EPEFCU

Planning a Summer Vacation? Start Saving Now!

While your summer vacation may not rank high on your financial list of to-do’s, planning early can help you save a significant amount of money in the long run. We understand that it may be hard to think about your tropical island get-away in the middle of winter, but January is the perfect time to start budgeting for you summer vacation.

Decide where you want to go and how you plan to get there.  

•         Once you and your family decide on where you’ll spend those glorious vacation days this summer, it’s important to create a budget that will help you save money towards the cost of your trip. Remember that a vacation doesn’t have to equal debt! Start planning now and pay for your trip in cash rather than relying on high interest credit cards.

•         Before you can begin to save, you’ll want to open up a designated savings account that will separate your vacation fund from the rest of your finances, such as the Vacation Club Account offered at El Paso Employees FCU. Watching your vacation account grow will encourage you to stick to your goal and keep you from using the funds towards other splurges.

Do your homework. Once you’ve decided on where you want to go, begin looking into where you’ll stay during the duration of your trip. Check out online websites such as Expedia, Orbitz and Travelocity for deals on hotels. But don’t neglect to check out the hotel websites themselves as they can sometimes offer a better rate. Remember that the time of year you choose to take your vacation will affect the cost of your stay. Booking during the hotel’s off-peak season will help you score a lower rate. Get the most out of your money by asking for a discount if you’ll be staying for more than seven nights.

•         If you’re planning on taking a cruise, booking your reservations early will guarantee you a spot on the cruise ship. You might also be eligible for early booking discounts.

Decide how you’ll reach your destination. Will you be driving or flying to your destination? Just like you should consider booking your hotel early in advance, you might also want to consider buying plane tickets early as well. Doing so might let you avoid any spike in prices due to the increase in flying during the summer months.

•         Remember to consider how many people are flying or driving on this trip as well as if there will be pets accompanying you. For larger families toting their pets along, it may be cheaper to rent a van and plan a road trip rather than purchasing plane tickets for you, your children and Fido.

Don’t let your post-holiday-debt-blues keep you from planning your summer vacation early this year. Plan to pay for your next trip in cash and avoid the stress of the post-vacation debt! 

 

What tips would suggest when saving for your summer vacation? Share with us! We'd be honored to read your comments!



New Income Tax Rules

Find out about the latest income tax rules, what you need to know and how to prepare for this years tax season. Join Paul Berny and Barbra Waltmen on the Home and Family Finance Radio as they discuss the information you need to know.

Buying Your New Home

Buying your very own home is the epitome of the American Dream, but it’s easy to become overwhelmed if you’re a first time home buyer. We’ve put together a basic checklist with points you’ll want to consider as you walk through the home buying process whether it's your very first time, or second or third.

Before you start the search for your dream home, take some time to determine what your needs for this home will be, as well as your wants. Understand that while your want may be a 5 bedroom mansion with a state-of-the-art kitchen and a walk-in-closet with enough space to fit a parked car, your needs probably don’t call for a closet quite so big. Keep in mind that first and foremost your new place must fulfill your list of needs but not necessarily all of your wants.

Arrange your finances before you begin shopping for a home. Sit down and reassess your household budget to determine how much of a mortgage you can realistically afford. Make certain that you factor in any unexpected expenses that might arise. Remember that as a home owner you’ll no longer have the luxury of calling on your property’s maintenance man in the event that something needs to be repaired. These repairs will now be coming out of your pocket. After carefully choosing a lender, you’ll want to begin to discuss with them your options for a preapproval or prequalification. A prequalification will help you determine which homes you’ll be able to afford, and which homes you won’t.

Before you start the search for your dream home, determine which neighborhood(s) you want to live in. Spend time in the neighborhoods by driving or walking past during the daytime and at night. Visit the local area schools and nearby shops even if you don’t currently have children. Take into consideration what school district you’ll be living in as this will affect the amount of taxes you’ll be paying, some districts are more expensive to live in than others. Crime rates, transportation and zoning are important considerations when selecting a neighborhood.

Once you have received a prequalified amount from your lender and have picked out a few different neighborhoods you’d be interested in living in, find yourself a good real estate agent. Make sure to ask for references of any of the individuals whose help you enlist during the process. You’ll also need to hire a home inspector to have the home checked for termites, radon, and or any other concerns.

Once the home has cleared inspection, make an offer as soon as possible. Your real estate agent will help you determine what the best price to offer will be, but make sure to do your homework so that you’ll be aware of what the value of the surrounding homes in the neighborhood are.

