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Should You Keep Separate Checking Accounts When You Get Married?

You found “The One.” You popped the question, and they said “Yes.” You both said, “I do.” Your honeymoon was incredible. Now, you’re back to reality and settling into your new life together. Suddenly, you’re faced with a wave of everyday decisions you hadn’t previously thought about. Who sleeps on which side of the bed? Which toothpaste should you buy? Whose parents will you visit at Thanksgiving? What about Christmas? Some decisions are trivial, but other dilemmas feel far more important. But then, when that first monthly bill shows up and you have to decide who pays it, you come face-to-face with one more crucial decision: Should you combine your finances and get a joint checking account?

For years, financial advisors and relationship gurus have sparred over the potential dangers and benefits of joining two individual bank accounts into one. The most challenging part of this debate is that both sides appear to make valid points, which can leave you and your spouse wondering what to do. Before we go any further, it’s important to remember that just as each person in a marriage is a unique individual, every relationship is different. And while it’s wise to seek counsel and take advice, you’ll ultimately need to figure out what works best for you. In the points to follow, we’ll set out to share a few perspectives that can help you determine the best way for you to build a financial foundation that works for your family.

The Case for Separate Checking Accounts

In an interview with CNBC, David Back, co-founder of AE Wealth Management, advised, “You should have your own account, both of you. It’s absolutely critical, especially for women, that you keep money in an account that’s yours that you control.” Citing the fact that almost half of marriages end in divorce, Bach and other like-minded financial professionals point to the fact that not only do separate accounts allow each individual to maintain their own financial identity; they also make it easier to divide assets if the relationship dissolves. If both spouses agree, the practice of keeping separate accounts can also serve to reduce the number of disputes over spending decisions. By allowing each person to manage the finances they bring into the relationship, this approach depends on the mutual trust that each person is managing their money in a financially responsible manner. And in a marriage, that kind of trust is essential.

The Case for Joint Checking Accounts

While many agree with the practicality of married couples maintaining separate bank accounts, several studies at the University of California suggest a completely different approach. Though financial independence may be a key factor in maintaining a sense of autonomy, the UC study indicated that marital happiness might be easier to achieve if both partners agree to combine everything—including bank accounts. After reviewing the results of their studies, the school’s researchers shared the following observation, “It is important for couples to perceive their possessions and financial goals as shared, and our research identifies one practical way to facilitate this: merging bank accounts.” While happiness is a subject that extends beyond the bounds of traditional financial advice, it is worth noting that your financial practices as a couple can have a powerful impact on your relational success.

The Case for Compromise

As with most things in marriage, figuring out your finances will probably involve some give and take. While some couples can thrive with separate bank accounts, others will find far greater satisfaction by pooling their resources in a joint account. However, if you’re still not sold on either idea, there’s room for compromise. It’s entirely possible for couples to have separate personal spending accounts and maintain a joint account for shared expenses like rent, insurance, utilities, and such. While this strategy requires a little more leg work and the need for open, consistent communication, that’s not a bad thing. After all, whether it’s in relation to finances or just married life in general, fine-tuning your communication skills is always a great idea!

 

Check Your Finances Before Changing Jobs

Jobs are funny things. As soon as you get one, there’s a temptation to start thinking a different job could be better. Sometimes people find themselves stuck in a role that doesn’t fit their personality or skill set. Other times they love their job but believe a change would provide the opportunity to earn more money—and in turn, more peace of mind. Whatever the reason, if you’ve been part of the workforce for more than a few months, you’ve probably spent more than a few minutes wondering if a new job might be the secret to a better life. And if that’s the case, statistics indicate you’re not the only one.

According to the US Department of Labor, the average American changes jobs 12 times during their career. So, if you haven’t tested the job market yet, the law of averages seems to indicate you will eventually. And while job transitions are relatively common these days, it’s still important to approach each change with careful consideration. Not only will the new role involve learning new skills, working with new people, and establishing a new routine, it will also require significant financial planning—at least in the transition period. So, how can you set yourself up for success while transitioning to a new endeavor? By making sure your finances are in order; that’s how.

