Category: Financial Security

8 Things To Do If Your Identity Is Stolen

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

Retiree - Financial planning

  1. Lock the compromised account. Dispute any fraudulent charges on your compromised accounts and ask to have them locked, or even shut down.
  2. Place a fraud alert on your credit reports. This helps alert creditors that someone may be trying to open accounts in your name. Contact one out of the three credit bureaus to add the fraud alert to all three. Visit Equifax.com or Experian.com or Transunion.com.
  3. Consider a credit freeze. This will make it impossible for the scammer to open a credit line or loan in your name.
  4. Alert the FTC (Federal Trade Commission). Visit https://www.identitytheft.gov and follow the site’s instructions.
  5. Strengthen your passwords. In addition to changing them, use strong and different passwords for all your online accounts.
  6. Check your account statements. It’s best to do so frequently to look for suspicious activity.
  7. Open new credit cards and accounts. Replace compromised accounts that you’ve shut down so you can be inconvenienced as little as possible.
  8. Repair your credit. Be extra careful about paying your bills on time and keeping your credit utilization low.

Your Turn: Have you ever been the victim of credit card fraud? Share your story with us in the comments.

7 Steps To A Mid-Year Financial Checkup

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

7-Steps-to-Your-Mid-year-Financial-Checkup

It’s hard to believe, but 2019 is half over. Take a timeout from barbecues and beaches to give yourself a mid-year financial checkup. Use the seven steps below to guide you. 

Step 1: Revisit Your Budget 

Take some time to review your monthly budget. Is it working for you or are you falling behind each month? After reviewing, adjust your budget as necessary. 

Step 2: Anticipate Large Expenses 

List any large expenses you anticipate in the coming six months. This can include household appliances that may need replacing or an anticipated medical expense that is not fully covered by insurance. 

Next, determine the spending category you will take the money from to cover these expenses. Deciding on a source for these funds now will help you avoid making the wrong choices when you’re under pressure in the future. 

If you do not have enough money set aside for these expenses, build a savings plan into your monthly budget so you have the funds available when you need them. 

Step 3: Review Your Tax Withholdings 

Review your tax withholdings to see if they need any adjusting. Your goal here is to pay the perfect amount so you’re not hit with a huge tax bill at the end of the year, but you’re also not lending the government your money all year long. 

Step 4: Check Your Credit Score 

Visit AnnualCreditReport.com for your free credit report from any of the three major credit bureaus. If your score has gone up in the last six months, you’re doing great! 

Conversely, if your score has dropped, review your report in detail. Take the necessary steps to fix your score today, whether that means contesting an erroneous charge with the Federal Trade Commission, setting up an automatic payment on some of your bills or lowering your credit utilization rate by paying with plastic less often. 

Step 5: Review Your Investments 

Review and adjust all of your investments. This includes your retirement funds, any stock investments, bonds, trust funds or share certificates at Mutual Credit Union. Make sure you are maximizing your contributions when possible and that your other investments are performing according to plan. Adjust as necessary.   

Step 6: Tackle Your Debt 

List every outstanding debt you carry, including credit card debt and all kinds of loans. Designate one debt to tackle first and work on a plan to pay it down. Once you’ve paid off this debt, move to the next one on your list. 

Step 7: Review Your Financial Resolutions and Long-term Goals 

Review the financial resolutions and goals you dreamed up at the end of 2018 and then determine whether you are taking the steps necessary for making them happen. If you’ve been neglecting them, create a plan for working toward them for the rest of the year. 

Now you can kick back and enjoy the remaining summer season, guilt-free. 

Your Turn: What’s on your list for your mid-year financial checkup? Tell us about it in the comments.

 

SOURCES:

https://money.cnn.com/2016/07/28/investing/financial-checklist/index.html

https://onebiteblog.com/its-time-for-your-mid-year-financial-checkup/

Mutual CU Text Messaging Service Released August 1st

On By mutualcuIn Financial Security, UncategorizedLeave a comment

PRESS RELEASE

Thursday, August 1, 2019

(Vicksburg, MS) Effective Thursday, August 1, 2019, Mutual Credit Union will release a fraud monitoring service linked to every debit card holder and on August 20, 2019 to every credit card holder. President of Mutual Credit Union, Michael Mathews stated, ” We are always searching for methods to improve communications with members regarding their account. With a majority of our membership listing their cell phones as their primary contact method, adding capabilities to send and receive text messages proves to be a more efficient means of communication.”

