Adulting with Faith: Biblical Financial Advice for Young Christian Adults

Adulting Like a Boss

Achieving Financial Freedom: Tips for Young Christians.

Congratulations on taking the first step towards achieving financial freedom and adulting like a boss! We know that the thought of managing your finances can seem daunting, but don’t worry, we’ve got you covered with some tips and tricks to help you along the way.

As you start taking on more responsibilities and managing your finances like a pro, don’t forget to have fun and enjoy the journey. Remember, being an adult doesn’t mean you have to stop having fun! Make time for hobbies, spend time with friends and family, and don’t be afraid to try new things. And always remember, no matter how challenging adulting may seem, you’re not alone! As a Christian, you have a loving God who is with you every step of the way.

Remember, with a little bit of guidance, a lot of hard work, and a healthy dose of humor, you can adult like a champ!

Here are some tips to get you started:

• Set financial goals: Start by setting clear financial goals. Whether it’s paying off student loan debt, saving for a down payment on a home, or building an emergency fund, having clear goals will help you stay motivated and on track.
• Create a budget: A budget is essential for managing your finances and achieving financial freedom. Create a budget that includes all of your income and expenses, and stick to it as much as possible. AGCU has handy budget tools to help track and manage your finances. Log in to Online Banking, or Become a Member today and get started!
• Minimize debt: High levels of debt can be a major obstacle to achieving financial freedom. Focus on paying off high-interest debt first, and consider strategies like debt consolidation or refinancing to make your debt more manageable.
• Live below your means: Living below your means is key to achieving financial freedom. Look for ways to cut back on expenses, such as eating out less or finding cheaper housing options.
• Increase your income: Consider ways to increase your income, such as taking on a side hustle or seeking out promotions or new job opportunities. Increasing your income can help you pay off debt faster and save more money.
• Invest in your future: Investing in your future is an important step toward achieving financial freedom. Consider investing in a retirement account or a diversified investment portfolio.
• It’s worth noting that many young adults still rely on financial support from their parents. According to a recent survey, about 50% of adults aged 18-34 receive financial support from their parents, with the average amount being around $3,000 per year. While receiving financial support from parents can be helpful, it’s important to work toward financial independence and not rely on this support long-term.

Achieving financial freedom as a young adult requires discipline, goal-setting, and a willingness to make sacrifices. By creating a budget, minimizing debt, living below your means, increasing your income, and investing in your future, you can take steps toward achieving financial freedom and securing your financial future.

Intro To Adulting :
Saving :
Debt :
Income :
Employment :
Budgeting :
Retirement Planning :
Housing – Buy Vs. Rent :
Transportation- :
Health Care Costs :
Family Financial Obligations:
The Biblical Perspective On Money Management:
Setting Financial Goals:
Creating A Budget:
Tracking Expenses:
Saving For Emergencies:
Managing Debt:
Building Credit Responsibly:
Understanding Interest Rates:
Planning For Retirement:
Investing Basics:
Transportation Expenses:
Giving And Tithing:
Avoiding Financial Pitfalls:
Choosing The Right Bank Account:
Finding Ways To Save Money On Everyday Expenses:
Using Coupons And Discount Codes:
Avoiding Unnecessary Purchases:
Using Credit Cards Wisely:
Making A Shopping List And Sticking To It:
Budget-Friendly Meal Planning:
Avoiding Lifestyle Inflation:
Side Hustles And Ways To Earn Extra Income:
Paying Off Student Loans:
Understanding Insurance Options:
Preparing For Financial Emergencies:
Prioritizing Financial Goals:
Continual Financial Education And Growth:
Saving For A Down Payment On A Home:
Understanding The Real Cost Of Owning A Car:
Planning For The Cost Of Higher Education:
Developing A Long-Term Financial Plan:
Avoiding Scams And Fraudulent Financial Schemes:
Discussing Finances With A Significant Other Or Spouse:
Finding The Right Financial Advisor:
Creating A Will And Estate Plan:
Planning For Charitable Giving:
Creating A Financial Legacy For Future Generations:

APR=Annual Percentage Rate. *Annual Percentage Yield (APY) 4.33% effective date 2/8/23 and subject to change without notice. New money only. Minimum balance of $10,000 required. Penalty for early withdrawal will apply.

AGCU, The Secure Place To Save Your Money

When you deposit money at AGCU, safety should be at the top of your priority list. One of the primary reasons to use a financial institution is to keep your money safe.  It’s a great idea for members to save regularly to build economic security for themselves and their families.

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Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU. Learn More About Banking with a Purpose

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Adulting & Budgeting: How to Wisely Budget Your Paycheck!

