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How to Get Financially Fit in 6 Easy Steps

It’s no secret that getting fit is a popular goal. People invest a lot of time and money in planning meals and paying gym memberships, all in the hopes of getting the body of their dreams.

However, there are several different kinds of fitness, including financial fitness. Getting financially fit arguably has even more benefits than getting physically fit, and you can do it in only six steps.

Figure out Your Current Financial Situation

Before you can figure out where you’re going, you need to know where you are. The best way to do that is to have a clear picture of your assets and liabilities.

Couple discussing financesYou’ll probably want to start by looking at your assets. This will give you an idea of your monetary worth, and quite frankly starting the process by listing what you have is less stressful than listing what you owe. Look at your savings and investment accounts, including your retirement funds, and don’t forget to include items like real estate and automobiles.

Once you’ve looked at all your assets, it’s time to examine your liabilities. These will consist of all the debts you owe, whether they’re mortgages, auto loans or credit card bills. If you want to be thorough, you can total up all your assets and subtract the total amount of your liabilities to get your current net worth, but this is strictly optional.

How financially fit are you? Download Quiz

Create a Monthly Budget

Once you’ve gone over your assets and liabilities, it’s time to make a budget. A lot of people aren’t budgeting fans, but the truth is that everyone has a budget, whether they’re aware of it or not. All you’re doing when you create a monthly budget is giving yourself a clearer view of how you spend your money each month.

A lot of financial fitness experts have their own methods of budget creation, but every budget creation method has the same three steps at its core:

  1. List all your income sources and add them up
  2. List all your monthly expenses, categorize them and add them up.
  3. Subtract your monthly expenses from your income.

Budget app on a smartphoneIf your income is more than your expenses, congratulations. If not, though, you’ll need to figure out where you can reduce your expenses so you’re not spending more than you make.

It’s hard to overstate how important this step is on your road to financial fitness. Making a budget doesn’t just give you an overview of how you’re spending your money every month—it puts you in control of your money. A budget will ensure you can take care of all your necessary expenses, let you choose where you want to spend your discretionary income, and help you plan for the future in a way you wouldn’t be able to otherwise.

Pay off Your Debts

If you’re asking yourself how paying off debt is “easy,” you’re not alone. Many people struggle with trying to reducing their debt load, especially if they don’t have a lot of extra money. When you have a budget, though, you can not only make sure you’re making your monthly payments—you can take steps to make yourself debt free.

The most popular strategy for paying off your debts is the snowball strategy, where you select either the largest debt or the smallest and put all your extra money towards paying it off. When you’re done with whichever debt you selected, you simply move onto the next debt and add the money you used to pay off your first debt to your payments. Eventually, you’ll be debt free.

It’s worth pointing out you can also get rid of your debts by getting a debt consolidation loan. It condenses all your monthly payments into one convenient payment, and you’re probably also going to save some money since the loan usually has a lower interest rate than other debts.

Take your first step to becoming debt free: Get Organized

Pump up Your Emergency Fund

While you’re paying off your budget, you’ll also want to build up your emergency fund. This will not only help you avoid falling into debt if an emergency arises, it will also help you stop worrying about what might happen and give you the peace of mind you need to think about the future.

Most financial experts recommend building up your savings account by setting aside 10% of your paycheck each week. However, if money is tight, you might want to put aside less, like 5%. The important thing is to make saving money a regular habit. You can use Direct Deposit to automate this process and make saving a lot easier.

Come up With Goals

The previous steps will help you build up a solid financial foundation. Once you have that, you get to think about the future, and that’s where you not only get to flex your new financial muscles, but have some fun in the process.

Schedule some time to yourself and sit down with a pencil and some paper. Think about what you’d like to accomplish, from short-term goals to long-term goals. Maybe you want to learn how to cook, or maybe you’d like to buy the home of your dreams.

Once you’ve written down a few goals, figure out which goals are the most important. Once you figured out which goals you’d like to accomplish first, you can make them SMART goals. In other words, make sure your goals are:

  • Specific—do you have a clear idea of what your goal is?
  • Measurable—will you be able to track your progress?
  • Attainable—do you know how you can achieve your goal?
  • Realistic—can this goal be achieved?
  • Time-Bound—when would you like to have achieved this goal?

Making your goal a SMART goal gives you a roadmap for how to achieve it. Once you know what you have to do to make your goal a reality, all you need to do is follow the plan you created.