Mutual CU has provided text alerts for several years prior to August 1, 2019 however, members had to first enroll in text alerts for fraud monitoring within their online banking. With this upgrade, every member will receive this level of protection as an automatic enrollment. Fraud detection is constantly running behind the scenes —– analyzing data from attempted fraudulent transactions across the world to identify trends that can then help identify potential cases of fraud. If a transaction meeting these trends occurs, our Mutual’s fraud call center will contact you. You will receive a text message from the 5-digit code 37268 or you will receive a voice mail message from 1-877-273-5740. You will never be asked for your financial information over text message or by phone. A simple “Yes” or “NO” answer is required from you to confirm or deny suspect transactions. For more tips and answers to any additional questions you might have about the new Mutual Credit Union Fraud Monitoring Service, please visit our web page at https://www.mutualcu.org.

We thank you for your membership and look forward to continuing to serve you and your families.

Sincerely,

Michael-Mathews-Sign-3.jpg

Michael Mathews

President

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All You Need to Know About Remote Deposit Capture

On By mutualcuIn Financial Lessons, Financial Security, Uncategorized, Welcome / About MCULeave a comment

In a world where you can order almost anything using your mobile phone, it makes sense that we, Mutual Credit Union offers a complete mobile banking experience for our members. remote-check-capture

One of the most convenient features we offer through our mobile banking service is Remote Deposit Capture. All it takes to deposit a check is a few minutes of your time and a phone with internet access. 

Let’s take a closer look at remote deposit capture and mobile deposits. 

What is remote deposit capture? 

Remote check capture is a way for you to deposit a check into your Mutual Credit Union Checking Account from a distant location using a mobile device with internet access. You can be practically anywhere in the world and make your deposit at any time. 

The process is simple: You’ll sign into your Mutual Credit Union mobile app and prepare your check for deposit. Tap on the Check Deposits icon and the app will guide you through snapping a picture of both the front and the back of the check. You’ll also be asked to verify the check amount. Once you’ve made the confirmation, your check will be submitted for deposit into your account. 

It’s that easy. 

The benefits of remote check capture 

1. Convenience. As mentioned, with remote check capture, you can make your deposit anywhere, at any time.

2. Speed. Your check will generally clear more quickly through a mobile deposit than it will through an ATM deposit.

3. Accuracy. You’ll be asked to confirm the check amount for accuracy. On the small chance that an error or rejection happens, you’ll still have the physical check, which you can then deposit at any Mutual Branch location. 

Some facts you may not know about remote check capture 

A. Deposit limits. For your safety, the maximum amount you can remotely deposit in one check is $2500.

B. Bounced checks. Just like a confirmed check deposit can end up bouncing several days later, if we cannot collect the funds, a mobile deposit can also be returned for the same reasons.

C. Holds on checks. Any checks deposited after our evening cutoff of 2 p.m. will be placed on hold until the next business day. 

But is it safe? 

We take many precautions for ensuring your personal information is protected throughout the remote check capture process. 

First, no one can sign into your Mutual Credit Union mobile account without two-factor authentication. Always use strong, unique passwords. 

Second, our mobile app does not store your check images in your phone. Once your check has been submitted, the image is erased from your phone and stored only in our own software. 

Finally, if an error occurs, you’ll always have the physical check to deposit if necessary. 

Mutual Credit Union Remote Deposit Capture is quick, easy and safe. Try it today! 

For even more information on Mutual Credit Union Remote Deposit Capture, visit our website .

Your Turn: What do you love about remote check capture? Tell us about it in the comments!

SOURCES:

https://www.thebalance.com/mobile-check-deposits-vs-atm-deposits-315007

https://www.bankrate.com/banking/5-crucial-facts-everyone-should-know-about-mobile-check-deposit/amp/

https://www.digitalcheck.com/history-of-rdc/

The Credit Union Difference: The History of Credit Unions

On By mutualcuIn Financial Security, Uncategorized, Welcome / About MCULeave a comment

pros cons bank _ credit union

As a member of Mutual Credit Union, you know the heart of any credit union is to serve members and communities as much as possible. We value each member’s input as an equal owner in the credit union, and we offer flexible loan terms, low-cost accounts and higher dividends to help members achieve and maintain financial wellness. 

