Blog Archives - High Point FCU

Common Summer Scams and How to Avoid Them

Don’t get scammed this summer! Here are some of the most common summer scams and how to avoid them.

Travel scams

In these scams, fraudsters target vacationers with offers that are too good to be true. They’ll promote bogus travel sites with incredibly low prices on rentals, but when the victim travels to the alleged rental, they’ll find it doesn’t exist.

Red flags:

“Free vacation” offers
Ridiculously low-priced getaways

Stay safe: Only book your vacations through reputable travel sites and platforms. Before reserving, verify the property address online and run the photos through a reverse-image search. Pay via credit card for purchase protection.

Online shopping scams

Here, scammers create copycat shopping websites or fake social media stores selling seasonal gear at huge discounts They may lure you with aggressive email campaigns, fake security alerts and/or spoofed “order confirmation” messages.

Red flags:

URLs with spelling errors and typos
Emails that use urgent or threatening language
“Verification” requests for account details you didn’t initiate

Stay safe: Only shop trusted sellers and platforms. Check for a padlock symbol and review the URL’s spelling of each landing page. Never pay by wire transfer or gift card when making a purchase. If you get an unexpected package notification or account alert, don’t click any links; instead log into your account directly or call the company using a verified number.

Event ticket scams

Concerts, sports games and festivals are summer staples, and scammers know it. Fake or counterfeit tickets are sold on shady sites and through social media posts, with fraud sales peaking in the summer.

Red flags:

Unsolicited offers for tickets
Online listings for extra “Hot Concert” tickets for a fraction of face value
Requests to pay by cash or bank transfer

Stay safe: Only buy tickets from the venue box office, official promoter or verified resale sites. Use a credit card to pay, if possible.

Door-to-door scams

In these scams, fraudsters knock on doors and offer various home repairs on the spot. They’ll pressure the target with scare tactics like, “Our crew is leaving town tomorrow” or claim to have extra materials “left over.”

Red flags:

“Contractors” without proper licensing or permits
Door-to-door workers offering super-cheap work

Stay safe: Verify credentials before you hand over your personal info, cash or credit card. Ask for references before hiring and get a complete written estimate of the cost.

If you’ve been scammed

If you believe you’ve been scammed, take action quickly. Contact your credit union or credit card company to report any fraudulent charges and request a reversal. If you paid via a wire transfer or money app, notify the wire company and if gift cards were used, contact the card issuer to explain the fraud. Change any passwords that may have been compromised.

Next, file a report with the FTC and let local law enforcement agencies know about the scam. If you shared sensitive information, visit IdentityTheft.gov for step-by-step guidance.

Stay safe!

What I Wish I Learned in School: How to Manage Debt

Carrying ongoing debt can bring many challenges. The person is often stuck paying high interest rates. This, in turn, can prompt the debtor to only pay the minimum amount due each month. And that means making little headway on the actual balance. As time passes, they’ll keep acquiring new debt and keep falling deeper into the trap.

The good news is, it doesn’t have to be this way. With the right tools and information, you can learn to manage, and ultimately, eliminate your debt.

Here are nine steps for managing your debt and paying it down.

1. Organize your debt

First, list all your debts. Include credit cards, student loans, auto loans and any other outstanding balance you may carry. For each debt, note the following:

Total amount owed
Interest rate
Minimum monthly payment
Due date of monthly payment

Tally up your total debt monthly payments. Then, list your debts in order of interest rates, and then in order of outstanding balances.

2. Create a realistic budget

Track your income and expenses for several months. Then, set aside a reasonable amount for each spending category, ensuring you can adequately cover all of your monthly expenses. Finally, review your spending and look for ways you can increase your income and/or trim your expenses in any manner. Allocate these extra funds toward your debt payments.

3. Choose your debt payoff strategy

You have two primary choices here:

The avalanche method. Here, you’ll start with the debt that has the highest interest rate or highest balance, and maximize payments toward paying it off, then move on to the next until you’re debt-free.
The snowball method. In this method, you’ll pay off the smallest debt first, and then work through the rest in ascending order.

Review each strategy carefully and choose the one that best aligns with your lifestyle.

4. Consider debt consolidation

If you’re dealing with a large amount of debt, you may want to consider debt consolidation. This involves combining multiple debts into a single loan with a lower interest rate. Doing so will simplify debt management by giving you just one monthly payment to manage, and can potentially lower overall interest paid, too.

5. Avoid accumulating additional debt

Limit the use of credit cards and refrain from financing new purchases while working on paying off debt. It may be helpful to destroy your credit cards and have your personal devices “forget” your credit card information so you don’t spend mindlessly.

6. Seek professional advice

If managing debt becomes overwhelming, consider consulting a financial advisor or credit counseling service. It’s important to verify any service you use by checking for an online presence, reading customer reviews, demanding complete transparency and being wary of any service that demands upfront payment and/or promises outrageous results.

7. Monitor your credit

It’s wise to review your credit usage on a regular basis, and this is especially relevant when you’re working toward paying down debt. You can obtain free credit reports once a year from each of the three major credit bureaus and check your score on sites like CreditKarma. It’s also important to review your monthly credit card statements for fraud.

8. Build an emergency fund

Having an emergency fund can prevent the need to incur additional debt during unforeseen circumstances. Aim for a fund amounting to three to six months’ worth of living expenses.

9. Stay committed and patient

Celebrate small victories along the way to stay motivated. Consistency and perseverance are the keys to achieving financial freedom.

Follow these tips to learn how to manage and pay down your debt for good.

Don’t Get Hooked: How to Recognize and Avoid Phishing Scams

Don’t get caught in a phishing scam! Here’s how to stay safe.

What is phishing?

Phishing is a cybercrime where scammers use deceptive messages to steal victims’ personal information. These messages can impersonate well-known companies, government agencies, celebrities or even people the victim knows. The goal is to create a sense of urgency, fear or curiosity, which often dupes people into clicking a malicious link or providing confidential details.

