Category: Credit

7 Financial Lessons You Can Learn from Baseball

by Advantage One, posted in Budgeting, Convenience, Credit, Debit, Lifestyle, Saving, Tips & Best Practices, Uncategorized

Batter up – it’s baseball season! Time to polish that mitt and get the old pitcher’s arm warmed up for some heated games. But there’s so much more you can learn from baseball than the tricks to throwing that perfect curve ball or hitting a grand slam. America’s national pastime can actually teach you valuable lessons in money management as well. Let’s take a look at seven financial lessons you can learn from baseball.

  1. Three strikes, and you’re out

We all drop the ball sometimes, but you only have two chances to make mistakes before the consequences become dire. For example, missing one or two credit card payments isn’t the end of the world. You’ll need to pay a late fee and your score will probably dip. However, missing three months of payments can have a far more significant impact on your financial health. First, creditors will likely hand over your debt to a debt collection agency. Your score will likely plummet. Lastly, many creditors will terminate your account after three or more months of missed payments. 

Don’t miss those credit card payments. Three strikes, and you’re out!

  1. Singles and doubles can help win the game

Everyone would love to play or watch a game where your team only hits homers, but that never happens. Don’t throw in the towel when you only hit a single or a double – those can help win the game, too. 

When it comes to money, every dollar saved and earned adds up. Don’t fall into the mistake of thinking it only pays to save big bucks. Every little bit can help you build your nest egg and reach your financial goals. Earning money works the same way, with side hustles that bring in extra pocket money making a real difference to your monthly budget. 

Aim for the home runs, but remember that singles and doubles can help win the game. 

  1. It’s a long season

It’s easy to get disheartened after a long game, but nearly every team will have to pick themselves up and get back in the game after a loss. The best way to keep your spirits up after losing a game is to remember that it’s a long season and your team can turn things around to win other games – and maybe even take the championship. 

The same holds true for your finances. You likely won’t experience ongoing financial success without having a setback or two. Your investments may plummet, you can lose a job or face a surprising expense. Don’t let these difficulties take you out of the game! 

Remember: it’s a long season and you can always rally from a loss or losing streak. 

  1. Strike out swinging

In baseball, you can strike out by sitting out a good pitch that hits the strike zone, or by trying to hit a ball and missing. In fact, Ty Cobb, who holds the highest career batting average of all MLB players in history, had a .366 batting average. This means he got a hit in just 3.5 of every 10 at-bats. This tells us that even the best baseball players miss about twice as many opportunities as those they don’t. 

Finances work in a similar way. You may miss more at-bats than you hit, but you’ll only see true success if you swing at that ball. Look for investment opportunities, avenues for career growth and other ways to improve your financial circumstances. 

Keep trying, and you may just turn out to be the best player on the field. 

  1. Know your stats

As Billy Chapel (played by Kevin Costner) says in the movie, “we count everything” in baseball. Among those many things, players carefully track their performance metrics, like their batting average, on-base percentage and earned run average. This allows them to gauge their effectiveness on the field and find their weak spots. They can then identify the areas needing improvement and focus their training on improving their game in a targeted manner. 

Similarly, ignorance is never bliss when it comes to your finances. Make sure you are fully aware of your financial stats, such as your net worth, credit score and debt-to-income ratio. This will enable you to keep on top of your financial health, find your weak spots and work on improving them before they spiral out of control. 

Know your financial stats so you can play your best game. 

  1. Practice discipline

Baseball players spend an inordinate amount of time honing their skills and perfecting their craft. This enables them to perform at their best when it matters most. All of that training really pays off when they make the hit that wins their team the game. 

Successful money management requires similar degrees of discipline and commitment. Stick to a budget, try to avoid unnecessary expenses and prioritize saving and investing for your future. By staying disciplined and focused on your financial objectives, you can build a solid foundation for long-term financial success.

Discipline wins the game!

  1. Adapt to change

Baseball teams must adapt to changing game situations, opponent strategies and player injuries to stay competitive throughout the season. 

With your finances, too, you must be prepared to adapt to changes in your financial circumstances, such as job loss, market fluctuations or unexpected expenses. Build flexibility into your financial plan, and learn to roll with the punches. Keep a robust emergency fund to get you through any major changes as well. 

Learn to adapt for ongoing wins. 

Baseball is so much more than just a fabulous springtime sport. Use this guide for important financial lessons you can learn from baseball. 

TikTok Inspo: What does baseball teach you about your finances? Share your favorite financial lessons to learn from baseball in a short video. 

