home, see if you can use that to your advantage.
Review your investment portfolio
Evaluate your investment portfolio to ensure it aligns with your risk tolerance and financial goals. Consider rebalancing your investments if needed and make any necessary adjustments. Make sure your financial plan still fits your needs, wants and wishes. Did you inherit some money in 2023, or perhaps find your job less secure than it was last year? Your portfolio should reflect investment objectives that are appropriate for your current life stage. Your age, risk tolerance, tax status and time horizon, among other factors, are all important.
We can help you ensure your financial portfolio and investments are on track. Contact your credit union financial professional, Marc Cabanilla, Mid Oregon Wealth Management for more information.
Spend eligible flex dollars
A healthcare flexible spending account (FSA) can save you money— as long as you spend the pre-tax dollars before the end of the year. If you do not, you run the risk of losing it (unless your employer offers a grace period or allows you to carry over a specific amount into the next year). So, make that last-minute dental or acupuncture appointment while there’s still time.
A tip for next year’s open enrollment period: If you, your spouse or your child is going to need medical services, consider contributing to your FSA at least the amount of your health insurance deductible.
Check-in on your emergency savings account
In a perfect world, we all would have three to six months’ worth of emergency savings set aside. We know this goal is difficult—especially with rising food and fuel prices, which make it difficult for some to care for their family’s everyday needs.
Remember that unexpected emergencies, such as a car repair, loss of job, or a medical expense, could set you back financially. To help ensure that doesn’t happen, try building up your savings by automatically depositing some money from your paycheck into a dedicated savings account.
Mid Oregon has an array of savings account options to choose from to help build your emergency nest egg.
If you have kids, contribute to their college fund
College tuition isn’t for the faint of heart. But having a tax-advantaged strategy in place can help you prepare for the rising costs. If you already have one, try to contribute as much as you can. Ask your Mid Oregon team members what options would be a good fit for your specific situation.
Make charitable donations
Donate to an organization that’s close to your heart. The benefits are two-fold: You will reduce your taxable income and feel good about giving some of your hard-earned dollars to a good cause. Mid Oregon is currently holding its annual Holiday Dough fundraiser, which benefits local-area food pantries—ensuring that every family has help with holiday meals and other essentials this season.
Plan for the future
You blink, and now 2024 has started as quickly as 2023 ended. Next steps—be sure to set some new goals (or keep some of the same ones) and commit them to paper. Do you want to beef up or start building your retirement, or simply save some money for your child’s ski lessons? Do you have any big changes on the horizon such as having a baby or changing your career? Creating goals surrounding these anticipated events will bring peace of mind and hopefully money to your account.
If it’s realistic, try to create a savings plan for a family vacation or another memorable event. It’s a great motivation to save when you have something to look forward to, even if that something will occur sometime down the road. This is another great reason to open a dedicated savings account and set up an automatic transfer of funds to get you closer to your destination. And don’t minimize how effective dropping your loose change into a change jar can be.
Regardless of your financial situation, your Mid Oregon team is here to help you every step of the way—please stop by, call, or visit us online at midoregon.com. We also encourage you to stay tuned to future member newsletters, blogs, and workshops for more financial fitness topics.
We hope you find the above tips helpful as you wrap up 2023 and move forward with your financial future. And remember, it’s progress not perfection.