July 28, 2010 Dollars & Sense
August Tips from SLFCU and the Home & Family Finance Resource Center It’s great fun to strike out on your own and to view the the world as full of opportunities. But to take full advantage of those opportunities, you’ll need the financial underpinnings to keep you safe, your finances strong and your wealth growing. As an SLFCU member, you have advantages.
A budget is your key
First, you’ll need to know how much income you’ll have and how much your expenditures will be. Calculate your budget using the Budget Blueprint on www.slfcu.org to understand whether you’ll have enough money for rent, food and gas and still have something left over for entertainment. Getting a picture of your finances from the Blueprint helps show if you have only enough money for "needs" or if you’ll be able to afford a few "wants" as well.
Get an ATM/Check Card
Use your SLFCU Check/ATM Card anywhere MasterCard is accepted to pay for things directly from your share draft checking account and receive cash from ATMs or retailers. For signature purchases, you’ll get a .25% cash rebate. Track expenditures in CU@home® to keep your spending in line with your budget.
Manage your cash flow to pay your bills on time
Enroll in CU@home Online at www.slfcu.org. Ask your employer to deposit your paycheck automatically. (The SLFCU routing number is 307083911.) Next, establish two savings accounts in addition to your share draft checking account. Save regularly by setting up an automatic transfer of a portion of your paycheck into one savings account and control spending by depositing the extra cash you have for "wants" in another savings account. Spend only the money from the second savings account on wants. When it’s gone, stop buying "wants."
For recurring bills like utilities and rent, use the free CU@home BillPayer system and schedule your payments. Or you can charge your bills to your SLFCU credit card. As an insurance policy, ask us to have at least the minimum payment made each month from checking. That way, your bills will be covered even if you forget one of them. Remember to pay the card’s balance before the due date because making only minimum payments will get you into a hole fast. And remember, that your minimum credit card payment will change as your balance changes. If you want to account for and analyze your income, expenses and cash flow, you can download your SLFCU account information directly into Quicken®.
Enroll in eNotices, Alerts and eStatements
You’ll keep even better tabs on your money when you enroll in eNotices and Alerts. They’ll notify you about your balances, transactions and bill payments as well as send you an email when you have a message from your Credit Union. eStatement notices arrive once a month to let you know that your monthly statement is ready for viewing. You’ll also receive security alerts from SLFCU when your password or address changes or when your account has been disabled due to multiple failed sign-on attempts. Check your accounts in CU@home frequently to make sure your spending isn’t getting out of hand.
What you need to know about credit
Your credit score will be used by many different people to determine what kind of credit risk you are. Credit card companies, employers, auto dealers and apartment leasing agents will check your credit score before they do business with you. You’ll need to build a good credit score and protect it from the start. Apply for an SLFCU credit card, make responsible purchases and pay for them on time. Pay the balance in full or at least make the minimum payments before their due dates. Try to keep your balances to 30% or less of your credit line.
Keep track of your credit at www.annualcreditreport.com. Request a free report from one of the three credit bureaus once every four months. Examine your monthly credit card statements for merchant errors or fraudulent charges. Visit MyFICO.com to obtain your credit score and learn how FICO scores are calculated.
Finding your own place
Check your Budget Blueprint to see what you can afford before you begin to look for your own house or apartment. Remember you’ll have to pay for electricity, phone, heating, water and your own food in addition to your car payments, insurance and gasoline. You’ll also likely spend money on clothes, electronics and entertainment. Remember that in a renter’s market, you may be able to negotiate a lower rent payment if you have good credit and references. A landlord may want you to pay for a credit check and even a criminal records check.
Figure out how long a commute you can afford and how far you’ll be from stores and entertainment. After deciding which neighborhoods suit you, check the classifieds to find available properties and make appointments to see them. Once you find a property you like, investigate the management company and owners by asking the neighbors what it’s like to live there. Check the police department for local crime statistics and look around back to see if it’s clean and well kept. Drive and walk around the neighborhood at different times of the day to make sure there are no loud noises from trucks and trains. Be sure to think about safety. Are all the smoke and CO2 alarms and fire escapes in good working order?
Examine the lease
Find out how much the security and damage deposits will be and under what circumstances the landlord can keep all or part of them. Calculate which utilities you will pay, how much they will be and which will be the responsibility of the landlord. Are pets allowed? Do they require an additional damage deposit? Will you have to supply window coverings? Are the late payment fees reasonable? How much notice do you and the landlord have to give before terminating the lease early, and how much of your deposit will you lose?
Take date stamped photos of your new apartment before you move in so you don’t have to pay later for costly damage caused by someone else. Finally, be sure your roommates are reliable and they’ll pay their bills on time. If they don’t pay their share of the rent or if they move out ahead of time, you could be liable for all of the rent.
There’s a lot to consider before striking out on your own. But by doing a little work and using the tools available at SLFCU, you’ll make a good start. If you do run into a problem, call us. Our Financial Services Representatives are here to help you.
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