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6 easy financial New Year’s resolutions

It’s the start of a new year, and in keeping with tradition, it’s an ideal time to turn over a new leaf that will lead to positive change. Millions of people will resolve to lose weight, get organized, quit smoking, or spend more time with family.

Right in the middle of the most popular New Year’s resolution pack is financial fitness—in other words, save more, spend less. But, let’s face it. With the glow of the holiday season fading fast and the inevitable arrival of last month’s bills arriving in your mailbox, it’s an admirable goal, but a tough challenge.

Like exercising, though, financial health is something you need to visit every day. It’s not a one-and-done achievement. So, in the spirit of the resolution season, here are six easy financial resolutions you can set and keep in 2023:

1. Organize your finances

Before you can make any changes, you need to organize your finances. Use a spreadsheet to record your assets and liabilities including your home, car, savings and investment accounts, insurance policies, revolving credit, automated subscriptions, services like pest control, lawn maintenance, TV, internet, and phone charges…and anything else that involves money coming in or going out the door.

Now, what do you need and what can you do without? Talk with your insurance agent to make sure you have enough—or if you have too much—home or car insurance. Can you find a more reasonable internet/phone provider? Is your dental plan worth renewing or should you downgrade your medical coverage? Can you mow your own lawn? Is your Amazon Prime membership worth the annual cost?

Yes, it’ll take time, but knowing how much money you have, where it goes, and what value it brings will be the basis for almost every other financial decision you make this year.

2. Build up your emergency fund

An emergency fund is like insurance. You may not need to use it any time soon, but it’ll save your financial life if you do. You could be living comfortably at the moment, but whether it’s an unexpected home repair, sudden job loss, or large medical expense, it can cripple your financial stability. Start by saving a few dollars a week and keep building until you have at least three months of living expenses. And just so we’re clear, replacing your standard TV with a 65” flat screen does not qualify as a home repair. Just sayin’.

3. Create and stick to a budget

The old “stick-to-a-budget” advice is an extremely common financial resolution. But listen: the number of Americans who spend their hard-earned money without a budget in mind is astronomical, and it’s a big reason our finances are a major source of worry and concern.

Believe us, we know. In the beginning, budgets are tough. You’re used to whipping out a credit card at Starbucks, buying the newest technology because it’s cool, or spending money on your designer shoe habit. If those things are important to you, you don’t necessarily have to do without them—just budget for them.

A budget realistically balances your earnings with your spending, saving, and investment goals. It helps you avoid overspending, allows you to live within your means, and alleviates financial stress and worry.

When you’re aware of how much money is available, you’re able to make smarter financial decisions that lead to a much happier life. And we all want that, don’t we?

4. Pay down your debt

Life is expensive—you need certain things, everyone has it, so some amount of debt must be fine. Debt can be used for good, like when you need a mortgage, but, it can also spiral out of control.

Revolving debt that continues month after month after month can be detrimental to your financial health and could hinder any financial progress, whether it’s your emergency savings, investments, your mortgage, retirement, or even saving for a vacation.

Be diligent about paying it down every single month and track your progress. It may not be gone by the end of the year, but if you’re committed, you’ll not only make a significant dent, but you’ll be able to sleep a little better at night.

5. Stop buying stuff you don’t need

Selling your unnecessary or no longer used stuff is one way to recoup a small amount of what you’ve spent on these things, but the best way to regain that money is to avoid buying it altogether.

Do less shopping and more relaxing. Use that time for more constructive efforts, like investing it in a hobby or spending more time with friends. The next time you find yourself ready to make a purchase, ask yourself how often you’ll use it.

Impulse buying­ is an all-too-easy way to put a major dent in your budget—especially with thousands of items available online at our fingertips. Next time you find yourself impulsively adding items to your online shopping cart, wait 72 hours. If you find yourself still fawning over that new top or latest electronic after 72 hours has passed, then you can treat yourself (if you have room in your budget, of course).

