Don’t Wait to Get Started – YOU CAN DO IT! IT’S EASIER THAN YOU THINK.

No one is born knowing how to save or to invest. Every successful investor starts with the basics.

As a student, you may think that saving and investing is something you do not need to consider right now. But there’s a cost to waiting, and even saving a little now can add up over time and help you pay for your short and long-term goals.

KEYS TO FINANCIAL SUCCESS

1. Make a financial plan.
2. Create a budget.
3. Start saving and investing as soon as you have paid off your debts.

What are the things you want to save and invest for?

• Make a list of goals and then think about which goals are the most important to you. Decide how many years you have to meet each specific goal.

Know your current financial situation.

• Take an honest look at your entire financial situation.
• You will need to figure out on paper your current situation – what you own and what you owe.
• Keep track of your income and your expenses for every month.
• Pay yourself first. Anytime you have automatic deductions from your paycheck or credit union/bank account, you’ll increase the chances of being able to stick to your plan and realize your goals.

Small Savings Add Up to Big Money

How much does a bottle of soda cost you?

If you buy a bottle of soda every day for $2.00, that adds up to $730.00 a year. If you saved that $730.00 for just one year and put it into a savings account or investment that earns 5% a year, it would grow to $931.69 after 5 years and grow to $3,155.02 after 30 years.

                That is the power of compounding. With compound interest, you earn interest on the money you save and the on the interest that money earns. Over time, even a small amount saved can add up to big money.

                If you are willing to watch what you spend and look for little ways to save on a regular schedule, you can make money grow. You just did it with one bottle of soda.

                If a bottle of soda can make such a huge difference, start looking at how you could make your money grown if you decided to spend less on other things and save those extra dollars.

                If you buy on impulse, make a rule that you’ll always wait 24 hours to buy anything. You may lose your desire to buy it after a day. And try emptying your pockets and wallet of spare change at the end of each day and put that money aside. You’ll be surprised how quickly those nickels and dimes add up!

PAY OFF CREDIT CARD OR OTHER HIGH INTEREST DEBT – Speaking of things adding up, few investment strategies pay off as well as, or with less risk than, merely paying off all high interest debt you may have.

                Many people have credit cards, some of which they’ve maxed out. Credit cards can make it seem easy to buy expensive things when you don’t have the cash in your pocket – or in the bank. But credit cards are not free money.

                Most credit cards charge high interest rates – as much as 18% or more – if you don’t pay off your balance in full each month. If you owe money on your credit cards, the wisest things you can do is pay off the balance in full as quickly as possible. Virtually no investment will give you the high returns you’ll need to keep pace with an 18% interest charge. That’s why you’re better off eliminating all credit card debt before investing savings.

• Put Away the Plastic
• Know What You Owe
• Pay Off the Card with the Highest Rate

Making Money Grow – there are two ways to make money. Sometimes your money can do both at the same time – earn a steady paycheck and increase in value.

1. You work for money.
2. Your money works for you.
   1. Your money earns money.
   1. You buy something with your money that could increase in value.

THE DEFFERENCE BETWEEN SAVINGS AND INVESTING

Your savings are usually put into the safest places, or products, that allow you access to your money at any time. There is a tradeoff for security and ready availability. Your money is paid a low wage as it works for you.

When you invest, you have a greater chance of losing your money than when you save. You could lose your principal – the amount you invested. But you also have the opportunity to earn more money. When you make an investment, you are giving your money to a company or enterprise, hoping that it will be successful and pay you back with even more money.

ASK QUESTIONS!             

Many people hire an investment professional to assist in selecting investments. You can never ask a dumb question about your investments and the people who help you choose them, especially when it comes to how much you will be paying for any investment, both in upfront costs and ongoing management fees.

Source: Securities and Exchange Commission

Proceed with caution

1. Before you trust a financial advisor, check the person’s background.
2. Not all titles or credentials for retirement or senior financial planning are the same.
3. Watch out for sales pitches disguised as “educational” seminars.

Is your advisor really an expert in your needs?

Many financial advisors call themselves senior experts to gain your trust, but not all have your best interest at heart or the right kind of training to serve you well.

Insurance agents, brokers, financial planners, and other financial professionals sometimes have titles like “retirement advisor” and “senior specialist.” There are dozens of similar-sounding titles that imply expertise in senior needs.