This article is the first in a series celebrating the history, contributions and benefits of credit unions. 

Both credit unions and banks provide consumers with financial services and products, but there are many distinctions between the two. The primary credit union difference lies at its core; Banks are created to generate profit for owners while credit unions are created to provide members with a place to manage their finances at the best possible terms. 

The goal of putting members first is deeply rooted in the history of the credit union movement. 

The first credit union was established in 1864 by Friedrich Raiffeisen in southern Germany. Raiffeisen proposed that all community members pool resources so individuals in need of loans could easily access the necessary funds. Raiffeisen’s idea was well-received, and the first credit union model was soon established. 

In 1909, the credit union movement reached American shores. With Edward Filene serving as its pioneer, the movement gained momentum and continued to grow. In 1920, Edward hired attorney Roy F. Bergengren to assist him in generating the movement’s expansion. Roy created a more systemized concept for the credit union we know today.  

In 1934, President Franklin D. Roosevelt signed the Federal Credit Union Act into law.

Federally chartered credit unions in every state were legally authorized to create a system of not-for-profit cooperatives to promote thrift and sound financial practices. 

In 1970, the public’s confidence in the credit union model grew stronger as the National Credit Union Share Insurance Fund was established. With it, credit union deposits became federally insured much like the FDIC insures bank deposits. 

The credit union movement was growing at its most rapid pace, with credit union assets in America tripling between 1970 and 1979. Then, in 1977, another credit union-friendly regulation was signed into law, empowering credit unions to offer more services and products to members. 

Today, the credit union movement continues to thrive and is backed by the “full faith and credit of the United States Government.” These not-for-profit institutions serve their 103 million+ members by always putting their members’ needs first.   

Here at Mutual Credit Union, we’re proud to join the chain of institutions committed to the credit union mission. As a member-owned cooperative, our only objective is your success. 

Be a part of the credit union movement by calling, clicking or stopping by any of our five branch locations of Mutual Credit Union today to benefit from our personalized service. 

Your Turn: How does the core credit union value impact your finances in a positive way? Share your thoughts with us in the comments.

 

SOURCES:

https://www.mycreditunion.gov/about-credit-unions/historical-timeline

https://www.thebalance.com/national-credit-union-share-insurance-fund-ncusif-315404

https://www.creditkarma.com/advice/i/difference-between-credit-union-and-bank/%3Famp

https://www.nerdwallet.com/blog/banking/credit-unions-vs-banks/

Word of the Month: Debit Card

On By mutualcuIn Financial Security, Uncategorized, Youth SavingsLeave a comment

Teacher and student

Brandon was super-excited. His mom was taking him to Chuck E. Cheese’s today!

“Am I going to get a lot of tokens?” he asked his mom as they drove together. “I need a whole bunch so I can get a ton of tickets and win the best prize!”

Mom just smiled. “You’ll have enough,” she said.

They pulled up in front of Chuck E. Cheese’s and made their way inside. While Brandon’s mom got busy in front of the token machine, Brandon checked out a few of the games and tried to find the best ones to start with.

“Brandon,” mom called. She had finished paying and was holding out a card.

Brandon took it from her, puzzled. “What’s this?” he asked. “Don’t I need tokens to play?”

“Nope—you use this card,” mom explained. “You just scan it in front of the game you want, and it lets you play.”

Mom showed Brandon how to use the card, and he was soon off trying to win the most tickets he possibly could.

Brandon had a great time playing arcade games—until his card stopped working.

“Hey, mom!” he called, running towards where she sat, working on her laptop. “My card’s broken! I need a new one!”

Brandon’s mom quickly snapped her laptop closed. “There’s nothing wrong with your card, Brandon,” she said.

“So why isn’t it working?” he asked.

“Because you used up all the money I put on it!”

“What do you mean?” Brandon was confused.

