Online Banking


Online Banking


Financial First: Making Your First Budget Plan

Woman sitting on couch while leaning over table to write on document with phone and laptop resting next to her.

How many times do we set a New Year’s Resolution with the full intention to stick to it only to have it flop a month into the year? This year, we’re starting strong and planning to be financially savvy all of 2023. And one of the first steps to a financially successful year is to create your first budget plan! We promise it’s not as stressful as it sounds, especially with Vicinity CU on your side. By creating a budget, you will be able to see where your money is going, where you will be able to save money, and how to have a clear mind when it comes to your finances. Today, we’ll explain two popular budgeting methods for you to consider: the “Zero-Sum Budget” and the “50-30-20 Method.” One of Dave Ramsey’s philosophies for financial success is the zero-sum budget. Essentially, it is your monthly income minus expenses equals zero. So, if you make $3,000 a month, that $3,000 should be allotted to food, utilities, transportation, housing, insurance, miscellaneous expenses (giving yourself a buffer), debt, etc. This way, every dollar you make is being put to good use—either by spending or saving. Follow this link to the Ramsey website and see how you can make your zero-sum budget for free. This source will take you through a series of questions asking your current financial goals, your monthly income, your monthly payments and debts and savings, and will calculate it all for you. It’s free, and it does the math for you – sounds like a win, win! Another budget plan that could work for your 2023 savings plan is the 50-30-20 method. That is, 50% on needs, 30% on wants, and 20% on savings. The “needs” department includes rent, mortgage payments, utilities, food, and transportation. The “wants” area is designated for dining out, vacations, entertainment, new electronics, and fancy coffees. And the “savings” is allotted to exactly what it is named: savings and investments. This can be your regular savings account, an IRA account, or investing in the stock market. Take the time to write down all of your expenses and categorize them within these three departments, and you will thank yourself later. With either of these budget plans, you will go from wondering where your money went over the month to where it went, when, and how. Life should be enjoyed without the looming stress of your financial status. Start the new year off right while also looking out for your future self and start your budget today! Need an extra set of eyes for your budget? Don’t hesitate to reach out to our team for advice or financial help! Sources:  https://savvybudgetboss.com/budgeting-tips-for-beginners https://www.ramseysolutions.com/budgeting/how-to-make-a-zero-based-budget#:~:text=Zero%2Dbased%20budgeting%20is%20when,%2C%20a%20job%2C%20a%20goal.

Tax Returns: Everything You Need to Know in 7 Steps

Woman sitting at cafe table wearing apron using phone to calculate charts resting on table in front of her.

Tax returns are an essential part of every individual’s financial life. It is the process of submitting information about your income, deductions, and credits to the government to calculate the amount of taxes owed or refund due. Here is a step-by-step guide to help you understand the tax return process: 1. Gather all necessary documents: Before you start preparing your tax return, make sure you have all the required documents such as W-2 forms from your employer, 1099 forms from any freelance work, receipts for any deductions you plan to claim, and any other relevant information. Employers have the responsibility of ensuring that you receive your documents by a set date every year, making it crucial to stay aware of document deadlines annually. 2. Choose a tax filing method: There are two main options for filing taxes: you can file your taxes online using tax preparation software or you can file a paper return. 3. Determine your filing status: Your filing status determines the amount of your standard deduction and tax bracket. The five filing statuses are single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. 4. Calculate your taxable income: This is done by subtracting any eligible deductions from your total income. Common deductions include mortgage interest, charitable donations, and state and local taxes. 5. Calculate your tax liability: Once you have determined your taxable income, you can use the tax table or tax calculator to calculate your tax liability. This amount is the total amount of taxes you owe to the government. 6. Check for tax credits: Tax credits are a dollar-for-dollar reduction of your tax liability and can result in a larger refund. Some common tax credits include the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit. 7. File your tax return: Finally, you can file your tax return either electronically or by mail. If you owe taxes, you will need to make a payment by the tax deadline. You will receive a refund within a few weeks of filing if you are due a refund. Preparing and filing your tax return can be an intimidating process. However, with proper preparation and resources, tax season can be relatively straightforward. Understanding the steps involved and gathering all the necessary information can ensure a stress-free tax season. Need more assistance? Sources: https://turbotax.intuit.com/tax-tips/tax-pro/what-documents-do-i-need-to-bring-to-my-tax-preparer/L9MsmLTSq https://www.nerdwallet.com/article/taxes/tax-filing https://www.investopedia.com/terms/t/taxableincome.asp https://www.investopedia.com/terms/t/taxliability.asp https://www.investopedia.com/terms/t/taxcredit.asp

Securing Financial Freedom: A Guide for Young Adults

Woman sitting at table at restaurant using cell phone.