There are several ways phishing scams play out, including fake emails or texts from banks or credit unions, phone calls posing as tech support, messages pretending to be from a delivery service with links to “track your package” and fraudulent text alerts about unusual activity on your accounts.

Let’s take a closer look at the three most common variations of phishing scams.

1. Email phishing

Email phishing is the most common type of phishing scam. In this ruse, criminals send fraudulent emails that look trustworthy and encourage you to click a link or download an attachment. For example, an email that appears to be from your credit union or bank may instruct you to verify your account by clicking a link and logging in. Unfortunately, the link leads to a fake website where your credentials are stolen.

Red flags to watch for:

Urgent language
Generic greetings
Suspicious email addresses
Spelling and grammar errors
Unexpected attachments

2. Vishing (voice phishing)

In vishing scams, scammers call victims and pretend to be legit representatives, often pressuring the victim into providing sensitive information. For example, a scammer calls, claiming to be from your credit union’s fraud department. They’ll tell you your account has been compromised and will ask for your PIN to secure it.

Red flags to watch for:

Unsolicited calls
Requests for personal info
High-pressure tactics
Spoofed numbers

3. Smishing (text phishing)

Smishing uses text messages to trick victims into clicking on malicious links or sharing private information. For example, a text claims there’s a problem with your delivery and asks you to click a link to update your shipping details. The link leads to a fraudulent site.

Red flags to watch for:

Unexpected texts
Links to unfamiliar websites
Grammatical errors
Too-good-to-be-true offers

How to protect yourself

Here’s how to defend yourself from a phishing attack:

Think before you click. Don’t click on links or download attachments from unknown sources.
Verify the source. Contact the organization directly using official contact information, not what’s provided in the message.
Enable multi-factor authentication (MFA). Add an extra layer of security to your accounts.
Inspect URLs. Before choosing to click or not, hover over links to check for inconsistencies.
Avoid sharing sensitive information. Legitimate organizations won’t ask for passwords or personal details by email, text or phone.
Use antivirus software. Keep your devices protected and ensure your software is updated.
Educate yourself. Learn to recognize phishing attempts and stay informed about the latest scams.

Stay safe!

First-Time Home-Buyer’s Checklist

Buying your first home is exciting and challenging. To make it easy for you, we’ve put together a comprehensive checklist to guide you through the home-buying process.

1. Get your finances in order

Before you can think about buying a house, ensure your finances are up to par. Several months before you start your search, review the following:

Your income. You’ll need to demonstrate a consistent and reliable income source to lenders.
Credit score. Your credit score significantly influences your mortgage eligibility and interest rates.
Debt-to-income (DTI) ratio. Calculate your DTI by dividing your monthly debt payments by your gross monthly income.

It’s also a good idea to start gathering the documents you’ll need:

Two years’ worth of W-2s
Profit & loss statement, if self-employed
Pensions and Social Security check stubs
Proof of child support payments
Copies of alimony checks
Statements for all checking and savings accounts
Car loan information

2. Determine your budget

Calculate your current monthly expenses by listing all your recurring bills excluding your current rent payments. Include debts, groceries and entertainment expenses and then see how much room you have left in your budget for a monthly mortgage payment. Be sure to budget for ongoing household expenses, too.

3. Prepare your down payment

Next, be sure you have the funds prepared for a down payment. While a 20% down payment is traditional, there are various loan programs that allow for lower percentages. However, smaller down payments might require private mortgage insurance (PMI).

4. Assemble your real estate team

Look for a real estate agent who can provide market insights, negotiate on your behalf and guide you through the buying process. You’ll also need a mortgage broker and/or lender to help navigate various loan options and find the best rates. In some states, you’ll need a real estate attorney as well.

5. Get pre-approved

A mortgage pre-approval, which indicates the loan amount you’re approved for, strengthens your position as a serious buyer. Present your prepared documents to your chosen mortgage broker or lender and let them know how much you plan to spend on your new home. If everything is in order, you should receive your pre-approval letter within a few days.

6. Start house hunting

You’re ready to start your search!

Identify your must-haves, which can be deal-breakers, and the things you’d like to have in your new home. Consider factors like location, size and amenities. Explore different neighborhoods, attend open houses and monitor market trends.

7. Make an offer

Next, work with your agent to determine a base offer and have the home inspected to identify potential issues, from structural problems to necessary repairs. The home will also need to be professionally appraised at this time.

9. Secure financing

During this time, you’ll also need to finalize your financing. Be sure to submit all required documents to your lender in a timely manner. You’ll also need to decide when to lock your interest rate, considering market conditions. Finally, review the loan estimates to ensure you understand all costs associated with your mortgage.

10. Prepare for closing

As the closing date approaches, you’ll need to perform some final tasks:

Final walk-through. Inspect the property to ensure it’s in the agreed-upon condition.
Look over the closing document,, which outlines your loan terms, monthly payments and closing costs.
Arrange funds for closing.

11. Close on your new home

You’re ready for the final step in the purchase of your new home: the closing! Be prepared to sign multiple documents, including the deed of trust, promissory note and closing disclosure. Once all documents are signed and funds are transferred, you’ll receive the keys to your new home.

12. Post-closing tasks

After the closing, you’ll need to transfer or establish accounts for electricity, water, internet and other essential services. Decorate and refresh the home according to your taste. Now all that’s left to do is pack up and move in!

Follow this checklist to navigate the homebuying process with ease.

What I Wish I Learned in School 6 of 12: Avoiding Lifestyle Creep

Most people assume that they’ll start saving and investing a lot more money if their income were to increase. But, what actually happens after that raise is that their savings percent doesn’t budge and they have no idea where the extra money is going. This is usually due to lifestyle creep. Let’s take a look at this phenomenon, why it happens and how you can avoid it to maintain a life of financial fitness.

What is lifestyle creep?

Lifestyle creep, also known as lifestyle inflation, is when people’s monthly expenses increase along with their income. Unchecked lifestyle creep can ruin long-term financial goals, leaving people in a cycle where higher earnings don’t translate to increased savings or financial security.