Buying your new home may seem like an overwhelming endeavor, but with the right tools, it most certainly doesn’t have to cause you stress.  

 

Did you know that EPEFCU now has a brand new, in-house mortgage department? We now provide 30-year, 20-year, 15-year, and 10-year mortgage loans. For more information email us at mortgage@epefcu.org.

 

Spring Writing Contest

We are now into our third full week of the New Year, and for college students, that means you’ll be heading back to school for the Spring semester. It also means you’ll probably be looking for ways to pay for that pricy college degree. We understand that for many, a college degree may seem out of reach as the cost of a college education continues to soar.

According to a UCLA nationwide survey of college freshman, nearly one-third of the 271,000 freshman surveyed are attending schools that were not their first choice. That’s the highest percentage since 1988. Of those students who were accepted but didn’t go to their first choice college, more than one-third said money was the issue: they couldn’t afford it.  

For those of you already in college, and for the high school seniors who are planning to attend college, we want to help! We’ve brought back our Writing Contest for the Spring to give two lucky students a chance to win $1000 towards their education.

Starting today, EPEFCU will kick off its spring writing contest, open to all college students and high school seniors. One student will be chosen from each category to win $1000 to use towards their education, all you have to do is share your experience with us! (You must be a high school senior or college student to qualify.)

Students, please choose one topic from each of the following categories to write about:

1. Tell us about your saving’s resolutions for this year. How do you plan to accomplish these goals in 2011?

2. Tell us about your financial experiences in 2010. How do you plan to improve upon your financial health in 2011, and what will you do differently?

3. It is easy to rack up unnecessary debt through the use of credit cards. Do you have any high balances you need to pay off? How do you plan to pay this debt down and what advice would you give others in your current situation?

Once written:
1. E-mail your submission along with your Name, Address, Telephone Number, Contest Group (high school senior or college) to marketing@epefcu.org.

2. Become a Fan or Follower and leave a comment about your recent submission on any one of our social media sites below.

Contest Rules:

*Deadline to submit your essay is April 15, 2011, no later than 11:59 p.m. MST.

* Entries must be at least 1,000 words.

* Content must be original and cannot be published elsewhere.

* By submitting an article for this contest the writer is granting El Paso Employees Federal Credit
Union first and full publishing rights to your piece.

* The applicants will be judged by a committee. A winner will be announced in each category and monies will be given once membership has been established. For the high school category, money will be deposited into an Escrow account and will be released to the university the student enrolls in after graduation. For the college category, the funds will be released to the university which you attend. Please keep in mind that the funds are to be used for educational purposes only.

* Winners will be notied April 25, 2011 via the e-mail address with which they used to register for the contest.

Annoying Bills to Slash Today

Tired and irritated by those same bills that show up in your mailbox every month? While we can’t live without them (or at least most of them), they don’t have to cost you an arm and a leg. Read on to find out how you can slash those annoying bills you simply must pay every month.

  Stop paying more than you have to for your cell phone every month. Okay, so this isn’t actually a bill you absolutely cannot live without, but let’s face it, for many of us, feeling disconnected on the days we forget our phone feels like the end of the world. Still, your monthly plan doesn’t have to cost you a fortune.

•         Avoid unnecessary charges such as dialing 411 when you’re in need of a phone number. Text Google instead at 466453 to avoid the costly $1.99.

•         Sign up for a family plan with the ones you talk to the most. Being on the same plan will ensure that your conversations to those you chat with most often are free.

•         Check with your employer to see what discounts, if any, they offer.

•         Scan your monthly bill. Many times, we pay our bill each month without taking the time to see what it is we are actually being charged for. Not using up all those minutes or text messages? Consider signing up for a pre-paid plan to save some extra bucks.

During the colder months of the year it’s easy to rack up a large heating bill while trying to stay warm. Still, there are a few adjustments you can make to shave some dollars off the bill.

•         Block all drafts to keep heat from escaping and cold air from coming in.

•         Install a programmable thermostat so that you can control the temperature in your home.

•         While you’re away at work or sleeping at night, lower your thermostat a few degrees. Or, use a space heater to warm one area at a time.

Until your mortgage is paid off, you can count on that monthly mortgage payment. One of the smartest things you can do to save money on your mortgage bill is to make an extra payment a year. Now, we realize that this may sound counterintuitive, but in the long run, just one extra payment can save you thousands of dollars by reducing the amount of accrued interest you pay, and by shortening the amount of time it will take you to pay it off. 

Insurance is definitely a necessity, even the law in some states, (at least when it comes to automobile insurance), but there are a few ways you can lower the cost of your monthly premiums.

