10 proven tips for managing small business finances

Let’s face it—managing a small business takes work. Between managing employees, overseeing marketing and advertising, and ensuring you have free time outside your job, handling finances on top of everything can be tough. But, managing your small business finances allows your company to thrive—and makes your business less likely to fail. If you’re feeling overwhelmed and are unsure where to start, below are 10 tips for managing small business finances:

1. Be sure to pay yourself

If you own a small business, it can be tempting to put all your money into daily operations. After all, the extra capital can go a long way in helping your business’s finances grow. But, you want your business and personal finances to be in good shape, so it’s crucial to pay yourself. There are two main ways to pay yourself as a business owner: salary and owner’s draw.

With salary, you pay yourself a regular salary as if you’re an employee, withholding taxes from your paycheck. This is required for businesses structured as S-corporations, C-corporations, or limited liability companies (LLCs) taxed as a corporation. With owner’s draw, you draw money from profits on an as-needed basis. Paying taxes up front every time you draw is not required, but you should set aside money regularly to budget for your tax bill.

Pay yourself a fixed percentage of your business’s net profit, as shown on your profit and loss statement, after accounting for operational expenses. This ensures you meet business obligations first, like paying employees.

2. Separate personal and business banking accounts

One crucial element to managing small business finances is to separate personal and business accounts. Separate accounts make it much easier to oversee funds, manage tax payments, and prepare financial statements accurately. It’s best to open a business checking account and a short-term savings account, like a business savings account or money market account. You can even use a Business Account Comparison Tool to help you along in your decision process.

3. Use a business credit card

Similarly, you need a business credit card to keep your daily purchases separate from business purchases. Business credit cards simplify tracking business expenses, reduce accounting errors, and separate personal and business finances. You don’t need to sift through your credit card statement to determine which purchases were personal or business related. It’s also easier to get records together if you’re audited.

Business credit cards don’t sit on your credit report, either. Your business line of credit sits separately from your personal credit line, so your utilization rate doesn’t affect your credit score. However, most applicants experience a two- to five-point hit on their credit score because financial institutions use your credit report to assess creditworthiness. Another thing to keep in mind is if you default on a business credit card, the issuer can come after you, as your credit guarantees those cards.

4. Create a realistic budget for business expenses and profit goals

Having a budget helps account for every cent that comes in and out of your business. To start your budget, make a list of expected monthly income sources, like any payment made in exchange for a product or service rendered. Next, make a list of expenses incurred, such as inventory, payroll, insurance premiums, taxes, overhead, or debt payments. Having a budget and regularly reviewing financial statements like profit and loss statements and balance sheets will help you reach business goals and anticipate operational changes. There are various budgeting styles in business, so it’s best to determine which method works best for your business.

Organize and prioritize expenses

Dividing your expenses by categories can not only help you keep track of your spending, but it can also help maximize your deductions when it’s tax time, as well as reduce accounting errors. Using a financial management software like QuickBooks or Expensify is one of the easiest ways to track your expenses. They often have pre-populated categories for common business expenses, which is helpful if you’re unsure where to start. Some popular business expense categories include:

  • Operating expenses: Day-to-day operating expenses like utilities, office supplies, rent, and maintenance
  • Payroll: Salaries, wages, employee benefits, and payroll taxes
  • Marketing and advertising: Costs related to promoting your business, like social media ads, website development, print materials, and business cards
  • Capital expenses: Larger purchases like equipment, vehicles, and other property that depreciates over time

Identify tax-deductible expenses to maximize your tax benefits, and group your transactions based on their function within your operations. Ensure proper documentation for each expense for accounting purposes.

5. Monitor cash flow to ensure enough cash for day-to-day operations

It’s critical to understand where your money goes when running a business. Poor cash flow management or poor understanding of cash flow is one of the biggest causes of business failure. You must have tight expense controls—and if your bills exceed the cash you have on hand, you have an issue with cash flow. Create a cash flow statement to analyze your financial health and update it monthly. This will help avoid unnecessary bank account overdrafts or overspending. If you use Excel, there’s a free cash flow template to help you get started. When cash flow is tight, consider reviewing options like small business loans or debt financing to ensure you have enough cash on hand for day-to-day operations.

Cash flow forecasting

Cash flow forecasting (also known as cash flow projection) estimates your business’s cash inflows and outflows over time. It’s an important practice that helps businesses avoid cash shortages. Cash flow forecasting isn’t a perfect method—no one can predict the future—but it helps business owners anticipate potential cash shortages, plan for growth, and make informed financial decisions.

Here’s a brief overview of how it works:

  1. Estimate incoming cash: List all expected sources of revenue, like sales, customer payments, loans, or investments. If you have recurring customers or contracts, you can use past data to predict future income.
  2. Project outgoing cash: Identify all expected expenses, including rent, payroll, supplier payments, loan repayments, and taxes. Also include irregular costs like equipment upgrades or seasonal expenses.
  3. Calculate net cash flow: Subtract your projected expenses from your projected income. If the result’s positive, good news: your business is generating more cash than it’s spending! If the result’s negative, then you may need to cut costs, increase revenue, or secure more funding.
  4. Monitor and adjust: Cash flow forecasting isn’t a one-time task. Regularly compare your projections to your actual cash flow and adjust as needed to keep your business on track.