Recognizing the signs

Here are some signs that you may be caught in lifestyle creep:

Stagnant savings. Despite earning more, your savings or investment accounts aren’t growing.
Increased debt. You’re consistently taking on more debt to finance a more lavish lifestyle.
Frequent upgrades. You’re constantly upgrading things even though the current model is fully functional.
Tight budget. You’re always running low on money by the end of the month despite an increase in income.

Strategies to avoid lifestyle creep

Follow these tips to stay financially fit under any circumstance:

Establish clear financial goals. Long- and short-term financial goals will help keep you on track.
Create and stick to a budget. Develop a detailed monthly budget that assigns a dollar amount for each spending category. Review and adjust your budget regularly.
Limit your revolving credit. It’s best to keep your credit limit down, even with an increase in your income.
Automate savings and investments. Set up automatic monthly transfers to your savings account.
Mindful spending. To avoid buyer’s remorse, implement a waiting period for significant purchases, such as a 48-hour rule, to determine if the expense is really necessary.
Regular financial audits. It’s a good idea to review your financial statements on a regular basis to see where you may be overspending.
Resist social pressures. Instead of trying to match or outdo online personalities, create your own personal and financial goals, a realistic plan for achieving them and then go and get ‘em!
Live below your means. Even with a higher income, it’s best to spend less than you earn.

Use these tips for active steps you can take to prevent and avoid lifestyle inflation.

What I Wish I Learned in School 5 of 12: The Importance of an Emergency Fund

Everyone knows it’s important to create and stick to a budget, but many people neglect to plan for the unexpected. Without proper planning, any surprise life event can send you spiraling into long-term debt.

The best way to plan for these events is by building an emergency fund for just this purpose.

Let’s take a closer look at why an emergency fund is so important and how to begin building your own.

Why is an emergency fund essential?

Financial security. Unexpected expenses can arise at any time. An emergency fund provides the financial buffer needed to handle these surprises without throwing off your financial stability.
Debt prevention. Having savings set aside can help you avoid resorting to debt when the unexpected happens.
Less stress. Knowing there’s a financial cushion in place to help you navigate almost any financial reality, can help you sleep better at night. In addition, when an emergency strikes, the fund can help alleviate the financial anxiety typical of uncertain times.

Common uses for an emergency fund

Job loss. An emergency fund ensures you can manage essential expenses while seeking new employment.
Medical emergencies. Savings can help cover deductibles, treatments or medications that are not covered by insurance.
Home or car repairs. An emergency fund allows for timely car and home repairs without financial strain.

How much should you save?

Financial experts typically recommend setting aside three to six months’ worth of living expenses in an emergency fund. However, the exact amount should be tweaked to individual circumstances.

Building your fund

Here are some tips for getting started on building your emergency fund today.

Assess your expenses.
Set realistic goals.
Automate your savings with a monthly transfer to your savings account.
Trim your spending.
Use windfalls to boost your emergency fund.

Where to keep your emergency fund

Accessibility and safety are crucial when choosing where to store your emergency savings. High-yield savings accounts are often recommended due to their balance of liquidity and interest earnings. These accounts allow quick access to funds when needed while offering better returns than standard savings accounts.

Maintaining and replenishing your fund

It’s important that you use your emergency fund only for genuine emergencies. If you need to withdraw from it, prioritize replenishing the fund as soon as possible.

An emergency fund is more than just a financial safety net; it’s a foundation for long-term financial well-being. Build yours today!

What I Wish I Learned in School 4 of 12: Taxes Demystified

Taxes can seem daunting, especially when you’re just starting out. Here’s everything about taxes you wish you’d learned in school.

1. Taxes are inevitable

The first thing to know is that taxes are a part of life. Whether you’re earning a paycheck, running a business or investing, you’ll interact with the tax system. The key is to be informed and organized.

2. Your paycheck doesn’t show the whole picture

If you’ve ever wondered why your take-home pay is less than your salary, taxes are the answer. Employers withhold income taxes, Social Security and Medicare from your paycheck. This is called “pay-as-you-go” taxation.

Review your W-4 form when you start a new job or when your financial situation changes. This form determines how much federal income tax your employer withholds. Claiming too many allowances could lead to a big tax bill in April, while too few may mean you’re overpaying.

3. Tax deductions and credits are your friends

One of the most confusing aspects of taxes is the difference between deductions and credits:

Deductions lower your taxable income, which reduces the amount of tax you owe.
Credits are even better because they directly reduce the amount of tax you owe.

Learn which deductions and credits you qualify for.

4. Filing isn’t as scary as it seems

Gather all your important documents:

W-2s from your employer(s)
1099s for freelance work or investment income
Receipts for deductible expenses
Records of charitable donations

Next, choose a filing method. You can use tax software or hire a professional.

5. Keeping records is crucial

The IRS recommends keeping tax-related documents for three years. This includes:

Pay stubs
Bank statements
Tax returns
Receipts for deductions

Keep these documents in a safe place for easy access.

6. Understand the difference between a refund and a bill

Getting a tax refund may feel like a bonus, but it means you paid more in taxes than you owed. On the flip side, owing taxes at the end of the year can be stressful. To avoid surprises, adjust your withholding or make estimated tax payments if you’re self-employed.

7. Retirement accounts offer tax advantages

It’s important to know how powerful retirement accounts are for saving on taxes. Contributions to traditional IRAs and 401(k)s are often tax-deductible, reducing your taxable income. Roth IRAs don’t offer an upfront deduction, but your withdrawals in retirement are tax-free.

Taking advantage of these accounts can help you build wealth while lowering your tax burden.

8. State taxes matter, too

Most states have income taxes, and each state has its own rules and rates. Research your state’s tax laws to avoid surprises and plan accordingly.

9. Deadlines are non-negotiable

The IRS tax filing deadline is typically April 15, but it may vary if on a weekend or holiday. Missing this deadline can result in penalties and interest on any taxes owed.

Use this guide to learn all about taxes.