Get started setting financial goals today: Start Setting Goals

Give Yourself a Cheat Day

Young women going shoppingEven the most serious athletes give themselves a cheat day, where they let themselves have a less-than-healthy meal and relax. You should give yourself the same treatment. If you have some extra money that isn’t tied to a particular goal, for instance, it’s okay if you occasionally use it to treat yourself instead of putting it in your savings account or using it to pay off a loan, especially if you’ve already got a good handle on your finances.

Get Financially Fit With First Alliance Credit Union

Getting financially fit has a lot of advantages. It gives you peace of mind, it helps protect you from emergencies and it also lets you achieve goals from buying a new television to traveling around the world. Best of all, you can do it in six straightforward steps.

If you’d like help getting financially fit, become a member of First Alliance Credit Union today and take advantage of the services we offer. Our resource center has guides to budgeting and saving, as well as a Direct Deposit form that will let you divert part of your paycheck into your savings. We also offer savings accounts for you to build up your emergency fund, as well as an online banking platform and mobile app that will let you see the progress of your financial fitness.

We do our best to provide helpful information but we cannot guarantee the accuracy or completeness of the information presented in the article, under no circumstance does the information provided constitute legal advice. You are responsible for independently verifying the information if you intend to use it in any way. Additionally, the content is not intended to be reflective of First Alliance Credit Union’s products or services, for accurate and complete details about our product and service information you must speak to an advisor at First Alliance Credit Union.

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MemberSource Credit Union Inks Deal with United Solutions Company Core Processing

MemberSource Credit Union signs agreement with United Solutions Company to migrate to OnCore XP2, United Solutions Company CUSO’s hosted Fiserv XP2 core system.


October 19, 2022 – United Solutions Company (USC), a technology CUSO hosting core processing and many other technology services for credit unions, announced MemberSource Credit Union (MemberSource CU) has signed a contract to migrate their XP2 Core Processing System to USC’s Data Center. MemberSource CU has chosen USC as their
technology partner because of the excellent customer service. “United Solutions is excited to provide MemberSource Credit Union with our hosted core data processing,” commented Jim Giacobbe, President and CEO of USC. “Kenny Harrington, CEO at MemberSource, and his team are very professional and run a great shop. They are in a
growing market and will take advantage of all the XP2 System has to offer.” MemberSource CU is a not-for-profit, cooperative banking institution, serving its members since 1958 with a wide array of benefits designed to meet all the banking needs of its members and their families. The credit union comes from humble beginnings. When it all
began, it was only open for a grand total of an hour a day, offering loans of $200! Originally PT&T Federal Credit Union, it was not until June 30, 2000 that the credit union was known as it is now. MemberSource CU has now grown to a membership of 17,800 with assets of $221 million. “Our migration from an XP2 in-house environment to the United Solutions OnCore XP2 solution was a very smooth and seamless experience for our members and staff,” stated
Kenny Harrington, President / CEO of MemberSource Credit Union. “The advance preparation process that was led by the United Solutions staff made the weekend of migration very easy. Services were suspended Friday evening and we were back up servicing members with all systems online when we opened the doors Monday morning. Working with
United Solutions has been a great experience!” The OnCore XP2 account processing solution is designed for progressive credit unions and built on technology that will support their needs well into the future. OnCore XP2 uses a
browser interface leveraging internet and intranet technology to deliver unprecedented control and a more user-friendly experience. A relational database manages data securely, provides low-cost maintenance and ease of access with multiple off-the-shelf reporting tools. With OnCore XP2, any credit union can take advantage of strengthening their member relationships with built-in member relationship management tools such as the Cross-Sell
feature. MemberSource CU joined USC in June 2022.


About United Solutions Company
United Solutions Company is a Credit Union Service Organization (CUSO) and Application Service Provider (ASP) founded in 1983 with headquarters in Tallahassee, Florida. United Solutions provides a comprehensive menu of products and services to credit unions and other businesses all over the country. From core data processing and check 21 services, to collections and network management, our exceptional services and commitment to
innovation is what truly sets us apart. Visit www.unitedsolutions.coop for more information.

About MemberSource Credit Union
To find out more about MemberSource CU and their commitment to member service, visit them at https://www.membersourcecu.org/

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September Spending Trends: Inflation, Supply Issues Push Up Holiday Season

October 19, 2022 – As the leaves begin to turn, the economy is chugging along. Unfortunately, it’s chugging too fast for the Federal Reserve’s comfort.