However, special titles do not always mean someone is qualified to help you manage your money. It is up to you to find out what the titles mean, and to check on the qualifications of the person offering you advice.

Important questions

1. Does the title or certification your advisor uses require college-level coursework?
   1. Yes – that is good. Senior experts train in complex topics like estate planning, income tax laws, and investments.
   • No – it can be harder to know if your advisor was well-trained.
2. Can you file a complaint if you have a problem with your financial advisor?
   1. Yes – training and education alone do not ensure ethical behavior. Organizations that grant senior financial credentials should make it easy for you to check your advisor’s complaint history and file a complaint if necessary.
   • No – if the organization granting the credential does not take complaints and share advisor history, how do you know if advisors follow the rules?
3. Is the credential from an accredited organization?
   1. Yes – this is a good sign. This means the organization has taken important steps to ensure the quality of its training program.
   • No – beware. This is a sign that you should take a closer look at the certification.
4. Do you know how your financial advisor is paid?
   1. Yes – some advisors earn commission fees for selling you financial products or investments, while others charge an hourly fee or flat rate.
   • No – if you are not sure, ask you advisor to explain the fees and put them in writing so you know all your costs.
5. Is your financial advisor working in your best interest?
   1. Yes – if you are not sure, ask your advisor to put in writing any potential conflicts of interest including any situations in which your advisor will not be acting in your best interest.
   • No – consider collaborating only with advisors who will tell you in writing about any potential conflicts of interests. Make sure that you are comfortable with any conflicts.

Have you been invited to an investment seminar?

Any time you see a retirement or senior seminar advertised as “educational” or as a “workshop,” beware. The true goal may be to sell investment, insurance, or financial products at the seminar or in follow up calls.

Watch out for freebies – financial salespeople may use freebies like lunch and dinner invitations, golf trips, and country club outings to get you to come to marketing and sales events. They give you something knowing you will be more likely to give them something in return.

Watch out for high-pressure sales tactics – you may be asked to make a quick investment decision or be warned that “opportunities are limited.” Do not fall for these schemes. Good financial advisors will not rush you because it takes time to make sound investment decisions.

Watch out for exaggerated claims – if you are told about investments that make a lot of money without much risk, do not believe it. If you think an advisor made exaggerated or unrealistic claims about investment risk or returns, report this to your state securities or insurance regulator.

Check your advisor’s background

Before hiring a financial advisor, it is a clever idea to ask for references and get a background report. If a financial advisor is regulated by state or federal government, you can check the status of his or her license, and find information about professional history using these online resources:

1. FINRA Broker Check – finra.org/BrokerCheck
2. SEC Investment Adviser Public Disclosure Database – adviserinfo.sec.gov
3. Your state insurance regulator – naic.org
4. Your state securities regulator – nasaa.org
5. FINRA Professional Designations and Organizations Locator – finra.org/designations
6. For helpful tools and valuable information on investing – investor.gov

When you apply for credit, whether it is a credit card, car loan, or a mortgage, lenders want to know whether you are likely to repay your loan and make the payments on time. To determine if you are a good credit risk, lenders examine your credit score whenever you apply for credit. Your credit score is a key factor in determining whether creditors will approve your credit application and, if you are approved, the cost of your loan. Other factors that can affect your credit application include your income and employment history.

Your credit score is calculated based on information in your credit report, which is a profile of how you manage your credit (loan) accounts. Your credit report details how many credit accounts you have, how much you owe, the amount of your credit limits, when you opened the credit account, your repayment history (including past due payments, and certain public records (bankruptcy filing or a tax lien). Each of the three national credit bureaus (Experian, Equifax, and TransUnion) maintains a credit report about you.

Your credit report is updated once a month by each of your creditors, who provide information to the three credit bureaus about your loans. Your report is also updated regularly based on any new negative information obtained from public records that indicate an increased credit risk (bankruptcy, lien, or judgment). Consumers with a high credit score are likely to pay back their loans in full and on time, whereas consumers with low scores are likely to carry a considerable risk of default.

The information your creditors provide to the credit bureaus affects your credit score. If a creditor reports that you made a past due payment, it’s likely that your credit score will drop.