Savings Account vs. CD vs. Money Market Account: Which is Right for You?

Shopping around for the best savings account can make a significant impact on your financial well-being. With inflation nibbling at our budgets, finding an account that offers decent returns has become more crucial than ever. Certificates of Deposit (CDs) and money market accounts are two alternatives to traditional savings accounts that offer higher interest rates with minimal risk. But how do you choose between them? Let’s explore the factors to consider and help you decide which option best suits your needs.

CDs and money market accounts offer competitive interest rates with low risk, but they serve different purposes based on your financial goals and needs.

 

CDs: Locking in Returns for a Fixed Term

A Certificate of Deposit (CD) operates as a time-bound investment where you deposit a lump sum for a fixed term, typically ranging from three months to five years. In exchange, you receive a fixed interest rate, and at the end of the term, you get back your initial deposit plus the accumulated interest. CDs are NCUA-insured and do not lose value, making them a safe investment option.

Pros and Cons of CDs:

Pros:

• Higher interest rates compared to regular savings accounts.
• Certainty of returns; you know exactly how much you’ll earn and when.
• Safety and security; CDs are NCUA-insured and do not lose value.

Cons:

• Early withdrawal penalties may apply if you need access to funds before the CD matures.
• Opportunity cost if interest rates rise during the CD term.
• Long-term returns may be lower compared to diversified investment portfolios.

Money Market Accounts: Balancing Flexibility with Returns

A money market account blends features of both checking and savings accounts. You can deposit and withdraw funds as needed, typically via checks or a debit card. Money market accounts offer higher interest rates than regular savings accounts, making them an attractive option for savers looking to earn more while maintaining access to their funds.

Pros and Cons of Money Market Accounts:

Pros:

• Competitive interest rates higher than regular savings accounts.
• Flexibility to access funds easily through checks or debit cards.
• NCUA-insured, ensuring the safety of your deposits.

Cons:

• Minimum balance requirements may be higher than regular checking accounts.
• Withdrawal limitations on number of transactions per month.
• Potential fees for falling below the minimum balance or exceeding withdrawal limits.

Choosing Between a CD and Money Market Account: Consider Your Needs

Deciding between a CD and a money market account boils down to your financial goals and timeline. Here’s when each option might be more suitable:

When a Money Market Account Might Be a Better Choice:

• You prioritize flexibility and need access to your funds for unexpected expenses or emergencies.
• You want to continue making contributions to your savings over time.
• You maintain a sufficient balance to meet minimum requirements and maximize interest earnings.

When a CD Might Be a Better Choice:

• You have a lump sum of money that you won’t need access to for a fixed period.
• You have a specific financial goal with a defined timeline, such as saving for a down payment or a future expense.
• You anticipate a decline in interest rates and want to lock in a higher fixed rate for guaranteed returns.

In Conclusion:

CDs and money market accounts offer safe and reliable ways to earn higher interest on your savings. Choosing between them depends on your individual financial circumstances, goals, and need for access to funds. By evaluating the pros and cons of each option and considering your long-term objectives, you can make an informed decision that aligns with your financial strategy and helps you achieve your savings goals effectively.  Contact Member Care to Open a CD or Money Market Account Today!

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Member Spotlight

Lynne Hall

If you visited one of our branches during the Christmas season the past two years, you may have noticed some extra decoration on our windows.

In light of celebrating the birth of Jesus Christ and bringing extra joy to the hearts of our members during the winter season, AGCU hired Lynne Hall to decorate our windows.

After hearing numerous compliments from our members on the presence of her art, we can’t help but highlight her talent and blessing to our branches and members.

We reached out to her with a few questions, and we thought you might want to hear the heart behind the beautiful art that you see every time you visit one of our branches.

We are always proud to highlight the talent and dreams of our members, and we are excited to tell you more about Lynne Hall.

When did you first decide to follow your heart and call to be an artist? 

In 2016, my first grandbaby was on her way, and I had always wanted to draw more realistic portraits, so I took a course and fell in love with the process!

What inspires you to create?

I love how God created each of us and everything so uniquely-I’m intrigued by the intricacies of His creation. I especially love to capture the candid looks on a child’s face, or really anyone’s face, the personality of people & their furry friends, as well as the color and beauty of flowers, boats on the water, sunsets on the beach… I’m also inspired by other artists, I love seeing people thrive in what God has called them to do.

What advice would you give other creatives if they wanted to start their own business?