6. Create an additional income stream

Any side hustle can help you pay down debt, increase savings, build your investment portfolio, or even retire at an earlier age. Turn a hobby into a small business, turn your talent into freelancing, sell your stuff on eBay, or list your creativity on Etsy.

Find something you love and figure out how to make money doing it. Be a personal shopper, a babysitter, or a handyman on weekends. One caution, though. Don’t sacrifice your performance at your full-time job, and be careful to balance your work and home life. Making extra money should be a bonus, not a dreaded chore.

It’s not an all-or-nothing mentality

Resolutions aren’t easy to keep. In fact, more than 80% of people give up by February, and we can understand that. When you set unreasonable expectations, the first sign of failure offers you the permission you need to return to your old habits. Each of these financial resolutions, though, is a work-in-progress. Did you this week’s emergency fund deposit on a Starbucks run for the office? Splurged on some after-Christmas shoe sale? Don’t give up—simply get back on track. Practice makes perfect, and one misstep doesn’t mean it’s all over.

Make the commitment, work on getting your finances in order, and 2023 will be a stellar year!

8 ways to save money during the holidays

The holiday season is a time for giving—but it’s also a time for spending. Due to the effects of inflation, the cost of everything has skyrocketed. Higher rates across the board don’t help, either. Despite the obstacles being hurled our way, it’s possible to still make the holiday season merry and bright while saving some cash, too. Here are eight ways you can save money during the holidays.

1. Stick to a budget

Before you begin shopping, create a budget. If you’re one of the savvy shoppers who opened a Holiday Savings account or a short-term certificate of deposit (CD), now’s the time to put those funds to use—but don’t go overboard. Plan how much you’ll spend on gifts, entertaining, travel, and other small expenses, like holiday cards and stamps. You should also add room for extra spending in case you want to treat yourself—or if you unexpectedly receive a gift from a co-worker and need to return the favor.

2. Create a holiday shopping list

It may be the season of giving, but that doesn’t mean you need to give to everyone. Create a holiday shopping list after establishing your budget, and stick to it. Shopping for only those who need gifts is a huge way to save money during the holidays. List the people you need to shop for and how much you plan to spend on their gift. If you’re over budget, the easiest way to trim your budget is by trimming the number of people.

3. Cut spending elsewhere

If you need wiggle room in your budget, cut spending elsewhere, like dining out or streaming services. Let’s face it—you don’t regularly use every streaming platform you subscribe to. Save an extra $10-$20 a month by pausing a couple of streaming services through the holidays, and resume your subscription in January. Or, if you find yourself dining out more often than necessary, save by shopping at the grocery store and planning meals at home.

4. Spend responsibly

When used responsibly, shopping with a credit card can be beneficial during the holidays. If you find a credit card with a great introductory bonus, you may meet the requirements just by checking off your holiday shopping list (depending on your budget, of course). If you’ve already racked up rewards points, you can cash in those points for gifts, airline tickets, or hotels. If you don’t trust yourself to stick within your budget while using a credit card, you can opt for cash. Whatever your budget is, withdraw that from your checking account and use that cash to shop—once it’s gone, it’s gone.

5. Shop strategically

When you shop is just as important as where you shop. Also, think about what you need to purchase. If you’re looking to score deals on TVs and other electronics, pre-Black Friday and Black Friday deals are your best bet. Cyber Monday is great for shopping for clothes and travel deals, and it’s often a repeat of Black Friday offers. As Christmas approaches, many retailers also discount toys and games to avoid getting stuck with them after the holidays. Super Saturday is the Saturday before Christmas and is filled with last-minute deals for those who haven’t finished their holiday shopping yet. These deals can be huge ways to save money during the holidays.

6. Consider non-monetary gifts

Experiences and favors for family and friends can sometimes be more meaningful than material gifts. If your budget is lower this year, opt for non-monetary gifts. Volunteer to watch your sister’s kids so she can have a night out. Or, help an elderly relative with housework and running errands. Even handmade gifts, like scrapbooks or a framed photo of a special memory, can be more meaningful than something expensive.