6. Practice good bookkeeping techniques

Bookkeeping allows business owners to keep track of all financial transactions conducted within a certain period (usually monthly). Practicing good bookkeeping techniques allows you to keep an accurate track of your income and costs. You can bookkeep using a traditional ledger book or accounting software like QuickBooks or Xero. There are free options available, too. Before deciding on an accounting program, think about your operations. Figure out if you need to send invoices, whether you want mobile access or access for multiple users, credit card processing integration, and more.

7. Set money aside for taxes

Setting money aside for taxes will help you save big in the long run. There are a few tips and tricks for determining how much money you should set aside for taxes. You’ll need to pay federal taxes, including self-employment tax and income tax. These are paid quarterly to the IRS. If you hire employees, you’ll also have payroll tax. Depending on your business, you may have to pay state and local taxes, like sales tax, franchise tax, or property tax. You can learn more about state-specific taxes by visiting your state’s tax authority website.

A general rule is to set 30-40% of your business income aside to cover federal and state tax payments, which simplifies preparation during tax time. You can put money into your short-term savings account for your small business taxes as often as you want. Tax obligations for businesses vary, so consult your CPA to determine how much you should set aside. Regular tax payments can also prevent common financial mistakes that arise when taxes are overlooked.

8. Don’t be scared of loans…

Loans can be intimidating, but they can boost your business when used responsibly. Without an influx of capital, it can be hard to purchase equipment or grow your product line. Small businesses are also eligible for SBA loans. SBA loans help small businesses grow by allowing borrowers to obtain long-term operating capital at a reasonable cost, including longer terms or no prepayment penalties. They can be used for business start-ups, expansion, equipment purchases, and more.

9. But keep good business credit

While you shouldn’t be afraid of loans, you should keep your business credit in good standing. As your business grows, you may want to purchase more commercial real estate or equipment or additional insurance policies. Getting approved is difficult with poor business credit. Be sure you pay off debt funding as soon as possible. For example, don’t let business credit cards run a balance for more than a few weeks or take out loans you can’t afford. Only seek funding you can easily and quickly repay.

10. Schedule time to stay organized

One of the easiest ways to manage your small business finances is to stay organized. Set aside time each week or month to keep finances in line. This includes adding data to any financial software you use, scanning receipts, filing paperwork, or invoicing. Take 15 minutes to an hour each week to ensure your finances are in line.

You can even set aside time to update your own finances, as you want both your business and personal finances to be in order. For example, you can set aside 30 minutes one day of the week to take care of any financial housekeeping for your business. On another day, you can work for 30 minutes on any personal finance issues.

Monthly financial check-in routine

Each month, you can have a deeper check-in on top of your weekly review. Here’s a simple routine to follow each month:

  1. Review income and expenses: Compare your actual revenue and expenses against your budget or cash flow forecast. Look for trends, unexpected costs, or areas where you can cut back.
  2. Update your cash flow forecast: Adjust your cash flow projections based on recent financial activity. This will help you anticipate upcoming expenses and plan for slower months.
  3. Reconcile your bank accounts: Cross-check your bank statements with your accounting records to ensure everything’s a match. This helps catch errors, missing payments, or fraud.
  4. Check invoices and payments: Follow up on any outstanding invoices and make sure you’re paying your own bills on time.
  5. Assess profitability: Look at your profit margins and overall financial health. Are your costs too high? Are you pricing your services correctly?
  6. Set financial goals: Based on your review, set one or two financial goals for the next month, like increasing revenue, reducing expenses, or improving cash flow.
  7. Plan for taxes: Set money aside for taxes to avoid surprises later. If applicable, review estimated tax payments to ensure you’re on track.

Bottom line

We know that managing your small business takes time, effort, and money. With these financial tips, we hope managing business finances including maintaining your business assets and handling business expenses seems less daunting.

We believe small businesses are the pillars of our community—that’s why we offer a comprehensive suite of products aligned to your business needs, from business checking and savings accounts to treasury management solutions and commercial loans. Whether you’re just getting started or are an established business, our experts are here to help.

How to prepare for buying a new car on any budget

Buying a new car is a big decision—not so much the make and model, but more about the financial responsibility that accompanies it. Unfortunately, what we want and what we need are often at odds with each other, and car buyers end up purchasing a vehicle with a price tag that exceeds their budget…and then some.

Here are a few tips that can help keep your next car purchase in line with what you need, want, and can afford:

Understand how the car-buying process works

New to the car-buying process? Use this checklist to stay on track and know what to expect:

1. Set your budget

First thing’s first: you’ll need to determine how much you can afford (more on that later) and check your credit score if you’re financing. Higher scores often mean better interest rates.

2. Research your options

Identify the type of car that fits your needs (sedan, SUV, truck, etc.) and compare models, features, and reliability ratings. Read reviews and check safety ratings from trusted sources like Edmunds, Kelley Blue Book, or Consumer Reports.

