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.


3 Ways to Help Your Teens Build Good Credit

When your teen finally takes the big leap and moves out of the house, they’re going to need a solid credit score for a lot of life steps: renting an apartment, getting a loan or finding a good deal on insurance.

For that reason, it’s important that teens build up their credit scores before they move out. There are a few ways you can prepare them for this in the years leading up to graduation.

  1. Make sure they have a checking account and debit card to go along with it
    Getting your teen started with their own bank account is a significant step in building their credit score without ditching their safety net. A teenager under 18 years old can still sign up for a debit card; they just need a co-signer. Since you are co-signing on the card, your personal account will be linked to your teen’s in case of an overdraft. With this checking account and debit card, you should also teach your teens the importance of managing money well.
  1. Teach them the credit card basics
    Credit cards are a bit more complex than debit cards, so it’s important to sit down your teen and help them understand the basics. Signing them up for their own credit card is a bigger step than signing up for a debit card, but it’s an additional step that will help boost their credit score — assuming they pay the bills on time and in full. U.S. News & World Report contributor Amelia Granger says that the most critical skill a teen can learn is to pay their bills in full, even if that means starting with a smaller credit limit. Make sure you are monitoring your teen’s bills to confirm they’re not damaging their credit score rather than building a good foundation for the years ahead.

 

  1. Help them open a Secured Credit Card
    A Secured Credit Card is the perfect card to teach your teen how to properly manage money. It does this by not allowing them to use the money they don’t have, instead locking in a minimum amount of $500 they must use as if it were borrowed money from the bank. This card will help them improve their credit score and after a year they will be able to apply to a regular credit card.

Responsible money management is tough to practice if you learn it late in life. Your kids will be much better off by teaching them good financial practices.


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.


Declutter and Save!

How Can Decluttering Save You Money?

What is the current state of your closet? Is it stuffed to the brim with clothes, shoes, suitcases, cleaning supplies, your high school yearbook textbook, etc., or can you do cartwheels in there? Is every horizontal surface covered in piles and piles of stuff or is almost like a guest room?

A clutter-filled house can lead to increased entertainment costs; you don’t want your friends to see the mess (or are sick of seeing it yourself), so you go out. Duplication is another way that clutter can cost you. Have you ever spent money on something you already had because you had no idea where it was, and did not want to spend hours looking for it?

If the thought of actually having to go through all your stuff makes you sweat, don’t worry. Here are some tips that can help make the decluttering process as painless as possible:

Do a little at a time: You are less likely to get discouraged and give up if you set a series of small goals spread out over time instead of trying to clean up the whole house at once.

Take a picture of sentimental items: Do you have some items that you never use but can’t throw out because of their sentimental value (such as the doll you bought for your daughter who is now 25)? Taking a picture can make it easier to part with. You will have a reminder even if it’s no longer collecting dust in your closet.

Donate or sell: While some of your items may be worn out and only welcomed by the trash bin, there may be many things you can sell to a consignment or thrift store, or donate to charity. Think of your cleaning as putting money in your pocket or helping others, instead of just a chore.

Use the “one in, one out” rule: After you go through all that effort to get rid of what you don’t need, you probably don’t want the house to revert back to its former messy state a few months from now. A good solution is to get rid of something whenever you purchase something new. You buy a new t-shirt at the mall—when you get home, go into the drawers and get rid of an old one.

By taking the time to declutter, you’ll be cleaning all the way to the bank.