Creative wise- I’ll forever be working on this. Create lots and lots of art and find those things that inspire you; that don’t feel like work, by doing so, others will take notice because you’ll likely be doing what God has put on your heart to be a blessing to others and they can see that in you.

Financially-set up your business properly, take care to treat it like a business

Relationally -learn about the people you meet, what inspires them and you’ll be able to create something really special that they’ll treasure and will fill your heart too!

Who inspired you most to follow your heart in your career choice? 

First, the prompting of the Holy Spirit to act upon long held desires.

My portrait instructor, Audrey Bottrell Parks, inspired and encouraged me that I could do it. My family was also a great encouragement.

Ultimately, my good friend, Kellie Jones, who when she saw some of the portraits I had given away as gifts, exclaimed-”why are you hiding your talent:)”  Before that, I don’t know if I realized that this could be the thing God was giving me to do to love on others and make some sort of an impact on the world around me.

How do you continue to find joy in your work? 

It is not hard to find joy in my work. When you get to create something that people really treasure, it makes even the harder days or the ugly stage of the work, enjoyable!

What is your favorite part about your job?

The look on the face of the recipient-lots of joyful tears, hugs and smiles!  That truly fills my heart!

How could AGCU help you more in your career as an artist?

I see that you have financial services that help business owners.  Do you also offer assistance for the person who are not necessarily business minded such as, how to set up your business properly and other details of running a profitable business? I love that you are spotlighting your members, what a great opportunity to learn about other people in our area!

AGCU’s Answer: We do not have a business advisory, but we are always happy and willing to answer any business related questions, and will do our best to assist in any needs requested.

If you could be a part of or create one thing before you retire, what would it be or what would you do?

I have lots of creative dreams, so this is tough. However, my husband and I have talked, over the years, about creating some books that include his creative writing and my artwork that can inspire, uplift and make an impact.

Another thing would be to be a part of larger mural projects alongside other muralists and communities to create a beautiful work of art that has that same impact – inspire and uplift. I love to travel, so I would love to see that take place in many locations!

Because I feel like I was so slow to realize that this thing I take so much joy in is available to others, I want to do workshops or classes to show others that sometimes through the creative process, letting go of perfectionism and doubt, God shows us something.  He has created us all to be creative, whether it’s through fine arts, being good at organizing, business mindedness, that thing you do that you take for granted and think everyone can do this. God wired you to make an impact on this world, so we can all honor Him and do that thing to the best of our ability and to His glory!

Who or what is your true inspiration?

I would have to say, God’s creation. I get inspired to create by seeing the beauty all around. Sometimes it’s the fullness I feel from beautiful colors or flowers, landscapes, sunrise and sunset. Sometimes it’s adorable furry creatures. Often, it’s precious faces, young and old whose expression tells part of their story. I think all of it tells God’s story and we can love and appreciate Him through it all.

Thank you Lynne, for reminding us of the joy of Jesus Christ during this winter season, and your beautiful artwork at our branches that brightens the hearts of our members.

You are appreciated.

Take The 2023 America Saves Pledge

A common question we hear across the industry when it comes to saving… How do you save for so many things at once?

One of the most overwhelming parts of saving for everyday Americans is balancing saving for so many competing priorities.  

Not only do they need to save for short-term emergencies and opportunities, but also for future and long-term goals. Those long-term goals include major milestones like education, homeownership, and retirement.

 

2023 America Saves Week
Saving at Any Age | Friday, March 3, 2023

SAVING AT ANY AGE

Saving. Do you view it as an ongoing journey? Or do you consider saving as someplace you arrive at? At America Saves we are in the camp that saving is a habit, not a destination. And it’s a habit that can be formed at any age. Whether you are a parent trying to instill this habit in your children or you want to change your own saving behaviors, there are strategies that savers of all ages can develop.

Research tells us that children’s money habits are often formed by age seven so starting early to teach them about saving can have a huge impact. Many parents are accustomed to hearing frequent requests from their children about a toy, game, or piece of clothing that they “just have to have.” Sound familiar? Using these wants is a great way to help children learn to save.

Children can learn to set a saving goal and figure out how long it will take to save enough money for their goal. Create a fun system to track progress, provide regular encouragement, and use incentives such as matching funds. Talk about how it feels to see your money grow. And don’t forget to lead by example – show children how you are saving.

You can also give children the opportunity to make some decisions about their money. Empowering children from a young age to make choices about money they earn or receive as gifts is a great way to build that confidence.

For young adults, as they begin to earn a regular and potentially higher income, a strong foundation begins with basic understanding of the difference between needs and wants. The America Saves Spending and Saving Tool is an easy-to-use resource that provides a clear view of your finances and can be insightful in identifying essential and discretionary spending. The system of automatic saving, especially through paychecks with split deposit, can set young adults on the path to a lifelong saving habit.