Mom stood up and motioned for Brandon to follow her. She walked toward the machine she’d used earlier and started punching in numbers.

“I need to put money into the card in order for it to work,” she said. “It’s like a debit card.”

“A what?”

Mom reached into her purse and pulled out a plastic card. “This is a debit card,” she said. “I have a checking account at the credit union. I put money into that account, and when I use this card, money comes out of my account. Do you understand?”

Brandon nodded slowly.

“And that’s sort of how this machine works, too,” mom continued. “In order for you to use the card, I need to put money onto it.”

“And when I finish that money,” Brandon said, “I can’t use the card anymore, right?”

Mom smiled. “Exactly. Then we need to put more money into the ‘account.’”

Mom stuck her debit card into the card machine and punched a few numbers again. Then she took Brandon’s playing card and put it into the machine, too. A minute later, the machine beeped and both cards came sliding out.

“Here you go, Brandon,” mom said. “Your debit card is ready to use!”

Talking Points:

  • How is the card at Chuck E. Cheese’s like a regular debit card? How is it different?
  • Why do people use cards instead of cash (or tokens)?
  • Do you think people spend more or less money when they use a debit card instead of cash? Explain your answer.

Steps 1 thru 12 to Living a Debt Free Life

On By mutualcuIn Financial Lessons, Financial Security, Saving Money, Uncategorized, Welcome / About MCULeave a comment

working on her accounts

Step One: Take Stock of Your Debt

You’re determined that this will be the year you finally pay down (or pay off) that debt. Get ready, because every month, our Do It Today plan will have you taking another step on your journey toward living a debt-free life. 

First, sit down and take stock of all your debts. Don’t let the numbers scare you; you need to do this to move forward. Get out every single credit card bill, personal loan, student loan, and any other debt you’re carrying (except your car and mortgage payments). Tally up the numbers to give yourself an idea of what you’re dealing with. 

Next, organize your debt into different categories, such as credit card debt, student debt, personal loans etc. Use a spreadsheet to list your debt, the remaining term of each loan (if applicable), the minimum payment and the interest rate.   

Finally, designate one hour each week for working on your finances. 

Step Two: Don’t dig yourself deeper

When you’ve dug yourself deep into a pit, the only way to get out is to stop digging. This month, focus on not racking up more debt. Stop using your credit cards. Skip your weekly trips that usually have you buying too many non-essentials.

Instead, start brown-bagging your work lunch and brewing your own coffee. Get into the habit of spending only on essentials so you can make real progress toward paying down that debt.

Don’t forget to make the minimum payments on every line of credit and loan you have open. Neglecting your debt will only pull you deeper into the pit.

Step Three: Negotiate a lower APR

If the majority of your outstanding debit is credit card debt, you may be spending hundreds of dollars just on interest alone. Aside from wasting money, this keeps you from moving forward and paying down your debt.

Most people don’t know you can call up a credit card company and negotiate for a lower APR. Take the time this month to do that. Explain that you are working on paying down your debt and that the interest payments are impeding your progress. You can even research competing cards and cite their interest rates in a bid for a lower APR from your current credit card company.

Lowering your interest rates will allow you to make another real step toward getting rid of debt.

Step Four: Create an emergency fund

You may be feeling impatient to start more aggressively paying down debt, but it’s important important to first create an emergency fund. If you don’t have money socked away for unexpected expenses, you’ll be tempted to use the money that’s already earmarked for your debt payments to fund this expense.

Experts recommend keeping three months’ worth of living expenses in an emergency fund, but you can start with a modest $1,000. Set up an automatic monthly or weekly transfer from your [credit union] Checking Account to your Savings Account until you have a fully padded emergency fund. This may take several months, but no worries, you can continue following the next few steps towards a debt-free life as your emergency fund grows.

Step Five: Create a budget

This month, you’re going to organize your finances. Hold onto every receipt, bill, paystub and invoice you produce throughout the month. Sometime during the last week of May, sit down with all of your paperwork and start crunching the numbers.

When you’re through, you should have all of these questions answered:

  • How much is my net monthly income?
  • How much are my monthly fixed expenses?
  • How much are my monthly non-fixed expenses?