Employers have continued to add jobs at a strong clip, with non-farm payrolls growing by 263,000 in September, edging the unemployment rate down to 3.5%. The biggest gains were found in the leisure and hospitality sectors, along with healthcare.

Meanwhile, inflation continues its year-long hot streak. The producer price index, a measure of wholesale prices, posted a 0.4% gain for September, doubling consensus estimates of 0.2%. This doesn’t bode well for a relaxing of consumer prices and is likely to keep the Federal Reserve committed to its strategy of raising rates in an effort to cool what it sees as a too-hot economy.

Indeed, the Fed raised its benchmark rate by 75 basis points at its September 21 meeting, and Chairman Jerome Powell has signaled plans to bump it another 1.25% by the end of 2022. The stock and bond markets have not reacted well to these aggressive measures, with major indexes down by nearly 25% for the year.

Co-op Solutions’ September credit union card portfolio data showed generally flat to declining month-over-month results in both credit and debit. The Campers & Camping and Sport/Recreation categories were particularly hard hit this month with Entertainment (movie theaters, tourist attractions, museums, etc.), Lodging, Auto Rental, Airlines and Retail also showing moderate declines.

No need to hit the panic button yet, as categories displaying small to moderate declines are in line with prior years’ MoM trends from August to September as transaction counts tend to decline as summer travel ends, back-to-school shopping declines, and consumers start pulling back spend in preparation for the holidays.

Here are some of the key spending trends Co-op’s SmartGrowth consulting team are watching closely this month:

#1: Early Holiday Shopping Begins Now

The combination of continued supply chain issues and rising inflation is pushing the holiday shopping season up in the calendar cycle. Major retailers including Amazon, Target and Kohl’s are all promoting major sales in October, as a way to manage supply concerns and ensure they hit their holiday sales targets amid significant uncertainty.

“With inflation at the top of consumers’ minds, we anticipate many will do their holiday shopping a bit earlier and put their gifts away in their closets for a few months,” said John Patton, Senior Payments Advisor, for Co-op. “I do think that retailers are doing a better job of managing their stock levels than they did a few months ago. They are better prepared.”

#2: Entertainment, Travel Spending are Softening

While the Entertainment and Travel spending categories have shown strong increases throughout the year, as inflation has continued its sharp rise, consumers have begun pulling back on such discretionary spending.

Year over year, the Entertainment category is up a massive 40% in debit and nearly 62% in credit. Travel spending has shown similar growth of 18% in debit and nearly 50% in credit. But in September, Entertainment fell in both debit and credit by 11%, while Travel was down a few percentage points, led by double-digit declines in debit spending on Lodging.

#3: Shift to Credit is Slowing Down

Over the past year there has been a broad shift in spending from debit to credit. Credit is up by 12.4% year over year, while debit has remained virtually flat over the same period. But in recent months that narrative has begun to change. In September, debit was down by -4.0% and credit was down by -3.6% month over month. Households are carefully choosing to use debit or credit based on the context of the individual purchase and their own financial circumstances.

“Part of the reason why credit transaction volume is so inflated over the past year is that consumers are using credit more for everyday purchases,” says Beth Phillips, Director, Coop Solutions. “Consumers have traditionally used debit for such purchases, so a relatively small increase in such usage on the credit side can have an outsized impact on the relative percentage change.”

Month-Over-Month Category-Level Spending (Comparing September 2022 to August 2022)

Please note that the category spending below reflects month-over-month comparisons (rather than year-over-year) – i.e., compares September 2022 with August 2022, rather than September 2022 to September 2021.