What I Wish I Learned in School 3 of 12: Credit Card Smarts

When it comes to life skills, managing credit cards is one of the most important lessons. But mastering the ins and outs of responsible credit card management can be the key to a lifetime of financial wellness. On the flipside, irresponsible credit card usage might trigger a downward spiral toward long-term debt and not being able to get larger loans later on. Here are the basic credit card smarts to know.

Understand how credit cards work

A credit card is a short-term loan. So, there is an expectation that you’ll pay it back — ideally on time and in full. Many first-time credit card owners don’t realize that paying only the minimum balance can lead to a lot of interest charges, and thus, make every purchase more expensive over time. Know the annual percentage rate (APR) on each of your credit cards and understand how interest accrues for times when you must carry a balance on your card.

Build credit early

Your credit score plays a pivotal role in your financial life. It can impact everything from your ability to rent an apartment to securing a car loan or even landing a job. It’s also super-important to start building your score as early as possible because the length of your credit history makes up a large percentage of your credit score. Paying your bill on time and keeping your credit utilization low are key factors in keeping a healthy credit score.

Use your credit card like a debit card

Credit cards make it easy to spend money you don’t have. As a teenager or college student, the temptation to swipe for meals, new clothes or gadgets is hard to overcome. It’s important to remember, though, that every swipe adds up. Losing track of your spending might bring a balance that’s difficult to pay off. Budgeting and tracking expenses are crucial habits to develop early on to avoid credit card debt.

Never miss a payment

Never miss a credit card payment, even if you can only afford to pay the minimum payment. Missing just one payment can have a bad impact on your credit score, in addition to late fees and penalty interest rates.

Understand rewards and perks

Credit cards often come with rewards programs, cash-back options and perks, like travel insurance or purchase protection. While these benefits can be valuable, they shouldn’t drive your spending. Make sure you weigh the potential costs of using your credit card for purchases before deciding to whip out the plastic.

Avoid credit card traps

Credit card companies don’t always make their terms crystal clear, and that’s no accident. Before signing up for a new credit card, read the fine print. For example, an enticing 0% APR offer might revert to a much higher rate after the promotional period.

Learn about credit utilization and its impact

Credit utilization refers to the ratio of your credit card balance to your credit limit. This percentage significantly impacts your credit score. It’s best to keep your credit utilization (across all your cards) below 30%.

Use these tips to learn how to manage your credit cards responsibly.

How to Set SMART Financial Goals (and Actually Reach Them!)

Setting goals for your money might sound boring, but it’s like creating a game plan to get what you want and feel awesome while doing it. Whether you’re saving for new sneakers, a new phone or your future, using the SMART goals system can help you get there. SMART goals aren’t just “smart” (like genius-level smart)—it’s a simple way to make your goals clear and achievable. Let’s break it down!

What are SMART goals?

SMART stands for:

S – Specific

M – Measurable

A – Achievable

R – Relevant

T – Time-bound

These five steps will turn any big idea into a goal you can actually reach. Let’s see how it works!

1. S is for Specific

First, make your goal as clear as possible. Don’t just say, “I want to save money.” Instead, get specific, like: “I want to save $50 for a pair of headphones.” Being specific helps you know exactly what you’re working toward.

2. M is for Measurable

You need to know when you’ve hit your goal, so give it a number you can measure. In this case, your goal would be to save $50. You can track your progress—$10, $20, $30 … all the way to $50!

3. A is for Achievable

Make sure your goal is realistic. Can you really save $50 in a few weeks? To find out, check how much you earn from allowances, chores or part-time work. If you earn $10 a week, and can put all your earnings into savings, saving $50 is possible in 5 weeks. If that feels too long, think about smaller goals—like saving $20 first.

4. R is for Relevant

Is this goal important to you? Saving for something you care about makes it easier to stick to your plan. Ask yourself: Why do I want these headphones? Will they make me happy? If the answer to the second question is yes, you’ve got a goal worth chasing!

5. T is for Time-bound

Set a deadline for your goal. Deadlines keep you on track and give you something to target. For example: “I’ll save $50 in 5 weeks.” Now you have a finish line — and a game plan!

How to reach your SMART goals

Here are some tips to make it easier:

Break it down: If saving $50 feels big, focus on saving $10 at a time.
Track progress: Use a savings chart or a jar to see your money grow.
Cut back on spending: Skip small things like snacks or apps to save faster.
Earn more: Ask for extra chores or find ways to make money (like walking a neighbor’s dog).

Setting SMART financial goals is like creating a map for your money. By being Specific, Measurable, Achievable, Relevant, and Time-bound, you’ll know exactly what you’re saving for, how to do it and when you’ll get there. Start small and stay focused—you’ve got this!

Beware of AI Scams!

From revolutionizing industries, like healthcare and finance, to replacing jobs in publishing and graphics, Artificial intelligence (AI) is changing the world. Unfortunately, scammers are also using AI to con victims out of their money and personal info. Here’s what you need to know about AI scams and how to protect yourself.

Types of AI scams

AI scams come in many forms. Here are some of the more common.

Deepfake scams. In these scams, fraudsters use AI to create realistic videos or audio clips, often mimicking real people. Scammers use deepfakes to impersonate business executives, family members, political figures or celebrities to trick people into transferring money or revealing sensitive information.
AI-powered phishing emails. Scammers use AI to craft personalized and convincing emails that mimic legitimate organizations. These emails often contain fake links or attachments designed to steal personal or financial information.
Chatbot impersonation. Here, scammers deploy AI-driven chatbots to impersonate customer service representatives or company officials. These bots engage in real-time conversations, persuading victims to share sensitive information or make payments.
AI voice cloning. This uses AI to replicate someone’s voice, typically a family member or close contact. Scammers use this cloned voice in phone calls to request urgent financial help.
Job offer scams. In these scams, fraudsters use AI to scrape data from job boards and LinkedIn profiles before targeting job seekers with fake offers. They use automated systems to conduct interviews and request upfront fees.