What Kind of Home Improvement Projects Will Add Value to My Home?

by lweavermyaocucom, posted in Budgeting, Convenience, Credit, Lifestyle, Loans, Saving, Tips & Best Practices, Uncategorized

Q: I’m doing some work on my house this spring, and I’m wondering how I can increase my home’s value along the way. What kind of home improvement projects can add value to my home?

A: Renovating your home with an eye toward its future value can help you recoup the costs of the project – and then some. Here are six home improvement projects that can increase the value of your home.

  1. Kitchen remodel

The area of the house that will give you the largest return on investment is definitely the kitchen. It’s often where realtors and interested buyers spend the most time when checking out a new home. It’s also the common gathering area for many households, so a modern and pleasing area is appealing to many would-be buyers.

The most recent Cost vs. Value Report shows that a minor kitchen remodel involving cosmetic changes like new floors, cabinet fronts and appliances, can bring a return on investment (ROI) of 85.7%. To illustrate this, a kitchen remodel of $26,790 can add $22,963 to a home sale.

If you do go with a kitchen remodel, be sure to keep costs down. A major remodel, such as replacing cabinets, adding custom lighting and expensive appliances,  will likely not return as much as a more modest renovation.

  1. Bathroom remake

Next up, the bathroom. Potential buyers tend to pay these areas of the home extra attention when scouting out a house. Updated walls, floors and fixtures in the bathrooms can really make your home more marketable. Plus, you can charge more for your home when the bathrooms have been remodeled. According to the RenoFi Renovation Index, a mid-range bathroom remodel has an ROI of 64%, while an upscale remodel can net you a 56% return. 

  1. Upgrade your insulation

Improving your home’s insulation generally pays for itself when you sell your home, according to the Remodeling Impact Report. However, in addition to breaking even on the cost of the project, your home will feel warmer each winter while lowering your energy bills until it’s time to sell.

  1. Basement conversion

Converting a basement into a liveable area can be another fabulous way to increase the value of your home.  According to the National Association of Realtors, a basement conversion can cost an average of $57,500 and bump your home up by $49,250 for an ROI of 86%. 

  1. Replace your siding

New siding will boost your home’s curb appeal and will usually pay for itself. It can also help protect against leaks, mold, rot and pests, while improving your home’s insulation, too. The exact ROI will vary, depending on the material you choose: new vinyl siding can give you a 67.2% to 82% ROI, fiber-cement siding can get you 68.3% to 86% ROI and manufactured stone veneer can land you with 91.4% ROI.

  1. Replace your roof

With a roof replacement being one of the most expensive jobs a homeowner can face, a new roof can significantly boost your home’s resale value. According to the 2022 Remodeling Impact Report, a new roof at $12,000 will easily pay for itself. However, a larger, metal roof, at $52,436, will only boost a home’s value by $28,196, netting you a 54.8% ROI.

What determines if a renovation will add value to your home?

In addition to the type of remodeling job, several other factors can determine if home improvements will increase the value of your home, including: 

  • The current real estate market
  • Your home’s location and neighborhood
  • Trending styles in home décor
  • The quality of the work
  • Materials used in the remodel
  • Buyer preferences

Are there any home renovations that can decrease the value of my home?

Surprisingly, yes, there are some remodeling projects that can lower the value of your home. This includes renovations that are highly personalized that may not suit a prospective buyer’s taste. Another remodel that falls into this category is the destruction of a popular feature for one that may not be as desirable an option, such as converting a guest suite into a home studio. Finally, remodels that require ongoing maintenance, such as built-in electronics, may be a minus on a buyer’s list.

When doing renovations, it’s also a good idea to ensure that your home improvements fit in with the general character of your home and of the neighborhood. You don’t want the futuristic kitchen to stand out in a home that’s still decked out in the elaborate décor of the ‘90s, or for your stucco-sided home to be the odd one out on a block of vinyl-covered homes.

While it’s fine to indulge your taste and preferences if you plan to stay in your home for many more years, if you anticipate selling in the near future, it’s best not to undertake a remodel that can lower your home’s value on the market.

Are you looking to fund a home improvement project through a HELOC? Call, click or stop by Advantage One Credit Union today to get started. Our favorable rates, generous eligibility requirements, and easy terms, make a Advantage One Credit Union HELOC a great choice. 

TikTok Inspo: Have you improved your home’s value through a home improvement project? Show it off in a short video.