Most credit scoring models consider the following factors when calculating your score:

• Payment History
• Amounts Owed
• Types of Credit Used
• Length of Credit History
• New Credit

In calculating your credit score, most credit scoring models assign a higher weight to your payment history and amounts owed than to the other factors. These two factors will, therefore, have a greater effect on your score than the other factors. But it is important to try to do well on all the factors so you can maximize your score.

Important Tips:

• At lease once a year review your credit reports from each of the three credit bureaus for inaccuracies and file a dispute immediately if you find an error. To obtain a free annual copy of your credit report, go to www.annualcreditreport.com or call #877-322-8228. Your credit report does not include your credit score.
• Pay your bills on time.
• Keep credit card balances low (30% or lower) relative to credit limits.
• Pay off debt rather than move it around.
• Open new credit accounts only as needed. Having accounts that have been opened a long time increases your credit score.
• Avoid closing credit card accounts because this decreases the average age of your accounts.
• Apply for installment loans (mortgages, car loans) within a 30-day period because most credit scoring models will count multiple inquiries within a brief period of time as only one inquiry.

Maintaining a high credit score is important because this is one of the factors that determine whether your will be approved for credit and the cost of your loan. Applicants with high credit scores typically are offered lower interest rates and better terms and conditions than applicants with lower scores. A low credit score reduces the chances that your loan application will be approved. And if it is approved, you will likely pay a higher interest rate for the loan than a borrower with a higher credit score.

Source: Federal Reserve Bank of Philadelphia 

How can I plan to save?

• Choose a savings goal to work towards
• Calculate your savings target to decide how much and how often you will contribute to your savings
• Determine the next steps to achieve your goal.

Keep in mind: Savings is money you set aside today to use in the future. Some things people save for include:

• A bill due at the end of the month.
• Annual expenses like children’s school supplies
• Personal goals, like a new TV, appliances, or a car

Start with one question: What steps can you take to achieve your goal?

How can I save more in my current situation?

• Brainstorm ways to earn more money right now
• Develop good habits that help you save money
• Cut back on costs by avoiding fees and reducing bills
• Decide which goals you want to save for if you have extra money at the end of the month
• Consider asking for support from someone you trust to keep you on track

Start with one question: How could you save more and spend less?

How much can I save this month?

• Focus on habits to change to help you save
• Track your savings for a month
• Reflect on your progress when you meet a savings goal
• If you have a lot of everyday expenses, think of which ones you could cut back on to save money
• Consider weeks when it may be difficult to save and make a plan to stay on track

Start with one question: What is one thing you can do now to start saving?

How can managing my cash flow help me save?

• Get a total picture of your monthly bills and expenses
• Identify times where you don’t have enough money to cover your bills and times when you have money left over to save
• Adjust your monthly expenses in a way that better aligns with your income and savings goals

Start with one question: How could you track your monthly spending?

Where can I put my savings?

• Understand some options available to manage your money
• Evaluate each option according to your needs
• Gather information on how to get started
• Consider your own preferences and concerns
• Learn about what each saving option has to offer
• Write down any questions you may have

Start with one question: How do you keep your money safe?

How can I save when I get a tax refund?

• Brainstorm ways to use your refund
• Commit to spending and saving portions of your refund for specific goals
• Decide the total amount that you will allocate to each area

Start with one question: How will you get your taxes prepared this year?

How can I prepare for unexpected expenses?

• This on unexpected expenses you have faced in the past
• Get prepared to face future unexpected expenses
• Understand how much money you may need for an emergency
• Everyone has unexpected expenses and emergencies. Having money set aside can save you money in the long run
• The target amount for emergencies depends on your needs. Consider starting with $500.00 as your goal

Start with one question: What unexpected expenses stop you from saving?

Take Advantage of Heat from the Sun

• Open curtains on the south-facing windows during the day to allow sunlight to naturally heat the home and close them at night to reduce the chill from cold windows.
• Be certain to plant deciduous trees on the south facing side of the home, especially in proximity to windows. They will let the light and warmth in the windows during the winter and will shade the windows in the summer.

Cover Drafty Windows

• Use a heavy-duty, clear plastic sheet on a frame or tape clear plastic film to the inside of window frames during the cold winter months. Make sure the plastic is sealed tightly to the frame to help reduce infiltration.
• Install tight-fitting, insulating drapes or shades on windows that feel drafty after weatherizing.
• Find out about other window treatments and coverings that can improve energy efficiency.