How to spot AI scams

Don’t get caught in an AI scam! Here’s how to spot one:

Unusual requests for urgency. If someone is demanding immediate action, such as transferring money, pause to verify authenticity.
Inconsistencies in communication. Check for inconsistencies in tone, grammar or details that don’t align with the purported sender’s usual style.
Requests for personal information. Legitimate organizations rarely ask for sensitive information, like passwords, Social Security numbers or credit card details, by email, text or phone call.
Unverified sources. If you get communication from a new email address, phone number or chatbot, cross-check it with official contact details found on the organization’s website.

How to protect yourself

Verify before you act. Always double-check any request for money or personal details.
Strengthen cybersecurity. Use strong, unique passwords and enable multi-factor authentication (MFA) for your accounts. Keep your software and devices updated to protect against vulnerabilities.
Be cautious with AI tools. Avoid sharing sensitive information with AI tools or chatbots unless you are certain of their legitimacy and security.
Educate yourself and others. Stay informed about the latest AI scams and share your knowledge with others.
Monitor your accounts. Regularly check your account and credit card statements for unauthorized transactions.
Use anti-scam technology. Install reliable antivirus software and consider tools specifically designed to detect and block phishing attempts or deepfake content.
Report suspicious activity. If you encounter an AI scam, report it to local authorities, the Federal Trade Commission (FTC) and/or other relevant organizations.

Stay safe!

What I Wish I Learned in School 2 of 12-Budgeting Basics: A Step-by-Step Guide to Taking Control of Your Finances

Managing your money doesn’t have to be hard! Here’s how to budget in seven simple steps.

Step 1: Know your income

Before you can plan your spending, identify exactly how much money is coming in. List all sources of income in your household, including:

Salary after taxes
Side hustle earnings
Investment returns
Any other regular inflows

Be realistic and stick to consistent, reliable income sources when calculating your monthly total.

Step 2: Track your expenses

Now you’re ready to track your spending. Keep a log of every purchase you make over 30 days. Divide your expenses into the following categories:

Fixed expenses, like rent or mortgage, insurance and car payments.
Variable expenses, like groceries, dining out and utilities.
Discretionary spending, like subscriptions, hobbies and shopping sprees.

Step 3: Set financial goals

Having a clear financial goal will motivate you to stick with your spending goals. For example, you may want to pay off high-interest debt, save up for a large purchase or prepare for retirement. Clarify your goals before moving on.

Break your goals into short-term goals (saving $500 in three months) and long-term goals (paying off $20,000 in student loans over five years).

Step 4: Choose a budgeting method

Choose the budgeting method that aligns with your personality and lifestyle:

Zero-based budgeting. In this traditional form of budgeting, every dollar is assigned a job. If you earn $3,000 monthly, allocate it to cover all expenses, saving and debt repayment until there’s no money unaccounted for.
50/30/20 rule. In this plan, you’ll allocate 50% of your income for needs, like housing, food and utilities; 30% for wants, like entertainment, dining out and hobbies; and 20% for savings and debt repayment.
Envelope system. This plan involves putting cash for each category into labeled envelopes. When the money’s gone, the spending in that category stops.

Step 5: Trim your spending where needed

Budgeting can show you where you’re leaking money. There’s no need to sacrifice all indulgences, but trimming unnecessary expenses can free up money for savings or debt repayment.

Here are some tips for trimming expenses:

Cook your favorite foods at home instead of dining out.
Cancel subscriptions you don’t really use.
Shop smarter with sales, coupons and cash-back apps.
Choose free or low-cost entertainment.

Step 6: Build an emergency fund

Without an emergency fund, any unexpected expense can throw off your budget and set you back with your financial goals. Aim to save up at least $1,000, then gradually work up to 3-6 months’ worth of living expenses.

Step 7: Review and adjust

Life is unpredictable, and so is your budget. Review it monthly to ensure it reflects your current income, expenses and goals.

Tips for sticking to your budget

Follow these tips to stick to your budget:

Automate your savings.
Track progress and celebrate small wins.
If one method isn’t working, try another.
Use apps to help you.

Use this guide to get started on budgeting today!

Q&A: How Can I Stay Warm this Winter Without Breaking the Budget?

The temperatures are dropping, and that means your heating costs are about to soar! The good news is: You can have a well-heated home and your budget, too. Here’s how:

1.Use a programmable thermostat

Set your thermostat to lower temperatures when you’re asleep or away and to slightly higher when you’re home. According to the Department of Energy, reducing your thermostat by 7-10°F for eight hours a day can save up to 10% on heating costs yearly.

2. Seal all leaks

Check all windows, doors and attic spaces in your home for drafts. You can do this by holding a candle near these areas to see if the flame flickers, which tells you there’s a draft. Use weatherstripping or draft stoppers to seal all leaks you find.

3. Utilize zone heating

There’s no need to pay to heat areas of your home that don’t get much use. Shut the doors and vents in rooms you rarely use so the heat only works where it’s needed. You can also use space heaters in the rooms you’re occupying instead of heating your entire home.

4. Use insulated curtains

Heavy, thermal-backed curtains can block cold drafts from windows. Open them during the day to let sunlight in and close them at night to retain heat. You can also add rugs to hardwood or tile floors and dress in layers for extra warmth.

5. Reverse your ceiling fans

Most ceiling fans have a reverse setting. In the winter, set the fan to rotate clockwise at a low speed to push warm air downward.

6. Beef up your insulation

A well-insulated home is key to keeping heating costs down. Check your attic, walls and floors for sufficient insulation. If insulation is lacking, you may want to add layers or replace the existing insulation, especially if you live in an older home. This upgrade may involve an upfront cost, but it pays off in long-term savings.

7. Maintain your heating system

Maintaining your furnace and heating devices is crucial for saving on heating costs.

First, clean or change air filters and heating devices because accumulated debris can keep the warm air from circulating. You may also want to call a professional to inspect your furnace and either clean it or upgrade it. It’ll cost, but the expense will likely be well worth the savings in heating.

Finally, consider contacting your utility company for a free home checkup. Costs for service or upgrades can be offset by federal tax credits, and utility rebates are available for many energy-efficient upgrades.