It can be hard to stay motivated when setting aside money for something in the future no matter what your age. It’s easy to focus on what you want in the moment — we don’t want to wait to purchase that expensive pair of sneakers. We want to take a trip in the next three months. Retirement is so far off that it feels OK to spend more of your current income right now and catch up later. In each of these scenarios, we aren’t thinking about our future selves, just who we are and what we want today.

Thinking of our future self – what we will want, what we will be doing, what we will believe – is one way we can develop a saving mindset. Asking questions about our future selves helps us create a vision for our future. For example, consider:

• Where does your future self live?
• What does a typical day look like for your future?
• What hobbies does your future self enjoy?
• How much money does your future self earn?

Later go back and read your answers to see how they compare to the present. Having the ability to look ahead, even if it’s a short time in the future, is a great way to reinforce saving today for tomorrow. This exercise can be done at any age, even with children.

Journeys can take us on many different paths and saving journeys are no different. So stay with America Saves as you and your family embark on a new journey or resume one that encountered a detour. It’s never too late to #ThinkLikeASaver.

2023 America Saves Week
Paying Down Debt Is Saving | Thursday, March 2, 2023

PAYING DOWN DEBT IS SAVING

Making the decision to pay down debt, particularly consumer debt, can be mixed with emotion. You feel good about choosing to take concrete steps to pay off balances on credit cards, auto loans,student loans or other installment loans. On the other hand, you feel less positive about the amount of money you are directing into a savings account. Well, we’re here to show you how reducing debt is a form of saving, to give you strategies for the best way to do so that align with your personal situation, and to boost your financial confidence to keep you working toward your goals.

As you pay off your debt you are freeing up money, allowing you to direct those funds toward saving for something else that’s important to you – perhaps an emergency/opportunity fund, a vacation, home purchase, or retirement. This money is freed up as you spend less on interest, and possibly late fees, and lowering the debt balances themselves.

If you have more than one debt you want to pay off, for example an auto loan and a credit card balance, there are two main strategies to help you decide which debt to pay off first.

• The snowball method focuses on the balances of each loan. In this strategy, you make the minimum payment on all your loans except the one with the smallest balance. With this loan, you put as much money as you can toward it and when it is completely reduced you allocate that money to the next smallest balance. Your confidence gets a boost every time you see an account balance at zero.
• The avalanche method focuses on the interest rates of each loan. In this strategy, you pay the minimum payment on all your loans except the one with the highest interest rate. You apply any remaining money you have for debt repayment to the highest interest rate loan. By paying off the debt with the highest interest rate first you reduce the overall amount of interest you must pay.

You choose which method is right for you and your situation.

Once you are on a path to reducing your debt, reflect on the type of relationship you have with credit. Credit is a tool. When used wisely and with purpose, credit can help you achieve your financial goals and build financial confidence. Having a clear view on when and for what purpose you use credit is the foundation for a positive relationship.

Sometimes we’re told there are good types of debt (home mortgage) and bad debt (credit cards). This type of categorization is based only on the financial aspect and not the personal situation you are dealing with. It may feel better to ask yourself if the type of debt you are taking on is a good decision for you or not.

For example, when an emergency expense crops up, and it is large enough that it will deplete all or nearly all of your emergency savings, you may feel like you’re on shaky ground if another expense crops up before you can replenish your savings. So, you may weigh this option against using a combination of savings and credit based on what feels best for you in the situation.

Making purposeful choices about credit, something that you plan for financially and mentally can help you build more financial confidence.

 

2023 America Saves Week
Saving For Major Milestones | Wednesday, March 1, 2023

SAVING FOR MAJOR MILESTONES

What do homes, education, and retirement all have in common? They are major life milestones that require advance planning and saving large amounts of money. That amount of advance planning and money saved that is needed may make you doubt your ability to reach these goals. Even if you don’t feel that way today, you may have in the past or may in the future.

