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Homeownership 101: Keeping Your Home and Wallet Happy

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

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