When is a Bargain Not a Bargain?

by Advantage One, posted in Budgeting, Credit, Debit, Lifestyle, Saving, Tips & Best Practices, Uncategorized

Q: I’m a bargain-hunting beast who can’t resist a good sale. But lately, I’ve been wondering: Is every marked-down item a great purchase? When is a bargain not a bargain?

A: You are absolutely right. Not every bargain is actually a bargain. Sometimes, you may actually be worse off buying the marked-down item than giving it a pass. Unfortunately, though, it can be hard to spot the bogus bargains from the genuine finds. Here are five times when a bargain will actually cost you.

  1. When you hadn’t planned on buying the item

If you find a new home speaker system marked down from $399 to $249, you just scored a great deal, right?

Wrong. If you were not out shopping for a new stereo and you hadn’t planned on purchasing one at any time in the future, you haven’t saved $140, you’ve spent an unplanned $249.

Before you buy, ask: Would you buy this if it was not “a great deal”?

  1. When you can’t afford it

If you can’t pay for this item with cash today, it’s likely not a bargain. Blowing money you don’t have on a purchase just because it’s on sale is a great way to break your budget and weaken your financial health. In general, don’t buy it if you can’t pay for it today.  

The one exception here is if you’ve been saving up for a large purchase and you’ve almost reached your goal when it goes on sale. If buying the item early can save you 25% or more off the usual price, and you have most of the funds saved up, it may be a good idea to purchase the item on credit. Pay off most of the bill as soon as you can with the funds you’ve saved and be careful to meet, at least, the minimum monthly payments, using the money you would otherwise have put into savings for the purchase. However, before going this route, run the numbers and make sure the interest you’ll be paying on this item won’t be higher than the amount you save off the purchase price.     

Before you buy, ask: Can I really afford this?

  1. When it’s a faulty product

Sometimes, what’s too good to be true, truly isn’t. If a price is glaringly lower than its market price and you can’t find this item marked down nearly as much through any other retailer, there may be something sketchy about this sale. You can be looking at a knockoff that will look and perform like the cheaply made bogus product it is, or you may be buying someone else’s heavily used item that is being sold as a brand-new product. In the worst-case scenario, you may be dealing with an actual scammer who is after more than your money. If the alleged seller asks you to share your credit card information over the phone  or through an unsecured website, and/or demands that you disclose other personal details, such as your date of birth or Social Security number, you’re likely dealing with a scammer.

Before finalizing a purchase, especially on a heavily marked-down item, take these steps to avoid getting scammed:

  • Research the seller. Look for a street address on their website and for reviews and ratings from previous buyers. 
  • When buying something pricey from a private seller, don’t agree to pay for a purchase before you see the product. Look for structural defects and a manufacturer’s label to see where the item was made. Finally, look for signs of heavy use. 
  • Never wire money or pay via prepaid gift card to an unverified seller. 

Before you buy, ask: Is this a quality product or worthless junk?

  1. If there’s a cheaper alternative

Don’t assume every bargain you encounter is truly being sold at the lowest price you can find. Before you plunk down your money on a large, marked-down purchase, do some research. Look up this item online and see if it’s being sold through other retailers at an even lower price. Depending on the item, you may also find a generic version of the product that does the job well for a fraction of the cost. 

Before you buy, ask: Can I find this at a cheaper price somewhere else?

  1. If it’s not really a bargain

Not every sale is actually a sale. Retailers will often inflate the “original price” they print on a price tag to make it appear as if the current price is a genuine bargain. To spot an actual marked-down product, look for an older price tag that has been topped by a newer tag sporting the sale price. 

Another way a bargain is not a bargain is when you opt for a BOGO deal or “buy one get one at half-price” when you actually only need one of the items. If you find yourself falling for one of these sales, and you know you don’t need the second item, take a step back and ask if you’d still buy this item at this price if you’d only walk away with one of them.

Before you buy, ask: Is this actually a bargain?

When shopping sales, sometimes, you may get more than you bargained for. Use this guide to learn the five times a bargain is not a bargain.

TikTok Inspo: Try to sell us a bargain-priced item that’s not really a bargain. 

No Worries: How to Live a Stress-Free Financial Life

by Advantage One, posted in book review, Credit, Lifestyle, Tips & Best Practices, Uncategorized

Title: No Worries: How to Live a Stress-Free Financial Life 

Author: Jared Dillian

Hardcover: 260 pages

Publisher: Harriman House

Publishing Date: Jan. 23, 2024

Who is this book for? 