5 Financial Tips to Remember When Considering a Job Change

  1. Check your savings. If you already have another job lined up, your savings may only need to tie you over until your new paychecks start rolling in. This might sound like a minor concern, but depending on the payroll schedule for your former company and your new employer, it’s entirely possible you could go a month or more between paychecks. If you’re leaving your job without another already lined up, you’ll need enough savings to cover expenses until you accept your next job offer. If you have the luxury of transitioning on your own time frame, aim to have six months’ worth of expenses in a savings account.
  2. Trim your expenses. Admittedly, cutting expenses is never a fun topic of conversation. However, operating on a leaner budget (at least for a little while) can make your career transition far less stressful. So, before accepting a new job offer, take time to review your monthly budget and see if there are any belt-tightening adjustments you can make. Cut back on morning lattes, meal prep at home instead of buying lunch at a restaurant every day, or binge a Netflix series instead of going to a movie at the theater. You’ll be surprised how quickly little savings add up—and those savings can help you bridge the financial gap between jobs.
  3. Review the compensation package. It’s natural to look at a job’s salary when trying to determine whether it’s a better opportunity. This is a good place to start, but there’s more to it than that. Does the prospective employer pay an hourly wage, salary, or combination of base plus commission? Do they cover a portion of employee insurance costs or do they pay the entire premium? Is the new employer’s PTO plan equivalent to the one you’d be giving up? Be sure to compare the entire compensation package instead of just comparing the annual salary.
  4. Account for relocation costs. If your new job will require you to relocate, it’s always a smart idea to look at the cost of living in your new location. A $10,000 per year raise is nice, but if you’re going to spend an additional $15,000 in housing expenses each year, the new job could cause you to fall behind financially. If you need help comparing living expenses, cost of living calculators can be extremely helpful. State income tax rates can be another location-dependent variable worth considering. Fortunately, there are online tools to help with these calculations as well.
  5. Don’t leave money behind. If your current employer offers 401K or other retirement savings accounts, be sure to make arrangements to take those funds with you. This might seem like a no-brainer, but the fact that orphaned 401K accounts total an estimated $1 trillion indicates it’s easier to overlook than you might think. When it comes to these employer-sponsored retirement plans, employees have three options when changing jobs: 1) roll over funds to a 401K plan with the new employer, 2) roll over the funds into an Individual Retirement Account (IRA), or 3) withdraw the funds. It’s worth noting, however, that withdrawing the money usually incurs a steep penalty. To determine the best approach for your money, it’s always best to consult with a financial advisor at your credit union.

 

If you’re currently contemplating a job offer or just dreaming about what it would take for you to make a change, spend a little time crunching the numbers. To make your comparisons a little easier, the career planning experts at The Balance Careers offer a variety of helpful resources on their site. Once you’ve completed a thorough assessment of your potential job offer, contact one of the financial representatives at Scient Federal Credit Union. We can help you analyze your current finances, identify the best retirement rollover plans, and find ways to maximize your money in order to make your job change as smooth as possible.

Make Spring Cleaning Pay Off This Year!

People sure do like their stuff. Whether it’s the latest tech gadgets or knick-knacks that have been passed down through generations, the things we own hold a special place in our hearts and homes. So, when our possessions pile up, as is their tendency, what’s the logical thing to do? That’s right—rent a self-storage unit. What? That’s not the answer you were expecting?

According to a report by Sparefoot, one out of every 11 Americans pays for storage space to keep their overflowing belongings. That’s right, not only are people finding additional ways to store their things, they’re paying good money to do it—$38 billion a year, to be exact. Spending money to stow away various items you don’t need and will probably never use—seems silly doesn’t it? We agree. In fact, we think springtime is the perfect season to do the exact opposite.

Clean house. Cash in.
Over the past few years, de-cluttering has seen a spike in popularity, thanks in large part to proponents like Joshua Becker and Marie Kondo. While experts like Kondo preach the soul-cleansing benefits of getting rid of anything that doesn’t “spark joy,” we recommend doing it for an entirely different reason. Cash. Cold, hard cash.

Don’t get us wrong, we big fan of the physical and emotional perks that come from cleaning house, but we also believe that making a little extra money would make you feel pretty good too. If you’re inspired but unsure where to start, we’ve compiled a helpful list of everyday items that carry solid resale value and the best ways to sell them.