3. Explore financing options

Get pre-approved for an auto loan from a credit union or bank before car shopping. If leasing, understand mileage limits, fees, and end-of-lease options.

4. Shop around for the best price

Check online listings, dealership websites, and local ads to get the best price. Request quotes from multiple dealerships and look for manufacturer incentives, rebates, or special financing offers.

5. Test drive and inspect

Schedule test drives to compare comfort, performance, and features. If you’re buying used, get a vehicle history report.

6. Negotiate the deal

Know the fair market value of the car before you negotiate the car price. Focus on the total price, not just the monthly payment—be ready to walk away if the deal isn’t right.

7. Review the final paperwork

You’ll need to read all terms carefully before signing. Check for hidden fees or add-ons you didn’t agree to. Verify your loan terms, interest rates, and warranty details if applicable.

8. Finalize and enjoy your new ride

Time to hit the road! Make sure you have insurance before driving off the dealer’s lot, and register the vehicle and transfer the title (if buying used).

All purchases are not created equal

You may have purchased a pair of Manolo Blahnik shoes that were more than a month’s rent or a new, state-of-the-art gaming system that set you back a few bills—but those splurges can be contained and could be considered short-term lapses in smart financial judgment. They busted your budget, but over the next few grueling months, you can probably get back on track by skipping your daily Starbucks run, clearing your calendar, and eating ramen noodles.

Purchasing a car that’s too expensive for your wallet could possibly tie up your finances for the next 60 months—that’s five years of monthly payments that you may or may not consistently afford. The golden rule of car buying is to never ignore the total price of the car. Regardless of how they package the financing, it won’t change the actual cost. Consider purchasing a vehicle that’s below your means, unless of course, what you’re driving means more to you than your financial sanity.

Create a realistic car budget

As stated above, you need to consider the total price of the car when you decide what you can afford. Preparing before you visit the car dealership will help you get the car you want, at the price you want. Here’s how you can set a realistic car budget for your financial situation:

1. Consider your income

Before you get started, you’ll want to add up your take-home pay then list your monthly expenses, like rent, utilities, groceries, and other bills. Once you subtract your expenses from your monthly income, you’ll have an idea of how much you can budget for a car. A good rule of thumb is to budget 10% of your monthly income towards your car payment and another 10% for extras, like maintenance, insurance, and gas. You can use an auto loan calculator to figure out how much your monthly car payment will be.

2. Think beyond the price tag

Owning a car involves more than just the sticker price. You’ll need to consider other recurring expenses, such as:

  • Car insurance: Rates vary greatly depending on the driver’s age, location, vehicle type, and driving record.
  • Gas: You’ll need to think about your car’s fuel efficiency, how much you’re driving, where you’re driving (highway vs. city), and the type of gas your car will take (regular vs. premium).
  • Maintenance and repairs: Generally, more expensive cars cost more to maintain. If you’re buying a new car, you’ll likely have a warranty period, but used cars might require more frequent repairs.
  • Taxes and registration fees: Taxes and registration fees vary per state, but they still add to your car’s purchase price. In Georgia, you’ll pay a one-time Title Ad Valorem Tax (TAVT) and a registration fee. The TAVT is 7% of your car’s fair market value, and the registration fee is a flat rate of $20.

3. Figure out your down payment

Ask most car salespeople and they’re likely to say the percentage of buyers who put down a substantial down payment is pretty low. Whether you fund it with your car’s trade-in value or cash that you’ve been saving, a down payment will lower the amount of money you’ll have to pay over time and help secure better new car financing. It’ll decrease your monthly payment and (hopefully) bring it in line with your budget.

4. Come up with a realistic price range

Once you’ve figured out your budget, set a price range and stick to it. It’s tempting to go for the latest model with all the bells and whistles, but going over your budget could cause issues in the long run.

Consider what you really need in a vehicle

Make a list of your “must have” and “nice to have” options before you begin car shopping or take a test drive at the car dealership. Everyone wants the newest and coolest features, and for just a few hundred or a couple thousand more dollars, you can have it all…heated seats, parking assist, Wi-Fi, keyless entry, and a navigation system. They’re nice to have, but you have to determine what you need and what you want because it all leads back to the golden rule: don’t purchase above your means.

Don’t roll over debt

Don’t trade one financial problem for another. For those who get tired of their cars after a few years or want to upgrade their ride every other model year, the idea of holding onto their vehicle until the loan is repaid seems preposterous. To keep themselves in a new car and avoid any down payment, they simply roll one purchase into the next without considering the impact on the loan terms or interest rates. The deficiency on their current car, because it was worth less than they owed, is added to the new car loan. It’s an ugly cycle that is truly detrimental to your financial health.

Watch for hidden costs

Another thing to consider beyond the price of the car is car insurance, repair, and maintenance costs, all of which can add to your monthly payment. Generally, the pricier the car, the more expensive it is to insure and take care of. Talk with your insurance agent to determine how much your monthly insurance premium will increase. Research costs so you can plan for routine maintenance and repairs. Some of the results might lead you away from certain makes and models and toward more reasonably priced alternatives.

