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Four Easy-to-Follow Financial Tips

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Ah, summertime – when the livin’ is easy and the yard-sale signs are plentiful! To spread that laid-back feeling through the rest of the year, take a little time now to think about financial challenges facing you later in 2013. Let us help you take the steps now to turn potential stress into success.

“The house needs work, but can we afford it?”

For immediate repairs or renovations, ask us about a home improvement loan with budget-friendly fixed payments. We also offer more flexible equity credit lines and have discounted products for your environmentally friendly projects. If your project can wait until fall, you might consider prefunding it with regular transfers from checking to a Special Savings account. For example, if you expect to receive eight biweekly paychecks before cold weather, moving $150 into savings during each pay period will net you $1,200 (plus interest) to fund your fix-up.

“This year, we’re not going into debt for our vacation.”

Were these your Famous Last Words in 2012? This time, plan to prepay as many vacation costs as possible with cash. Get the whole family to agree on daily spending limits, and pay expenses with a debit card linked to an account that holds only vacation money. (But bring along a credit card for true emergencies.)

“This year, we’re not going into debt with our holiday spending.”

Our Special Savings account can be used to save for many things however holiday spending is one of the most common uses. When you arrange for regular automatic transfers into this account, your holiday cash will pile up, maybe even faster than the snow!

“It worries me that we won’t have enough money to retire on.”

Today’s low-interest-rate environment could last another two years or even longer, say economists consulted by PIMCO, a bond fund management company.1 If so, that will influence how much you can expect to earn with our regular and IRA certificates. The lowest-risk solution is simply to save more. Bump up your company savings plan contribution by 1% to 3%, or talk to us about a program to funnel money automatically from your paycheck or checking account into savings. VSECU also provides members with access to a professional brokerage service specially designed with the credit union member in mind. Keep your retirement planning on track, contact us today.

1 “Low Interest Rates Wallop Retirees: EBRI,” AdvisorOne.com, 5/13/13