 September MoM % Difference (Trans Count)
CategoryDebitCredit
Amazon/Bookstores-6.0%-7.4%
Campers & Camping-31.5%-28.2%
Computers-4.6%-3.1%
Digital Goods-3.1%-2.5%
Dining & Entertainment-4.1%-3.9%
     Entertainment-11.5%-11.0%
     Fast Food, Restaurants, Bars-4.0%-3.6%
     Government/Gambling+16.3%+18.5%
Education+27.6%+18.9%
Gas-4.8%-3.5%
Grocery-3.9%-3.7%
     Grocery-3.8%-3.7%
     Wholesale-4.6%-3.8%
Home Improvement-6.2%-4.8%
Medical-2.6%-1.9%
Office-2.1%-1.5%
Other-1.9%-1.4%
     Auto Dealers/Services/Parts-5.5%-3.6%
     Cable, Satellite and Other+0.2%-0.1%
     Furniture-4.4%-4.4%
     Government/Postal Services-10.9%-10.5%
     Professional Services+2.9%+1.7%
     Real Estate-3.6%-3.0%
     Self-care-5.1%-4.6%
     Subscription Services-2.4%-2.0%
     Utilities-2.4%-3.2%
Retail-7.5%-6.7%
     Department Stores-9.0%-8.4%
     Discount Stores-6.9%-6.8%
     Retail-7.8%-6.3%
Specialty Retail-2.1%-1.8%
     Florists, Antiques, Jewelers, Cigars, Stamps, Etc.-2.1%-1.8%
Sport/Recreation-17.2%-19.4%
     Golf Courses-26.0%-25.4%
     Sport/Recreation-15.6%-18.3%
Travel-3.8%-1.8%
     Airline-7.7%-1.4%
     Auto Rental-7.6%-8.2%
     Lodging-12.9%-8.6%
     Other Travel (Railroad, Taxi, Cruise Lines, Etc.-2.4%-0.3%
Grand Total-4.0%-3.6%


What CUs Should Do Now

With the holiday shopping season upon us, it’s a great time for credit unions to activate “spend and get” campaigns to keep their cards top of wallet for spending in the hottest merchant categories, such as Department Stores, Discount Stores and Digital Goods. Also, make sure members can easily access their preferred forms of payment, whether shopping in-store or online.

Leading into the holidays, credit unions should focus on providing exceptional member experiences. With the spirit of the holidays, this time of year can also bring financial stressors to members. Hosting lunch-and-learns and staff trainings to acknowledge the challenges this time of year may bring members can be a hugely beneficial opportunity to encourage (or better yet – incentivize) employees to keep their credit union values top of mind in trying situations to provide exceptional member experiences. Experience that will exceed client expectations and assist members with their financial journey.

More information on the Co-op SmartGrowth Consulting Team can be found here.


About Co-op Solutions

Co-op Solutions is the market-leading financial technology platform whose mission is to connect credit unions to the technology, strategic partnership and scale they need to best serve their members now and into the future. Co-op partners with credit unions to unlock their potential so they can compete; does the hard work of innovation, creating a one-stop opportunity to help credit unions grow; and offers knowledge and expertise in a world where everything must be integrated. For more information, visit coop.org.

Contact:
Bill Prichard, APR
Director, Public Relations
Co-op Solutions
(909) 532-9416
Bill.Prichard@coop.org

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PSCU Payments Index – October 2022 Edition

October 18, 2022 –

Today, PSCU – the nation’s premier payments credit union service organization (CUSO) – published the October edition of the PSCU Payments Index, the goal of which is to provide information and insights to help financial institutions make informed, strategic decisions on the road ahead.

As the fall season begins and we enter the last quarter of 2022, the U.S. economy continues to face persistently high inflation, a looming recession and rising energy prices. Yet consumer purchasing activity showed continued resilience in both credit card and debit card volume in September. In our October 2022 edition of the PSCU Payments Index, our Deep Dive looks into the Utilities sector as energy forecasts become top of mind heading into the winter months.   

In the Labor Department’s Oct. 13 update, the Consumer Price Index (CPI) was up 0.4% for the month of September, bringing the 12-month rate of inflation to 8.2%. Increases in shelter, food and medical care were largely offset by a 4.9% decrease in the gasoline index. The Bureau of Labor Statistics (BLS) reported in its September 2022 jobs report that 263,000 jobs were added for the month – fewer than August (315,000 jobs) and below the pace of the first half of 2022 (approximately 400,000 jobs per month).

The Federal Reserve will meet on Nov. 1-2 with subsequent interest rate hikes likely, influenced by factors including inflation, jobs and the housing market. An interest rate increase in November would mark the sixth increase this year, with the previous five increases raising rates by a total of three percentage points. The Consumer Confidence Index increased for the second consecutive month in September, following three consecutive months of declines.

“This month’s Deep Dive in the PSCU Payments Index highlights the dramatic impact of inflation within the Utilities sector,” said Leanne McGuinness, chief financial officer, The Summit Federal Credit Union (Rochester, New York). While telecommunications and cable/internet remained strong, purchases and transactions remained largely flat. At the same time, purchases and transactions in the electric/gas/water/sanitation portion of the sector were up substantially year over year, signaling the inflationary effects that our members will be faced with to heat and maintain their homes as the winter months arrive. We appreciate PSCU’s analysis of these trends and assisting us to help our members with options to plan for and meet their monthly obligations.”