  • Anyone who’s tired of hearing small money tips that drain the joy from life just to save a few bucks.
  • Readers of any financial background who are looking to change their attitude toward money.

What’s inside this book?

  • Finance expert Jared Dillian’s advice on how to leave the scarcity mentality behind and get on living.
  • An outline of the three big decisions that shape your finances along with guidelines on how to make them right. 

4 lessons you’ll learn from this book:  

  1. How to adopt the right attitude toward money.
  2. How to ace investing with the set-and-forget Awesome Portfolio.
  3. The most effective ways to use credit cards.
  4. What’s gone wrong with student loans and how to use them sensibly.

4 questions this book will answer for you:  

  1. How does the right kind of abundance mindset work?
  2. How can I purge the urge to splurge?
  3. How can I get my finances in shape without a big increase in income?
  4. How can I stop stressing over money?

What people are saying about this book: 

“In a world that embraces conformity and convention, Jared Dillian is an independent thinker with a unique voice. He has truly worthwhile insights and understandings.” ― Gregory Zuckerman

“There are many ways to get rich these days, but most of them involve taking huge risks or getting extremely lucky. Jared Dillian skillfully takes us down an alternative pathway to getting what we want―wealth without astonishing feats, security without trade-offs. No matter where you’re starting from, No Worries has something to teach you.” ― Joshua M. Brown

“A fierce and formidable talent. No Worries is the new gold standard for personal finance literature. This book will help ordinary people take charge of their money and minimize their financial stress for decades to come.” ― John Mauldin

“This is the best personal finance book I have ever read and the only one you need. Dillian clearly explains how a few big decisions will eliminate financial stress from your future. And he explains why the majority of mainstream financial advice will turn you into an unhappy CF. If you want to be free of financial stress and live a rich and fulfilling life, read No Worries.”

― Brent Donnelly 

TikTok Inspo: What did you think of No Worries: How to Live a Stress Free Financial Life? Share your opinion in the comments. 

Which Purchases Should I Charge to My Credit Card?

by Advantage One, posted in Budgeting, Credit, Tips & Best Practices, Uncategorized

Q: I’m reevaluating my credit card use and wondering if I’m doing it right. Which purchases should I charge to my credit card?

A: Your credit score, which is the key to long-term loans at favorable rates, employment opportunities and more, depends on your credit card usage. To build credit, you need to use credit. You want to make sure you use your cards, but you don’t want to spend more than you can pay. In addition, there are some purchases that are best off being made with a credit card. 

Here are seven purchases you may want to charge to your credit card:

  1. Electronics and appliances

It’s a good idea to pay for big-ticket items, like electronics and appliances, with your credit card. This will provide you with an insurance of sorts on these purchases, such as doubling up on the offered warranty. Some cards also offer price protection, which covers the difference if the price of an item drops after you’ve bought it. 

  1. Car rentals

Here, too, paying with a credit card can provide you with a level of insurance on the car. The insurance likely won’t be as robust as temporary insurance you may purchase through the car rental service, but it will probably offer some collision coverage for the rental at no extra charge.

  1. Purchases made abroad

When traveling and making purchases abroad, a credit card is usually your best method of payment. Cash always carries the risk of loss or theft. Debit cards may have fees for transactions made outside the country and may not be accepted at some vendors. Credit cards from well-known issuers, on the other hand, are accepted almost universally and are a lot safer to carry around than large sums of cash. In addition, many credit card companies offer a more favorable exchange rate than the average money changer you’ll meet during your travels. Finally, transactions made via credit card can always be disputed if the purchased item or experience turns out to be different than expected and advertised. 

When planning to use a credit card while abroad, be sure to let your issuer know of your travel plans. This way, they’ll approve the purchase instead of flagging it as fraud. 

  1. Fixed monthly bills

If you’re looking for an easy way to build credit, you can set a fixed monthly bill, such as a subscription or payment for phone or internet service, to be charged to your credit card each month. This way, you’ll be making regular, scheduled payments by credit card, ensuring it always gets used. Just make sure to set a reminder for paying your credit card bill on time, or early, each month!

5. Online purchases

When shopping online, you’re usually best off paying with a credit card. Unlike other forms of payment, credit card transactions are always traceable and provide some form of coverage for fraud. Some debit cards also offer fraud protection, but this is usually minimal. Credit cards, on the other hand, can offer full protection against fraud as long as it’s reported within the required time frame. 

But wait – it gets better. Some credit cards also offer protection for items purchased online if they get lost or damaged in transit. This feature can be incredibly convenient when shopping online, especially when shopping on a new site. 