Adjust the Temperature

• When you are home and awake, set the thermostat as low as is comfortable.
• When you are asleep or out of the house, turn the thermostat back to save as much as 10% a year on your heating and cooling bills. A smart or programmable thermostat can make it easy to set back your temperature. But make sure the temperature is comfortable for pets!
• If you have a heat pump, maintain a moderate setting or use a programmable thermostat specially designed for use with heat pumps.

Find and Seal Leaks

• Seal air leaks around utility cut-throughs for pipes (“plumbing penetrations”), gaps around chimneys and recessed lights in insulated ceilings, and unfinished spaces behind cupboards and closets.
• Find out how to detect air leaks.
• Learn more about air sealing new and existing homes.
• Add caulk or weatherstripping to seal air leaks around leaky doors and windows.
• Find out how to select and apply the appropriate caulk and weatherstripping.

 Maintain Your Heating Systems

• Schedule routine service for home heating systems.
• Replace furnace and heat pump filters once a month or as needed. Find out more about maintaining furnaces or boilers and heat pumps.
• Regularly clean the flue vent of wood and pellet burning heaters and clean the inside of the appliance with a wire brush periodically to ensure that it is heating efficiently. Find other maintenance recommendations for wood- and pellet-burning appliances.

Reduce Heat Loss from the Fireplace

• Keep the fireplace damper closed unless a fire is burning. Keeping the damper open is like keeping a window wide open during the winter; it allows warm air to go right up the chimney.
• When using the fireplace, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window slightly–approximately 1 inch–and close doors leading into the room. Lower the thermostat setting to between 50° and 55°F.
• If the fireplace is never used, plug and seal the chimney flue.
• Install tempered glass doors and a heat-air exchange system that blows warmed air back into the room.
• Check the seal on the fireplace flue damper and make it as snug as possible.
• Purchase grates made of C-shaped metal tubes to draw cool room air into the fireplace and circulate warm air back into the room.
• Add caulking around the fireplace hearth. Find out more techniques to improve your fireplace or wood-burning appliance’s efficiency. Learn tips for safe and efficient fireplace installation and wood burning.

Lower Water Heating Costs

• Keep the temperature of the water heater to the warm setting (120°F). This will not only save energy, it will also help avoid scalding.
• Find other ideas for energy-efficient water heating.

Lower Holiday Lighting Costs

• Use light-emitting diode — or “LED” — holiday light strings to reduce the cost of decorating the home for the winter holidays.
• Learn about the advantages and potential cost savings of LED holiday light strings.

Building Wealth

You can create personal wealth. It’s possible to meet your financial goals. By choosing to budget, save and invest, you can pay off debt, send your child to college, buy a comfortable home, start a business, save for retirement, and put money away for a rainy day. Through budgeting, saving, and investing, building credit, and controlling debt, all these goals are within your reach.

Defining Wealth

Some people consider themselves wealthy because they live in a very expensive house and travel around the world. Others believe they are wealthy simply because they’re able to pay their bills on itme. What we are talking about here is financial wealth and what it means to you.

Building wealth requires having the right information, planning, and making good choices.

Assets – Liabilities = Net worth

A wealth-creating asset is a possession that generally increases in value or provides a return, such as:

• A savings account.
• A retirement plan.
• Stocks and bonds.
• A house.

Some possessions (like your car, household furnishings and clothes) are assets, but they aren’t wealth-creating assets because they don’t earn money or increase in value.

A liability, also called debt, is money you owe, such as:

• A home mortgage.
• Credit Card Balances.
• A car loan.
• Hospital and other medical bills.
• Student loans.

Net worth is the difference between your assets (what you own) and your liabilities (what you owe). You net worth is your wealth.

Set Financial Goals

Most people who have built wealth didn’t do so overnight. They got wealthy buy setting goals and pushing themselves to reach them.

A personal wealth-creation strategy is based on specific goals. In preparing your goals:

• Be realistic.
• Establish time frames.
• Devise a plan.
• Be flexible; goals can change.

Develop a Budget and Live by It.

When it comes to reaching your financial goals, are you doing or wishing? The difference is doers put action to their goals. And doers are much more likely to reach their goals and achieve their goals and achieve their dreams.

Save and Invest

You have budgeted and identified and amount to save monthly. Where are you going to put your savings? By investing, you put the money you save to work making more money and increasing your wealth. An investment is anything you acquire for future income or benefit. Investments increase by generating income (interest or dividends) or by growing (appreciating) in value. Income earned from your investments and any appreciation in the value of our investments increase your wealth.

