Tuesday, January 26, 2010

A special coupon for you

First Abilene FCU is excited to announce a new exclusive membership offer.  Members will receive a $10 Gift Card when they sign up for a new Sam's Club Membership or renew an existing membership by April 19, 2010.  Click here to print the coupon and for more information.

What a great way to help you budget by shopping in bulk.

Thursday, January 21, 2010

Write the Congress to Support your Credit Union


PhotobucketI am writing about an issue that could negatively impact you and all members of our credit union. The U.S. Congress is considering legislation that would reduce the amount of interchange fees paid by merchants when they accept a credit or debit card for payment. Interchange fees help pay the cost of processing credit and debit cards payments, with a portion going to card issuers like our credit union to cover risk and operations cost.

This issue is important to you, a member and owner of this credit union, since a percentage of our annual net income is derived from interchange income. It allows our credit union to offer low- or no-cost products and services including free checking, great rates on loans and no annual fee credit cards. Interchange income also helps absorb the cost of fraud that takes place on credit and debit cards.

A significant loss in interchange income could mean our credit union would have to charge more fees, increase interest rates on loans, or even suspend some products and services. Credit and debit card programs are an important service, but if merchants don't pay for their benefits of the system, it's unfair.

Credit and debit cards have removed the risk of payment for retailers. When retailers accept checks, they bear the risk for the check. If the check is bad, the retailer doesn't get paid. On the other hand, if a person doesn't pay their credit card bill, or if there's fraud, then the credit union still pays the retailer. To cover these risks and the cost of the system, there's a small fee on each transaction paid by merchants. And the risk is substantial.

Merchants claim that interchange fees add to consumer's costs and argue that if these fees were reduced, the savings would be passed on to their customers. Yet, in a recent Congressional hearing, a merchant trade representative said his industry would object to any language in the bill that would ensure savings would be passed directly onto the consumer. Clearly it's not about saving consumers money at all.

To express your opposition to harmful interchange legislation, please go to http://www.cuvoice.com/ and send an email message directly to your congressional representative. The more credit union members that weigh in on this issue, the greater chance we have to stop the legislation in Congress.

Thank you for your support.

Wednesday, January 13, 2010

Steps to Finacial Stability in 2010: Start Saving Money


We all say it from time to time, "I wish I could save more money."  It's a hard task and something you really have to put your mind to.  It is possible, no matter what your budget looks like. 

Here's the scenario: You're budget is already tight and it is very difficult to let go of any of your hard earned money and let it sit in the savings.  Here are some of my personal tips to saving extra money!
  • Groceries- Shop in bulk and go less often.  It is important to plan meals for at least two weeks at a time.   If you can do a month at a time, that is even better.  Of course, you may need to go buy milk and bread once a week, but if that is all you need, that is all you go for.  This will help to reduce compulsive buying.  Also, leave the kids at home.  We all know the kids ask for every little snack they see when at the grocery store.  Sometimes it is just best to leave them at home and do the shopping on your own.  This will help you to stick to your list and not buy all those extra items that you really don't need. 
  • Cut back on the things you don't need. 
    • Lunch- Are we really that much more satisfied by eating out at lunch everyday or would leftovers or a sack lunch suit us just as well?  Most of the time, we'd be just as full and happy by eating food from home at lunch.  Try taking your lunch instead of eating out or from your cafeteria. 
    • Cell Phone- It is very likely that most of us have the best cell phone plan out there.  We have unlimited texting, Internet and minutes.  Are you actually using all your minutes or could you cut your plan back?  Maybe you can live without texting and the Internet for a few years.  Most likely we can all get use to not having these extra things. 
    • TV- Television is something we all depend on for entertainment.  Though, it is something we could easily cut back on.  We might not be able to watch our favorite shows anymore, but I bet we'd all find new favorite shows if we cut back on our cable/satellite plan.
    • Drink Water- A soft drink or tea can cost you over $2 at a restraunt.  Try drinking water and see how much you can cut back on your bill.
  • Shop with cash! If you have trouble staying true to your budget, shop with cash. Once you hit your budget, there’s no more spending! When it’s gone, it’s gone!
Now that you've saved some money, how do you make sure that money gets to the savings each month before you spend it?  Pay yourself first! This is the only way to save. Set up a payroll deduction, automatic transfer or direct deposit into your savings account. When building your budget, don’t even depend on this money. It should come directly out of the paycheck and go straight into the savings! Leave it there and don’t touch it unless you have an emergency! Talk to a Member Service Representative for help in establishing payroll deduction, direct deposit or an automatic transfer.

Those are only a few of many tips to saving money.  We'd love to hear about your own tips.  For 101 other savings tips, click here. 

Friday, January 8, 2010

Steps to Financial Stability in 2010: Know your investment options

Investing no longer means having to wait until one reaches a large sum of money. Changes in financial services have created a wide choice of savings alternatives. These alternatives are very simple to maintain and can directly yield positive earnings. The many types of savings plans can be grouped into these main categories: savings accounts, certificates of deposit, money market accounts and Individual Retirement accounts.

Regular savings accounts, traditionally called passbook accounts, usually involve a low or no minimum balance. Today, instead of a passbook showing deposits and withdrawals, savers receive a monthly or quarterly statement with a summary of transactions. Credit unions, savings and loan associations and banks offer regular savings accounts. At a credit union, these savings accounts are called share accounts.

A certificate of deposit (CD) is a savings plan requiring that a certain amount be left on deposit for a stated time period (ranging from 30 days to five or more years) to earn a specific rate of return. These time deposits can be attractive and a safe savings alternative. However, most financial institutions impose a penalty for early withdrawal of CD funds.

A Money market account is a type of savings account. Money market accounts are also referred to as “interest-bearing” checking accounts. Traditional money market accounts usually pay higher interest rates and often require higher minimum balance in order to gain these interest rates. Another difference is the number of checks one can write off a money market accounts; often the standard limit is three to six checks per month.

Individual Retirement accounts, also referred to as IRAs, are retirement plan accounts that provide some tax advantages for retirement savings. The two main IRAs are the Roth IRA and the Traditional IRA.

  • Roth IRAs contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free.
  • Traditional IRAs contributions are often tax-deductible (often simplified as "money is deposited before tax" or "contributions are made with pre-tax assets"), all transactions and earnings within the IRA have no tax impact and withdrawals at retirement are taxed as income (except for those portions of the withdrawal corresponding to contributions that were not deducted).
As helpful hint to the consumer, it is always best research your options when considering simple investments. Often times, you can call the credit union and see what they have to offer and what the interest rates are earning. When considering tax incentive based products, seek the advice of a tax professional to see what meets your needs.

Check back next week for tips on saving money in order to start investing.

Wednesday, January 6, 2010

Steps to Financial Stability in 2010: Become a Member

Suze Orman has it right when she list checking out a credit union as a way to find hidden savings in your finances.  Members know the credit union difference and we're happy to make that difference for you.  Since the credit union is a member owned, not-for-profit, cooperative, we return our profits to our members through higher rates on savings and lower rates on loans.  If you're a member you've already checked off step one to financial stability.  Now you just need to utilize it. 

Check back for more steps in achieving financial stability in 2010 and don't forget to become a follower.

To read Suze Orman's article in the O Magazine, click here.