Now that you have the numbers in front of you, work on creating a budget. Designate the necessary funds for your fixed expenses. Then, with the remaining money, determine how much you will spend in each non-fixed expense category; like groceries, clothing, entertainment, etc.

Put your minimum debt payments in the fixed-expenses category, with another category for extra debt payments in your column of non-fixed expenses.

Step Six: Trim Expenses

Now that we have a budget, let’s slim it down!

You’ve already practiced spending less thanks to Step#2 in this series. Now, it’s time to get serious about it. Take a long, hard look at the money you spend each month and find your weak spots. Where do you spend the most on unnecessary purchases? What’s your particular vice? You may even have several spending traps. How can you cut back on your daily expenses?

Any extra money you save goes toward your debt payments.

Step Seven: Create A Debt Snowball

You’ve organized your debt, you’ve set up an emergency fund and you’re working on spending less. You’re now ready to start getting rid of that debt…for good!

Choose the debt you’d like to pay down first. Financial expert Dave Ramsey suggests starting from the smallest debt and working your way up. You can also choose to start with the debt that carries the highest interest rate. Either way, once you’ve paid down the first loan or line of credit, you’ll move onto the next and continue to work your way through all remaining debt until you’re completely debt-free.

For now, paying off this debt will be your top priority. Be sure to pay the minimum payments on all other debts, but any extra money you have at the end of the month goes towards the first one. Start with the minimum payments you were making anyways, and add the money that was previously going towards setting up your savings account to create your debt snowball. Whenever possible, try to add money to your snowball to accelerate your progress.

Doesn’t this feel great? You’re on your way to a debt-free life!

Step Eight: Boost Your Income

Increase your income this month to help you pay down debt.

There are a handful of practical ways to accomplish this. For instance, consider asking for a raise or promotion at your current workplace or seeking employment elsewhere if you feel you’ve reached your maximum earning potential at the company. You can also freelance for hire, take on a side job on weekends or a seasonal job for just a few weeks a year. You might also consider offering consulting services in your particular field.

Remember: any extra money earned goes straight towards your debt snowball!

Your Turn: How did you boost your income this month? Share your success story with us in the comments!

Step Nine: Put All WindFalls In Your Snowball

Let your debt snowball grow by packing it with all your unexpected windfalls. Seasonal bonus at work? Add all or most of it to your snowball. Unexpected refund? Let it go toward paying down your debt. Birthday gift money from Great Aunt Sally? You know where it’s going!

It isn’t easy to say goodbye to an unexpected windfall, but all that extra money will help you reach your goal that much sooner.

Your Turn: Which windfalls did you pack into your debt snowball this month?

Step Ten: Make It Automatic

Now that you’re maximizing your payments toward the debt you’ve prioritized, make sure it happens by automating your payments. Set up an automatic transfer in your designated amount from your checking account or your savings account to that debt each month, and it will be well on its way to disappearing!

Your Turn: How much time can you save each month by making all of your payments automatic? Brag about it in the comments!

 

Step Eleven: Releasing in November ………………………………..

5 Ways To Spring Clean Your Finances

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

5-Ways-to-Spring-Clean-Your-Finances-studying your PC

Q: Spring is here! I’ve cleaned out my house and now I’m ready to take on my finances. I’d love to give them a thorough cleaning, too. Where do I start? 

A: It’s wonderful that you’ve decided to clean up your finances. Springtime is months after the holiday squeeze and still a while away from the pricey summer season, making it a prime time for whipping your finances into shape. 

So, let’s get cleaning! 

1. Dust Off Your New Year’s Resolutions 

We get it: New Year’s resolutions get stale as soon as the calendar hits February. But this was the year you were really fired up and ready to conquer the world. Why sell yourself short when your goals are actually within reach? 

Use the fresh energy and renewal of spring to revisit the list of resolutions you penned back at the end of 2018. What were your budgeting goals? What were your savings dreams? Have you achieved any of those goals? If not, what’s holding you back? 

Take stock of where you are financially and get back on track, moving forward and toward those goals. It’s not too late to make it happen this year! 

Do it today: Dig out that paper with your New Year’s resolutions and go through your financial goals one at a time. Did you overreach? Were you irresponsible? Tweak and adjust as necessary, create a new tracking system if the existing one isn’t working, and then get out there and own those goals! 