7. Give the gift of your time

Volunteering can be the greatest gift of all. If you and your family or friends have everything you need, why not volunteer during the holidays instead of exchanging gifts? Help out a local soup kitchen, host a coat drive, volunteer at a nursing home, or help wherever else you’re needed. Just a few hours of volunteering your time can brighten the holidays for dozens of people. If you’re stuck on ideas, volunteermatch.org posts various volunteer opportunities, and you can filter by category to find something that piques your interest.

8. Celebrate after the holidays

Traveling during the holidays can add up quickly between flights, transportation, and hotels. It can also be stressful and overwhelming due to the sheer volume of people. If you’re visiting family or want to travel during the holidays, celebrate after to help save big on travel costs. You’ll even save on gifts if you wait for post-holiday sales to shop. If you can’t wait until after the holidays to celebrate, try to book in advance and avoid high fares.

What to do after becoming debt-free

When you’re focused on getting out of debt, it’s easy to get caught up in the process and not think about what happens afterward. But, it’s necessary to establish a plan once you’ve eliminated your debt, or else you’ll slip back into the cycle again. Below are crucial steps you should take after becoming debt-free:

Organize your finances

Preparing for your new financial future starts with organizing your finances. The easiest first step is to automate your finances. Put any recurring bills, like your cell phone, electricity, or credit card on auto-pay, so you don’t miss a due date. You can even automate your retirement account and emergency savings contributions.

Now’s also the time to organize any financial paperwork you may have neglected while paying off debt. Sift through papers and shred anything you no longer need, like old cable bills. Keep only the most recent copies of items, like account statements or insurance policies. However, one exception to this rule is tax returns, which you should keep for at least three to seven years.

Build a solid emergency fund

Having a solid emergency fund covering at least three to six months of expenses is crucial—and something you may have neglected to save for while paying off debt. Now that you’re debt-free, it’s time to get back on track towards saving for the unexpected.

You may need to revisit your goals and figure out how much you should have saved in case of an emergency—and if you don’t have a savings account for unexpected expenses, you should open one now. The bigger your savings are, the more equipped you’ll be to financially handle an emergency (and avoid falling back into debt).

Continue budgeting

After spending months (or even years) sticking to a strict budget to pay off debt, it can be exciting to have extra cash—it can also be tempting to stray from your budget. But, if you stop budgeting entirely, you may become neck-deep in debt again.  

With more money on hand your monthly income has changed, which means your budget should, too. Take the time to reevaluate your budget and see how you’re spending or where you can cut expenses.

Contribute to a retirement account

The sooner you start saving for retirement, the better—but it’s never too late. If you haven’t started saving for retirement, look into an employer-sponsored plan, plus additional options like a Roth IRA. If you’re self-employed, look for a SEP IRA, a Simple IRA, or an individual 401(k).

The most important thing is to be consistent with your contributions. If your employer offers matching, try to take advantage of that. Don’t touch your retirement fund until you reach retirement age, or else you’ll face tax penalties.

Start saving for major purchases

If tackling debt was a motivator to start saving for a home or a car, you’re one step closer to achieving that dream. Establish a separate savings account to reach your goal, and start contributing—you’ll get there before you know it! If you’re a first-time homebuyer or are applying for a car loan for the first time, Georgia’s Own has options to guide you through the process.

Review insurance coverage

You may have been skating by with the bare minimum insurance coverage while trying to pay off debt. Now that you have more money, you may consider increasing your insurance coverage. For example, if you don’t have life insurance coverage, you may want to look into that. Depending on your age, you may also want to consider additional coverage, like long-term care insurance if you’re in your 40s.

Refresh your financial plan

After making sure you’re covered for any future events (both good and bad), you can start refreshing your financial plan. As previously mentioned, now that your income has changed, your financial plan should change, too—your financial plan from two or three years ago may not work anymore.