Figure out your financing options

When buying a new or used car, you typically have three financing options: credit unions, banks, and dealership financing. Credit unions often offer lower interest rates and more flexible terms, while banks may have competitive rates but stricter lending criteria. Dealer financing can be convenient, but it may come with higher interest rates or hidden fees.

To secure the best deal, compare loan offers from multiple sources and check the annual percentage rate (APR), loan terms, and additional fees. Getting pre-approved for a loan—especially through a credit union—can give you more negotiating power at the dealership, helping you focus on the total price rather than just the monthly payment.

Key takeaways:

  • Set a realistic budget: Factor in other costs besides the purchase price, like insurance, maintenance, and gas, to ensure long-term affordability.
  • Compare financing options: Credit unions often offer lower interest rates than banks and dealerships, and getting pre-approved can give you more negotiating power.
  • Research and shop around: Check multiple dealerships, online listings, and manufacturer incentives to find the best price before committing.
  • Negotiate with confidence: Focus on the total price, not just monthly payments, and be prepared to walk away if the deal doesn’t meet your budget or needs.

Hopefully, these tips will keep your next car purchase from wreaking havoc on your finances. Do your research, consider your budget, and keep your emotions in check. Remember, the decision to buy a car isn’t a “one day and it’s done” choice. It’ll impact the way you manage your financial life for year…and that’s a long time to eat ramen noodles.

6 misconceptions about small business cybersecurity

Small businesses are the lifeblood of American prosperity. Almost half of all workers in the U.S. work for a business with fewer than 500 employees—and that doesn’t account for the estimated 27 million small business owners who are their sole employee.

Unfortunately, because small businesses are the drivers of our economy, they’re also a target for cyberattacks. The FBI recently reported that the majority of cybercrime victims are small businesses.
We get it—you’re focused on customer acquisition, shipping, marketing, and getting the job done. Security also needs to play a role in your operation. You can vastly improve your cyber defenses and keep your company rolling if you and your employees adopt a handful of behaviors.

To learn new behaviors, though, you’ll need to “unlearn” some misconceptions. Here are the top six small business cybersecurity misconceptions, plus how you can overcome them.

Misconception 1: They’re not a target for cybercriminals

It’s a common misconception among small business owners to believe that they’re not a target for cybercriminals. Shouldn’t the hackers be focused on the Fortune 500? In reality, every business regardless of its size, the type of data it handles, or the industry it operates in is susceptible to cyberattacks. Above everything else, cybercriminals are opportunistic, and they often see small and medium-sized businesses as prime targets due to a perception that they’ll have weaker cybersecurity defenses. Small businesses can fall victim to various cyber threats, including ransomware and impersonation scams.

Attackers look to exploit vulnerabilities, seeking financial gain or access to your sensitive information. Here are a few things you should do to protect your small business:

Because any business can be a target, cybersecurity should be a priority for all businesses, regardless of size.

Misconception 2: Cybersecurity is a technology issue

It’s a widespread belief that cybersecurity is a tech issue. Most cyberattacks occur through social engineering, where criminals infiltrate a system through your people and processes. This could involve an employee unknowingly clicking a link in a phishing email or a vendor being impersonated and sending you a fake invoice. Few attacks involve the brute-force cracking of an account (assuming the password is strong and unique).

Cybersecurity encompasses not just technology, but also the people and processes within an organization. Human error and negligence are significant threats. Employees who click on malicious links, use weak passwords, or inadvertently share sensitive information can compromise the security of your entire business. Prioritize building a culture of awareness and responsibility among your staff.

Comprehensive training programs help, and you should implement clear cybersecurity policies and guidelines. Reward and recognize employees who demonstrate good cybersecurity habits. Make security a collective responsibility and a fundamental part of the organizational culture—then your defenses become stronger, and your people are a force multiplier for technology-based security measures like antivirus software. Physical security is also paramount. Don’t let strangers in the front door, escort visitors, use cameras, separate areas with network equipment behind locked doors, and always shred sensitive documents.

Misconception 3: Cybersecurity is a one-time project

Another common misconception is that cybersecurity is a one-time project that can be completed and forgotten, just like you might hire a locksmith for your office’s front door. In reality, security is an ongoing and dynamic process that demands continual monitoring, adaptation, and enhancement. Cyber threats are ever-evolving, and new vulnerabilities are discovered regularly. Similarly, solutions, regulations, and industry standards change to address emerging risks and challenges.

What worked to protect against cyber threats a year ago may no longer be effective today. This constantly shifting landscape underscores the need for businesses to view cybersecurity as a continuous effort—and why you always need to download the latest software updates. Establish a routine of security audits, reviews, and testing. Regular data backups and disaster recovery planning are crucial to ensure business continuity in case of a breach. Staying informed about industry developments, such as new regulations or emerging threats, will help you make informed security decisions.

Misconception 4: Cybersecurity is only the IT department’s responsibility

Cybersecurity is a collective responsibility that extends to every member of an organization. Different roles and functions can contribute to cybersecurity, and they can also inadvertently compromise it. Management, for example, typically sets the tone for security culture by establishing policies and allocating resources. The finance department can allocate a budget for security measures, while sales teams should respect customer data. Anyone on staff can impact security through actions like using weak passwords.