When using your credit card to pay for purchases online, be sure to follow these safety measures:

  • Never share your card information over email or text message.
  • Only shop on safe sites. Look for the “s” after the “http” in every site’s URL, and for the lock icon as well, as these indicate the site’s security.
  • Never click on an embedded link or download an attachment that’s allegedly sent by an online retailer.

6. Mobile phone bills

Another good candidate for credit card payments is your monthly mobile phone bill. Many credit card companies offer some coverage for phones that are lost, damaged or stolen if the card was used to pay a specific number of bills. You’ll need to be up to date on your phone bills and you may also be required to pay a deductible before you can claim coverage, but the security of knowing your phone is protected can make it more than worthwhile. 

7. Travel expenses

Many credit card companies offer unique rewards and perks for travel-related expenses. For example, some card issuers will cover flight cancellations or trip interruptions that are out of your control. In addition, your card may insure lost luggage and some medical emergency expenses while you’re traveling. These perks become even more attractive with a special travel-themed credit card, which tend to offer more points on travel-related purchases, too. If you’re a frequent traveler, consider opening one of these cards for ongoing benefits. Just be sure to take the interest rate into account,as it may be steeper than you’d bargained for. 

Credit cards are a tricky business, but if you know when to use them, you can build a strong credit score, which can benefit your finances for years to come. 

TikTok Inspo: Which purchases do you charge to your credit card? 

8 Financially Responsible Ways to Use Your Tax Refund

by Advantage One, posted in Announcements, Budgeting, Convenience, Credit, Lifestyle, Saving, Tips & Best Practices, Uncategorized

It’s tax refund season! How are you going to be spending the pile of cash from Uncle Sam? 

Of course, you can use some of your tax refund to indulge responsibly. If you’ve been wanting to buy yourself a new something special for a while or to spend on an experience you generally cannot afford, by all means, you can allow yourself to use some of your tax refund for your chosen treat. Indulging occasionally and mindfully can prevent feelings of deprivation and can actually help you manage your money better 

However, before you go out and blow your entire refund on a sinfully expensive weekend, take a step back and try to determine the most financially responsible approach you can take with this money. Instead of spending all the funds on short-term indulgences, consider using some of them to improve your overall financial wellness. To help you get started, we’ve compiled this list of eight financially responsible ways to use your tax refund this year. 

  1. Build or boost your emergency fund

Having a well-endowed emergency fund is a crucial component to your financial health and stability. If you don’t have a fund with three to six months’ worth of living expenses set aside to cover unexpected events, work on setting one up now. Use some of your tax refund to start building your emergency fund or boost an existing one. 

  1. Pay down high-interest debt

High-interest debt can kill the best of budgets. If you’re carrying outstanding debt with high interest charges, consider using some of your tax refund to start paying it down. Decreasing your debt amount means more of your monthly payments will go toward your principal instead of interest. Additionally, knocking off a big chunk of your debt can potentially help you move to a lower interest rate.

  1. Invest in your education

If you’ve been looking for a way to advance your career and increase your earning potential, this may be your chance. Consider furthering your professional education by allocating some of  your tax refund to career workshops, conferences or additional certifications. Enhancing your qualifications and learning new skills can be the key to significant raises or a promotion at work, which will pay off for years to come. 

  1. Feed your savings

It’s always a good time to boost your savings, and tax refund season is no exception! Set aside a portion of your refund for your long-term savings to help you move closer to your financial goals. The IRS actually allows you to split your refund into three separate accounts via direct deposit to make this easier. You can have a third of your refund go directly into a savings account before you even see it arrive. 

  1. Prepay your mortgage

Making an extra mortgage payment or two can be a fabulous way to free up some money for the long term. Reducing the principal can have an exponential effect on your loan since so much of it goes toward interest over the life of the loan. 

  1. Make home improvements

Spending some, or even all, of your tax refund on improvements that increase the value of your home is an investment in your equity. In particular, kitchen facelifts and home expansions tend to offer a larger return on investment when the home is sold. 

Another kind of home improvement to consider at this time is an energy enhancement. For example, you can swap out older appliances for newer and more energy-efficient models or even choose to have solar panels installed on your roof. Energy improvements will save you money each and every month.

  1. Start or contribute to a college fund

If you have children or plan to start a family in the future, consider allocating a portion of your tax refund to a college savings fund. A 529 savings plan, which is a tax-advantaged account specifically designed for education expenses, can help alleviate the financial burden of college in the future. Contributions to a 529 plan may be deductible on your state taxes, and earnings are tax-free when used for qualified education expenses.