•         Taking a state-approved defensive driving course can significantly drive down (no pun intended) your auto insurance rates. Court-mandated classes however, may not qualify for a defensive driver discount; make sure to check with your insurance provider.  

•         Consider raising your deductibles, doing so will also lower your monthly payment. However, make sure that you set aside the needed deductible you’ll be responsible for in the event of an accident.

•         Ask about discounts for bundling your insurance plans. Many insurance companies will give you a discount if you have both your home and auto insurance with the same company.

Some bills are simply just unavoidable; the high cost however is not. Follow these easy tips to put some money back in your pocket.

 

Were these tips helpful? What have you done to save some money on the monthly bills you pay? Let us know! We would love to read your comments.  

 

What's the Difference Anyway?

We wanted to know where the people of El Paso banked, and if they knew what the difference was between a Credit Union and a Bank. So, what did they have to say? Watch as we took to the streets at the Celebration of Lights!

 

 

Do you have an opinion about a Credit Union or a Bank? We want to know what you think! Create your own YouTube video, or just leave you comments here, we'd be honored to read them!

Commonly Missed Taxed Deductions You Need to Know About

 The New Year means that the tax season will be upon us before we know it. Most of us will probably put off preparing our tax return until the very last minute because lets face it, preparing taxes can be tedious. When you finally do begin to prepare for this years dreadful tax day however, there are a few deductions you’ll need to keep in mind in order to ensure that you’re not paying more than your fair share to Uncle Sam.  

Did you spend some time looking for a job? If so, the expenses you incurred are deductible even if you didn’t land that job. Expenses such as fees paid to employment agencies or resume writing services are all included under expenses you can deduct.

If you’ve already paid off your mortgage, a new law that took into effect into 2008 will greatly benefit you. Now, you can write off your property tax, even if you don’t itemize deductions by increasing your standardized deduction by the amount of real property tax you could have claimed if you did itemize, up to $500 or $1000 on a joint return.

Most us know that charitable cash donations are deductible, but what about noncash contributions? You are permitted to deduct any charges you’ve made on your credit card for the purpose of charity in the year it was charged. Make certain however that you have proof of your purchase by asking the charity for any necessary receipts you’ll need to keep in the event of an audit. If you’ve donated clothing or any other items to organizations such as Goodwill, make sure you receive a written receipt for your records and remember that items must be considered in “good” condition or better. If you’ve volunteered for any charities, you are also permitted to deduct any mileage use while volunteering.

Still paying off those student loans? Any interest accrued on them is tax deductible as long as the loan is still currently owned by the lender.

Many insurance premiums, including long term care premiums based on age are potentially deductible. In order to qualify for this particular deduction, medical expenses must exceed 7.5% of your adjusted gross income (AIG).

Also, don’t forget to track any business expenses that you accrue throughout the year as these are also tax deductible. And whether you plan to prepare your taxes on your own or with the help of a professional, tax preparer costs are also deductible. Expenses such as tax preparation fees and even the portion of your legal and accounting fees related to tax planning are deductible if their total exceeds 2% of your adjusted gross income.

Tax preparation is never fun. Resolve to get a head start this year and keep these commonly forgotten deductions in mind so that come tax time, you can rest assured that you’ll be taking advantage of the deductions you’re entitled to. Remember,  as always each individual's circumstances can be different. Consult your tax advisor regarding questions and deductibility of interest.

Did you know that you can receive a discount on the Turbo Tax Federal Deluxe software just by being a member at El Paso Employees FCU? Visit our website and click on the Turbo Tax link to find out how!

A New Change in a New Year

We recently wrote a blog about the steps you can take to become financially sound in the New Year. We know that keeping a New Year’s resolution can sometimes be difficult because they involve change, and let’s face it…change is difficult. That’s why we are offering you a few more tips that will help you stay on track as you work your way towards decreasing your debt.

According to the National Foundation for Credit Counseling, decreasing debt was the no. 1 New Year’s resolution for 2011, with improving credit scores, allocating more funds towards savings, and reducing dependence on credit cards running a distant second, third, and fourth. But come February and March, many of our resolutions have been long forgotten. According to a study conducted in 2007 by Richard Wisemen from the University of Bristol, seventy eight percent of people who set New Year resolutions fail.

Being motivated is a great starting point, but in order to be successful, you’ll need to create a realistic plan that you’ll be able to follow throughout the year. Why not forego the traditional resolution and instead, create a financial to-do list you’ll work towards accomplishing. Consider some of your financial goals for the New Year, and then break them down into smaller, more tangible goals you’ll be able to cross off your list as they’re accomplished. When setting your goals, be specific. Setting unrealistic or broad goals will be difficult to fulfill and will only discourage you in the long run.