Take the time to assess your financial goals and see where you should reevaluate. Start looking at your short-term goals and decide where you are with meeting them. If you’ve met them (or are close to meeting them), you may want to adjust them to your current financial circumstances.

Consider investing

Now that you’re debt-free (and if you have an established emergency fund) try diversifying your investments. You can consider financial products and other investment options with a higher risk that have higher earning potential, like stocks, bonds, or mutual funds.

If you’re new to investing, consider working with a financial planner. Georgia’s Own offers investment and retirement services to help you get on track and make the right choices when it comes to your money—and you can meet with one of our financial planners at no cost and with no obligation to discuss your options.

Treat yourself

Being debt-free is an incredible feeling, so it’s only appropriate that you celebrate! Having a healthy financial plan is knowing when to be disciplined and when it’s okay to treat yourself. Have a party or take yourself to a fancy dinner—you deserve it after putting so much work into reaching your goal of becoming debt-free.

Celebrate National Financial Awareness Day

August 14th is National Financial Awareness Day—a day dedicated to preparing for your financial future and building financial stability. It’s crucial to take the time to review your finances because sound monetary decisions can make a huge impact in the long run. Try to complete one of the five items below so you can take control of your finances, and celebrate National Financial Awareness Day.

1. Check your savings

Take a look at your savings account—in the event of an emergency, do you have enough funds to get you through? If not, use today to set goals to ensure you’re saving for the future. Calculate your monthly expenses and develop a plan of action to ensure you have the recommended three to six months’ worth of savings. Don’t have a savings account? Georgia’s Own offers various savings accounts to safely store your money.

2. Reevaluate your budget

Have you found yourself not sticking to your budget lately? Take the time to reevaluate your spending and make changes where you see fit. Periodically reviewing your budget is a crucial step that is overlooked. Make it a habit to frequently assess your budget and see what should be adjusted.

3. Brush up on your financial literacy

Financial literacy is key to being confident in the monetary decisions you make, and it can be easy to forget the basics. Take the time today to brush up on your financial literacy. There are dozens of free tools to help, like ACHIEVE, a free financial literacy program from Georgia’s Own. ACHIEVE offers various topics and videos on essentials like owning a home, financial caregiving, planning for retirement, and more.

4. Take steps to improve your credit

Your credit score is a critical representation of your financial past, present, and future. You need good credit for just about anything, like owning a home, applying for an auto loan, or applying for a credit card—your credit score can even determine the price of your auto insurance. Look at your credit score and see where you can improve. If you don’t know your score, visit the federally authorized site annualcreditreport.com to receive a free copy of your credit report.

5. Get a head start on taxes

It’s never too early to get a head start on taxes. Begin gathering necessary documents, like receipts, expense records, and donations, then put them in an organized folder, so you have them prepared for when you’re ready to file. Preparing paperwork beforehand will save you time—and sanity—when tax season begins. If you want to take it a step further, you can even organize your tax records from the past few years, so you have those prepared if the IRS ever needs to conduct an audit.

We hope these tips help you take control over your financial future. Georgia’s Own is always available to help every day of the year—even when it’s not National Financial Awareness Day. Click here to find more resources to help you make smart money-related decisions.

Saving money with cellphones: how to get the best deal

Cellphones: we love them, we hate them, we can’t live without them. Choosing a new phone or carrier is about as fun as a trip to the dentist after you spend time haggling over price points and service levels. But soon that will all be a distant memory, because we have some great ideas on ways you can get the best deal for your cellphone—frustration and screaming are now totally optional.

Purchase an older cellphone model

We’d all love to have the latest iPhone, but have you ever compared the iPhone 11 to the iPhone 13? The truth is, they aren’t all that different. You can certainly expect some small changes from model to model, and even more so when those models are years apart. But since so many companies are churning out new models every year, you can go with an older option that doesn’t sacrifice function. That means you can safely choose the Galaxy 20 without worrying that it will be obsolete in minutes—and that means you can save a little money right up front.