  1. Invest in your retirement

If eligible, consider allocating a portion of your tax refund to your employer-sponsored 401(k) or an Individual Retirement Account (IRA). These contributions not only provide potential tax advantages, but they also harness the power of compounding, thus allowing your money to grow more over time. The earlier you start investing for retirement, the more you can potentially accumulate for your golden years.

There are so many things you can do with your tax refund that can benefit your financial health. Use our list for some fabulous ideas or come up with your own financially responsible ways to use your tax refund. 

TikTok Inspo: How do YOU plan to spend your tax refund? Tell us all about it in a short video.

When Should I Give in to the Urge to Splurge?

by Advantage One, posted in Budgeting, Credit, Lifestyle, Saving, Tips & Best Practices

Q: Is it ever OK to give in to the urge to splurge?

A: We all know it’s best to curb impulse buys as much as possible, and to stick to our predetermined budgets. But sometimes, it’s perfectly fine to bend the rules a little bit and splurge on a purchase that’s not strictly necessary or part of your overall monthly budget. Here’s how to know when to give in to the urge to splurge.

When you’re feeling overly deprived

If you’ve been strictly sticking to essential-only purchases for a while, you may begin to feel super-deprived. This can lead you to feel resentful of your budget and of the financially responsible choices with which you lead your life. In turn, this can prompt you to overspend without any restraint or to completely overthrow your budget. To avoid this, it’s best to make a conscious decision to splurge on a large purchase or experience, even if it doesn’t necessarily fit within your budget. 

Be sure to proceed with caution as you make this decision. Simply wanting to spend a bit more than your budget allows because you have six pairs of must-have boots on your waiting list is generally not a valid reason to break your budget. Instead, be honest with yourself and your recent spending to determine whether you should be splurging at this time. 

When there’s an opportunity you may miss

It can also be OK to splurge when there’s a massive sale on an item you need to buy anyway and waiting it out means missing a significant savings. It’s important to note, though, that this applies to needs only and to items you’ve already been saving for. For example, if you’re saving up for a new couch and you’re only two months away from amassing the full amount you need, you can go ahead and take advantage of the Presidents Day furniture sales that feature couches at 35% off. Even though you may need to dip into your savings to cover this purchase, the money you’ll save makes it worthwhile. If you do go this route, be sure to replenish your savings in the coming months.

When it’s a quality item that will outlast a cheaper version

Sometimes, a splurge is an investment for the future. Here are some circumstances in which it may be a good idea to go for the more expensive option:

  • Quality clothing. High-quality clothing that is not uber-trendy and can last for years may be a worthwhile reason to splurge. Some clothing brands even come with a lifetime warranty. When spending more than usual on clothing, make sure you only buy timeless pieces that won’t look ridiculous just a few years down the line. 
  • Appliances. Here, too, it can be a good idea to spend a little more on a purchase that will last longer than its cheaper counterparts. Look for appliances with good ratings and guarantees, and that are energy-efficient as well for ongoing savings. Be sure to do your homework and to ensure your money is going toward quality and durability rather than a name or aesthetics. 
  • Health care and food. You never want to go cheap on your health. If you have a choice between two health care providers and the one that can offer better care is a bit more expensive, you may want to choose this provider over a less expensive one that offers subpar care. Similarly, it can be worthwhile to spend a bit more on a more healthful diet. This can help you feel better and save money in the future as well. According to WebMD, a healthful food plan can help save on health care costs related to diet. 

When it’s a once-in-a-lifetime occasion

Another time you may want to go over budget a bit is when you’re celebrating a once-in-a-lifetime occasion. Your wedding, the birth of your first child and your college graduation are all celebrations that deserve to be honored royally. This doesn’t mean you need to go all out and spend your way into deep debt, but you can forgive yourself for overspending a bit on these occasions as you know they will not present themselves again for additional overspending. 

Indulge responsibly

Once you’ve determined that you can give in to the urge to splurge, be sure to do so responsibly:

  • Keep the splurge proportional to your budget. A splurge will mean something different to different people. For some, an unplanned $50 purchase will be a major indulgence while, for others, that purchase will be closer to $5,000.
  • Remember that an experience can be an indulgence, too. Feel free to splurge on a unique and opportunistic experience if it’s something that means a lot to you and you haven’t splurged in a while.
  • Be sure to play catch-up in the months following your splurge if you’ve dipped into your savings to fund it. 