The good news is that there are ways to plan and save for these major milestones in a way that aligns with your values and current life situation and still sets you up for success. Keep in mind:

• Make a plan for how much you need to save and when you want to have that money saved. The America Saves Pledge and the Spending and Saving Tool are both resources that can help with your planning.
• Whenever you have more than one goal that you are working on at the same time, it’s important to prioritize them. Yes, you can save for retirement and education or retirement and home ownership at the same time. You just may need to allocate a greater percentage of your available money to save more for one goal over another.
• You get to decide which goal is the most important to you right now and you can use that decision to guide your plans. And this can change over time.
• When tough times happen, and they will at some point, it’s OK to set aside some saving goals. If you lose your job, you may need to forgo continuing to save for your retirement and child’s education until you find a new job.
• Do your research. Having the right information for your personal circumstances can help you more confidently plan and execute that plan.
• With retirement, you want to understand what savings vehicles you have access to through your employer before seeking resources for individual accounts. You also want to have a reliable calculation for the money you need saved and what the best investment options are for you.
• With home purchases it’s important to have an idea of the type of house you want and in what area so you can research prices. You also want to know your credit score to understand what types of mortgage rates you can qualify for.
• When saving for education, 529 College Saving Plans are one of the best options available as the money grows tax free and is not taxed when withdrawn if it is used for qualified expenses.
• With any of these goals, utilize automatic saving vehicles wherever possible. Typically, employer defined contribution retirement plans use automatic deductions from your paycheck. You can also direct an investment company or your financial institution to set aside money each month for retirement, home down payment or education accounts.

With all these goals, while the sooner you can start saving for them the less you will have to save each month, recognize that your situation will determine when you are able to start saving. Delaying when saving for education may mean you need to take out more in loans. Delaying saving for home ownership or retirement may mean you have to wait longer to buy a house or work longer before you retire. These are your choices to make.

Confidence comes with knowing you have done your research, consulted with professionals, examined your current situation, made some predictions for future saving opportunities, and recognized that as life unfolds you can adjust your plans.

 

2023 America Saves Week
Saving For The Unexpected | Tuesday, February 28, 2023

SAVING FOR THE UNEXPECTED

How often have you heard that saving for life’s unexpected events is very important and a necessary part of being financially prepared? Most likely A LOT!Accompanying this message often is the statement that you need three to six months of expenses in your emergency savings account.

For those of us who struggle with saving for the unexpected or are saving but don’t have that three to six months amount accumulated, our confidence might be shaken because we haven’t met this standard. And when we lack confidence, it can be even harder to get or stay motivated to save for those unexpected events or opportunities that arise.

Instead of focusing on what you haven’t accomplished, here are a few strategies to consider that may help you build your financial confidence and begin or continue on your path to saving for the unexpected.

• Set a goal of saving $500 for emergencies and once you reach this amount, set a new goal for another $500 and keep going. Reaching several smaller goals feels good and when we feel good, we’re more likely to remain committed to our plan.
• If you’re not sure exactly how much you can realistically save each month, try using the America Saves Spending and Saving Tool to get a clear view of your finances. Once you know exactly what your income and expenses are, you will be able to set a realistic timeframe for saving that first $500 or beyond.
• Consistency can help build confidence. Saving automatically every time you get paid is the easiest way to be a consistent saver, and consistency builds confidence. You can set up split deposit saving with your employer or your financial institution so that a portion of every paycheck goes directly into a dedicated savings account. When you are saving $10, $20, or some other amount every paycheck, you will see regular progress, building your confidence along the way.
• Instead of only focusing on the negative reasons for having an emergency savings account, think of it as saving for opportunities. Framing the reason you are saving in a more positive light may help you feel better about setting money aside. Not only are you saving to pay for car repairs, home expenses, or medical bills, tell yourself you are saving for an unplanned dinner out to celebrate a friend’s birthday or the chance to go see your favorite artist in concert. Those positive feelings can be motivating.
• Use the three to six months of expenses in a savings account as a guideline. Try not to become discouraged if you haven’t met this level. Instead, focus on what makes the most sense for you at this time, knowing that as your income grows and/or expenses decrease, your ability to save more and more quickly will change.

 

America Saves is here to help you get started on any of these strategies. Check out the 6 Steps to Establishing a Spending and Savings plan, take the America Saves Pledge, or listen to our Think Like A Saver podcast. We’re with you every step of the way on your savings journey.

 

2023 America Saves Week
Saving Automatically | Monday, February 27, 2023

SAVING AUTOMATICALLY

Do you ever find yourself wondering if there is a magic formula to saving

Does it seem that everyone around you knows the secret to saving successfully except you? It’s not unusual to feel unconfident about saving, no matter how much money you earn. Confidence doesn’t necessarily come with having a lot of money. Rather it comes from building healthy financial habits and using the resources you know are available to you – this is your financial confidence!

A great place to start building your financial confidence is to set up automatic savings. When you are saving a dedicated amount of money every week, every month, or on some other regular interval, you can begin to feel a sense of control over your saving habits. Whether you are saving just $5 or $10 a month or more, it’s the fact that you’re doing it automatically that is important.