Use these tips to keep your home comfortably heated without breaking the budget.

Scam Alert: QR Codes from Unexpected Packages

You’ve just received a package from an unfamiliar sender addressed to you. Inside, there’s a note featuring a QR code instructing you to scan it for more information. Exercise caution, as this could be a scam aimed at stealing your personal data!

If your curiosity led you to scan the QR code, it’s crucial to act quickly. This code might have directed you to a phishing site designed to capture sensitive information such as credit card details and passwords, or even install malware on your device, granting hackers access to your phone.

If you have scanned the QR code and provided your information, change your passwords immediately. Opt for a strong password and enable two-factor authentication. A secure password should be at least 12 characters long and can be a memorable phrase made up of random words. Ensure you incorporate a mix of lowercase and uppercase letters, along with symbols.

If you’re worried that someone may have obtained your information, monitor your accounts and statements for any unfamiliar names or transactions. You can also access a free credit report weekly. To learn more about credit reports, visit https://www.annualcreditreport.com/index.action.

Additionally, consider taking further measures to safeguard your identity, such as freezing your credit or placing a fraud alert on your credit report. Familiarize yourself with phishing emails and text messages and regularly update your computer and phone software to ensure you have the latest security updates.

What I Wish I Learned in School 1 of 12: Compound Interest

If there’s one financial concept that has the power to change lives, but is underappreciated, it’s compound interest. For most of us, compound interest wasn’t covered in school, leaving us to stumble upon its magic later in life. And it’s sometimes too late for us to fully benefit from its power. Here’s why understanding compound interest early could make all the difference.

What is compound interest?

Compound interest is the process of earning interest on both the initial principal of an investment and the accumulated interest over time. In other words, your money makes money, and that money makes more money, too. Compound interest has tremendous potential to grow wealth when applied consistently over time.

An example of compound interest

Imagine you invest $1,000 at a 5% annual interest rate. If the interest is simple (not compounded), you earn $50 annually. After 10 years, you have about $1,500. But, with compound interest, you earn interest on the $1,000 in year one, then on $1,050 in year two, and so on. After 10 years, your $1,000 grows to $1,628.89 — not because the rate is higher, but because of the compounding effect.

Why timing matters

Compound interest thrives on a single crucial element: time. The earlier you start saving or investing, the more exponential the growth.

For example, investing $200 a month at age 25, with an annual return of 7%, will net you nearly $480,000 by age 65. If you start the same plan at age 35, you’ll only have approximately $227,000 by age 65,

Lessons on compound interest you wish you’d learned in school

Here are the most important principles of compound interest:

1. Start early, even with small amounts. Compound interest needs time to work its magic, and even a small amount of investing early in life could lead to significant returns over time.

2. The Rule of 72. Divide 72 by your annual interest rate, and you’ll get the number of years needed for your investment to double. Learning this trick early can inspire better saving habits.

3. Compounding works for debt, too. Credit card debt, for example, compounds at alarming rates, turning small balances into financial nightmares.

4. Harness the power of automation. Setting up automatic transfers to savings or investment accounts ensures consistent contributions and removes the temptation to spend.

Why understanding compound interest can be life-changing

Understanding the concept of compound interest can truly be life-altering. Here’s why:

Increased financial freedom with robust investments.
Less stress in emergencies, thanks to fast-growing savings.
Early start on retirement savings, ensuring years of growth.

How to make up for lost time

It’s not too late to start harnessing its power. Here are a few steps to get going:

Open a high-yield savings account or start investing.
Take advantage of employer-matched funds in retirement accounts.
Automate your savings to ensure consistency.
Educate yourself to better understand how compounding works.

Learning to harness the unique power of compound interest can make all the difference to your financial health.

Don’t Get Caught In a Paper Check Scam!

Don’t get caught in a paper check scam! Here’s some info, and how you can stay safe.

What is a paper check scam?

There are several variations of paper check scams. The most common forms include:

Forged checks. Fraudsters forge the signature of the account holder to write unauthorized checks.
Counterfeit checks. Fake checks are created to mimic real ones; complete with fabricated account and routing numbers. Scammers then use these bogus checks to pay for their purchases.
Altered checks. A legitimate check is stolen and altered to change the payee and/or amount.
Overpayment scams. Scammers send a fraudulent check for a higher amount than what’s owed, asking the recipient to refund the difference.

How to spot a fraudulent check

Identifying a fake or altered check can be challenging, but there are warning signs:

Unusual payer information. Look for spelling errors, mismatched fonts or incomplete payer details on the check.
Check number discrepancies. Legitimate checks have sequential numbering. A check with a low or no number, or one that doesn’t align with the issuer’s checkbook, can be a red flag.
Poor print quality. If the check feels flimsy, has blurry text or looks off in any way, it could be fake.
Too good to be true. If you get an unexpected check, especially for a large amount, be skeptical.
Suspicious sender. A check from an unknown source, especially with vague instructions or additional requests, should raise alarm.

Protect yourself from paper check fraud

Here’s how to stay safe from check scams:

Verify your check’s authenticity. If you receive a check from an unknown sender, call the issuing financial institution to confirm it’s legitimate.
Secure your mailbox. Use a locking mailbox or take checks directly to the post office to prevent theft.
Use check safeguards. Write checks using pens that have permanent ink to make it harder for fraudsters to alter.
Switch to digital payments when possible. While checks are sometimes necessary, online payments with trusted services are often safer and faster.

If you’ve been targeted

If you believe you’ve been victimized by a check scam, report it to your credit union or bank as soon as possible. If the fraud involves a forged or altered check from your account, inform the original payee or issuer as well. Next, file a police report, especially if significant financial harm has occurred. You’ll also want to file a complaint with the FTC. Finally, if your personal information was stolen, monitor your credit for unusual activity.

Stay safe!

The Hidden Costs of Buying a Home

Buying a home is a big milestone, but there are many hidden costs that can quickly add up, catching many first-time homebuyers by surprise. Here are some of the hidden costs of buying a home.

