Tidy Up Your Transactions
In a world of subscription services and money-transferring apps, it is easier than ever to lose track of where your money is going. The list of streaming services is never ending, making it hard to remember what you pay for each month and if you even use the service enough for it to be worthwhile. Plus, apps like Venmo can make spending money dangerously easy. While all these services come with perks, they can also make your monthly budget disappear before your eyes. If your transaction list is cluttered with automated subscription renewals or surprise expenses each month, then keep on reading for tips on how to begin your financial clean-up! Clean-Up Checklist: These are just a few of the hidden transactions that could be draining your budget. In the end, we recommend giving your monthly transaction list a thorough review, deciding which expenses are worthwhile to you, and ditching the rest! It’s your money, and you should have control over where it’s going and how it is working for you.
Yours, Mine, and Ours: The Smart Financial Move for Couples
In today’s world, the cost of living has skyrocketed, and couples are feeling the pinch. Many are choosing to stay together because of financial constraints. According to a new report, nearly one-quarter of all couples are primarily staying in their current relationships due to financial dependency. For better or worse, money plays a big role in most relationships. Managing finances in a relationship can be a challenging task, especially when both partners have different spending habits and financial goals. While there is no one-size-fits-all approach, creating a “yours, mine, and ours” account setup can be a smart financial move for couples. This setup involves having joint accounts for shared expenses and individual accounts for personal expenses. One of the benefits of a “yours, mine, and ours” account setup is that it allows each partner to maintain a sense of financial independence. With individual accounts, each partner can have their own budget and financial goals without feeling like they must justify every expense to their partner. This can help to reduce conflicts over money and allow each partner to feel more in control of their finances. At the same time, having a joint account for shared expenses can help to ensure that bills are paid on time and that both partners are contributing equally to household expenses. This can be especially important for couples who have different incomes or financial responsibilities. By having a joint account, each partner can contribute a set amount each month towards expenses like rent, utilities, and groceries, making it easier to manage these costs. Another benefit of a “yours, mine, and ours” account setup is that it can help promote transparency and communication around finances. By having regular conversations about spending and budgeting, couples can work together to achieve their financial goals and avoid surprises or misunderstandings about money. This can be especially important for couples who are planning for major expenses like a home purchase, a wedding, or retirement. Of course, there are also some potential drawbacks to this account setup. For example, it can be more complicated to manage multiple accounts and track expenses across different categories. It can also be challenging to decide which expenses should be paid from the joint account and which should be paid from individual accounts. However, with clear communication and a shared commitment to financial goals, these issues can often be resolved. Ultimately, the “yours, mine, and ours” account setup can be a smart choice for couples who want to balance financial independence with shared responsibility. By maintaining individual accounts for personal expenses and a joint account for shared expenses, couples can have greater flexibility and control over their finances. As long as both partners are on the same page and communicate openly about money, this approach can help to reduce conflicts and promote a healthy, happy relationship. Sources: https://www.cnbc.com/2023/03/31/financial-dependency-23percent-of-couples-stay-because-of-money.html?_hsmi=252778365&_hsenc=p2ANqtz-9dtqJdGPIF5knMsfh4S_dVAESXcdfGW_AjPybTcDqVKQ-35cW55wLwET-sWd2L5E0Lnj6E35qn0RbAQxjkqobHU5RFxw
Buy This, Not That: Things It’s Ok To Cut Costs On
Brand recognition. We all fall victim to this marketing ploy. Companies spend a lot of money to serve you commercials and ads to get you to buy the best of the best. However, sometimes the best of the best comes at a greater cost, and sometimes expensive things…are worse. We know, it can come as a shock, but just because you dropped a lot of money on that jar of pickles doesn’t mean you got the best pickles in the grocery store. That’s why we’re here to give you some insight on things it’s ok to cut costs on so that you won’t have to worry about sacrificing quality. Pantry Staples: When it comes to the kitchen, everyone has their favorites. We’re not even going to get started on the Cola Wars, but we are here to tell you it is ok to buy generic when it comes to pantry staples. Things like sugar, flour, salt, and pepper can be found in most people’s kitchens. However, these simple items are all the same whether you buy a name brand or the generic store brand. The flavor of your cooking will be the same whether you have a shaker of Morton Salt or a store brand. This may not sound like a lot, but you’d be surprised at how quickly these products add up and run out, especially if you are an avid chef. Canned Fruits & Vegetables: It’s a myth that canned vegetables don’t have any nutrients. A can of tomatoes can contain as much as four times the amount of cancer-fighting lycopene as fresh. That being said, this goes for any brand of canned tomatoes. You can carry this fact across most canned fruits and vegetables. The generic brands will contain just as many vitamins and nutrients, but for a lower price. This is another