Saving automatically is the formula for successful saving for anyone – including you. Getting started doesn’t have to be a hurdle either. Consider which one of the following two strategies would work best for you and follow the steps we’ve outlined.

1. Instructing your employer to split your directly deposited paycheck into two or more accounts at your financial institution with one account being a dedicated savings account.

2. Directing your financial institution to automatically transfer money into your savings account.

 

For option #1, contact your employer’s payroll department to set up split deposit, telling them how much you want to save per paycheck, and follow their instructions.

If you want to use option #2, contact your bank or credit union telling them when and how much money you want automatically transferred into your savings account.

By utilizing either of these automated saving methods you can feel confident about building a healthy habit of saving. Imagine how good it will feel to see money accumulating in your savings account on a consistent basis. Instead of that voice in your head telling you that saving is hard, you’ll be able to say with confidence, “I am saving regularly!”

 

America Saves has a number of resources that can help you get started saving automatically: 

• The Spending and Saving Tool to help you get a clear view of your finances and determine a realistic amount you can save regularly
• ThinkLikeASaver podcast where you can learn about making saving easier, saving in spite of inflation and many other topics designed to support your saving habit.
• The America Saves Pledge, which can help you make a saving plan and receive ongoing support through emails and text messages

So, remember your unique financial situation calls for you to make the choices that will work best for you and your family, which will ultimately increase your financial confidence and help you continue making informed choices throughout your saving journey!

 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU.
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5 Tips to Spring Break On A Budget

It’s finally Spring Break, and you can’t wait to swap the library for the beach! However, this doesn’t mean you need to spend a fortune to have fun. Have a great time without hurting your budget by following these five Spring Break tips.

Check your school for discounts and help.

Lots of colleges offer on-campus travel agents who can help you plan your vacation right by snagging the best deals. Plus, your school may be able to get you special discounts.

Don’t pay full price.

Before booking any hotel stays, attractions or restaurants, check out couponing sites! You can also browse the tourist brochures for deals once you get to your hotel. Why pay full price if you don’t have to?

Fly for less.

Get the best flight deals by clearing your web browser cache before searching. Book on a Tuesday that’s six weeks before your flight for the time window offering the lowest prices. Also, consider flying mid-week for the best deals.

Use discount travel sites.

Many discount travel sites have apps you can download to help you with scheduling, pricing and organizing your trip. You’ll have access to exclusive deals, plus loads of suggestions for local tourist hotspots to help you plan your stay.

Dine in.

Don’t assume you need to eat each meal at another restaurant. Instead, stock up on basic supplies at the grocery and eat most of your meals in your hotel room. Take advantage of the continental breakfasts that many hotels offer. You can also pick up food from a street vendor for a fraction of the price.

Spring break doesn’t have to mean a break from budgeting. Plan ahead and choose wisely so you won’t be paying off your vacation all summer long. 

Banking With A Purpose

Much more than a catchphrase, our tagline is our passion, our reason why we do what we do. This is the impact of your membership with AGCU.
Learn More About Banking with a Purpose

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Home Sweet Home: AGCU’s Short Guide to Becoming a Homeowner!

Reading Time: 4.5 minutes

Jump to Section:

• What is affordable for you?
• Try using a mortgage calculator
• Do you know your local housing market?
• Considering all the housing options
• Do you know what home loan options there are?
• Article summary

At AGCU, we know that becoming a homeowner is a rite of passage for many individuals. But, the process can be daunting and complex for a lot of people. It involves making a significant financial commitment and accounting for a range of expenses including mortgage payments, insurance, taxes, and potential repairs or upgrades. 

To help navigate this process we have compiled five home-buying tips you should consider, all coming from industry-recognized experts and researched credible sources. Continue reading below!

Tip #1 – Determine Your Personal Affordability 

Before you begin your home search, it is important to determine what you can afford. A number of factors will influence this decision, including your location, income, credit score, and the size of the down payment you can make.

Investopedia contributor and finance writer Reyna Gobel recommends putting down a 20 percent down payment to avoid paying private mortgage insurance, as this will leave you with a loan that typically covers 80 percent of the home’s cost, which must be paid off over a period of 15-30 years.

When calculating affordability, it is also important to factor in any potential repairs or upgrades that may be needed to the home you are interested in. These expenses may include the following upgrades:

• Kitchen
• Resurfacing of the wood flooring
• Many any other surprises that come up during the buying process.

If you don’t think you’ll be able to afford it, then that should inform you to wait before continuing in the home-buying process.