1. Home inspection

Cost: $300-$500

A home inspection isn’t always a required part of the homebuying process, but having your future home inspected by a professional can save you thousands of dollars in future repair costs by identifying problems before you close.

2. Appraisal fees

Cost: $300-$600

Most lenders require an appraisal to confirm that the home is worth the purchase price. If the appraisal comes in lower than the agreed purchase price, you may need to renegotiate the price or cover the difference out of pocket.

3. Closing costs

Cost: 2-5% of the home’s purchase price

Closing costs might be the most substantial hidden expense in the homebuying process. They include various fees, such as:

Loan origination fees. Lenders charge this fee to cover the administrative work that’s involved in processing your loan.
Title insurance and title search. Title insurance protects both you and the lender from potential ownership disputes. The title search is conducted to ensure there are no existing claims on the property.
Recording fees. Local governments charge these fees to make your ownership official in public records.
Escrow fees. An escrow company manages the transfer of funds and important documents between buyer and seller.

4. Property taxes

Cost: varies

Property taxes are an ongoing expense that can vary significantly depending on where you live. While most people understand they’ll pay property taxes, it’s easy to dismiss how much they can cost each year.

5. Private mortgage insurance (PMI)

Cost: 0.3-1.5% of the loan (annually)

If your down payment is less than 20% of the home’s purchase price, most lenders will require you to pay for private mortgage insurance (PMI). PMI protects the lender if you default on the loan, and it typically costs between 0.3% and 1.5% of the loan amount annually.

6. Homeowners insurance

Cost: $800-$1500 (annually)

Homeowners insurance is a necessary expense that protects you in the event of natural disasters, theft, or accidents. Many lenders require buyers to pay for the first year’s premium upfront at the time of closing.

7. Professional cleaning

Cost: $120-$325

Most sellers will deep-clean their home before putting it on the market, but they may not be as detailed when they actually move out. Real estate contracts generally require the home to be “broom-clean” before the seller moves, but this only means a very basic cleanup, with floors swept and trash removed. You may choose to have your home professionally cleaned and sanitized before you move in for a real, fresh start. Be sure to budget for this cost.

8. Immediate repairs

Cost: Varies

Unless you’re buying a new construction home, your new house will likely need some repairs. From a fresh coat of paint, to new window treatments and light fixtures, to replacing carpets and appliances, this can cost just a few hundred dollars to several thousand or more.

9. Moving

Cost: $500-$3000

The cost of moving itself is often overlooked, but can add up quickly, especially for long-distance moves or if you need professional movers. Moving expenses include packing supplies, rental trucks or a moving company. The cost of this can run anywhere from a few hundred to several thousands of dollars.

Don’t let the hidden costs of moving take you by surprise! Use our guide to be prepared for the true cost of moving.

8 Ways To Beat Holiday Stress

‘Tis the season to be merry-except sometimes, it’s not.

If you tend to feel stressed when the holidays roll around, here are eight tips to help turn that frown upside down.

1. Watch the buck

Nothing kills holiday cheer like a mountain of debt. Stick to a budget when doing your holiday shopping, and only spend what you can afford. Be extra careful not to overspend as the holidays draw near, and you’re feeling the pressure to finish your shopping in time.

2. Give back

According to the American Psychological Association, one of the best ways to reduce stress is to give back to the community.

Beat the stress by sharing holiday cheer with those who are less fortunate. You can bring some toys to the local hospital to brighten up a sick child’s holiday, volunteer at a soup kitchen or visit a nursing home and put a smile on the residents’ faces.

3. Stick to a schedule

Lack of quality sleep can make stress levels soar. You don’t need to follow your regular routine over the holidays, but it’s a good idea to keep some sort of schedule. Make sure you’re getting enough shut eye, and if a physical workout is part of your daily routine, don’t neglect it over the holidays.

4. Party smart

If you like to party, you can end up getting sick over the holidays. Do yourself a favor this year and watch what you imbibe. Enjoy a glass or two of your favorite alcoholic beverage but try to keep the drinking to a minimum. Similarly, it’s OK to break your diet over Christmas, but it’s best not to go overboard.

5. Delegate

If you’re hosting a large crowd this Christmas, all the extra work can bring your stress levels through the roof. Here’s the good news: You don’t have to do it all! There’s nothing wrong and there’s everything right with asking for help.

6. Take some “me” time

“Me” time is important, and in the chaos of the holidays, this need is often neglected. Consider getting a manicure, taking a solitary half-hour walk, or just locking yourself in your room for some peace and quiet. You’re not being an antisocial snob if you need your “me” time; you’re just being human.

7. Give up the guilt

If you tend to overanalyze every interaction you have with family and friends, you can really beat yourself up over the holidays, questioning everything you’ve said. Try to let go this season and give yourself a break.

8. Lower your expectations

A common cause for holiday stress is unrealistic expectations. It’s best not to build huge castles in the air and to keep your expectations to a minimum. If you don’t expect perfection, you won’t be struggling with mountains of disappointment this holiday.

Here’s wishing you a Merry Christmas from all of us here at High Point FCU.

Q&A: How Should I Fund my Holiday Expenses?

Q: I’ve listed all my anticipated expenses for the holiday season and I’m ready to hide under my covers until January. There’s so much to buy and so little money! How can I pay for my holiday expenses?

A: Yep, ‘tis the season to shop until you drop and your budget goes pop! But with proper planning, you can celebrate the holidays with your budget intact. Here are four ways you can pay for your holiday expenses along with the pros and cons of each.

1. Credit cards

Pros:

Convenient. Credit cards negate the need to carry cash around and are accepted at most retailers.
Rewards and cashback. Many credit cards offer rewards points, miles or cashback for your purchases.
Purchase protection. Most credit cards offer protection on big purchases so you can reverse a charge if a product turns out to be different than promised. Some cards also offer extended warranties, price matching and coverage for lost or damaged purchases.