Entering adulthood often comes with a myriad of responsibilities, and one of the most significant challenges faced by many young people today is managing student debt
while striving for financial stability. However, with careful planning, discipline, and the
right strategies, it is possible to eliminate student debt, save money, and lay the
foundation for a prosperous financial future. In this blog, we will explore practical steps
that young adults can take to alleviate the burden of student debt, build savings habits,
and establish a strong, lasting financial footing. Understand Your Student Debt:Start by gaining a comprehensive understanding of your student debt. Review your loan
terms, interest rates, and repayment options. Calculate your monthly payments and
identify if there are any opportunities for loan forgiveness or refinancing. By having a
clear picture of your debt, you can develop a more effective repayment strategy. Create a Budget:
Establishing a budget is crucial for managing your finances effectively. Begin by
tracking your income and expenses to identify areas where you can cut back and save
money. Prioritize essential expenses and allocate a proportion of your income toward
debt repayment. By adhering to a budget, you’ll be better equipped to control your
spending, avoid unnecessary debt, and save for the future. Increase Your Income:Finding ways to increase your income can significantly accelerate your journey to
financial freedom. Consider taking up a part-time job or freelancing to supplement your
earnings. Alternatively, explore opportunities for career advancement, additional
certifications, or education that can lead to higher-paying jobs in the long run. Devoting
extra income toward debt repayment will help you eliminate student debt faster. Explore Loan Repayment Strategies:Take advantage of loan repayment strategies that suit your financial situation. The two
popular options include the snowball and avalanche methods. The snowball method
involves paying off the smallest debt first while making minimum payments on others.
Once the debt is paid off, move to the next smallest debt. The avalanche method
focuses on paying off debts with the highest interest rates first. Choose the strategy that
aligns with your preferences and stick to it. Prioritize Savings:
While paying off student debt is crucial, it’s equally important to save money for
emergencies and future goals. Establish an emergency fund that covers at least three to
six months of living expenses. Set up automatic transfers to a savings account, treating
it as a non-negotiable expense. Consistent savings habits will provide you with a safety
net and financial stability. Minimize Expenses:
Cutting unnecessary expenses can free up funds for debt repayment and savings.
Consider evaluating your monthly subscriptions, dining out habits, and entertainment
expenses. Look for cost-effective alternatives, such as cooking meals at home,
exploring free recreational activities, and leveraging student discounts. Develop Financial Literacy:
Invest time in expanding your financial knowledge. Read books, listen to podcasts like
The Dave Ramsey Show, and attend workshops that focus on personal finance.
Understanding concepts like investing, retirement planning, and credit management will
empower you to make informed financial decisions and optimize your resources
effectively. Eliminating student debt, saving money, and building a solid financial foundation
requires dedication, discipline, and a well-planned approach. According to the Federal
Reserve, Americans owe over $1.7 trillion in student loans, and this debt can be
overwhelming for young people who are just starting out their careers. However, by
understanding your student debt, creating a budget, increasing your income, and
prioritizing savings, you can take control of your financial situation and pave the way
toward a brighter future. Remember, financial freedom is not achieved overnight. It requires perseverance and a
commitment to make smart financial choices. Embrace the journey, stay focused, and
celebrate the milestones along the way, knowing that you are taking control of your
financial well-being and your future. If you need help with any step along the way, come
talk to us at Vicinity Credit Union. Sources:
https://www.federalreserve.gov/publications/2022-economic-well-being-of-us-households-in-2021-student-loans.htm https://www.nber.org/system/files/working_papers/w18412/w18412.pdf  https://www.ramseysolutions.com/debt/25-things-to-know-before-you-turn-25

Tales of the Thrifty Traveler: How to Conquer Adventures Without Breaking the Bank!

Happy lady smiling while packing suitcase resting on bed with large windows, bed side table and plant in background.

