New Year, Better Finances!
Whether you’re making new year’s resolutions or not, Kansas City Credit Union is here to support your path to financial freedom. This is the year to get your financial footing! KCCU has three quick financial tips to start your new year off the right way!
- Student Loans: It Literally Pays to Double Check. Review your options for paying off your student loans before pouring your money into paying them off. Often you can refinance those loans and put major funds into investments. This return on investment – simply put, getting money BACK – will give you the funds you need for emergency savings, a house downpayment, a car, etc. Once you have your feet under you a bit better, then you can buckle down on those student loans.
- Dream Ahead. Think about retirement now! Maybe you have a job you love, but someday you’re going to want to retire – maybe travel a bit, spend more time with your loved ones or expand your library. Start putting funds towards your future dreams – even if it’s just a little. Have a job you can’t stand? The more you save now, the faster you can retire! (Although, looking for a good-paying job you’ll enjoy in the meantime is a wise plan too.) Why does saving now matter so much? Two words: compound interest. Saving money now actually makes you more money thanks to interest rates! Look into your employee benefits as well since some employers will match your contribution to your retirement fund – free money? Yes, please!
- Credit Cards Are For Credit. Here’s the deal: don’t take out a credit card if you’re looking to make extravagant purchases. Consumer debt is an addictive spending cycle and it is absolutely something to avoid. However, the root problem of consumer debt is poor financial practice – not the result of having a credit card.
You may be putting off taking out a credit card because you’re afraid of your spending habits. A smart move? Actually, not so much. While not having a credit card won’t give you a bad credit score, it can make your score appear to be low since it lacks information to create your credit history. This can cause obstacles once you go to buy a car or find your own living. Debit cards don’t help you build credit. At some point, you’ll need a credit card.
If you’re worried about overspending, rest assured. KCCU can advise you in the best financial choices. The key is to use your credit card for a regular payment (like a certain household bill or a car payment) and then always, always, always pay off your credit card completely and on time. Read now about how to use your credit card the best way!
Are you looking for advice on what credit card to take out? There’s no one company better than another so find the credit card that works best for you. The inside scoop on credit cards: big signup bonus usually will offer less rewards and vice versa.
Still have questions about credit cards or good financial decision-making? Ask your professional advisors at Kansas City Credit Union today! The start of the new year is a great time to make some change in your financial situation. Contact us today!