Author: Erin Roberts

Posted on July 18, 2024August 27, 2024 by Erin Roberts

Home keys in door
Have you noticed your insurance bills skyrocketing lately? If so, you’re in good company. According to Policygenius, the average home insurance premium increased by 21% between May 2022 and May 2023. Combine this with rising housing costs, property taxes, and high interest rate debt, and it’s no wonder why so many Americans are struggling in today’s market.

Knowing how to mitigate the financial impact on your budget can help you navigate rising costs more effectively, whether you rent or own.

A) For Homeowners

Invest in Home Maintenance
Proactive home maintenance can save you money in the long run. Inspect your home for potential issues, such as roof damage or plumbing leaks. Investing in maintenance can prevent more significant, costlier problems down the line and may even lower your premiums.

Consider Increasing Your Deductible
Increasing your deductible can reduce your monthly payments. If you rarely file claims, the savings on premiums can outweigh the higher out-of-pocket costs in the event of an incident. Going this route requires more financial responsibility when making a claim, so it’s a safer option for those with emergency funds.

Explore Property Tax Exemptions
Many homeowners are unaware of exemptions and rebates that offer substantial savings. Homestead exemptions lower your primary residence’s taxable value, while senior citizen, disability, and veteran exemptions reduce taxes. Energy efficiency rebates may also be available for home upgrades. Contact your local tax assessor’s office or visit their website to find out where you can save.

B) For Renters

Negotiate with Your Landlord
If you’re facing a rent increase, talk to your landlord. Discuss your situation openly and explore possibilities for a smaller increase or locking in your current rate for an extended period. Sometimes landlords are willing to negotiate, especially if you’ve been a reliable tenant.

Consider a Roommate
If your rental agreement allows, consider taking on a roommate or subletting a portion of your apartment. Splitting rent and utilities can alleviate financial strain and provide a more affordable housing option, at least in the short term as you save.

Review and Reduce Utility Costs
Take proactive steps to conserve energy and water usage in your rental unit and consider installing energy-efficient appliances, using programmable thermostats. Ask your providers about budget billing or flat rate plans to stabilize monthly expenses.

C) For Both Renters & Homeowners

Review, Update, and Bundle Your Insurance Policy
Check your coverage limits to ensure your policy adequately protects your home, belongings, and liability risks. Make sure you’re not over-insured by removing coverage for items you no longer own or that have depreciated. Additionally, shop around for competitive rates and consider bundling your insurance policies, as this can yield discounted premiums.

Consider Relocation
While uprooting is cost-prohibitive in the short-term, you may not have to move far to find affordable housing that offers long-term sustainability. Many metropolitan areas have nearby cities or suburbs within an hour’s drive that can significantly lower housing costs.

Seek Support
Connect with your financial institution to see what resources they provide to support you in optimizing your housing budget. If high interest debt is a barrier to affordable living, GreenPath Financial Wellness provides financial counseling and a debt management program designed to help you become debt-free in three to five years.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.

Posted on July 16, 2024July 16, 2024 by Erin Roberts

Man and woman with documents for financial planning

Data suggest that only 35% of members of credit unions have a will and /or trust. Read another way, 65% of credit union members have not taken the steps to secure their legacy for their families, leading financial management decisions up to the state or courts.

In the journey of life, we often prioritize our present needs over future uncertainties. However, one crucial aspect that many tend to overlook is planning for what happens after we’re gone. Creating a will and trust might not be high on your list of priorities, and it often falls into an “I don’t want to think about it” category, but it is an essential step towards securing your legacy and ensuring that your loved ones are taken care of according to your wishes. It is a gift you can provide them.

Understanding the Basics
A will is a legal document that outlines how you want your assets to be distributed after your death. It allows you to specify who will inherit your property, money, and possessions, as well as appoint guardians for any minor children. Without a will, your estate will be distributed according to the laws of your state, which may not align with your intentions.
On the other hand, a trust is a legal arrangement where a trustee manages assets on behalf of beneficiaries according to your instructions. Trusts can provide more control over how and when your assets are distributed, offering flexibility in managing inheritance, especially for minors or individuals who may not be financially responsible.