Get Guidance – There is an art to choosing ways to invest your savings. Good investments will make money; bad investments will cost money. Do your homework. Gather as much information as you can. Seek advice from licensed or registered advisers. States require licensing or registration for brokers, investment advisers and insurance salespeople, so check with your state securities regulator before trusting any investment adviser.

Take Advantage of Compound Interest – Compound interest helps you build wealth faster. Interest is paid on previously earned interest as well as on the original deposit or investment.

Understand the Risk-Return Relationship – When you are saving and investing, the amount of expected return is based on the amount of risk you take with your money. Generally, the higher the expected return, the higher the risk of losing money. For less risk, an investor will expect a smaller return.

Building Credit and Control Debt

Your Credit History Is Important – It’s difficult to pay cash for your car, home, college education, so these are typically bought using credit. That is why it’s important to have a plan to build and maintain a good credit history. Good credit saves money, bad credit costs money.

A good credit history will result in getting the lowest interest rates for loans and other services, which will put you in a better position to increase your savings and increase your wealth.

Guard Your Identity

• Shred or destroy your bank or credit card statements and all other private records before tossing them in the trash.
• Give out your Social Security number only when necessary, and never carry your Social Security card and driver’s license in your wallet.
• Pick up mail promptly from your mailbox, and never leave outgoing mail with paid bills in an unsecured mailbox.
• Don’t give out personal information on the phone, through the mail or on the internet unless you are sure you know with whom you’re dealing.

Fun family outings are becoming more expensive. With a bit of creativity, you can have a fun time and entertain the kids without breaking the bank.

Indoor family fun…

1. Rent a movie
   • Renting movies is much cheaper than the rising megaplex rates.
   • Though you must wait months after a movie’s release, you can watch it repeatedly without worrying about the baby’s cries disrupting other viewers, and you can pause for bathroom breaks.
2. Watch free movies
   • Gather all the movies you own and watch them with the kids again.
3. Play a board game
   • Get out the board games!
4. Go bowling
   • Turn the hallway into your own personal bowling alley. Clean out and save 2-liter bottles to serve as blowing pins and use a small ball your kids already have.
5. Have a fancy dinner
   • You can make a meal a special occasion by setting the table a little more formal, lighting candles and serving from your fancy dishes.
   • Encourage family members to dress up. It can be your Sunday best, pajamas, costumes, or anything you like and have on hand.
6. Try Origami
   • Research origami online or get a book from a local library.
     • Kids have a blast turning their paper into birds, windchimes, and frogs.

Venturing out…

1. Go outside and have fun.
   • Go to a nearby park or out in your own backyard.
   • Play baseball, kick the can or any other game.
   • Have the entire family ride their bikes in a safe area.
2. Have a neighborhood party
   • Get the neighbors together and have everyone who has kids play outside games.
   • Everyone can play baseball, football, or run through a sprinkler.
   • Everyone can bring their grills out and make food for their family.
3. Go to the beach
   • Take the kids and dig in the sand, create sandcastles.
   • Go swimming, try wakeboarding, fishing, and shell collecting.
4. Go to the playground
   • Take the kids to every playground near your home. The kids get exercise, you get exercise, and everyone gets fresh air.
   • You can try to find new playgrounds that you do not usually go to for a new and exciting trip.
5. Free museum days
   • Museums and zoos have “free days” or exceptionally low children’s rates.
   • If you have a season pass you can go, there all the time for outings. It relieves the pressure of seeing or doing it all in one day. Then next year you can get a pass to a different place.
6. Watch the planes
   • Going near an airport (big or small) and watching the planes take off and land is a fun and free way to spend the afternoon.
7. Storytime
   • Local libraries or bookstores often have “storytime” for kids. Usually this is a free service and as a bonus it gets kids interested in literature.
8. College campuses
   • Colleges provide opportunities to see plays, musicals, and recitals.
   • College performances are cheaper than your local theater and are a wonderful way to expose your kids to the arts.
9. Go to the park
   • Parks are a suitable place to find safe playgrounds, hiking and walking trails, and open spaces for flying kites.
   • Most parks are free or cheap and you can pack, picnic, and spend a momentous day outdoors.
10. Go to a game
    • Go to local games such as high school summer football, basketball, baseball, and hockey games. The kids can see teams in action and learn about sports.
11. Join a playgroup
    • This is great for young mothers. Joining a playgroup is an excellent way to get the kids together with other kids.
    • Moms can meet other moms and make friends too.
12. Go swimming
    • Swim at a local school. An entire family can have an exciting time.
    • Schools often have indoor pools so you can go swimming in spring, winter and fall as well.
13. Check out the community theater
    • Go to community theater programs. Community theater is just that; local people put on plays and musical programs.
    • Take the kids to local performances where other kids perform.