To foster a culture of shared responsibility and accountability for cybersecurity, establish clear roles and expectations for all employees. Robust cybersecurity policies and procedures need to be communicated and consistently enforced. Regular cybersecurity training and awareness programs should be available to all staff, not just the IT team. Encourage open communication channels for reporting potential threats or incidents because it creates collective vigilance.

Misconception 5: Cybersecurity insurance will cover all the losses from a cyberattack

Let’s dispel the misconception that cybersecurity insurance acts as an impenetrable shield against all the losses resulting from a cyberattack. In reality, the extent of coverage greatly depends on the specific policy and the nature of the claim. Cybersecurity insurance typically covers some losses, such as direct costs like data recovery and notification expenses, and possibly legal defense costs. However, it may not cover costs like business interruption, reputational damage, or the full scope of legal liability.

The terms, conditions, and exclusions of cybersecurity insurance policies can vary significantly between providers, so buyers need to read the policy closely! Conduct a comprehensive review of available policies and select one that aligns with your needs and risk profile. We recommend working closely with a dedicated insurance professional who specializes in cybersecurity because the topic is undeniably complex.

Misconception 6: Cybersecurity compliance equals cybersecurity protection

Don’t fall for the myth that cybersecurity compliance automatically translates to protection. Adhering to standards or regulations is a vital step, but that alone doesn’t guarantee immunity from cyber threats. Compliance requirements often establish minimum baselines, and these standards may not evolve quickly enough to keep pace with the ever-changing threat landscape. Moreover, compliance requirements can vary significantly across jurisdictions and industries, leading to gaps in security measures.

Implementing security controls, conducting regular risk assessments, and staying informed about emerging threats are crucial steps. Importantly, fostering a culture of security awareness boosts your protection. Don’t think of compliance as the endpoint but as a step toward a wide-ranging and continuous security journey. Be honest and realistic about the threats your company faces and adapt the baselines for compliance to go above and beyond for your specific environment.

Your small business deserves protection

Dispelling these six cybersecurity misconceptions is a pivotal first step toward forging a resilient cyber defense. Your small business, just like your larger counterparts, is a prime target for cybercrime. In turn, this means that cybersecurity is everyone’s responsibility. It’s not about the scale of your business, but the effectiveness of your cybersecurity measures that matters. Embrace a holistic approach that encompasses technology, people, and processes. Stay proactive and adaptive. Then you can rest assured as you navigate the digital world and protect the data under your control.

Key takeaways:

  • Cybersecurity is everyone’s responsibility.
  • Cybersecurity isn’t a one-time project—it’s something your business should practice forever.
  • Employees should receive continual training to keep them aware of the latest cybersecurity threats.

Healthy habits on a budget

New year, new you? Setting resolutions for the new year is a long-held tradition—one that can surprisingly trace its roots back to an ancient Babylonian festival, with more modern versions originating in Colonial America. Across these many celebrations, the common theme is to celebrate the new year with a positive outlook and mindset for growth.

Today, resolutions are still relatively common, with about a third of Americans setting goals or resolutions for the new year. Even if you aren’t setting a specific goal, the new year still promotes feelings of optimism and growth. Among the most common are health-related goals, like eating healthier or exercising more, along with intentions to save more money. While those goals can often contradict each other, we have some solutions on ways you can keep your healthy resolutions, without breaking the bank. Keep reading for seven tips to get healthier this year on a budget.

Fuel efficiently

If you’re looking to eat healthy this year, you’re not alone. But with grocery costs rising, your wallet may already feel the strain. No worries—we’ve got you covered.

1. Plan ahead

Meal planning and prepping is a consistent recommendation for eating healthier on a budget. Before you head to the store full of good intentions, take inventory of what you already have. (I keep a list on my phone of everything in my pantry, fridge, freezer, plus spices, condiments and baking supplies. It may seem excessive, but in making the list originally, I found things in my freezer that were forgotten.) Then, when you make your meal plan for the week, you can reference and use what you have on hand. This helps keep grocery costs down and can help reduce waste by reminding you to use things like produce before they go bad. Once you have your meal plan, you can make a shopping list to fill in any gaps. Look up available coupons or what specials may be available at the store to save even more.

2. Shop smart

While checking those sale ads, keep an eye out for your favorite products or frequently used staples. You’ll want to stock up on these items, as your space allows. Additionally, some products are cheaper bought in bulk, like grains, oats, beans, and lentils, which provide various nutrients, and are healthy recipe staples. It’s also a good idea to stick to local and seasonal producewhen possible, as they’re generally more cost-effective and at their peak flavor and nutrients. That said, frozen alternatives are also a great option, both in terms of cost and health benefits.

3. Prep ahead

Weekly prep can make all the difference when it comes to eating healthy. Clean and cut your produce after your shopping trip. Fresh fruits and veggies make great snacks and are easier to reach for when they’re pre-cut. Prepping your veggies can also save you time later when cooking, which makes cooking a healthy meal after work a little less overwhelming. Another way to prep is batch cooking meals that you can store in the freezer for those lazy days.