2. Sweep Out Your Monthly Budget 

Now that you’ve taken stock of your resolutions, take a good look at your monthly budget. 

Review your spending habits of the last few months. What are your weak spots? Where can you cut back? Have you been allotting too much money for one category and not enough for another? It’s time to take stock! 

Do it today: Review your monthly budget and choose one area to trim. Create concrete and realistic steps to make that happen. For instance, try the money envelope system to keep you on track, or stick to cash-only so you don’t slip up. Your budget will thank you! 

3. Freshen Up Your W-4 

You might be celebrating a generous tax return this year, but that only means the government has been handling some of your money all year long instead of it earning more for you. It’s almost like giving the government an interest-free loan! You could have used those funds to start investing, add to an existing emergency fund, launch a business or to save for your dream summer getaway. 

Take a closer look at your W-4 so you don’t overpay in taxes again this year. 

Do it today: Spend some time researching your best withholding options or ask your accountant to help you work out the numbers. Adjust your W-4 accordingly and submit it to the payroll specialists at your workplace. 

4. Pile Up Your Savings 

Once you’re cutting down on your spending habits and taking home a larger check each payday, why not use the extra money to bump up your savings? You can add to an existing fund, build a new one, open a Savings Certificate or start investing. You have many great options! 

Speak to a Mutual Credit Union representative today to find out about our fantastic savings options. 

Do it today: After choosing a savings option, stop by any Mutual Credit Union branch to set up a direct deposit. Each month, your money will be automatically transferred from your checking account to your new account. It’s the ultimate in set-it-and-forget-it! 

5. Toss Your Debt 

This spring, while you try on old, scratchy sweaters and make piles of junk to toss in the trash or sell for cash, why not get rid of your debt, too? 

Debt is ugly on you. It holds you back from moving forward, keeps you in a spending trap that only gets stronger with time and clings to you like caked-on mud. Wash it all off this spring with an actionable plan to get rid of that debt for good! 

Do it today: We know that paying down debt is easier said than done. But, you can do it! All you need is a plan. Review your debts and pick one to pay off first. It can be the debt with the smallest amount of total owed or the one with the steepest interest rate. Find a way to double down on your payments toward that debt. You can do it by taking on a side hustle, seeking a promotion at work or trimming existing expenses. After you’ve paid down this debt, move onto the next one. Accelerate its payoff by applying the total payment amount from your first debt to the new one – in addition to the regular payment you were making on it. Keep going until they’re all gone. It might take until next spring, but eventually, you’ll kick all of your debt to the curb! 

Spring is here—it’s time to freshen up your finances so they’ll be in tip-top shape for summer! 

Your Turn: How do you clean out your finances in the spring? Share your best tips with us in the comments.

 

SOURCES:

https://www.thebalance.com/spring-clean-your-finances-2385567

https://www.moneytalksnews.com/13-tips-for-spring-cleaning-your-finances/

https://www.google.com/amp/s/amp.kiplinger.com/article/retirement/T065-C032-S014-3-ways-to-spring-clean-your-finances.html

 

 

 

 

7 Signs You’re Living Beyond Your Means and How To Fix Them

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

Couple computer finances money

 

In the age of plastic spending and mobile payments, it’s easier than ever to buy stuff you can’t pay for right away while supporting a lifestyle you can’t really afford. 

Let’s take a look at seven red flags that might mean you’re living beyond your means and the steps you can take to get back on track. 

1. You’re carrying a credit card balance from month to month 

Credit cards are a great way to earn rewards, pay for emergency purchases when things are extra-tight and build a strong credit history. Unfortunately, though, they also make it far too easy to fall into the spending trap. It’s a lot harder to feel like you’re spending money when all that stands between you and a purchase is a plastic card. 

If you have an outstanding balance on one or more credit cards and you’re only paying the minimum payment each month, you can end up carrying this balance for years while paying hundreds of dollars (or more!) in interest. You might also be tempted to make more purchases on this card since you already have an open balance. 

The fix: Try to double down on your monthly payments and/or make one extra payment each month instead of paying just the minimum amount. Stop using your card until the debt is paid off.  