Get creative…

The outdoor activities you will be able to enjoy with your family depend on your area. Getting an area guide from your Chamber of Commerce, Town Hall, or State Welcome Center will give your great ideas about local historical sites and places of interest. Kids will also enjoy everyday activities such as cooking, gardening, and crafting.

So, get creative and have family fun on a budget.

Source: A Dime Saved

Before you start shopping for a used car, do some homework. It may save you serious money. Consider your driving habits, what the car will be used for, and your budget. Research models, options, costs, repair records, safety tests, and mileage – online and through libraries and bookstores.

Before You Buy a Used Car

Whether you buy a used car from a dealer or an individual:

• Test drive the car under varied road conditions – on hills, highways, and in stop-and-go traffic.
• Ask for the car’s maintenance record from the owner, dealer, or repair shop.
• Determine the value of the vehicle before you negotiate a purchase. Check the National Automobile Dealers Association’s (NADA) Guides (www.nadaguides.com), Edmunds (www.edmunds.com), Kelley Blue Book (www.kbb.com), and Consumer Reports (www.consumerreports.org). Some of these organizations may charge for this information.
• Research the upkeep costs for models you’re interested in, including the frequency of repairs and maintenance costs.
• Examine the car using an inspection checklist. You can find checklists in magazines, books, and on websites that deal with used cars.
• Check whether there are any unrepaired recalls on a vehicle. Start by asking the dealer if the vehicle you’re considering has a recall. You also can check yourself by entering the VIN at www.safercar.gov, or by calling the National Highway Traffic Safety Administration’s (NHTSA) Vehicle Safety Hotline at 1-888-327-4236. If there is a recall, ask the dealer to fix it, or to give you information showing it was fixed. Keep in mind that federal law doesn’t require dealers to fix recalls on used cars, so you might need to get the repair done yourself. But don’t wait – according to NHTSA, all safety recalls pose safety risks and left unrepaired, might lead to accidents.
• Get an independent review of a vehicle’s history. Check a trusted database service that gathers information from the state and local authorities, salvage yards, and insurance companies. For example, the Department of Justice’s National Motor Vehicle Title Information System (NMVTIS) (www.nmvtis.gov) offers information about a vehicle’s title, odometer data, and certain damage history. Expect to pay a small fee for each report. The National Insurance Crime Bureau (NICB (www.nicb.org) maintains a free database that includes flood damage and other information. You can investigate a car’s history by its Vehicle Identification Number (VIN). You also can search online for companies that sell vehicle history reports. If the report isn’t recent or you suspect that is has missing or fabricated information, verify if with the reporting company. The information in the reports may not be complete, so you may want to get a second report from a different reporting company. Some dealer websites have links to free reports.
• Consider hiring a mechanic to inspect the car.

Pay in Full or Finance

You have two choices: pay in full or finance over time. Financing increases the total cost of the car because you’re also paying for the cost of credit, including interest and other costs. Consider how much you can put down, the monthly payment, the financing term (such as 48 months), and the annual percentage rate (APR). Rates usually are higher and financing periods shorter on used cars than on new ones.

Dealers and other finance sources (like finance companies, credit unions, and banks) offer a variety of financing terms. Shop around, compare offers, and negotiate the best deal you can. If you’re a first-time buyer – or if your credit isn’t great – be cautious about special financing offers. They can require a big down payment and a high APR. If you agree to financing that carries a high APR, you may be taking a big risk.

• If you decide to sell the car before the end of the financing period, the amount you get from the sale may be less than the amount you need to pay off the financing agreement.
• If the car is repossessed or declared a total loss because of an accident, you may have to pay a considerable amount to repay the loan even after the proceeds from the sale of the car or the insurance payment have been deducted.

