Articles - Archived Money Matters

(Copy and paste the text into your document)

Tips for Tough Times

Times are tough, and you may be trying to find ways to get extra cash. But, before you decide to borrow, consider these places to start:

Existing expenses. The first place to look is your current budget. Look how cutting those "little" expenses during the workweek can add up to a lot of savings:

    "Little" Purchases Annual Savings
    Daily $2 cup of coffee $520
    Daily $1 vending machine at work $260
    $10 lunch twice a week $1,040
    Total $1,820

Emergency fund. It's okay to tap into your emergency fund if it will help you make a mortgage or credit card payment. You need to make these payments. Just be sure to replenish the fund when your finances improve—and never spend more from this fund than you absolutely must.

Consider your car. Eliminating or reducing a high car payment can make a big change in your budget. So can the reduction in gas costs with something more efficient.

Work for cash. Ask for extra hours at work, or take side jobs. Your skills could be worth cash to others, and everyone can benefit.

Unless you've exhausted all other resources:

Don't tap into your IRA. If you borrow from your IRA, you may have to pay taxes on it. If you're under 59½, you may also have to pay a 10 percent penalty. Roth IRA rules are less stringent, but remember, taking out now means having less when you retire.

Don't buy into a high interest rate payday loan. Interest rates and fees for these types of loans can really add up. You might even find that the cost for the loan is greater than the amount of the loan! Consider an LGFCU Salary Advance loan instead.

Finally, if you need help managing your finances, call us at 877.367.5428 or email us at info@lgfcu.org. We're always happy to help!