Month: November 2019

5 Ways To Save On Winter Heating Costs

On By mutualcuIn Financial Lessons, Saving Money, UncategorizedLeave a comment

thermostat

 

  1. Heat Selectively – To avoid paying for unused heat in rooms that aren’t regularly used, shut the doors and close the vents in those rooms.
  2. Trap the Sunlight – Open your curtains when you’ve got sunlight exposure, and then close them when the angle of the sun changes. This allows you to trap the solar heat inside your home.
  3. Plug up Holes – Seal up all holes near windows, doors and the chimney to help keep the heat in and the cold out.
  4. Digitize Your Heating System – Use a programmable digital thermostat to automatically adjust the temperature in your home according to your family’s schedule and habits.
  5. Maintain Your Heating System – Check for proper airflow throughout your heating system and clear any blockages that you find.

 

Your Turn: How do you keep warm when the weather’s cold? Ugly sweaters? Visualizing a beach? Share your best tips with us in the comments!

8 Ways To Beat Holiday Stress

On By mutualcuIn Financial Lessons, Financial Security, Security, UncategorizedLeave a comment

holiday-stress

‘Tis the season to be merry-except sometimes, it’s not.

If you tend to feel stressed when the holidays roll around, here are eight tips to help turn that frown upside down.

1. Watch the buck

Nothing kills holiday cheer like a mountain of debt. Stick to a budget when doing your holiday shopping, and only spend what you can afford. Be extra careful not to overspend as the holidays draw near, and you’re feeling the pressure to finish your shopping in time.

2. Give back

According to the American Psychological Association, one of the best ways to reduce stress is to give back to the community.

Beat the stress by sharing holiday cheer with those who are less fortunate. You can bring some toys to the local hospital to brighten up a sick child’s holiday, volunteer at a soup kitchen or visit a nursing home and put a smile on the residents’ faces.

3. Stick to a schedule

Lack of quality sleep can make stress levels soar. You don’t need to follow your regular routine over the holidays, but it’s a good idea to keep some sort of schedule. Make sure you’re getting enough shut-eye, and if a physical workout is part of your daily routine, don’t neglect it over the holidays.

4. Party smart

If you like to party, you can end up getting sick over the holidays. Do yourself a favor this year and watch what you imbibe. Enjoy a glass or two of your favorite alcoholic beverage, but try to keep the drinking to a minimum. Similarly, it’s OK to break your diet over Christmas, but it’s best not to go overboard.

5. Delegate

If you’re hosting a large crowd this Christmas, all the extra work can bring your stress levels through the roof. Here’s the good news: You don’t have to do it all! There’s nothing wrong and there’s everything right with asking for help.

6. Take some “me” time

“Me” time is important, and in the chaos of the holidays, this need is often neglected. Consider getting a manicure, taking a solitary half-hour walk, or just locking yourself in your room for some peace and quiet. You’re not being an antisocial snob if you need your “me” time; you’re just being human.

7. Give up the guilt

If you tend to overanalyze every interaction you have with family and friends, you can really beat yourself up over the holidays, questioning everything you’ve said. Try to let go this season and give yourself a break.

8. Lower your expectations

A common cause for holiday stress is unrealistic expectations. It’s best not to build huge castles in the air and to keep your expectations to a minimum. If you don’t expect perfection, you won’t be struggling with mountains of disappointment this holiday.

Here’s wishing you a wonderful holiday season stress-free from all of us here at Mutual Credit Union!

 

Your Turn: How do you beat the holiday stress? Share your best tips with us in the comments.

What Is The Prime Rate And Why Does It Matter?

On By mutualcuIn Credit score, Financial Lessons, Financial Security, UncategorizedLeave a comment

A bank manager and customer look at interest rates

Q: What is the prime rate and why does it matter?

A: The prime rate, or prime, is the current interest rate that financial institutions in the U.S. charge their best customers.

We have answers for all your questions on the prime rate.

How is the prime rate determined?

First, the Federal Reserve System, which is the central bank of the United States, sets the federal funds target rate, or the interest rate, it thinks is best for financial institutions to use when lending each other money. When financial institutions lend each other money, they base their interest rates on the federal funds target rate. The Wall Street Journal then surveys the country’s largest financial institutions to determine the rate they are using and then publishes it as the prime rate. This number is generally 3 percent higher than the federal funds target rate.

The fed’s target rate, and consequently prime, changes often. The committee who sets the federal funds target rate meets a minimum of eight times a year to discuss possibly changing the rate. You can check out the changes in the prime rate at Federalreserve.gov.

How does the prime rate affect the individual?

First, the interest rate on nearly every loan is affected by the prime rate. Financial institutions and large lenders will base their interest rates on the prime rate, generally establishing their current rates at an amount that is higher than the prime. If the prime rises, the interest rate on your loans and adjustable-rate credit cards rises as well.

Second, the prime rate affects liquidity in the financial markets. When the rate is low, liquidity increases. This means funds are more readily available because loans are less expensive and easier to qualify for. This, in turn, generates a growing economy as businesses expand.

Is the prime rate the only factor used to determine individual interest rates?

While the prime is the starting point used to determine an interest rate on a loan, it is by no means the only factor considered.

Your credit score plays a vital role in the interest rate you’ll be granted for a loan. The higher your score, the lower the interest rate you’ll earn. Keep your score high by using your cards sparingly and paying your credit card bills on time.

Here at Mutual Credit Union, we also consider the general state of your finances when determining your interest rate on a loan. If we see that you’re working toward paying down your debts, we’ll be more likely to grant you a favorable interest rate.

Also, as an institution devoted to your success, we are always striving to help you maintain financial wellness.

Your Turn: How do you keep your credit score high and your interest rates low? Share your best tips with us in the comments.