Ahoy, fellow travelers, and welcome to the wonderful world of thrifty travel! You may think that to have the BEST vacation you will have to spend a lot of money and go into a lot of debt. That’s simply not the case. So, prepare your imagination for an exciting journey filled with money-saving tips and unforgettable experiences. That’s right, we’re unraveling the secrets to unlocking epic adventures while keeping your wallet happy. Grab your things and let’s embark on your vacay without breaking the bank! 1. Unleash the Power of Planning:As with many things in life, planning is the key. It’s how you’ll have an amazing AND budget-friendly trip. The internet is a great tool for this. Dive into the realm of travel research and unearth the hidden gems waiting to be explored. You can plan attractions, accommodations, and even restaurants in advance. This is also a great step if you need a flight to get to your destination. If you plan far enough in advance, you can track ticket prices and get the best deal. Pro tip: Some services you may already subscribe to can get you travel discounts. For instance, if you’re a AAA member, you can get discounts of up to 10% on travel and attractions. With a little groundwork, you can lay the foundation for an epic adventure while saving those precious pennies. 2. Embrace the Offbeat and Off-Peak:Sure, there are some things that you must do when you visit certain destinations. You know those things you need to take a picture of so you can say “I’ve been there.” However, you shouldn’t fill your trip with these kinds of activities. Sometimes, it’s best to leave the crowded tourist trails behind and venture into the land of offbeat destinations. Seek out charming towns, tranquil beaches, or picturesque countryside escapes that offer the perfect blend of beauty and budget-friendliness. Embrace the allure of off-peak travel by exploring during weekdays or outside the high-season rush. You’ll find lower prices, shorter queues, and a chance to experience destinations in their authentic glory. 3. Creative Accommodations:Yeah, we all want the Plaza experience where we stay at a five-star hotel and have all of our whims catered to. But, if we’re being realistic, that can’t be every vacation we take. If we want to save some money, we’ll have to break free from the shackles of traditional hotels and embrace the world of creative accommodations. When it comes to your stay, you have options. You can uncover unique stays like cozy homestays, budget-friendly hostels, or the thrill of camping under the stars. You can also explore sites like Airbnb and VRBO to find nicer options at lower prices. These alternative options will add a touch of adventure to your journey and create lifelong memories. 4. Savor Local Delights on a Budget:Traveling on a budget doesn’t mean compromising on culinary experiences. Get some local flavor and explore the world of street food, bustling markets, and local eateries to tantalize your taste buds. Seek out hidden culinary gems where authenticity meets affordability. Plus, when you plan, you can budget the meals you plan to spend a little more on. Don’t forget to make reservations. 5. Transportation Tactics:Master the art of budget-friendly transportation to maximize your savings. Embrace the charm of public transportation, hop on local buses or trains, and embark on exciting adventures that blend seamlessly with the locals. For longer distances, explore budget airlines, compare prices, and take advantage of flight deals. With a bit of flexibility and savvy planning, you can navigate the world without burning a hole in your pocket. 6. Free and Low-Cost Adventures:Uncover the hidden treasures of your destination without splurging on expensive activities. From wandering through lush parks to hiking breathtaking trails, there’s a plethora of free or low-cost adventures waiting to be discovered. Seek out free walking tours, cultural events, and discounted museum days to immerse yourself in the local culture without denting your travel budget. To the budget-savvy wanderers, remember that the heart of travel lies in the experiences and memories you create. Adventures need not be synonymous with empty wallets. By incorporating these travel tips, you’ll embark on an unforgettable journey where savings and wanderlust go hand in hand. Go forth, explore, and let your inner adventurer thrive while embracing the joy of budget-friendly travel! Sources:https://upgradedpoints.com/travel/summer-travel-save-money/https://www.cnbc.com/2023/05/07/summer-travel-how-to-save-during-a-busy-expensive-season.html

Homeownership 101: Keeping Your Home and Wallet Happy

Woman standing at door welcoming guest into large living room.

Owning a home is a fantastic achievement, but it also comes with its fair share of responsibilities. Don’t worry, though! We’re here to guide you with some practical tips to keep your house in tip-top condition, stay on top of repairs, and make savvy financial choices to protect your investment. Create a Budget and Emergency Fund Budgeting might not sound like the most exciting thing, but it’s a game-changer when it comes to homeownership. Take a good look at your monthly income and expenses and allocate a portion for home maintenance and repairs. Having a clear budget will help you plan and avoid any financial surprises. And speaking of surprises, creating an emergency fund for unexpected home expenses is one of the biggest ways you can give yourself financial peace of mind. Regular Maintenance Saves Money Your home is your space to relax and recover, and it deserves some TLC. Regular maintenance is vital to keeping everything running smoothly, so do yourself a favor and inspect your HVAC system, plumbing, roof, and electrical stuff regularly. Catching small issues before they become big problems will save you both headaches and money in the long run. Prioritize Like a Pro Home repairs can sometimes feel like a never-ending to-do list, but don’t let it overwhelm you. Focus on the must-haves first: those things that are essential for safety and the structural integrity of your home. Once you’ve got those covered, you can tackle the nice-to-haves when the budget allows. Remember, Rome wasn’t built in a day, and neither is your dream home. DIY vs. Professional Services When it comes to repairs, it’s sometimes tempting to channel your inner DIY-er and save some bucks by fixing things yourself. Minor tasks, like changing a light fixture or fixing a leaky faucet, might be doable, but some repairs are better left to the pros. This is especially true if you’re dealing with electrical or plumbing repairs when trying to fix the issue yourself could cause further damage. Assess your skills honestly, and if in doubt, call in the experts. It’s better to be safe than sorry. Crunching the Numbers: Refinancing and Loan Options Now and then, it’s smart to reassess your mortgage and refinancing options. Interest rates and financial situations change and refinancing at a lower rate could save you a bundle in the long run. Do your homework, weigh the pros and cons, and see if refinancing makes sense for your situation. By following these tips and tricks, you’re well on your way to becoming a financially responsible homeowner. While managing your finances might seem overwhelming, remember that you can always rely on Vicinity Credit Union to have your back. Our team is ready to serve you on your financial journey, so don’t hesitate to reach out to us!

