Live your best life!
Long Term Savings: How to Save for the Future
It’s hard to think about saving for the future with expenses due today, coupled with shopping for non-essentials or spending money on other things, such as eating out or going on vacation. While those things are important too, it’s also a smart strategy to think about saving for the future to be able to enjoy life and still meet day-to-day expenses many years from now.
Also, important to consider is that life doesn’t always go as we plan. Job losses, cut hours, injuries, the car goes kaput, major appliance breaks, or an event, such as a pandemic, occurs. Strategically planning for the future with the money we have now is one of the best investments we can make.
Create a Budget
The first order of business is to create a budget. Sit down and make a list of all current income and expenses. Then list fluctuating expenses. Once you see your cash flow situation, it’s easier to take a realistic and honest look at your financial health. This is a true test of the ability to learn the difference between want and need. Once you do that, you can cut out any non-essentials being spent. Designate anything cut from the budget and divert it to savings or investments.
Build an Emergency Fund
Setting an emergency fund is one of the earlier steps to take when planning for our financial futures. This fund, which should only be touched in the event of a true financial need, will safeguard against dipping into any savings designated for the future. Ideally, saving for three to six months expenses is a good-sized emergency fund.
Start Saving Early
Whatever our financial goals, it’s always best to start now. In life, it is inevitable something will always come up that requires us to spend money. The earlier we start saving, the less of a negative financial impact will be felt when the unexpected occurs.
Tackle High-Interest Debt
Debt has an awful tendency to snowball if we’re not on top of it. As you make a commitment to savings, also commit yourself to pay down high-interest debt. The quicker you can eliminate high-interest payments, the better position you’ll be in to meet your financial goals for the future.
Every time you get paid, you should set aside a portion to go towards your savings. Whether the money is sent to a savings account, 401(k), IRA, CD, 529, or other investment, try to make it consistent. You’d be surprised to see how quickly savings for the future accumulate once you make a commitment. Talk to your local bank or credit union about options where you can have money directly deposited from your paycheck.
Start Saving Today
Many people wonder when the right time is to start saving for the future. Putting money aside is one of those tasks people always seem to fall into the mindset of, “I’ll start that tomorrow.” However, our answer to this question is always. The time to start saving is right now. The earlier you start, the more financially secure you’ll feel down the road. You’ll also be able to handle any unexpected expenses life throws at you. If none occur, then you can enjoy your financial stability and spend without worry.
For more financial advice and ways to save money, give the team at 1st Community Credit Union a call at 888-706-1228.
If you have been dreaming about spending your days camping, boating, or snowmobiling, you may be a good candidate for a recreational loan. Recreational vehicles can be expensive, but a recreational loan gives you the ability to purchase the vehicle you want on payments. Below are five things you should know about recreational loans before you sign on the dotted line.
- Recreational loans aren't just for RVs.
Even though recreational loans are often called RV loans, they can be used to finance many different types of vehicles. In addition to campers and motor homes, you can also use these loans to finance boats, ATVs, snowmobiles, scooters, personal watercraft and more.
- You can finance up to 100 percent of the cost of your recreational vehicle.
Most loans require you to pay a down payment at closing. However, when taking out a recreational loan, you can get funding for your entire purchase. This means you won't have to worry about saving up for a down payment before you can purchase your new vehicle.
- You can refinance existing recreational loans.
If you want to get better terms on an existing recreational loan, or if you want to give yourself more time to pay for your recreational vehicle, you can apply to refinance. At 1st Community Credit Union, we can help you refinance virtually any recreational loan.
- Terms of up to 10 years are available.
Unlike a standard auto loan, which is often capped at five or six years, recreational loan terms of up to 10 years are available on some loans (subject to restrictions). This gives you more time to pay the full balance of your purchase and lowers your monthly payment amount.
- You can get a preapproval.
It can be difficult to determine how much you can afford to spend on a recreational vehicle. With a preapproval, however, you will know the upper limit of your price range, making it much easier for you to find the perfect vehicle to purchase. In addition, a preapproval will speed up the process of closing the deal after you have found the vehicle you want to buy.
1st Community Credit Union is proud to offer recreational loans to clients purchasing any type of recreational vehicle, from snowmobiles to campers. Loan terms of up to ten years are available, depending on the specifics of your purchase. In addition, if you are a qualified borrower, we can finance up to 100 percent of your recreational vehicle's purchase price, so no down payment is required.
Are you ready to start shopping for the perfect recreational vehicle? 1st Community Credit Union offers free preapprovals. Please contact us today to get started or to learn more about our loans.