Consider the auto-payment plan

Did you know that a lot of mobile carriers offer auto-payments that are often less money per month? This is a great way to get savings that stay around for a while. Ask your carrier what switching to automatic payments would do for your monthly bill. Of course, it’s important to remember when the payment will hit your bank account so you can budget accordingly. But with just a small amount of extra planning, you can reap the benefits of lower costs without giving up great service.

Don’t just look at big names

While there is nothing wrong with the bigger cellphone competitors of the world, you might consider looking at a smaller company that can meet your needs, like Cricket Wireless or Republic Wireless. These companies are usually able to offer you a better deal, both on your phone and your service costs. It’s important to note that lower costs mean you may not always have the service you want—not all companies have equal coverage. But if you just need the basics for your daily life, these lesser-known providers can be a game-changer.

Split it up

Many cellphone companies offer discounts for multiple lines. If you are single or your kids aren’t old enough for a phone, this may seem like a silly idea. But splitting a plan with even just one or two more people could make a big difference in your monthly bill. Talk to your extended family or some close friends about the types of phones and service you all need—if you can make it work, it’s worth the time and effort of adding multiple lines to one plan and splitting the cost between you.

Switch it up, too

We know; change is the worst. But a lot of cellphone companies offer discounts for switching to their service, which means you can cash-in just by changing your carrier. While hopping back and forth between different providers may seem like a confusing way to live, it may also make a huge difference to your bottom line each month. Be smart about it—you want to ensure that your potential new carrier can still meet all of your needs, like service areas and data streaming. But if you find a good deal that works for you, we recommend making the switch.

Say goodbye to your old cellphone

You can bring that final bill cost down even further by turning in your old phone to the same people who sell you your new one. This is a win-win—cell phone companies can resell your old phone, and you get a better deal on a new phone. Don’t worry about your contacts, photos, and even your messages and apps, because your cell phone provider should be able to port those right over to your new phone. You don’t lose anything but a little bit of time for the transfer, and, of course, your outdated phone.

Negotiate

Much like buying a car, purchasing a new phone or service is all about the negotiation. Often team members of cellphone providers have a little wiggle room on what deals they can offer you, so be sure to ask for the lowest rate they have. This might mean you name an outrageously low rate that they can’t meet but that they can work towards with you. Do be wary of scams—if the deal sounds way too good to be true, it probably is, so read all of the fine print and take your time before signing your contract.

Look for special discounts

While we’re on the negotiation train, this is a great time to mention discounts that may apply to your unique situation. People who serve or who have served in the military, for instance, may be entitled to discounts that others can’t ask for. Your job might also get you some discount points, because first responders, teachers, and others can often find discounts with various providers. If you’re not sure, ask—the worst that happens is you are told no to a discount, but the best that happens is you do qualify and now get to enjoy a lighter cellphone bill each month.

The possibilities for cellphones and service providers may seem endless, but you can find a method that works for the madness. Figure out what you need from your cellphone, look for the best deals and special discounts, and remember that a smartphone that’s only two years old is still pretty smart.

With all that money you saved, it’s important to have a place to store that cash. A savings account with Georgia’s Own is a smart, secure way to store your hard-earned money. From basic savings accounts to CDs and money market accounts, there’s no shortage of ways to make your money grow. Click here to open a savings account today!

5 checking account mistakes you don’t want to make

For most people, their checking account is the heart of their personal finances. It’s where they deposit their paycheck, how they pay their monthly bills, and where they go to withdraw cash for the weekend. And, since their monthly statement details every financial move, it’s an efficient and easy way to keep track of spending and saving.

Although most checking account activity is processed electronically, it’s critical not to employ the out of sight, out of mind mentality. Check out these common checking account mistakes and how to avoid them:

1. You’re loyal to a fault

According to a survey conducted by Bankrate and MONEY, the average adult has had the same primary checking account for about 16 years. Why so long? People stay for convenience and quality customer service, which are important. But what about making sure they’re getting a good deal?