The Key to Retirement: Start Now

Person holding alarm clock with hands pointing in between the words "Work" and "Retire".

Did you know that the average American spends approximately 20 years in retirement? The thought of two decades of relaxation and enjoyment might sound appealing, but it comes with a critical question: Will you have enough money to comfortably sustain yourself throughout those years? If you’re uncertain about the financial aspect of your retirement, you’re not alone. Many people find themselves pondering these questions without a clear answer. Fortunately, we’re here to help ease your worries and provide valuable insights to ensure you’re well-prepared for your retirement journey. Understanding Your Timeline  Before diving into the complexities of retirement planning, it’s important to recognize the significant time frame that retirement encompasses. Two decades is a considerable period during which your financial resources must support your lifestyle, healthcare, and aspirations. Considering this extended span, it’s evident that careful financial planning is essential to ensure a comfortable and stress-free retirement. When to Start Saving According to Investopedia, it’s smart to begin saving for retirement in your twenties. Retirement may seem like it is years away, but starting to save as early as possible will ensure you have ample money to get you through all of retirement. Plus, Investopedia also stated that “investing benefits from compounding returns, which will increase your money more over a longer period.” How Much Should You Save?  Creating a budget is always a smart way to start saving and getting control of your finances. However, if your company provides a 401(k) plan, it’s a great way to begin investing through it. This way, you’re saving money without even thinking about it, which helps you resist the urge to spend. Another option is to start putting money into an IRA for your financial well-being down the road, like the IRA accounts offered by Vicinity Credit Union. And guess what? Getting to a million dollars saved by the time you retire isn’t all that crazy! The secret here is time. When you invest in your savings consistently and give it enough time to grow, you can end up with a well-off balance. Want to hear an example? We went to Vanguard to see what they said about it. Essentially, all you have to do is “save just under $4,500 per year over a 45-year career,” and you can come out with over $1 million “by the time you retire.” If you have the opportunity to participate in any retirement programs from your employer where they match your contribution, you could save as much as half the $4,500 and still meet your goal. Now imagine if you did both! To meet the $4,500 goal, you would have to save roughly 375 dollars a month. On a tight budget, this might seem impossible. However, it would be a good time to look at all of the unused expenses within your household. What subscriptions can you cancel? Turn off all of those lights and reduce your electricity bill! If you still can’t meet the goal after minimizing your expenses, go a little smaller on the savings end. In the end, any retirement money is better than no retirement money. A Note for Our Teachers: The Chicago Teachers’ Pension Fund (CTPF)For our members who are teachers in Chicago, it’s essential to understand the unique retirement landscape you navigate. Unlike many other professions, members of the CTPF do not contribute to Social Security during their employment. Instead, each pay period sees pension contributions withheld by the employer and sent directly to the CTPF. Upon reaching retirement, the CTPF calculates a pension for those retirees who meet the eligibility requirements. For more detailed information, retired members can visit the CTPF’s resources for retired members, and new members can explore these resources. Bottom Line Securing a comfortable retirement requires thoughtful planning and timely action. Acknowledge the extended period of retirement and the financial implications it carries. Starting your savings journey early, taking advantage of retirement programs like 401(k)s or IRAs, and being mindful of your budget can significantly impact your financial stability during retirement. Remember, the key is to start saving as soon as possible–every contribution brings you closer to achieving the retirement you’ve always dreamed of. The sooner you can start saving, the better. Sources:  https://www.investopedia.com/articles/personal-finance/040315/why-save-retirement-your-20s.asp#:~:text=Yes%2C%20you%20should%20start%20saving,you%20through%20your%20retirement%20years. https://investor.vanguard.com/investor-resources-education/retirement/savings-when-to-start https://www.fool.com/retirement/2018/02/24/heres-the-average-length-of-retirement-will-your-m.aspx

You are now leaving Vicinity Credit Union

Vicinity Credit Union provides links to web sites of other organizations in order to provide visitors with certain information. A link does not constitute an endorsement of content, viewpoint, policies, products or services of that web site. Once you link to another web site not maintained by Vicinity Credit Union, you are subject to the terms and conditions of that web site, including but not limited to its privacy policy.

You will be redirected to

Click the link above to continue or CANCEL