2. You stress about paying your bills 

No one likes paying bills, but if you’re losing sleep over your bills, you need to take a step back to review your monthly budget and spending habits. Bills should be fixed into your budget and you should be able to pay them easily without any stress or nail-biting involved. 

The fix: Take a long look at your monthly budget to find ways at cutting back. Cancel a subscription you never use, trim impulse purchases, start brown-bagging it at work more often or tighten the belt in any other way possible. 

3. You can’t save 5% of your monthly income 

Financial experts recommend putting 20% of your monthly income into savings, or even more if you can swing it. At the very least, you’ll want to sock away 5% of your monthly take-home pay to fund your retirement and any other expensive purchases or events you might need to pay for in the future. If you can’t possibly do that now, and you’re left with little or no money at the end of the month, you’re living beyond your means. Savings aren’t an extra; they are a necessity that should be a fixed part of every budget. 

The fix: Again, you’ll need to trim your expenses and restructure your budget to include a minimum of 5% for savings. 

4. You don’t have emergency and rainy-day funds 

Unexpected expenses, like a household repair or extra tutoring for your child, can disrupt your monthly budget and really set you back—unless you have some way to pay for them. Ideally, you’ll want to have an emergency fund to cover major unexpected expenses, like a job loss or a medical emergency, and a rainy-day fund for small expenses you can anticipate, like replacing an aging appliance and sending your child to summer camp. 

The fix: Start building your funds now by putting away as much as you possibly can each month. 

5. Your mortgage payment eats up more than 30% of your monthly income 

Most financial experts agree that your monthly mortgage payments should not exceed 30% of your take-home pay (that’s after taxes). Take a few minutes to do the math. If your mortgage is more than 30% of your income, you’re in over your head. 

The fix: You have two choices here:

  1. Find ways to boost your income. You can seek a raise or promotion at your current job, freelance for hire or find another side hustle to bring home extra cash.
  2. Scale back your mortgage payments by considering a refinance. Speak to a home loan counselor at Mutual Credit Union to see if this is the right choice for you. If your mortgage is really crippling your budget, you might want to consider downsizing to a smaller and cheaper place.

6. You lease a car you can’t afford to buy or finance 

Leasing lets you live the life of a high-roller without the huge bills. The problem is that many people can’t really afford their leases either. You might be covering your monthly payments, but if you can’t do that while also putting money into savings and meeting your other expenses, your car is too expensive. 

Can you afford to pay for or finance your car? If the answer is no, you’re in financial trouble. 

The fix: Downgrade your vehicle to one you can actually afford. 

7. Your financial decisions are influenced by your friends’ spending habits 

Thanks to social media and the hyper-sharing culture it introduced, the pressure to keep up with the Joneses is stronger than ever. If you find yourself making financial decisions—from what kind of footwear to buy to where you vacation—based on your friends’ choices, you’re likely spending more money than you can afford. 

The fix: Stop looking over your shoulder and keep your eyes on your own life and your own wallet. If your friends have expensive tastes, try to be the budget-conscious influence in the group. You may just start a new, financially responsible trend! 

If you’re in over your head, Mutual Credit Union can help! Stop by today. We will be happy to help.  

Your Turn: What’s your personal red flag that your spending has gotten out of control? Share it with us in the comments.

SOURCES:

https://www.google.com/amp/s/www.hermoney.com/invest/financial-planning/warning-signs-of-living-beyond-your-means/amp/

https://www.investopedia.com/articles/pf/08/in-over-your-head.asp

https://rockstarfinance.com/7-signs-that-you-might-be-living-well-beyond-your-means/

Financial Importance of Protecting Yourself Online

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

Online financial purchase

Why you should keep financial information private

There’s no denying that financial information is some of the most sensitive data we deal with every day. Because of the sensitive nature of financial information, it should be a priority for all individuals and businesses to do everything in their power to protect it. In order to protect all financial information, encourage your friends, families, coworkers, and employees to protect their Personally Identifiable Information (PII). This type of information includes names, personal ID numbers such as social security, driver’s license, taxpayer and credit account numbers, addresses, biometrics, vehicle IDs, phone numbers and technology asset information such as IP addresses. If these identifiers are kept private, hackers will have a more difficult time breaking into your larger systems and accessing financial information once inside.