Electronics
Maybe you just upgraded to a new laptop, and you’re wondering what to do with your old (but not that old) one. Perhaps you switched mobile phone carriers and didn’t bother trading in your previous phone. Or maybe you’re staring at a CD/DVD/video game collection that has gotten way out of hand. Before you throw your hands up and your electronics out, see if you can sell them online through services like:
Decluttr
Gazelle
Swappa

Clothing
Do you have a closet full of outfits you never wear? Have you changed your style but held onto all your old accessories? Did you purchase a new pair of shoes only to realize you already had an identical pair in your collection? Whether you’re creating a capsule wardrobe or just freeing up some space in your dresser drawers, you’d be surprised how many people would be willing to buy your gently used items. Millions of people have made some extra money by selling clothes and accessories via apps like the following:
Poshmark
Tradesy
Vinted

Miscellaneous
Let’s face it; some things just don’t fit in neat and tidy categories. But that doesn’t mean they’re worthless. There’s an old saying that suggests “one person’s trash is another person’s treasure.” That doesn’t mean your stuff is trash, it just means that things you no longer use may be incredibly valuable to someone else. So, before you throw out that vintage nine iron, that dusty old vinyl collection, or your great aunt’s set of decorative collector plates, try listing them for sale on the following sites:
OfferUp
Craigslist
Facebook Marketplace

Once you’ve completed your spring cleaning, minimized your possessions, and made a little money in the process, you might be wondering what to do with your newfound cash. Whatever you do, resist the urge to go right out and buy more stuff! That will just start the problem all over again. Instead, why not contact your credit union and ask them how to make your money work for you? Our team of financial specialists can help you assess your current financial situation and determine how to take smart steps towards a brighter financial future.

Valentine’s Day on a Budget: How to Find Love & Laughs for Less

When it comes to the topic of Valentine’s Day, public opinion seems to be split. Some people love everything about it. Hearts, roses, candy, flowers, Cupid—you name it, they’re here for it! On the other end of the spectrum, you’ll find Valentine Scrooges who consider February 14th a day like any other. They’re convinced the celebration and fanfare are nothing more than Hallmark-sponsored money grabs. To be fair, these positions are extreme.

If you’re like most people, you probably enjoy spending the romantic holiday with your special someone, but you prefer to celebrate without spending a ton of money. Good for you. There’s nothing more attractive than someone who plans a financially responsible Valentine’s date. OK, maybe a few things—but you get the point. If you’re looking to create an inexpensive, fun-loving Valentine’s experience you’ll remember for years to come, we have a few suggestions you might enjoy.

  • Dress up and dine in.
    At first, this suggestion may seem like complete nonsense. Why would you go through the trouble of getting dressed up if you’re not going out in public? Because there’s a strange, yet undeniable appeal to doing something that doesn’t make sense to anyone else, that’s why. So, go ahead—go big. Glam it up. Suit and tie. Gown and heels. The more overdressed, the better. Whether you cook for yourself or order your favorite takeout, the food choice isn’t nearly as important as the fact that you’re both ridiculously overdressed for the occasion. And that’s the point.
  • Dress down and hit the town.
    Like the previous idea, this one involves an unexpected combination of date attire and meal selection—but with a completely different twist. Before the big date, you and your date head to the nearest thrift store (you can shop together or separately) and buy a complete outfit for the other person, spending no more than $10 in the process. The clothing selections can be as tacky and outrageous as you please—the tackier, the better. The only catch is that you both have to wear the outfits to dinner at a nice restaurant, no questions asked. If you play this one right, not only will you save money and enjoy your date, everyone around you will probably get a kick out of it as well.
  • Dollar store gift challenge.
    You and your date can play this one a couple of different ways. The first approach involves heading to the closest dollar store and seeing who can find the single best/craziest/funniest/most ridiculous gift for the other person. The second option involves setting a spending limit and seeing who can rack up the most entertaining gift collection. (No need to go above $10. After all, it’s still a dollar store.) For a little additional fun, take some selfies with your newfound treasures, and share your pics on social media using the hashtag #DollarStoreScore. After your adventure, head out and grab some dessert. Since you did your Valentine shopping at the dollar store, you’ll have plenty left to cover a sweet treat or two.

Whether you use the tips above or come up with a clever idea of your own, being smart about your Valentine’s spending goes a long way towards ensuring your day is filled fun-loving memories instead of expensive mistakes. And when you’re wondering what to do with all your savings, don’t forget to stop by and see us – We’re happy to help you find ways to make that money work for you. And let’s be honest, long-term financial stability is sweeter than a $10 box of chocolates could ever be!