Tip #2 – Use a Comprehensive Mortgage Calculator 

AGCU offers a mortgage calculator that can help you get a better understanding of what you can afford. To use this tool, you will need to input the following information:

• The price of the home you are considering
• The down payment
• The loan term
• Either the interest rate or your credit score

The calculator will then provide an estimate of your monthly mortgage payment, which includes the principal and interest, property taxes, and homeowners insurance. While this is not a guarantee of what you will be approved for, it can be a good starting point, especially if you are unsure of your budget.

Tip #3 – Thoroughly Research the Local Housing Market 

Timing is also important when it comes to purchasing a home. Mortgage rates can fluctuate throughout the year, so it is important to be aware of when interest rates are low and when prices are expected to rise. 

According to Gobel, the spring is often the best time to shop for a home, as many people are waiting for the school year to end before making a move. On the other hand, the fall is often the worst time to buy, as many people have already settled into their new homes.

Regardless of what time of year you decide to buy a home, make sure that your research accurately reflects that of the local area. Don’t make the mistake of making inaccurate comparisons. 

Tip #4 – Considering All Your Housing Options 

Before making a final decision, it is important to consider all of your housing options and assess whether homeownership is the right choice for you. Part of your personal assessment may involve the following:

• Creating a budget
• Looking at your debt-to-income ratio
• Considering all of the costs associated with homeownership.

After your assessment you may realize that renting is still your personal best option. Gobel suggests doing the math before making a final decision, and recommends subtracting the cost of your most expensive hobby or activity from your estimated monthly mortgage payment. If the balance is not enough, you may need to cut back on your spending or look for a less expensive home.

Tip #5 – Really Understand Home Loan Options

There are several home loan options available to potential homeowners, including fixed-rate loans, adjustable-rate loans, and FHA loans. These loans have varying interest rates, credit score requirements, and loan terms, so it is important to do your research and choose the option that is right for you. Additionally, it is important to consider your credit score, as this will influence your interest rate and your eligibility for certain types of loans.

Summary of Things to Consider for Home-Buying Readiness

At AGCU, we know homeownership is a major milestone and the journey towards it can be overwhelming. We hope our guide provides a roadmap for aspiring homeowners, starting with determining affordability and using a mortgage calculator to estimate monthly payments. 

Keep in mind that timing is extremely important in the home buying process, with interest rates and expected future home prices to keep in mind. Considering all options and weighing the costs of homeownership is crucial before making a final decision. 

Lastly, exploring various home loan options (with their different interest rates), factoring in credit score requirements, and understanding loan terms is necessary to finding the right fit. With keeping these tips in your mind, the journey towards homeownership can be a well-informed and successful one.

Learn more about Home Loans with AGCU, begin the Apply now, or contact our mortgage professionals at 866-508-2428, email mortgages@agcu.orgfor more information

Stay Cozy and Save Money: Homeowner’s Guide to Efficient Heating

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As the temperature drops, homeowners’ wallets start to freeze up with rising heating costs. This winter natural gas households can expect a 25% increase compared to last year, while those heating with electricity can expect a 6.5% hike, and those using oil or propane may face a 54% surge.

At AGCU, we care about sharing the best practical advice for homeowners to save money, no matter if they’ve used our home loan services or not. So, without any further ado let’s take a look at ten simple, practical ways to save money and be kinder to the environment this winter!

1. Stay Warm with Cozy Home Additions:

• Add rugs to flooring in bathrooms and other rooms to increase insulation.
• Dress in layers. Wear warm sweaters, socks, and flannel sheets to keep body heat inside.
• Incorporate blankets and throws into your decor to add extra layers of warmth, and use extra blankets and bedding for extra warmth at night.
• Use draft stoppers at the bottom of doors to prevent warm air from escaping and cold air from entering

2. Maintain Heating Equipment for Optimal Performance:

• Regularly clean or replace air filters (typically every 3 months) to improve indoor air quality and circulation.
• Check the pilot light on your furnace regularly to ensure it is lit and functioning properly.
• Keep the area around your furnace and other heating equipment clear and free of clutter to allow for proper air circulation.
• Regularly inspect and clean your chimney, flue or vent pipe to prevent blockages and ensure efficient operation.
• Check your ductwork for any leaks or damages and have them repaired as needed to prevent energy waste.
• Make sure your heating equipment is regularly maintained by a professional to ensure it is operating at peak efficiency, and address any issues promptly to avoid costly repairs in the future.