 

Prevent identity theft

Identity theft occurs when an unauthorized individual gains access to personal information online and impersonate a said person with malicious intent. Those who gain access to personal accounts can retrieve all login information, personal data and commit cyber crimes such as tax fraud and theft. Identity theft can have repercussions that last for years following the attack and can negatively affect your finance, digital reputation, and privacy. In order to avoid identity theft, precautions can be taken that increase your security online and lock down confidential information on various levels.

 

How to protect financial information

The first step in ensuring your information is safe online is implementing a few new practices into daily digital activity. A few of these practices include:

  1. Using strong passwords – One of the most important things you can do to keep your systems safe is to lock down systems with strong passwords. The use of weak passwords makes all internal accounts easier for cybercriminals to hack and is something that can be easily avoided with a quick update. When you go to update passwords from weak to strong, be sure to include both lower and upper case letters, at least one special character, and avoid using personal information such as qualifiers, which include names, home addresses, and birthdates.
  2. Enabling 2-factor authentication – To further keep financial information secure, utilize a two-factor authentication security process for all internal systems. The addition of this second step provides an extra layer of security to limit who can access your information. With this form of authentication, simply knowing the password is not enough to gain access to private accounts. Rather, anyone trying to break in will go through multiple forms of security checkpoints, such as a fingerprint scan or facial recognition, before successfully logging in. Many of these second checkpoints require the use of multiple devices as well, making it even more challenging for hackers to penetrate the system.
  3. Never save payment information online – According to a study conducted by CreditCards.com, approximately 100 million American individuals currently store their credit card or debit card information within apps or on websites to make future shopping experiences more convenient. While it may seem helpful at the time, storing your financial data on these kinds of sites actually makes it easier for hackers to access your information. Not only could this site be hacked, but your personal device might be stolen. In either scenario your personal information would be at risk.
  4. Making purchases from only trustworthy sites – A pro tip to ensuring you are browsing on and entering financial information on a safe site is to look for the “S” after “HTTP” in a website’s address. This “S” signifies that the site you’re visiting is protected by Secure Sockets Layer (SSL) encryption. You can also double check for a trust icon (which looks like a padlock symbol) on the site with the words “Secure” or “Verified”. Click this icon to see if you are taken to a verification page and if you aren’t, you’ll know that it’s a fake, unsecure site. This can help you avoid filling purchase orders or fulfilling other financial activities on sites that could easily open your system up to hackers.

 

Protect your company’s reputation

Research shows that a single data breach can cost American businesses an average of $7 million, considering the firm’s direct monetary loss along with business disruption, fines, and credit monitoring and identity theft repair efforts. On top of these costs, failing to protect your customers’ and employees’ sensitive personal data can destroy their trust in your brand. To avoid these repercussions, consider implementing these practices for your whole enterprise:

  1. Using secure applications and tools – Some of the most important things to lock down within your systems are the tools your employee base use every day. From messaging systems and call center software to the email platform you send all important data through, ensuring these tools have adequate security measures is critical. One simple way to keep these tools in sync is to streamline them all through a cloud-based unified communications platform with built-in security measures. Not only does implementing the cloud ensure the safety of all tools your employees are using, but it also makes it simple to track that security by being hosted in one, unified system.
  2. Encrypting data – These days, most correspondence between professionals happens via email, which increases the need to protect data by utilizing email encryption. Not sure what encryption is? Email encryption is the process of using an authentication mechanism to prevent unauthorized personnel from accessing private email messages and information. Most well-known email platforms come with a form of built-in encryption, but that often isn’t enough for sensitive financial data. Instead, consider upgrading to a more secure form of encryption and require all individuals within your network to do the same.

 

Even if you think you are invincible online or have nothing to hide, it’s important to protect privacy from both a personal and professional standpoint. You never know when something completely innocent-seeming could lead to a threat or breach. In order to prepare for these unknown attacks on your data, the best thing you can do is make that information less accessible, starting with these tips laid out before. To also stay up-to-date on the best security practices available, continue to research and update security measures as necessary.

 

Source: https://blog.kasasa.com/2019/02/protecting-yourself-online/