Cons:

High interest rates. If you don’t pay off your balance each month, interest charges can pile up, making your holiday spending far more expensive.
Overspending. The ease of swiping a card makes it easy to overspend, especially during the holidays.
Debt accumulation. If you carry a balance into the new year, you might be stuck with lingering debt that could take months, or years, to pay off.

2. Holiday club accounts

Pros:

Encourages saving. Holiday clubs help you save for the holidays throughout the year.
No debt. Using money you’ve saved helps you avoid going into debt from holiday expenses.
Set it and forget it. You can set up your holiday club to take automatic monthly contributions from another account or payroll deposit throughout the year.

Cons:

Limited access. The funds are usually only accessible at the end of the year, which can be problematic if you don’t have other liquid savings to cover you in case of an emergency.

3. Unsecured/personal loan

Pros:

Fixed payments. Unsecured loans offer predictable monthly payments, which can make budgeting easier.
Low interest rates. Unsecured loans tend to have lower interest rates than credit cards.
No collateral needed. Most personal loans are unsecured, which means you don’t need to risk your home or car.

Cons:

Increased debt. Taking out an unsecured loan adds to your overall debt load.
Interest costs. While rates are lower than credit cards, you’ll still be paying interest on the money you borrow.
Eligibility requirements. You’ll likely need good credit to qualify for the best rates; some people may not qualify.
Temptation to overspend. Borrowing a large lump sum can tempt you to overspend.

4. Home Equity Loan (HEL) or Line of Credit (HELOC)

Pros:

Lower interest rates. Since these loans are secured by your home, they typically come with lower interest rates than credit cards or unsecured loans.
Large borrowing capacity. You can potentially borrow a significant amount of money.
Flexible terms. A HELOC allows you to borrow what you need, when you need it.

Cons:

Risk of losing your home. You risk losing the home if you default on the loan.
Fees and closing costs. HELOCs and HELs may have application fees, appraisal costs and more.
Long-term debt. Using home equity to fund short-term holiday expenses could result in carrying debt for years.

There are several ways to pay for your holiday expenses, and each option has its own benefits and drawbacks. Use our guide to choose the one that best suits your purposes.

Black Friday Hacks

Black Friday is the bargain-hunter’s dream, but it’s a game that’s gotta be played right. Follow these hacks to score big during the biggest shopping day of the year.

Do your research

Many stores release Black Friday ads ahead of time. It allows you to preview upcoming deals and compare prices across different retailers to make a plan for your buying spree.

Make a budget and stick to it

With all the tempting offers during Black Friday, it’s easy to overspend. That’s why it’s so important to set a budget before you start shopping. Decide how much you’re willing to spend overall and allocate amounts for specific items.

Get following

If you aren’t already doing it, follow your favorite retailers on social media. Sign up for email and text alerts, too. You’ll be the first to know about their upcoming sales and deals. You may also want to join their loyalty programs for exclusive early access to Black Friday sales.

Look for discount codes

Don’t settle for the marked-down Black Friday prices. Look for discounts that can bring the price down even further on sites like Vouchercodes and MyVoucherCodes. You’ll find discounts for designer retailers, restaurants and experience days.

Use apps and websites for price comparisons

During Black Friday, it’s important to compare prices from different retailers to make sure you’re really getting the best deal. Lucky for you, there’s an app for that! Tools like Google Shopping, PriceGrabber and ShopSavvy let you scan barcodes or search for products to see how prices stack up at various stores.

Check an item’s pricing history

Don’t just assume every price you encounter on Black Friday is actually being sold at a great discount. Check the price history of any product on price-checking websites like Keepa, Honey and CamelCamelCamel to see the item’s original price and whether it’s really being sold at a significant discount.

Stack coupons

Some retailers let you combine multiple coupons or promotions on top of their Black Friday discounts, which can lead to steep savings.

Focus on big-ticket items

Black Friday is often the best time to buy big-ticket items like electronics, appliances and furniture. Retailers tend to offer their biggest discounts on high-value products during this time, which means it’s your chance to save hundreds of dollars on a new TV, laptop or large kitchen appliance.

Use our hacks to be the Black Friday beast this year with the best bargains on the block!

How to Celebrate Thanksgiving on a Budget

Thanksgiving isn’t cheap! With the costs of food, decor and travel, there are so many expenses to cover. With a bit of planning, though, you can enjoy a festive holiday without breaking the bank. Here’s how to save on Thanksgiving costs this year.

Start your shopping early

Retailers start displaying Thanksgiving staples early, so if you start ahead of time, you can build up your supplies over weeks while spotting the best deal on everything. Plan your menu around these deals to save even more.

Stick to your list and budget

Before starting your prep, take the time to create a Thanksgiving shopping list and a budget for all your expenses. Without a budget, it’s easy to go overboard with your shopping. Be sure to include all Thanksgiving expenses in your budget.

Plan your travel wisely

If your Thanksgiving plans include traveling, follow these tips to keep costs low.

First, choose to fly on slower travel days. Flying the Monday before Thanksgiving will generally net you cheaper tickets than traveling on Tuesday or Wednesday. You’ll also want to book tickets at least six weeks ahead so you don’t end up paying a premium for last-minute plans. Finally, consider traveling lightly to avoid baggage fees.

Go potluck

Save on your Thanksgiving dinner costs by sharing the load and going potluck. Ask each of your guests to bring along one dish for a dinner that’s easier to prepare and lighter on the wallet. As a bonus, your dinner will have a lot more variety and will likely be more enjoyable as well.

Keep it simple

Thanksgiving is about spending time with the people who matter to you most and expressing gratitude for blessings in your life. Keep this in mind as you prepare for the holiday and resist the pressure to go overboard with food or décor. A simple meal served by a calm and present host can be more meaningful than an extravagant spread prepared by a cook who is frazzled and worn out.

Decorate on a budget

Instead of spending boatloads of money on store-bought décor, make your own with items you already have. Beautiful fall leaves, pinecones and branches can be used to create striking centerpieces and table settings. You can also repurpose things you already own, like Mason jars, candles and baskets.

Use these tips for a memorable Thanksgiving on a budget.