If you’ve been loyal to the same bank since you were a tween or a teen, it’s time to do a little comparison shopping. Checking accounts come in all shapes and sizes, and they’re all not created equal.

They have different features, expenses, and rates of return. In today’s competitive market, many financial institutions are wooing consumers with lower fees, more conveniences, and quality services, all of which are important to consider. Sticking with the same bank out of loyalty sounds honorable, but it doesn’t do much for your account balance.

2. You disregard the minimum balance rule

Many banks or credit unions offer no-fee checking accounts—as long as you maintain a minimum balance. Others require you to use your debit card a specific number of times per month or receive direct deposits into your account. Heck, sometimes you might even earn a tiny bit of interest. But, if you don’t comply with the requirements, BOOM! Your no-fee just jumped to high-fee and you’re out more than a few hard-earned bucks.

These checking accounts can be a smart choice for some consumers, but it’s critical that you keep track of your activity and always meet the requirements. We’re all not detail people, so if that’s too much for you to manage, move to another option. There’s nothing worse than watching your money fly out the window every single month, especially when you can avoid it.

3. You maintain a higher than necessary balance

First it’s not enough money, now it’s too much? Yep, the art of managing your money is all about striking the optimum balance.

Not all checking accounts are interest-bearing, but if they are, they traditionally offer the lowest rates. As such, you should keep enough money in your account to pay your monthly bills and cover your spending, plus a little more that can serve as a buffer. Put the rest in a higher-yielding savings account so you maximize your interest earnings.

Be sure to monitor your balance, and if you’re running low, initiate a transfer. Because most banking is done online, it’s quick and easy to move funds from your savings account to your checking account when needed.

4. You use any nearby ATM

Regardless of which banking institution you use, there are ways to avoid the notorious ATM fees. Some have large networks so an ATM is always nearby. Use your bank’s app to locate other branches or free ATMs so you don’t incur the most dreaded of all account fees. If you’re using an online bank, they’ll likely have a smaller network of ATMs, but many will offer a monthly ATM fee refund.

Using an out of network ATM should be your last resort. You’ll be charged twice—once from each bank. And, with ATM fees at a record high, it could easily cost you between $5 and $10. That’s especially painful when you’re only withdrawing a few bucks at a time.

When you’re in a pinch, you might want to be a little more creative and avoid the ATMs altogether. You can pay for your purchase with your debit card and choose the cash back option, withdraw cash less frequently, but in higher amounts, or even arrange for a friend to pay and use a money-sending app like Venmo to repay them.

5. You don’t fully understand the checking account overdraft protection plan

In 2017, Americans paid more than $34 million in overdraft fees. Today’s average overdraft fee is more than $33 per transaction, and it’s on the rise.

While an overdraft protection plan can be a benefit, it can also be a detriment. Without it, any charge or check that would cause your account balance to fall below $0 would be declined or returned. If you’re enrolled in the plan, you’re home free, right? If you’ve mistakenly swiped your debit card for more than what’s in your account, you’ll be covered and you can breathe a sigh of relief. Until, of course, you see the overdraft fee—or maybe it’s fees.

Once the first transaction crosses the $0 threshold, every transaction that follows also incurs an overdraft fee. It’s especially unfortunate when a large charge hits your account before three smaller transactions, for example. In that case, you would incur four overdraft penalties at roughly $33 each. If the three smaller transactions hit first, you would only incur one fee.

Overdraft protection will help you avoid returned check fees and maybe a little embarrassment when your card is declined, but you can rack up some hefty fees pretty quickly. If you opt for this feature, be sure to read the fine print. Some banks will offer you a grace period that allows you time to make a deposit and avoid the fees, but others may not. Be sure you thoroughly understand the overdraft plan feature before you decide whether or not to opt-in. Otherwise, it could be a costly mistake.