Seek resources that will help you accomplish your goals. There are many free webinars and websites such as our blog that offer free financial tips to help you get your finances into shape. Or, if you’re a reader, there are many books written on the subject by financial experts such as Dave Ramsey. In any case, seeking help will aid you in your journey towards financial success.

Make an effort to start saving. Or, if you are already saving, try boosting the amount you put aside each month. Use services such as automatic transfers to make the process less painful. If the money is pulled out before you see it, chances are you’ll miss it less. Creating a cushion for emergencies is an essential part of living a financially sound life.

Look at your credit report. Visit AnnualCreditReport.com to ensure that there are no errors on your report that might be affecting your credit score. Keep in mind that each of the three credit bureaus may provide you with a slightly different credit score. Make sure to check all three bureaus, although you may want to do this periodically throughout the year as you are only allowed one free credit report from each of the bureaus in the same year.

Know how much you owe. List all of your debts so that you know exactly how much you need to pay and when. It is imperative that you make all of your payments on time each month; late payments can drastically reduce your credit score. Keep in mind that your credit score can affect the interest rate creditors charge you. Also, try to pay more than just your minimum payment if possible. Due to the recent credit card laws, your credit card statement now shows you how long it will take to pay down your card should you choose to only make the minimum payment.

Life can sometimes get in the way and it’s easy to forget about a payment when we have so many to keep track of. Take advantage of tools offered by your credit union that will help you stay on top of your monthly payments. Sign up for alerts or and automatic payments when possible.

Remember that change is tough and it doesn’t happen overnight. Don’t get discouraged if you don’t see results right away or if you make a mistake, such as forgetting to make a payment. If you do make a mistake, pick yourself up and keep moving forward. Before you know it, you be living a financially sound life!

 

Do you have a financial success story you want to share? Or maybe you’re currently working your way towards financial success. What has your experience been like? Tell us! We’d be honored to read your stories!

Don't Let Your Gift Cards Collect Dust-Exchange Them

According to the National Retail Federation, gift cards remain the most requested holiday gift, with almost 55 percent of people reporting that they want one. Still, many of us will never get around to using our gift cards either because we’re too busy, we forget, or we just don’t like the store the gift card is from. The NRF reports that between 8%-10% of gift cards go unredeemed, if you’re guilty of not using gift cards, it’s time you stop throwing money away. We found a list of sites that will allow you to exchange your card for one your certain to use.

Sites such as Cardpool.com and Plasticjungle.com are becoming increasingly popular across the internet as more and more people are looking to exchange their unwanted gift card for one they’ll actually put to use. This particular site and others like it will buy back your unwanted gift card in exchange for cash, check, PayPal deposit, or an Amazon.com gift card. Keep in mind however; some sites will only pay you 60%-70% of its face value.  According to CNN, a $50 gift card from Sports Authority can be exchanged for $37.50 in cash, or a $39.38 Amazon.com gift card on Cardpool.com.  

If however you’re in the market for a new gift card, you’ll likely be able to purchase one at a discounted rate, making your money go even further. Sites such as Giftcardsagain.com allow users to buy unwanted gift cards as a discount. The card is then shipped free of charge and arrives within 7 business days.

Giftcardswapping.com will allow you to exchange your card for another one of equal value, however the cards available on this site are extremely limited and customers are required to shell out a fee of $3.99 for the service.

Cardavenue.com averages an inventory of approximately 5,000 cards each month, according to MSN. Users create a wish list where they can list the gift cards that they are willing to accept in exchange for their unwanted ones. The site however charges a fee of 3.95% to sellers and allows users to offer the seller cash on top of their gift to cover the balance.

One of the largest markets of gift card auctions however is eBay. The varieties of available cards are separated into multiple categories, including retail stores.

What many people may not realize is that gift cards equal money, regardless of where they are from. Don’t let your unused plastic collect dust at the bottom of your drawer, combine your unused cards to get the one you really wanted today! 

 

Did you know? El Paso Employees offers Visa gift cards. If your looking for that the perfect card, make it a Visa this way you'll know they're sure to use it, because a Visa gift card can be used anywhere Visa is accepted!

 

Did you recieve a gift card this holiday season that you'll likley never use? Do you plan to exchange the card on any of these sites? Or maybe you've already utilized any one of these sites to get the card you really wanted. Tell us about it! We'd love to hear your stories!