Brace Yourself: Santa Shock is Coming

Let’s talk about Santa Shock, shall we? No, not the “I saw Mommy kissing Santa Claus” kind. For this conversation, we will use “Santa Shock” to refer to that icy sense of regret that creeps in when you open those first post-Christmas credit card bills. If you’ve ever blown past your self-imposed holiday spending limit, you know exactly what we’re talking about.

The realization that you racked up additional debt can be an isolating frustration—something you’d rather keep to yourself, but it might help to realize that roughly 77% of Americans admitted to crashing through their respective financial barriers just like you. We know, we know. You don’t want to celebrate other people’s bad decisions, but when it comes to financial challenges, misery may not love company, but it kinda likes having it around.

You overspent. Now what?

Let’s face the facts. Once the gifts have been opened, the holidays have passed, and the bills roll in, your budget may be a little tighter than you’d like. When you’re faced with those oversized balances, it can be tempting just to make minimum payments and figure out your finances later. But thanks to those pesky credit card interest rates, that approach not only makes the problem last longer, it also makes it more expensive. This year, why not get creative and recover from Santa Shock as quickly as possible?

3 Practical Tips for Paying Off Holiday Debt

If you want to pay off your holiday debt sooner rather than later, try these simple ideas to free up some funds and get your budget back on track:

Cut cable. Since the average cable bill is roughly $107 per month, this step doesn’t require much of an explanation. Unless you’re in the middle of a long-term contract with early termination charges, canceling your monthly cable subscription can save you more than $1,000 per year—more than enough to pay off all or most of those holiday debts. And with affordable streaming options like Netflix and Hulu, you can still keep up with many of your favorite shows.

Closet clean out. If you got new clothes for Christmas, you have to make room in the closet, right? Instead of packing them away, gather up your gently used items and try to sell them online. Apps like ThredUp, Poshmark, OfferUp, and Facebook Marketplace make it incredibly easy to reach thousands of potential buyers without leaving the comfort of your home.

Meal prep for a couple of months. Everybody has to eat. There’s no way around that. And while dining out is convenient, it can also end up costing you more than you realize. Depending on where you live, a single meal at a restaurant can set you back $10-12. If you go to a restaurant more than once a day, you may be spending far more than you need to. By planning ahead and preparing meals in advance, you can save on dining costs and redirect some of your food budget toward your credit card balances.

We’ve already established the fact that it’s fairly common to go over a holiday budget. However, sometimes we get carried away with the yuletide spending and wind up over our heads financially. If you find yourself deep in debt and unable to find a way out, don’t be afraid to ask for help. Our team of financial specialists can help you assess your current situation and then recommend the best programs, products, and solutions for your specific needs. With our help, you might even be able to avoid Santa Shock altogether next year!

Get in touch with us to see how we can help.  

5 Ways to Up Your Money Game in 2019

By now, most people have made their resolutions for self-improvement in the new year. While the most popular resolutions tend to focus on physical health, the start of a new year is also a perfect time to prioritize your financial wellness.

Ready to get started? Read on.

5 Ways to Up Your Money Game in 2019

  1. Make a Budget and Stick to it. Budgeting is one of most effective ways to manage your money. Creating and monitoring a budget allows you to track your expenses, adapt to changes, and achieve your financial milestones. Budgeting can also help you save for emergencies and plan for the long run – including retirement.
    Use our online budget building tool to break your budget down into simple, easy steps and get started.
  2. Build Your Emergency Savings. Unexpected expenses happen more often than we like to think. According to a 2018 Bankrate study, more than half of Americans are not financially prepared to cover the costs that come with emergencies, such as illness, job loss, or even home and auto repairs.
    Get more information on the immediate steps you can take this year to start and grow your savings.
  3. Plan for Your Retirement Now. Less than half of Americans take the steps needed to set themselves up for a secure retirement. While saving for the future is easy to put off in favor of more immediate needs, the earlier you start, the more opportunity you’ll have to grow your savings over time.
    There’s no better time than now to start planning for retirement. Learn about options, like IRAs and 401(k) plans, with our free retirement education.
  4. Get Ahead of Your Taxes. Taxes are confusing, and many people get bogged down by complex terms and lengthy paperwork. However, your taxes don’t need to be a source of anxiety. In fact, getting ahead of your taxes can reap many benefits, including lowering stress and having early access to a refund for year-long planning.
    Make filing your taxes a breeze with tips from our five-minute interactive learning module.
  5. Take Control of Your Credit. Your credit score can have significant impacts on your financial security and flexibility. Many people have never had the opportunity to learn what a credit score is, what factors impact a credit score, and what actions they can take to make sure their score is healthy.
    Take a few minutes to understand the factors that impact your credit score and you’ll be well on your way to building a more secure financial future. 