A sampling of key takeaways from the October report includes:

  • Consumer spending on cards remains strong, with credit cards continuing to outpace debit cards. For September, credit purchases were up 13% and debit purchases were up 6% year over year. Year to date through September, credit purchases were up 18% and debit purchases were up 6%. Current inflationary pressures continue to drive growth in purchases, outpacing growth in transactions. For September, growth in overall transactions was up 11% for credit and 3% for debit.
  • The Consumer Price Index (CPI-U) decreased on an annual basis to 8.2% in September, influenced by lower prices in Gasoline and higher prices in Shelter, Food and Medical Care. The Fed meets next on Nov. 1-2, with another large interest rate increase anticipated.
  • In this month’s Deep Dive on Utilities spending, the two main components of the sector detail the inflationary impacts of energy costs and potential concerns of “fuel poverty” as we transverse the winter months. Growth in purchases for electric, gas (propane and home heating fuel), water and sanitation was up 29% for credit and 15% for debit for September 2022. For transactions, credit was up 13% and debit was up 5% for September. The second half of the Utilities sector, comprised of telecommunications and cable/internet access, saw year-over-year purchases up 9% for credit and up 1% for debit. For transactions, credit was up 10% and debit was down 2% for September.
  • The September average credit card balance per active account was $2,797, up 6.1% (or $160) year over year. Credit card balances surpassed the September 2020 results of $2,787 for the first time since the decline in card balances that began in early 2020. The credit card delinquency rate for September was 1.74%, 16 basis points lower than pre-pandemic September 2019 levels.

The full report is available for download here or can be shared as a PDF upon request. Additionally, feel free to subscribe here to receive updates when the PSCU Payments Index is published each month.

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Advantis Credit Union leans in on payments innovation, renews partnership with Co-op Solutions for Zelle, debit and credit processing

October 12, 2022 – One of Oregon’s largest credit unions has extended its partnership with Co-op Solutions. In addition to relying on Co-op for the processing of its growing debit and credit card portfolios, Portland’s $2 billion Advantis Credit Union is leveraging the Co-op payments ecosystem to bring Zelle and other digital-first services to its more than 87,000 members.

Among the benefits of the partnership is speed to market for in-demand consumer banking products. “We value a partner that can help us bring new and enhanced services to our members in a timely and reliable manner,” said Jason Werts, President/CEO of Advantis. “Co-op has been that partner, helping us launch several big projects over the past few years. We do not see that slowing down.”

Co-op Full-Service Credit combines analytics, fraud reduction, risk management and loyalty in a highly integrated, fully managed card processing solution. Co-op Debit offers a suite of reporting solutions to help credit unions better analyze and respond to meaningful daily behaviors. Co-op can also help credit unions make the Zelle P2P payments network available to their members efficiently, easily and affordably.

“Every person has value at Advantis, and it shows in our rich history of passionately serving members, caring for our employees and giving back to our community,” said Werts. “With Co-op on our side, we are living out our vision to be the best financial services provider our members can choose. Delivering meaningful, relevant experiences through products is an important part of our commitment to people.”

“Payments are the gateway to deeper member relationships,” said Matt Kardell, Chief Revenue Officer for Co-op. “Credit unions like Advantis really understand that and are leaning in on their payments strategy. We’re proud to partner with them as they continue to improve these high-value daily touchpoints, like Zelle and digital payments, for their members.”

Werts expects the partnership with Co-op will allow Advantis to continue offering members convenient, personalized access to their money. “We look forward to further leveraging Co-op innovation and fast integration to provide members with reliable, best-in-class products and services,” he said.

About Co-op Solutions

Co-op Solutions is the market-leading financial technology platform whose mission is to connect credit unions to the technology, strategic partnership and scale they need to best serve their members now and into the future. Co-op partners with credit unions to unlock their potential so they can compete; does the hard work of innovation, creating a one-stop opportunity to help credit unions grow; and offers knowledge and expertise in a world where everything must be integrated. For more information, visit coop.org.

Contact:

Bill Prichard, APR
Director, Public Relations
Co-op Solutions
(909) 532-9416
Bill.Prichard@coop.org