If money is tight, you might consider paying cash for a less expensive car.

If you decide to finance, make sure you understand the financing agreement before you sign any documents.

• What is the exact price you’re paying for the vehicle?
• How much are you financing?
• What is the finance charge (the dollar amount the credit will cost you)?
• What is the APR (a measure of the cost of credit, expressed as a yearly rate)?
• How many payments will you make – and how much is each one?
• What is the total sales price – the sum of the monthly payments plus the down payment?

Happy Shopping. WFCU offers low-rate auto loans. Apply today.

Taking inventory of your finances at the end of the year is always a smart move.

Confirm your contact information – Let’s start with the easiest possible task: If you moved during the last year, make sure your financial institutions and employer have your new address. The last thing you want is to miss an important piece of mail and mess up your taxes—so it can’t hurt to double-check.

Audit your subscriptions and automatic payments – Recurring monthly payments can really add up over time, so go through your subscriptions and ask yourself what you truly need and what you can do without. One or two nix-worthy line items can free up funds for other uses. Repeat this process for any automatic payments and transfers, especially your internet and/or cable bill. You can often get a lower rate by stating you are going to switch service. Double-check your monthly bill for accuracy, autopay makes billing mistakes easy to miss.

Update your banking passwords – Data leaks happen often, and you really don’t want your banking login compromised. Start the new year with a fresh set of passwords for all financial accounts.

Clear out payment app balances – If you use Venmo, PayPal, or other payment apps, check to see if you’re carrying a balance. Most people are—which means you’ll probably find some free money. Transfer excess balances to your WFCU share account or use it to pay off your credit card debt.

Check in on your savings and debt payoff goals – Whether you’re saving for retirement, paying down debt, or both, it’s a good idea to take stock of your progress this year. Did you meet your goals? If not, what adjustments do you need to make for 2022? Don’t forget to consider factors beyond your own habits namely, interest rate changes. If the interest rates on any of your accounts have changed significantly this year, it’s worth shopping around to see if you can get a better deal at your credit union.

Gear up for tax season – As another January draws to a close, it can only mean one thing: Tax season is coming. Getting your tax documents in order now (and touching base with your accountant) will save you time and effort down the line. Unless the IRS postpones Tax Day for the third year in a row, the 2021 filing deadline is April 15, 2022. This is also the deadline for making tax-deductible IRA contributions, even if you file an extension—so don’t procrastinate on your contributions for too long.

Cleaning up your finances doesn’t have to be a long, drawn-out process. Most of these tasks take just a few minutes to complete. Pick one or two to start with, get them taken care of, and go from there. You’ll start 2022 in a much better place.