Access our entire library of financial education topics at scientfcu.everfi-next.net

Four Tips for Planning a Career Change

Changing careers can be rewarding for many reasons, but career transitions don’t always go smoothly. Your career shift may take longer than expected, or you may find yourself temporarily out of work if you need to go back to school or can’t immediately find a job. Consider these four tips to help make the financial impact of the transition easier.

1. Do your homework

Before you quit your current job, make sure that you clearly understand the steps involved in a career move, including the financial and personal consequences. How long will it take you to transition from one career to the next? What are the job prospects in your new field? How will changing careers affect your income and expenses in the short and long-term? Will you need additional education or training? Will your new career require more or fewer hours? Will you need to move to a different city or state? Is your spouse/partner on board?

You should also prepare a realistic budget and timeline for achieving your career goals. If you haven’t already done so, build an emergency cash reserve that you can rely on, if necessary, during your career transition. It’s also a good time to reduce outstanding debt by paying off credit cards and loans.

Assuming it’s possible to do so, keep working in your current job while you’re taking steps to prepare for your new career. Having a stable source of income and benefits can make the planning process much less stressful.

2. Protect your retirement savings

Many people tend to look at their retirement savings as an easy source of funds when confronted with new expenses or a temporary need for cash. But raiding your retirement savings, whether for the sake of convenience, to raise capital for a business you’re starting, or to satisfy a short-term cash crunch, may substantially limit your options in the future. Although you may think you’ll be able to make up the difference in your retirement account later — especially if your new career offers a higher salary — that may be easier said than done. In addition, you may owe income taxes and penalties for accessing your retirement funds early.

3. Consult others for advice

When planning a career move, consider talking to people who will understand some of the hurdles you’ll face when changing professions or shifting to a new industry or job. This may include a career counselor, a small-business representative, a graduate school professor, or an individual who currently holds a job in your desired field. A financial professional can also help you work through the economics of a career move and recommend steps to protect your finances.

4. Consider going back to school

You might be thinking about pursuing additional education in order to prepare for your new career. But before applying to graduate school, ask yourself whether your investment will be worthwhile. Will you be more marketable after earning your degree? Will you need to take out substantial loans?

In your search for tuition money, look first to your current employer. Some employers might cover the full cost of tuition, while others may cap reimbursement at a dollar amount. Generally, you’ll be able to exclude up to $5,250 of qualifying educational assistance benefits from your taxes.

In addition, it’s likely that you’ll have to satisfy other requirements set by your employer to be eligible for reimbursement benefits. These may include, and are not limited to:

  • Discussing course of study with a manager or supervisor prior to enrolling (and receiving approval)
  • Pursuing a degree or training that is job-related
  • Maintaining a minimum grade-point average
  • Working a certain length of time for the company before taking advantage of the benefit
  • Meeting eligibility requirements for regular benefits

Check with your human resources department to learn more about tuition reimbursement qualifications. Be sure to find out whether you can continue to work at your company while you attend school part-time.

Students attending graduate school on at least a half-time basis are eligible for Uncle Sam’s three major student loans: the Stafford Loan, Perkins Loan, and Graduate PLUS Loan. Also, at tax time, you might qualify for certain tax benefits, such as the Lifetime Learning credit. For more information, see IRS Publication 970, Tax Benefits for Education.

Do You Know What It Takes to Run a Successful Side Hustle?

The process of finding financial security has gone through some dramatic changes over the last few decades. As recently as the 1980’s, conventional wisdom suggested following a career path that went something like this: Go to school. Get a good job. Work for one company for 20 years or more. Collect a pension. Retire in relative comfort.