3. Adjust Thermostat for Energy Efficiency:

• Change the temperature by 7-10 degrees (e.g. 68°F) when you’re home and awake and to a lower temperature (e.g. 60°F) when you’re away or sleeping..
• Use a programmable thermostat to set temperature changes based on schedule. Try not to override your thermostat’s program, as this can reduce its effectiveness.
• Don’t turn the temperature down too low when leaving for extended periods to avoid frozen pipes.

4. Furnace Maintenance and Upgrades:

• Schedule a professional inspection to clean or upgrade your furnace. Regular maintenance is necessary to keep a furnace system working efficiently and safely.
• Switching to a newer, high-efficiency system can improve efficiency by up to 98%.
• Upgrades to the furnace system, such as a programmable thermostat or a zone control system, can improve energy efficiency.

5. Take Advantage of Utility Company Services and Tax Credits:

• Contact your utility company for a free home energy check-up.
• Participate in energy-saving programs offered by the utility company, such as peak-time rebates, where you may receive incentives for reducing energy consumption during high-demand periods.
• Take advantage of smart-thermostat programs that allow the utility company to automatically adjust your home’s temperature during off-peak hours to save energy and lower your costs.
• Check if your state or local government offers energy efficiency tax credits or rebates for HVAC upgrades or weatherization measures.

6. Seal Windows for Better Insulation:

• Detect air leaks with a candle test.
• Install window seals or sealing gaskets around the edges of the window to improve insulation and reduce air leaks.
• Consider adding window insulation foam, which can be sprayed into the gaps around windows for a more comprehensive seal.
• If you have old windows, consider upgrading to energy-efficient windows that have a higher R-value, which measures the window’s resistance to heat flow.
• Apply a clear silicone caulk around the exterior of the window to create a seal that will last for many years.
• Use draft stoppers to seal the bottom of windows, which can prevent cold air from entering the room through the bottom of the window.

7. Maximize Natural Light and Use Insulated Curtains:

• Open shades during sunlight hours to utilize natural heat.
• Close curtains at night to retain heat and prevent cold air from entering.
• Consider using insulated curtains for even better insulation.
• Consider installing a skylight or adding more windows to rooms that receive direct sunlight, to take advantage of the natural warmth from the sun.
• When selecting curtains or blinds, choose those made from insulating materials, such as heavy cotton or silk, to trap heat inside the room.
• Make sure that curtains or blinds fit snugly against the window frame and are not gaping, to reduce the amount of cold air that enters the room.

8. Use Space Heaters for Targeted Heating:

• Use plug-in space heaters to heat isolated areas instead of entire heating zones.
• Place heaters in open areas and keep away from flammables and children/pets.
• Close vents in unoccupied rooms to reduce heating output.
• Avoid overloading electrical outlets with multiple space heaters.
• Don’t use extension cords with space heaters, as they can overheat and cause fires.
• Don’t leave space heaters unattended or running overnight.
• Consider using space heaters with a thermostat to maintain a consistent room temperature.
• Turn off space heaters before leaving the room or going to sleep.

9. Upgrade to LED Light Bulbs and Unplug Devices:

• Switch to LED light bulbs for energy savings and longer lifespan.
• Unplug devices that are not in use to reduce energy consumption.
• Look for Energy Star certified LED bulbs to ensure you’re getting a high-quality, energy-saving option.
• Choose LED bulbs with a warm color temperature to create a cozy, inviting atmosphere in your home.
• Don’t forget to replace any outdoor lighting with LED options, too.
• Consider using a smart power strip to control multiple devices at once and save energy.
• Turn off lights when leaving a room to conserve energy and reduce your electric bill

10. Adjust Water Heater Temperature for Energy Efficiency:

• Change the temperature setting of your water heater to 120 degrees Fahrenheit.
• Many households have their water heaters set to 140 degrees, which is unnecessarily high and consumes more energy.
• Reducing the temperature to 120 degrees is safer for skin and easier on heating costs.
• Consider installing a low-flow showerhead, which can reduce hot water usage and help lower your energy bills.
• Wrap the tank of your water heater with an insulating blanket to improve its efficiency and reduce heat loss.

Don’t Wait to Weatherproof Your Home!

By following some of our helpful tips, we’re confident you’ll be able to say goodbye to sky-high heating bills and hello to a cozy, environmentally friendly home. By incorporating just a few of the simple solutions outlined in this article, you can make a huge impact on your wallet and the planet.

But let’s be real, being a homeowner is expensive enough, especially when Mother Nature decides to turn up the heat…or turn it off. So don’t let the weather dictate your finances and don’t wait to weatherproof your home! Today’s the day you can start using AGCU’s helpful tips and embrace cost-effective and eco-friendly solutions this winter.