Exercise

Another common health-related goal is to exercise more, but gyms can be too expensive—and intimidating—to be sustainable. Thankfully, there are other options!

4. On the town

One of the easiest ways to add exercise into your routine is to walk. Check out your local parks and trails to add variety to your scenery and terrain. While most of Georgia’s National Parks are fee-free, you can take also advantage of free days at certain parks. Plus, spaces like Atlanta’s Beltline, Augusta’s Riverwalk, and Savannah’s Forsyth Park Loops provide excellent opportunities to explore your own backyard on foot.

5. Complimentary classes

Want to take your exercise up a notch? Check out what free classes might be available locally, especially come spring and summer. Many green spaces, like the Beltline, Piedmont Park, and the Home Depot Backyard, offer free exercise classes and running clubs. Additionally, some studios like Orangetheory often offer a free trial class, allowing you to see if you enjoy the workout before committing to a paid plan. And of course, YouTube is a great source for free workouts, whether you’re looking for strength training, yoga, or cardio exercises. For workouts that may require tools like workout mats or weights, check out your local buy-nothing groups, Facebook marketplace, and thrift stores to save some cash.

Mental wellness

Health isn’t all about your physical wellbeing, but also your mental state. Here are a few additional ways to promote your mental wellness.

6. Meditate on it

Studies have shown that meditation can reduce stress and anxiety, support cognitive skills, and help with sleep. Even better, meditating requires no tools! But if you need some meditative assistance, apps like Calm and Medito provide free meditations. YouTube also can be a good source for meditations—just be aware of the source.

7. Track that

Another part of mental health is self-care, which can come in many forms. If you need help quitting costly bad habits, like smoking, apps like Quit That! can help you track your progress and promote recovery. You can also check out Happify, which is a science-based app that offers tracking, games, and journaling prompts to promote mental wellness.

Key takeaways:

  • Make shopping and meal planning easier by keeping an inventory of your groceries.
  • Check out free, local exercise classes, especially in the spring and summer.
  • Apps like Happify and Calm can help with mental wellness goals.

Setting resolutions is common—but failing to keep them is even more common. It can feel overwhelming knowing where to start, or like your resolutions are too expensive to be sustainable. However, you don’t have to spend a fortune to make healthier habits. Simple steps like keeping an inventory of your groceries or just walking at the park can help you make progress toward your goals without spending a dime. Did you make a resolution this year? Let us know in the comments!

Why you should consider a credit union for your car loan

Shopping for a new car can be a hassle. From deciding which new or used car works best for you and your needs to where you’ll find the best deal, a lot goes into getting a car loan and narrowing down your final choice. However, there’s another crucial factor to consider: where to finance your new car. People debate whether they should finance with a credit union or a bank. We’re here to break down the differences, so you can find the right car loan.

Credit Unions vs. Banks vs. Dealership Financing
Factor Credit Union Bank Dealership
Interest rates Lower rates due to nonprofit structure Higher rates than credit unions but lower than dealerships Often the highest rates, especially for poor credit
Loan terms Flexible, member-focused terms Standard terms, less personalized May offer longer terms, resulting in higher total cost
Customer service Personalized, member-focused Professional but less personalized Sales-focused, may prioritize selling add-ons
Approval process Member-focused, more lenient for those with fair credit Stricter credit requirements Quick approvals but less transparent
Fees and penalties Fewer or lower fees May have more fees for late payments or early payoff High fees, especially for add-ons
Special offers Discounts for members (loyalty bonuses, rate discounts, etc.) Rarely offer member-specific perks May offer limited manufacturer incentives
Transparency Clear terms, upfront details Standard transparency Often confusing or unclear terms
Community impact Profits reinvested into members and community Profits go to shareholders No community impact

Credit unions have lower interest rates

A credit union is a not-for-profit financial institution that is owned by its members rather than shareholders, so it’s able to return profits to and invest in members. That’s why credit unions can typically offer lower rates on loans. Credit unions often offer rates as much as 2% lower than banks. According to the National Credit Union Association, as of September 2024, a new car loan from a bank with a 60-month term has an average rate of 7.50%. Comparably, a new car loan from a credit union with a 60-month term has an average rate of 6.27%—nearly a 2% difference. It may not seem like much, but in the long run, it saves big.

For example, if you purchased a new car—a car sold in its original, manufactured condition with no previous owners—for $30,000 and no money down, with a 7.50% rate on a 60-month term, your monthly payment would be $601. However, if you purchased the same vehicle with the same loan term but at a rate of 6.27% from a credit union, your monthly payment would be $583. That would save you $1,080 throughout your auto loan. Dozens of factors determine your APR and providing a loan, so the best way to know what rate you qualify for is to contact the financial institution directly for a quote.

Credit unions offer more flexible loan terms

Whether you’re buying a new or used car, credit unions offer more flexible and affordable financing options. This flexibility allows members to tailor their loans to fit their budgets and financial goals, ultimately saving money in the long run.