Ensuring Your Wishes Are Honored
One of the primary reasons for having a will and trust is to ensure that your wishes are honored after your death. Whether you have specific sentimental items you want to pass on, or you want to provide financial support for family members, a will allows you to clearly state your intentions. This clarity not only helps avoid potential disputes among family members but also provides peace of mind knowing that your legacy will be carried out as you desired.

Protecting Your Loved Ones
Creating a will and trust is not just about distributing assets; it’s also about protecting your loved ones during what can be a challenging time emotionally. By appointing guardians for minor children in your will, you ensure that they will be cared for by someone you trust. Additionally, a well-structured trust can safeguard assets for beneficiaries who may not be able to manage them on their own due to age, inexperience, or other reasons.

Minimizing Estate Taxes and Legal Complications
Proper estate planning through a will and trust can also help minimize estate taxes and avoid legal complications that can arise when there is no clear plan in place. By strategizing how your assets are distributed and managed, you can potentially reduce the tax burden on your estate, leaving more for your beneficiaries. Moreover, having a legally sound will and trust can streamline the probate process, saving time and expenses for your loved ones.
In conclusion, while it may be uncomfortable to think about our mortality, planning for the future through a will and trust is a responsible and caring decision. It’s a proactive step towards ensuring that your legacy is preserved, your loved ones are protected, and your wishes are honored long after you’re gone. Take the time to create your will and trust today—it’s one of the most important gifts you can give to yourself and your family.

The Wheelhouse Difference – Member Program
Wheelhouse Credit Union offers Members estate planning through our partner Love My Credit Union, a leading online digital estate planning service. Over 700,000 estate plans have been created using their secure, 100% online program. Customized, legally binding estate plans are built by attorneys and Member support is available six days a week. Get started for as low as $159 with your Wheelhouse Member Discount. Click here for more information.

Posted on July 1, 2024June 24, 2024 by Erin Roberts

Travel concept on wooden table

As summer hits its stride, the idea of financially preparing for the holidays might feel like overkill. Consider this: money is the most cited source of stress during the holidays, with 58% of US adults worrying about overspending or not having enough money.

July is an ideal month to assess your financial picture and make mid-year adjustments that will help you cruise into the holiday months with fewer concerns. To make planning easier, here is a seven-item checklist you can use as your guide:

1. Review Your Budget

With a customizable budgeting worksheet or free app, identify areas where you may be overspending and eliminate costs or comparison shop if possible. Budgeting isn’t about guilt, rather it is a way to ensure you’re saving a little each month – ideally 10% of your income. Less still counts.

2. Automate Savings

Consider the “set it and forget it” approach to allocating savings so that when peak holiday spending season comes around, you’ve avoided (or at least minimized) high interest credit card balances that can put a damper on the season and coming year. Look into opening a holiday-specific savings account at your financial institution and start saving now.

3. Strategize Debt Repayment

Review the balances and interest rates of your credit cards, loans, and other debts. Tackle high-interest payments first (so you’re able to put more toward principal in the long run). Explore a debt management program which can help you eliminate debt faster.

4. Check Your Credit Report

Request a free copy of your credit report from AnnualCreditReport.com. Review the report for any inaccuracies or signs of identity theft. Dispute any errors you find, which could be a contributing factor to a lower score.

5. Revisit Investments

If you have any investment accounts, assess whether your allocations still align with your long-term goals and risk tolerance. Market conditions often change, and your investment strategy should account for these fluctuations.

6. Maximize Retirement Contributions

If you have a retirement account, check your contributions, and see if you have any room in your budget to increase them. This especially applies if your employer offers matching contributions, as it’s essentially free money. The sooner you invest, the more time your money has to grow.

7. Review Insurance Policies

Ensure that your health, auto, home, and life insurance policies still meet your needs. Life changes such as marriage, the birth of a child, or significant purchases might necessitate adjustments to your coverage or comparison shopping for more favorable rates.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.