If that approach sounds completely foreign to you, you’re not alone. On his personal finance blog, 20SomethingFinance, G.E. Miller observed, “Most twenty-somethings have never and (unfortunately) probably will never sniff the sweet security provided by a pension plan.” So, if there is almost no hope of finding financial stability by following the same path as previous generations, how can you set yourself up for success? Two words: Side. Hustle.

What Does “Side Hustle” Really Mean?

With more and more people realizing that working a single job leaves them living paycheck to paycheck, side hustles are experiencing a considerable spike in popularity. Since we’ve already used the phrase twice in this article, you may be wondering exactly what constitutes a side hustle. Is it a second job? An online business?  In his new book (conveniently titled Side Hustle), Chris Guillebeau provides some much-needed clarity. “A side hustle is not a part-time job. A side hustle is not the gig economy. It is an asset that works for you.” This definition reveals a crucial distinction between trading hours for dollars and building something that pays dividends for years to come.

Side Job vs. Side Hustle

Thanks to a surging economy and advances in technology, finding a side job is easier than ever. From Uber and Etsy to barista gigs and seasonal retail work, potential work opportunities are plentiful. But if Guillebeau is right, the additional income you can earn from these jobs might not give you the long-term security you want. So, are they even worth pursuing? Do they offer any asset-building benefits? Absolutely. You just have to adjust your motivation for doing the work.

Rather than focusing on the job itself or the hourly wage it provides, South Carolina-based entrepreneur Jeremiah Dew recommends looking a little deeper. “Find an endeavor that makes you become a better person—something that requires you to build a skill set that will help you in future ventures as well.” Drive for Uber so you can learn to interact with people from all walks of life. Sell crafts on Etsy in order to get better at e-commerce and digital marketing. Become an Airbnb host to upgrade your customer service skills. You get the point.

Success Requires a Different Perspective

When you’re trying to earn additional income, it can be tempting to jump at the first opportunity that offers real money. And while a traditional side job isn’t necessarily a bad thing, be careful not to confuse it with a legitimate side hustle. You may be able to earn extra money, but if your income is still tied to your ability to show up and perform a specific set of tasks, you’re not developing an asset. However, if you utilize those opportunities to gain experience and lessons that transcend a specific job or industry, you may be on your way to developing a successful, sustainable side hustle.

You Won’t Win Alone

Now, before you rush out and start a supplemental career, it’s important to remember the value of a good mentor. As the old saying goes, “A smart person learns from his mistakes. A wise person learns from the mistakes of others.” If you’re going to be wise about building your business, it pays to develop a relationship with someone who has experience running a business of their own, someone who made mistakes you can learn from. Whether you find them yourself or ask for suggestions from people you trust, the impact of a business mentor can be priceless.

From a financial standpoint, business ownership requires some extra money TLC. We’ve got some great, financial recourses to help you to stay on top of your money and budget effectively so you can take on your new venture with confidence! 

Can Buying Your First House Actually Hurt Your Credit?

For generations, owning a home has been considered an integral part of the American Dream. Life without a home of your own, the two kids, golden retriever, and white picket fence just don’t make sense. Okay, that last part may be a bit of an overstatement, but the fact remains—well-meaning family members and financial experts alike have long recommended homeownership as a sensible path to financial stability.

When done correctly, buying a house can be one of the smartest investments you’ll ever make. It will undoubtedly be one of the biggest. As a first-time home buyer, your finances will face the scrutiny of mortgage underwriters, so it’s essential to have all your economic ducks in a row before you even begin applying for a mortgage. And while a smooth financing process is reason enough to be smart with your money, financial stability can also help when your credit takes a hit for five or six months following your big purchase. Wait. What?! Yep. That’s right. Your credit score can—and probably will—drop for a few months after you become a homeowner.

Great for you. Not so great for your credit.

Why does buying a house—which, by all accounts, is a wise financial decision—have a negative impact on your credit? The answer isn’t as crazy as you might think. When you apply for real estate financing, mortgage companies pull your credit report to determine whether it makes sense for them to lend you money. In credit industry terms, this is known as a “hard inquiry.” Since these inquiries signal you could be incurring additional debt, they often result in a small, temporary dip in your credit score.

Fortunately, it’s relatively simple to limit the negative impact of hard inquiries. If you’re going to apply for financing with multiple mortgage lenders, do your best to conduct all of your searches within a 30-day window. Because they understand that many people shop for the best rate even though they’ll only secure a single loan, major credit bureaus structure their rating systems to account for multiple inquiries within the same one-month reporting period. While there may still be a dip in your score, grouping your credit pulls will help you minimize the damage. And don’t worry, once you start making payments on time and establishing a positive mortgage history, your credit score should bounce back to where it was before.