Credit unions are more willing to work with members to create “customized” financing terms, whether that means adjusting the repayment period or offering special programs for first-time buyers. These options help ensure your loan fits your financial situation, reducing the risk of default and unnecessary financial stress.

Credit unions offer lower loan minimums

Credit unions often have lower loan minimums than traditional banks—sometimes not having a requirement at all—making credit union car loans an ideal option for many buyers. So, if you’ve purchased a vehicle, have a large down payment, and need to finance a small portion of your car, then this is perfect for you. Or, if you’ve purchased a cheaper vehicle altogether, this is also an excellent option to consider.

Credit unions have higher approval chances

Credit unions tend to have smaller membership than banks, so their underwriting process can be more selective. However, credit unions also focus on ensuring their members are taken care of and preserving a long-term relationship, which is why local credit unions often provide more personalized loan terms.

Often, if a bank deems you too much of a risk, they’ll toss your paperwork aside and deny approval. On the other hand, credit unions are usually willing to listen to you and your financial situation and consider that when deciding on approval. Credit unions believe that because they’re owned by their members, the best interest of the member must be served. Plus, it’s often easier to receive services through an institution with which you have a relationship.

If you’re not a member, don’t worry—it’s simple to obtain credit union membership to take advantage of our car loan options. At Georgia’s Own, there are a few easy ways you can become a member. If you meet the requirements and are approved, all you need is a $5 deposit to establish your membership, which represents your share in the Credit Union. Requirements at other institutions vary.

Overall benefits of choosing a credit union

Fewer fees

In addition to offering lower rates, credit unions also offer reduced fees and higher savings yields. For example, many traditional banks charge prepayment penalties, which means you’re charged a fee if you pay off your loan early. This goes back to our not-for-profit position—we give back our profits in the form of better rates and fewer fees.

Member-focused service

As a member, you’re more than a customer—you’re technically a part owner. This means your financial well-being is prioritized, and decisions are made with your best interest in mind. Because of that, credit unions often provide personalized service and are committed to helping you reach your financial goals.

Community connection

As a credit union, we’re rooted in the communities we serve. Our profits are reinvested locally through financial education programs, sponsorships, or even lending to small businesses. By joining, you’re directly contributing to your community’s growth and stability.

Flexible and inclusive membership

Credit unions are typically more flexible than banks in approving loans, especially for members with fair or limited credit. We work to find solutions that fit your needs, making it a great option for borrowers at different financial stages.

Financial education resources

Many credit unions offer free financial education resources, tools, and workshops—all to help members make informed financial decisions. Whether you’re saving for retirement or buying your first car, you can count on us for support.

Secure and trustworthy

If you become a member and decide to choose a credit union as your main financial institution, deposits at credit unions are insured up to $250,000 through the NCUA, offering the same level of protection as bank accounts insured by the FDIC.

Key takeaways:

  • Credit unions typically offer lower loan interest rates because they’re a not-for-profit financial institution, which can help you save over the life of your car loan.
  • Credit unions offer flexible terms which lets you find a loan that best fits your needs.
  • Credit unions provide other perks besides lower loan rates, like personalized, member-focused service.

If you’re on the hunt for your perfect vehicle, consider us for all of your financing needs. When you finance your car with us, you’ll enjoy flexible payment options, protections for your vehicle and loan, including low-cost mechanical repair coverage and GAP, and so much more—we can even refinance your current vehicle. Ready to get behind the wheel of your dream car? Click here to learn more about our auto loans or apply today.

Understanding the impact of balance transfers on your credit

Balance transfers are an excellent way to consolidate your debt and pay it off as quickly as possible. But, it does have positive and negative impacts on your credit score. Despite some minor negative impacts, balance transfers can immensely transform your credit score. Here’s how:

How does a balance transfer negatively affect your credit score?

A balance transfer can cause a dip in your FICO® credit score in the short run. When you apply for a balance transfer, lenders conduct a hard inquiry to determine if you’re a capable borrower. Hard inquiries remain on your credit report for about two years. Several hard inquiries show you’re seeking credit from too many sources, which could indicate you may not be a reliable borrower. This differs from a soft inquiry, which is when you check your credit or a lender is trying to pre-approve you. Soft inquiries don’t affect your credit score.

Balance transfers can also lower your credit score by reducing the average age of your accounts. If you have three cards with an average account age of 48 months, and you decide to open a balance transfer card as your fourth, the average age of your accounts would lower, which could drop your score.

This has a minimal impact on your credit score, but it’s still critical to be aware of. You should keep old, unused accounts open to maximize the average age of your accounts. But, if an old account has a high annual fee that you can’t afford, then it might be in your best interest to close it—weigh the pros and cons before closing the account.

Example scenario

Let’s say you have two credit cards:

  • Card A: $10,000 credit limit, $5,000 balance (50% utilization rate)
  • Card B: $5,000 credit limit, $0 balance (0% utilization rate)

You transfer the entire $5,000 balance from Card A to Card B to take advantage of a 0% introductory offer. After the transfer:

  • Card A: $10,000 credit limit, $0 balance (0% utilization rate)
  • Card B: $5,000 credit limit, $5,000 balance (100% utilization rate)

While your total utilization remains at 33% ($5,000 out of $15,000), your utilization rate on Card B jumps to 100%. High utilization on a single card can hurt your score. If Card B is newer than Card A, this could shorten your average account age, which further negatively impacts your credit score in the short term.