Yes, it’s sometimes OK to give in to the urge to splurge! Use this guide to learn when and how to indulge responsibly. 

TikTok Inspo: When do you give in to the urge to splurge? Tell us about it in a short video.

Personal Finance for Young Adults: From Broke to Boss

by Advantage One, posted in book review, Budgeting, Career, Credit, Lifestyle, Saving, Tips & Best Practices

Title: Personal Finance for Young Adults: From Broke to Boss, 7 Simple Steps to Building Wealth, Crushing Debt, and Living Your Best Life as a Financial Beginner 

Author: Kirk Teachout

Paperback: 174 pages

Publisher: IV Quarter Publishing 

Publishing Date: May 14, 2023

Who is this book for? 

  • Young adults trying to achieve financial independence and grow their money.
  • Readers of any age who are still trying to optimize their money management.  

What’s inside this book?

  • A comprehensive guide to financial literacy, including an intro to budgeting, maximizing your career, setting up passive income streams, getting rid of debt and more. 
  • A 7-step guide to achieving financial independence. 
  • How to navigate financial challenges that are typical to young adulthood, like student loan debt and understanding credit scores.
  • Real-life examples illustrating the principles of each chapter.

4 lessons you’ll learn from this book:  

  1. The five most common mistakes when setting financial goals and how to avoid them.
  2. The six best investment types for new investors and how to choose the ones that work for you.
  3. How to get out of debt, and stay out of debt. 
  4. How to utilize the money you make in the best way possible. 

4 questions this book will answer for you:  

  1. How do I build successful passive income streams?
  2. How can I find a great job when I have little or no work experience?
  3. How do I set and achieve financial goals?
  4. Do I really need to think about my retirement when I’m in my 20s?

What people are saying about this book: 

“This book offers good advice for young adults starting out in the financial world. It’s written in a fun and engaging way.”

“Teachout’s focus on young adults is refreshing, and his insights are universally applicable. One of the standout features of this book is the engaging interactivity at the end of each chapter, which helps readers actively internalize the lessons. Approachable and insightful, this book is not only a guide but an empowering journey towards financial literacy. Whether you’re just starting your financial journey or seeking to reinforce sound financial habits, it’s a valuable resource that resonates with readers from all walks of life.”

“The book has a straightforward message: if you put in the time and effort, you can achieve financial freedom. Instead of being a “get rich quick” hoax, Teachout’s strategy is used by many self-made millionaires. Young adults can put themselves in a far better position financially if they get a head start.”

6 Financial Resolutions for the New Year

by Advantage One, posted in Announcements, Budgeting, Credit, Lifestyle, Saving, Tips & Best Practices, Uncategorized

It’s a brand new year, and the perfect time to set budget-friendly resolutions that can pave the way to a more financially fit future. Whether you’re looking to save for a specific goal, pay down debt or just make smarter financial decisions, these resolutions can help you manage your money more effectively and help provide ongoing financial wellness for the coming year.

  1. Create (and stick to!) a budget

If you don’t have a monthly budget, create one now. Track your spending and income over several months, and then make a list of every ongoing expense along with all your monthly income streams. Assign a dollar amount to each expense category, being sure to include savings and retirement planning. If your columns are equal, or your income exceeds expenses, you’re doing great. However, if your expenses outweigh your income, you’ll need to trim your spending or look for ways to increase your income.

After you’ve created your budget, or if you already have one, resolve to actually stick to it each month. You can use one of the many budgeting apps, like YNAB, to make this easier. Review your expenses throughout the month or at a designated time once a week to track your progress and make any necessary adjustments. 

  1. Build an emergency fund

Did you know that 69% of American households have less than $1,000 in emergency savings? 

An emergency fund is your financial safety net. Without money set aside for an emergency, an unexpected expense can easily send you spiraling into debt. Experts recommend having three to six months’ worth of living expenses in your emergency fund. This will provide you with peace of mind and the financial security to get through surprise expenses.

Resolve to build an emergency fund this year by setting aside a small sum of money each month until you have a nest egg that can get you through virtually any emergency. 

  1. Trim your expenses

Take a long, hard look at your spending habits. Have your expenses started trickling upward in any area(s)? For most people, expenses will continue to rise with the passage of time and with changing life circumstances unless they make a conscientious effort to control it. Reviewing your spending is the first step in reigning those numbers in. Identify your weak areas and brainstorm for ways to start spending less. For example, you can resolve to start eating out less, cut down on some subscriptions you don’t really need and/or make your own household cleaning products. Remember: Small change today adds up to big bucks tomorrow.  