instance where the brand also doesn’t influence the taste of the product as all companies use similar, if not the same ingredients. Storage Items: Getting organized can be expensive. Everything needs to go in its own place. However, the place where things go doesn’t have to be pretty. If you need totes, caddies, hangers, or other organizational items, you should feel free to cut costs. When was the last time you heard someone brag about their fancy plastic tote? These items will most likely be tucked away in a closet or attic, so as long as they store your stuff, then their mission is accomplished. Makeup & Personal Care: This one comes with a caveat. If you’re a beauty guru or have an extensive skincare routine, this one isn’t for you. However, if you aren’t as stringent with your beauty routine, then you’ll be completely fine with generic makeup and personal care items. Studies have shown that Walmart’s beauty brands use the exact same ingredients as some of the bigger brands. You’re getting the same beautifying ingredients for a fraction of the cost. This also extends to products like soap, eye drops, and shampoo. Tools: We’re not saying power tools, but simple tools that you keep stashed away in the pantry. A hammer is a hammer is a hammer. If you aim to pound a nail into a piece of wood, any hammer from Lowes or Home Depot will do. You can save even more money if you buy these generic tools in “bundles” that many stores offer. For instance, if you buy a Stanley Black & Decker or Husky bundle from Lowes or Home Depot, you can save upwards of 30 percent on what you would have spent on an individual higher-end tool. Yes, there are brands we all love, and you don’t have to give those up. By making a few simple switches when you shop, you can save money. As with everything, it is about balance. If there is a facial cleanser brand you have to have, then go for it. However, the next time you are buying eye drops, consider grabbing a generic brand. If you need more advice on saving money, or if you’re looking to open a savings account, we here at Brewery Credit Union are happy to help! Sources: https://www.ramseysolutions.com/budgeting/items-you-should-buy-generic https://money.howstuffworks.com/personal-finance/budgeting/10-items-you-should-always-buy-generic.htm https://www.eatthis.com/when-to-buy-generic/
Navigating Divorce Finances
Divorce is stressful, and it is expensive. They tend to cost as low as $15,000 and as high as $20,000 for most couples. To put it into perspective, that could be the cost of a new car, a college tuition loan, or medical bills. These expenses most commonly are due to attorney fees, court costs, record deeds for your home, and so much more. And along with divorce costing a pretty penny, the divorce process rarely follows a straight and narrow path. Whatever has brought you to this blog, whether you’re recently divorced or planning to be so, these tips will help you get your finances organized. Step 1: Gather your financial documents While the process of divorce may seem long, you don’t want to wait until the last minute to gather all your legal documents. Gather them early so you have them ready whenever you need them. Here are a few papers to gather: – Assets: including checking accounts, savings, IRAs, 401k plans, and investments – Property: including home, land, and vehicles – Household expenses: including phone bills, internet, water, insurance, electricity, cable, and streaming services – All debts – Bank statements, tax returns, and loan information Step 2: Know what bills are due and when so that you protect your credit You don’t want your significant other to tank your credit score. Otherwise, you may be denied when you try to refinance your auto loan or buy a new car. Make sure you know whose name is attached to what and how much is owed. Rebuild your credit by paying off shared debts and getting a credit card in your name. Make sure you have a list of shared debts. Step 3: Create a budget: If there was any time to be frugal…it’s now. A review of current household expenses will allow you to go into your next chapter of life more prepared. Make sure you know the status of childcare expenses, insurance, bills, and debt. Make sure you consider your post-divorce income as well and then plan your budget accordingly. If you need help, try out the Dave Ramsey EveryDollar budget to see where your finances are going, set savings goals, and set a spending limit. Use this link: https://loom.ly/kt4Aan8 Step 4: Start your own retirement plan It may seem like you’re too late in the game to start another retirement fund. Start small. You can consider requesting a Qualified Domestic Relations Order (QDRO) as part of your settlement; this document will help transfer your assets from a former spouse’s retirement plan and put it into your own without any tax consequences. In addition to this, we suggest getting a financial advisor to help sort out how you can keep saving for your retirement. Step 5: Change your will and beneficiaries If you don’t have a will, it’s a great idea to create one; but if you do, it’s time to reflect and decide on what a divorce means in terms of how you name your new beneficiaries. Do this as soon as possible. In addition to a will, other documents you should add a beneficiary to include your 401k, insurance policy, and more. (You should also change this status as soon as possible with the help of consulting a legal team.) We know divorce is anything but easy, especially with assets and possibly children involved. These tips are just the start of how to prepare yourself to overcome any financial challenges throughout your divorce. See how we at Brewery Credit Union can help you build a strong financial foundation by calling us today. Sources: https://www.protective.com/learn/budgeting-101-how-to-financially-survive-a-divorce https://www.nerdwallet.com/article/finance/7-ways-to-prepare-your-finances-for-divorce https://www.clevergirlfinance.com/blog/prepare-for-divorce/