LendKey’s Frequently Asked Questions

1. What types of loans can I refinance?
   • You can refinance your private and/or federal student loans that were taken out in your name as the student borrower.
2. How does the student loan refinance process work?
   • The first step to refinancing is to check what interest rates and terms you are offered via a soft credit check that has no negative impact on your credit. If you like the loan options you see, you can then submit an online application with a hard credit inquiry, which may impact your credit.
     • From there, you will select the loan(s) you want to refinance and will be required to provide certain documents such as a government-issued ID, proof of income, and a loan statement from your current servicer for each loan you want to refinance.
     • After the documentation has been approved, you will be able to electronically review your loan disclosures and sign your loan agreement, before we disburse the funds to pay off your old loans and create a new refinanced loan serviced through LendKey.
3. When is the best time to refinance?
   • The first step is to check your rates to see if our lending partners can offer more competitive terms than what you already have. Please keep in mind that if you are currently utilizing an in-school deferment option or grace period you will move into full repayment after your loans have been refinanced.
4. Can I refinance my private and federal loans together?
   • Yes, we can refinance private and federal student loans together that were taken out in your name as the student borrower.
     • Please be advised that there are specific benefits that come with federal loans such as loan forgiveness and income-based repayment options, you will be forfeiting your eligibility for receiving those benefits when you refinance with a private lender.
       • Please see our blog to learn more about refinancing your federal loans.
5. What is the difference between student loan refinancing and student loan consolidation?
   • Student loan consolidation is the Department of Education’s program where you combine multiple federal loans into one, resulting in a weighted average interest rate of your previous loans. Private student loans are not eligible for federal student loan consolidation.
   • Student loan refinancing is done through a private lender and can combine one or all your private and/or federal student loans into one monthly payment. Terms of private student loan refinancing are determined by a credit-based application, meaning if you are approved, you could receive a new interest rate and new repayment term. This may help you save money on interest and/or change the length of your loan term to better fit your financial needs.
6. What happens if I refinance my federal loans with a private lender?
   • If you refinance your federal loans with a private lender, it becomes a private loan.
     • When you do this, you are forfeiting your eligibility to receive the specific benefits and protections that come with federal loans, such as loan forgiveness and income-based repayment options.
       • Please see our blog to learn more about refinancing your federal loans.
7. Can I choose to only refinance my student loans with high interest rates?
   • Yes, after you have been conditionally approved, you can select which specific loans you want to refinance.
     • We will then update the loan amount based on the loans you have selected and provided documentation for.
     • Please be advised that your final loan amount of all the loans combined you want to refinance will need to exceed the $5,000 minimum requirement (Except if you are a resident of AZ: $10,001; CT: $15,001; MA: $6,000).
8. My loans aren’t from the school I graduated from. Is that a problem?
   • No, if you have graduated with at least an associate degree from a Title-IV participating school, you are eligible to refinance if you meet the other eligibility requirements, and it does not matter what school the loans were used to attend.
9. Can I refinance while I am still in school?
   • Yes, if you have graduated with at least an associate degree from a Title-IV participating school, you can refinance your loans even if you are still currently in school.
     • Please be advised that once you refinance, your loans will go into repayment, and you could lose out on in-school repayment options that are associated with your current loans.
10. Can I refinance a loan that was previously consolidated or refinanced?
    • Yes, whether you have previously consolidated your student loans with the Department of Education or refinanced with a private lender, you can refinance again through one of LendKey’s lending partners.
11. Will checking my rates affect my credit?
    • You can check your rates without impacting your credit using the check your rate tool. Checking your rates will show you the rates and terms you may qualify for.
    • If you select a loan option and decide to complete the application, a hard credit inquiry will be performed, which may impact your credit.
12. Will applying for this loan affect my credit?
    • You can check your rates with LendKey without impacting your credit using the “check your rate” tool. Checking your rates will show you the rates and terms you may qualify for.
    • If you select a loan option and decide to submit the application, a hard credit inquiry will be performed which may impact your credit.
      •  It is important to be mindful of how many credit applications you are submitting.

Cosigner Information

1. Can I refinance loans that I took out as the parent?
   • At this time, loans that were taken out in the name of the parent as the primary borrower, such as Parent PLUS loans are not eligible for refinancing through LendKey’s lending partners.
2. Can I refinance loans that my parents took out on my behalf?
   • Currently, only education loans that are in your name as the student primary borrower are eligible for refinancing through LendKey’s lending partners.
   • Can my spouse and I refinance all our loans into one?
     • Currently, LendKey’s lending partners only refinance education loans that are in your name as the primary borrower.
3. Can I refinance my credit card debt with my student loans?
   • No, LendKey’s lending partners can only refinance qualified student loans that are in your name as the primary borrower.
4. Who should be my cosigner?
   • Typically, your cosigner may be a parent, grandparent, guardian, or other adult who is creditworthy and willing to assume legal responsibility for the loan liabilities along with you.
   • A cosigner may increase your chances of approval or help you qualify for better terms.
5. How do I cosign my student’s loan?
   • After the borrower part of the application has been completed an email will be sent to the cosigner with a link to click to enter the cosigner’s information.
6. What responsibilities do I have as a cosigner?
   • The cosigner shares the same responsibilities as the borrower for the loan.
     • This includes ensuring on-time monthly payments.
       • That means as the cosigner, you may experience the same positive impact on your credit score as the borrower for making on-time monthly payments but will likely face the same negative credit impact for late or missed payments.
7. If I cosign for a student loan refinance, can I be released later?
   • Yes, cosigner release is subject to lender approval.
   •  To qualify, the borrower, alone, must meet the following requirements:
     • Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock.
     • The account cannot be in delinquent status
     •  The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment.
     • No bankruptcies or foreclosures in the last sixty months; and
     • No loan defaults. For more information regarding this benefit, please give us a call at 888-549-9050 or email us at customer.care@lendkey.com.

Apply today: Student Loan Refinancing: Compare Your Rates & Save Money Now (lendkey.com)