  1. Pay down debt

High-interest debt can be a big burden for any budget. In addition to paying interest that essentially goes nowhere, the money paid toward debt could be channeled into savings or investments that can grow significantly over time. 

Make this the year you pay down debt, or at least make real headway toward getting rid of it for good. You can choose to prioritize high-interest debts, like credit card balances or personal loans, or work on paying off your smallest debt first to keep your motivation going. Trim your spending and/or increase your income and use the extra funds to maximize payments on your chosen debt until it’s paid off. Then, move on to the next debt on your list until you’re completely debt-free. 

  1. Automate your savings

It’s all fine and wonderful to resolve to put more money into savings each month, but how do you turn those good intentions into reality? The answer is simple: by automating your savings.

Set up automatic monthly transfers from your checking account to your savings or investment accounts so you never forget to feed your savings again. 

  1. Expand your financial education

Financial literacy is an invaluable asset. Invest in your financial education this year by reading books, taking online courses, listening to podcasts or attending seminars on personal finance. Understanding concepts like investing, taxes and retirement planning will empower you to make informed decisions that can help ensure a financially secure future.

TikTok Inspo: What are your financial resolutions for the New Year?

Don’t Get Caught in a Credit Repair Scam!

by Advantage One, posted in Credit, Lifestyle, Saving, Tips & Best Practices

Everyone wants a great credit score. An excellent score is the key to getting approved for low-rate auto loans, mortgages and more. But a credit score can sometimes need a little help. The numbers might need some minor tweaking, or they might actually be in troubling territory. Just one missed credit card payment can snowball into a huge debt that sometimes becomes too big to handle.

Here’s where credit repair companies come in. These services offer consumers help in boosting their score. They’ll find any errors in your credit file and help get negative reports removed. 

They can also educate you on how credit works so you can make better decisions going forward and improve your ratings. 

Unfortunately, though, not all credit repair companies are legitimate. In a credit repair scam, 

a fraudulent credit repair company targets consumers with poor credit. Let’s take a look at how these scams play out and how you can protect yourself from falling victim.

How these scams play out

There are several variations of the credit repair scam, and none of them end well. Here are the most common forms:

  • The “credit repair company” asks you to pay for services, but won’t give you anything in return. While this will put you out some cash, it won’t impact your credit in a negative manner.
  • The company takes illegal action to improve your credit score. This can involve filing a false police report or claiming identity theft. Of course, you will be held accountable for these crimes that are committed in your name. Some companies will even have the victim take illegal action on their own, such as creating a false fraud statement or lying about their credit history.
  • The company directs the victim to set up a credit privacy number (CPN) or an employee identification number (EIN) to start building credit anew instead of using their Social Security number (SSN). Unfortunately, though, this number is likely someone else’s SSN. The companies poach these numbers from individuals who are not currently using them actively, such as children, seniors and prisoners. This is, of course, highly illegal and could land the victim in jail.

Protect yourself

If you’re looking for ways to boost your credit, you may be targeted by any of the above credit repair scams or another variation. Look out for these red flags in credit repair companies to avoid getting scammed:

  • Charges steep fees that must be paid upfront. 
  • Promises to help consumers reach a specific credit score within a predetermined timeline. 
  • Fails to mention that you can dispute credit report errors at no charge. 
  • Demands that the consumer falsify their information in any fashion.
  • Recommends you set up a new identity through a CPN or EIN.
  • Lack of proper accreditations, street address and positive business ratings.
  • Refusal to work with your creditors and the credit report bureaus (Experian, Equifax and TransUnion).
  • Offers to sell you a tradeline or authorized user account. 
  • Lack of an official contract with all terms and conditions of payment outlined. 

If you do want to enlist the services of a credit repair company, look for a company that does not exhibit any of the above behaviors. You’ll also want to look for a company that has reputable accreditation and a detailed contract, which includes a clear plan for how they’ll repair your credit and their payment structure.  

It’s also important to remember that you can do a lot of credit repair on your own. You can always dispute an error on your credit report and take steps toward increasing your score. Lower your credit utilization ratio, work toward paying off debt and be sure to make all credit card bill payments on time while maximizing your payments as much as possible. It’s also best to avoid opening new cards and lines of credit while you work towards boosting your score. 

It’s always a good idea to try increasing your credit score, but don’t let scammy credit repair companies make things worse! Use this guide to avoid falling victim to a credit repair scam.