Experience a little short-term pain for a long-term gain.

From the opportunity to build equity to the satisfying sense of home ownership, there are a variety of excellent reasons to leave the renting life behind. A temporary dip in your credit score shouldn’t scare you away. If you entered the home-buying process with your finances in order and you resist the temptation to rack up additional debt as you furnish your new home, your credit rating should be just fine in the long run. And let’s be honest, you’ll probably be so busy remembering the new route to work and rearranging your living room furniture that six months will pass before you’ve had a chance to think about your credit score anyway.

If you’re just beginning your home search, your local Scient Federal Credit Union branch is a fantastic place to start. In addition to reviewing your current financial situation, our representatives can also help you determine how much house you can afford and which mortgage program is right for you. We may even be able to help you get pre-qualified, which can give you the extra leverage you need when you find the perfect house.

 

5 Easy Ways to Save for the Holidays in Just A Few Weeks

Facts are facts. When it comes to holiday planning, lists are long and time is short. If you’re one of those mythical people who has already finished your Christmas shopping, this article may not pertain to you. But you can still share it with the normal people in your life…that’s right you prepared people are the weird ones. Now, if you’re part of the 53% of people who wait until the last minute to tackle your holiday shopping, you’ll want to keep reading.

Ever Ascending Holiday Spending

Every year, Americans spend more on winter holidays than any other occasion in the calendar year. Staying in line with this upward trend, shoppers are expected to spend more during the 2018 holiday season than ever before. According to the National Retail Federation: “Consumers say they will spend an average $1,007.24 during the holiday season this year, up 4.1 percent from the $967.13 last year.” And that figure doesn’t even include travel expenses!

Regardless of whether your seasonal spending will top the national average or you skate by just under the line, we want to help you save money. While there may not be enough time to implement a long-term plan, here are five practical tips to help you stretch your holiday dollars a little further this year:

  • Know your limits. Set your limits. At this point in the game, time is of the essence—and so is your money. Rather than trying to overwhelm people with the quantity of your gifts, focus on the quality. It’s always better to give someone one gift they’ll love than to flood them with a variety of forgettable trinkets. Save your time (and hopefully your cash) with more meaningful gifts.
  • Go with gift cards. Don’t stress an opinionated recipient. Let them do the heavy lifting, you just give them the gift of shopping guidance. Plus, nothing says “treat yourself” like a gift card. Why not get creative and make those very same gift cards work for you? Many retailers offer gift cards at a discount during the holidays. If a store is selling gift cards at a 10% discount, buy a $100 gift card for $90 and use it to pay for your gift purchases. Hidden savings will help you through.
  • Abandon your cart. If you’re planning to do your Christmas shopping online this year, slowing down can save you money. Instead of finding the item you want, adding it to your shopping cart, and checking out immediately, try a new approach. The first two steps are the same. But then, instead of completing the purchase, leave the item in your cart and exit the site. When something sits in your cart for an extended period of time, many online retailers will send you a reminder email offering a discount if you’ll come back and complete the transaction.
  • The search for savings is on. Thanks to the Internet, you no longer have to cross your fingers and wonder if the store you’re shopping from will offer a coupon or promo code. Websites like Retailmenot, Groupon, and Ebates do the work for you. If you’re a frequent Amazon shopper, the Honey app will automatically search the web for coupons or promotions on the items you’ve added to your cart. The holiday season is the perfect time to let modern technology work for you!
  • Patience pays. Failing to plan ahead is rarely a good strategy. But in the case of holiday travels, it just might work in your favor. If you’re hitting the road for Christmas vacation, websites like HotelTonight and  LastMinuteTravel have created their entire business around helping travelers like you score last-minute deals on hotel rooms. Don’t just book the first available hotel room you see in the search results. Shop around. Outstanding savings are out there — you just have to find them.

While the tips we’ve offered can help you get through this holiday season with your spirit intact, there’s an even better way to prepare for next year.  At Scient, our Holiday Savings Club makes it simple to set aside a little money each month. Start a new tradition of stress-free shopping. Contact us today to learn more about our Holiday Club!