How does a balance transfer positively affect your credit score?

Despite some negative impacts, a balance transfer can help considerably raise your credit score. Balance transfers reduce your credit utilization rate, which is the percentage of available credit that you’re using.

Low utilization rates show that you’re not accumulating debt. Ideally, you want your credit utilization rate to be below 30%. For example, if you have multiple credit accounts and move the balances to a single account, your credit utilization rate shows as 0% on the old accounts. It’s crucial to take advantage of the 0% APR period so you can pay off your debt as soon as possible. This will then decrease your credit utilization rate over time.

Your credit utilization rate accounts for 30% of your FICO® Score, which is the score most used by lenders.

Example scenario

Let’s say you have three credit cards:

  • Card A: $10,000 credit limit, $6,000 balance (60% utilization rate)
  • Card B: $8,000 credit limit, $0 balance (0% utilization)
  • Card C: $7,000 credit limit, $0 balance (0% utilization)

You transfer $3,000 from Card A to Card B and $3,000 to Card C. After the transfer:

  • Card A: $10,000 credit limit, $0 balance (0% utilization rate)
  • Card B: $8,000 credit limit, $3,000 balance (37.5% utilization rate)
  • Card C: $7,000 credit limit, $3,000 balance (42.9% utilization rate)

Your overall credit utilization remains at 33%, but spreading the debt across multiple cards lowers individual utilization rates, which can improve your score. If the balance transfer reduces interest and helps you pay off the debt faster, maintaining on-time payments will also strengthen your score over time.

Pros & Cons of a Balance Transfer
Pros Cons
You have no or low interest. You typically pay a fee of 3% – 5% of the balance transferred.
You can pay off debt quicker. Your low or no interest is temporary.
Your debt can be consolidated into one single payment if you have multiple credit cards. You could end up with more debt if you’re not disciplined.

What should I do after I apply for a balance transfer?

After applying for a balance transfer offer, avoid opening new credit card accounts or applying for more credit. Limit the number of hard inquiries on your credit report as much as you can, and only apply for loans unless they’re necessary. Every hard inquiry can slightly lower your score, and limiting inquires is important when managing your debt.

If you have high-interest debt:

Prioritize the transfer amount

Focus on transferring the debt with the highest interest rates first, even if you can’t transfer the full balance. This reduces the interest you’re paying, allowing you to allocate more toward reducing the principal.

Don’t make purchases with your new card

Resist the temptation to spend on your balance transfer card. The sole purpose of your card is to pay off high-interest debt, not accumulate more. When you add to that debt, it makes paying your balance during the 0% APR period more challenging. Create a budget to cut out unnecessary expenses and avoid accruing more debt.

Create a payment plan

Calculate how much you need to pay monthly to clear the balance during the 0% APR period. Use this number to set up auto payments from your checking account.

If you have low credit utilization

Maintain a low utilization rate

Transferring a balance can temporarily increase your utilization on the new card. To offset this, avoid maxing out the card. Instead aim to keep the new card’s utilization below 30% of its limit, even after the transfer.

Focus on payment history

Since your utilization is already low, your payment history becomes even more critical. Set up auto pay to ensure you never miss a due date. This boosts your credit even more—payment history accounts for a large portion of your FICO® Score. Choose a specific amount to transfer from your checking account to pay your bill. It should be enough to pay off your card within your 0% APR period.

If you’re consolidating multiple debts

Select the right credit limit

Choose a card with a high enough credit limit to accommodate all or most of your balances. This minimizes the total number of open accounts and simplifies repayment.

Pay attention to fees

Consolidating multiple debts can involve balance transfer fees (typically 3% – 5% of the transfer amount). Factor these fees into your repayment plan to ensure you can pay off the full balance within the 0% APR period.

Keep older accounts open

After consolidating, avoid closing your older credit cards. Closing them could reduce your credit history length, which can negatively impact your score.

General best practices for balance transfers

Stick to your budget

Whether you’re managing high-interest debt, low utilization, or multiple accounts, create a realistic budget to cut unnecessary expenses and avoid accruing new debt.

Avoid new purchases

Your balance transfer card is a tool for paying off debt—not a license to spend. Adding purchases to the card can complicate your repayment plan and increase the likelihood of paying higher interest.

Pay on time, every time

Payment history is the most significant factor in your credit score. Use auto pay to ensure you never miss a due date.

Key takeaways:

  • Balance transfers can help reduce your interest payments but might initially lower your credit score.
  • Balance transfers are a great tool for consolidating multiple debts into one easy payment.
  • Avoid making purchases on your balance transfer credit card and ensure you’re making on-time payments to pay off the balance within the introductory period.

Balance transfers can do wonders for your credit score and overall personal finance, despite some drawbacks. When you use a balance transfer card responsibly, your credit score can grow in the long run. Check your spending habits, stick with your budget, and you’ll be debt-free in no time with a credit score on the rise.