How to Adjust Your Savings When Your Income Changes

Have you ever heard the phrase “The more you make, the more you spend” If you have and live by this mantra then you are doing it wrong!

An increase in your income does not mean you need to up your shopping list, it means you need to increase your savings.

Basically, if you have been making living on $45,000-a-year and you have been paying rent/or mortgage and paying your bills on time, there is no need to increase your spending. We are not saying you cannot treat yourself once in a while. However, you do have to make smart decisions and be conscious of the fact that a big emergency fund matters and can help you when you need it most.

Keep the following tips in mind if you are getting a raise soon:

  1. Do not spend more

If you earn a raise or bonus, congratulations you deserve it!
Just be careful, most people become trapped in a spending circle with no money saved up for the future. Take a look at the goals you are trying to reach, be ready for unexpected expenses that may come up and be comfortable without exceeding your means.

  1. Grow or Create an emergency fund.

Your emergency fund should cover a minimum of 3-months expenses. A good emergency fund covers 6 months of expenses easily. Make this one of your goals! Do not use these funds for a vacation, a wedding or leisure time. An emergency fund, as the name suggests, it’s only for emergencies. For example, an emergency fund can be used for an unexpected hospital bill, car issues or job loss.

  1. Create a separate savings account and make the funds transfer automatically

If you don’t see it, then you don’t need to spend it. Additionally, if your income shirks, the savings you have should help you carry you thru. A BrightStar Savings Account is completely FREE and it does not require a minimum when it’s coupled with a FREE Checking Account. What better way than to save money in a reliable credit union?

Do not forget the essentials of saving, living in moderate means, and to plan accordingly.


Improve your small business!

How Can You Keep Your Small Business Competitive?

If you are a small business owner you must prepare for everything. For the not so profitable months of the year and for the months your product has more demand. You must also make smart investments, keep your small business trendy, and always have long-term and short-term goals. Keeping your small business competitive can be a little challenging. The following tips may help you improve your small business strategies.

  1. Know the meaning of the word “but”
    This seems like an odd tip but this small word can be very powerful. For example, if you charge more than your competitors’ chances are you get a few complaints. The short-term solution can be to change your product prices for a period of time, but that doesn’t solve the actual problem. Plus, if customers are going to you for products (even while complaining) it means it is worth buying. With this in mind, this is how the word “but” can help you. First, acknowledge your high prices, then follow with the word “but” and add a valuable statement.“Yes, it is true our prices are high but we use high quality products that can help save money for our customers in the long run.”By doing this, you are sending the message that you care enough about the quality of your product and to help your customers save money. It gives you a valid reason to keep your prices high.
  2. Invest in advertising
    Paying top price for a product or service can be justified by its benefits. People won’t choose your business unless you invest in getting the word out there.
    Invest on a website with good content and SEO strategies. This will serve as social proof for new customers and it will create a digital convenience for your old customers.
  3. Research the market constantly
    Competitive research should be a part of your business planning, and it should continue until your business is stable. The easiest way to do this now is online. Research competitive businesses near you until you can find the differentiating factors and you can promote your business more efficiently.
  4. Offer products and services as needed
    It is okay to offer a variety of products that can do the same thing and value at different prices. You can offer your premium product and have a backup to become more competitive in case it might be too pricey. It is better to retain a customer who has the potential of returning and purchasing more.Owning your business can be rewarding and challenging at the same time. Continue to improve your business and see how successful it can be.


Make the best out of your tax return

How to Make the Best Out of Your Tax Return

Make the best out of your tax return
Make the best out of your tax return!

No one likes paying taxes, and there’s no reason to pay more than you should in any given year. One of the best ways to make sure your tax returns ripped the most profit is by investing it. To make your money grow.

  1. Invest in CD’s
    CD’s are forms of investment that take time to mature and grow. If you’re looking to save money for your kid’s college fund this is a good way to do it. This will be put aside to grow and mature until you have made some profit.
  2. Increase your 401k referral
    Of course you can’t put your refund into your 401(k) but you can supplement your income with it while you increase your referral. This is especially important if your employer matches your refund amount.
  3. Put it as a down payment for a property
    Owning your own place is always better than paying someone else’s mortgage. Save as much as you can and purchase your own home. If you ever move chances are you will have some equity.
  4. Lower your debt
    You don’t have to spend your entire tax return paying your overdue debt. However, paying some debt should give you some financial stability. Lower your debt as much as you can and start from zero.

Remember, be wise and make money out of your tax return. If you are currently a BrightStar Credit Union Member, enjoy a discount when you file with Turbo Tax.


3 Simple Ways to Earn a Little Extra

 

Sometimes your full-time jobs are not enough to pay the bills, save, and have fun. Sometimes a paycheck is only enough to make ends meet.  Sure, you can always get another part-time job or look for higher paying job. However, when you have conflicting schedules and a family having an extra job isn’t so easy.

What are some ways to earn a little extra cash and keep enjoying your free time?

  1. Pet Sitting There are many websites where you can sign up to be a pet sitter. Yes, a pet sitter. Not only do you get to enjoy the company of cute fluffy creatures, you also get to spend some time in the sun. If you do this, plan accordingly. For example, if sign up to pet sit on a Sunday you’ll have company to watch the game and exercise early in the morning. TIP: Pet sitting is in high demand in South Florida. Take some time to look into it.
  1. Clean your home, and sell your unwanted items online: If you have unused –or gently used items– try selling them. Liberating yourself from all that clutter, will feel very rewarding. Remember, one man’s trash is another’s treasure.
  1. Participate in surveys or focus groups: Some marketers and research firms offer cash for participating in focus groups. This is not a lot of money, but $10 to answer 10 questions online buys you lunch.

If you ever find yourself in need of a little bit of cash, consider these methods.

Enjoy!