23 Sep

Money Tips for Young Adults

Money Tips for Young Adults

As a young adult in your 20s or 30s, you’re probably excited about all the opportunities life has to offer, but you’re also aware of increased financial responsibility. Unfortunately, in most high schools or colleges, personal finance is not a required subject. This lack of basic financial education leaves many young adults clueless about how they should manage their finances, apply for credit, or even get and stay out of debt.

We’ve come up with three important things to understand about money to help you be more financially responsible.

Build a Budget

Regardless of your age, the number one money tip that you should follow is to live within your means. You should never spend more than what you’re earning. It’s easy to get into debt but getting out of it is much harder.

This is why it is helpful to have a budget. If you track your spending, not only will you see where your money goes, but you will also be more aware of what you spend your money on.

Start an Emergency Fund

Life can be unpredictable and being prepared for when unexpected things occur will benefit you in the long run. Having a safety net for those unplanned moments, like car repairs, medical expenses, or unemployment, will make it easier for you to bounce back financially.

As a rule for your emergency fund, you should have 3 to 6 months of living expenses saved up. This is where the previous tip helps. If you know how much you’re spending, you’ll know how much you need to save.

Save for Retirement

While retirement may seem a long way away, the earlier you begin, the better. Starting early on your retirement savings is recommended. If you start adding to your accounts now, you’ll see more money later! Start by investing in a 401(k) or IRA. Make sure you also maximize the opportunity if your company offers a matching contribution.

There are also a lot of retirement options to choose from. Read our blog post on Retirement 101 to learn more about the different retirement accounts you can choose from.

These three tips should give you a head start on financial responsibility, but the most important tip is not to compare with others. It’s easy to look on social media and get an elevated, flawless perception of reality and it may seem as if everyone is doing well and affording extravagant things, but everyone’s situation is different! If you would like help with financial planning, RMLEFCU offers personal services to members! Learn more about our financial planning services here or call us at 303-458-6660.

18 Jun

What Are Credit Builder Loans and How Do They Work?

Credit Builder Loan at RMLEFCU

If you have poor or no credit, it may seem like getting a loan is impossible.

A lender’s main concern when considering a loan application is whether or not the applicant will be able to pay the loan back. Your credit score is a way for lenders to know if you are trustworthy enough to loan to. A credit score takes into account payment history and allows lenders to determine if the applicant is risky or not.

A credit builder loan is designed for people who have poor credit or little to no credit history to build credit. It’s designed to help you eventually qualify for other loans.

What Is A Credit Builder Loan?

Building up your credit takes patience. To show lenders you are consistently reliable and make on-time payments, you’ll need to put in the work. Credit builder loans are a great way to begin establishing a good credit score.

A financial institution, such as a credit union, deposits a small amount of money into a secured savings account. The borrower then pays the money back in monthly installments, with interest, over a set period of time. At the end of the loan’s term, the borrower receives the total amount of the credit builder loan in a lump sum, plus any interest earned, if the lender offers interest.

RMLEFCU’s credit builder loan features:

  • No money needed to secure the loan
  • Eligible to members 18 and older who have means to repay the loan
  • Low monthly installment payments
  • Convenient automatic payments
  • Easy application process
  • Quick, local decision-making
  • Attentive, friendly service from start to finish

How Does A Credit Builder Loan Work?

This loan helps build credit by providing an opportunity for people who want to build their credit to make small monthly payments.

With this loan, your credit history will show you can make regular, on-time loan payments.

Most credit builder loans are small, which means they will have small monthly payments. Interest rates vary by bank, so be sure you compare all your options to get the best rate.

Where Can I Find A Credit Builder Loan?

Rocky Mountain Law Enforcement Federal Credit Union, of course!

Credit Unions often list loans and loan details online and have lower rates than traditional banks. Take a look at the loans RMLEFCU offers.

Some traditional banks also offer credit builder loans to help clients build a good credit score and work toward good financial health.

If you have any questions or would like to talk to a lending officer at RMLEFCU about our Credit Builder Loan, give us a call at 303 458-6660 or send a message to lending@rmlefcu.org.

06 May

Five Ways to Save Money this Spring

save money in the spring

A rising trend in frugality is taking things to the extreme. It started with extreme couponing and then DIY culture, and now the side hustle. While none of these things are particularly bad, they can easily be taken too far. We can show you that saving money should be simple! Here’s a list of the five easiest ways for you to save money this spring.

Negotiate Bills

This is the best money saving trick that doesn’t require you to sacrifice anything except a little bit of your time. You can negotiate a lower rate on your internet, cell phone, cable, gym membership, and more!

Start by making a list of recurring bills and set aside an afternoon to call those companies and ask for any new promotions or other options to save money. This might mean signing up for an annual contract or paying for a year up front.

But remember to be polite. Customer service representatives are people too! And if you’re nice, they might be capable of giving you a discount.

Hidden Discounts

If you or your child is in college, many businesses offer student discounts! You can also see if your company provides any discounts with your employee ID to local attractions, like museums.

You can also ask your HR department if there are any outside discounts available to employees. Big companies often have discounts for retail, entertainment, and more! Your bank or credit union might also have additional services you can use to save money. 

subscriptions saving money

Share Subscriptions

In a world of streaming, subscriptions pile up. Much like online shopping, these subscriptions can compound quickly if you’re not careful. It’s easy to sign up for something when it’s only $10 a month!

See if you can trim some of those subscriptions by sharing with friends and family! Netflix and Hulu picked up on this trend and offer multiple profiles. You can also share Spotify Family for people living in the same household.

If you’re not currently using a subscription, you can always pause or cancel easily! If you’re unsure about keeping a subscription, try pausing it and see if you actually miss it.

Refinance Loans

If you have a mortgage, student loans, personal or auto loans, refinancing could be the easiest thing you can do to save BIG. Refinancing your loan means selling your loan to a new lender who will give you a lower rate or better monthly terms.

Before you refinance, make sure to shop around and sign up for something that has a lower interest rate with the same loan term you had before. Be careful about refinancing to a longer term if you only have a short amount of time, say five years, left on a loan.

Carry Cash

A swipe of a card can be so easy! You’re not seeing the cash actually leave your hand – it’s just numbers on a screen. Sometimes you don’t associate the swipe or the numbers as the actual money you have.

If you know you’re going to the mall or a night out, it’s best to carry cash with you so you know how much you’re spending, and you have a hard limit on when to stop spending. You might rethink some purchases as cash is harder to pull out than a card.

 

Give us a call at (303) 458-6660, email lending@rmlefcu.org, or stop by a branch today if you have any questions or want to refinance any loans. If you want to learn more about how you can save money, take a look at our financial education center!