Did you know that you can access certain services from your credit union at thousands of locations across the U.S.? Through the CO-OP shared branch network, credit union members have access to more than 5,600 branch locations and nearly 30,000 ATMs nationwide, in addition to locations overseas.

Read on to learn more about shared branching.

What Is a Shared Branch Credit Union?

When your credit union is part of the CO-OP shared branch network, you can visit another credit union within the network and complete transactions, make withdrawals, transfer money, print your statement, and check your balance – just as you would at your local branch.

For example, if your local credit union is based in Chicago and you’re visiting New York City and need to access an ATM or make a deposit, you can download the CO-OP ATM and Shared Branch Locator app (available on iOS and Android) to find a credit union in your network nearby. Or you can text your ZIP Code to 91989 and you’ll get a text back that shows the in-network ATMs and credit union service centers near you.

When visiting a CO-OP shared branch location, just show your account number and identification to gain access to services.

What Are the Benefits of Shared Branch Credit Unions?

Aside from having access to other credit union branches, another benefit of the CO-OP shared branch network is the ability to use thousands of ATMs without paying any fees. There are even select ATMs in convenient locationssuch as Costco, Dunkin Donuts, 7-Eleven, and more. In addition to the more than 30,000 ATMs located in the U.S., you can access 117 ATMs across 10 countries free of charge.

It’s a common misconception that accessing credit unions isn’t as convenient or easy as accessing services at large banking institutions. With access to 5,600 locations across the U.S., the CO-OP shared branch network offers access to more brick-and-mortar locations than many big banks. That means you won’t have to travel as far if you need to visit a branch in person, saving you time and effort.

According to the CO-OP, 62 million members across 1,688 credit unions in the U.S. can access the shared branch network – that represents approximately half of credit union members nationwide.

Increasing Access to the Credit Union Movement Across the U.S. and Beyond

With shared branching, credit union members enjoy the flexibility of conducting their banking needs across the country, and even internationally – providing more access to branches and ATMs than many large banking institutions. With half of U.S. credit union members benefiting from this network, shared branch credit unions exemplify how cooperation can enhance member service and convenience.

Shared branching awareness week is May 19 – 23, 2025. Download the CO-OP ATM Shared Branch Locator app or text your location to 91989 to find a location near you today.

Do you have debt you need to pay off? If so, you’re not alone. As of August 2023, the total debt carried by American households exceeded $17 trillion. The average household had a balance of slightly less than $102,000 during this period.

The good news is that there are things you can do to manage paying down your bills. The strategies below will be a lifeline for helping you keep your head “above water” while you embark on your journey. They will allow you to regain control over your finances while steadily reducing the stress and financial burden.

Watch our video on Debt Management below for a brief overview, then continue below for a more comprehensive blueprint.

What Is Debt Management?

A debt management plan helps you take control of your finances and work toward a more stable future. It provides a clear path to organizing and reducing what you owe. The primary goal is the timely payment of your existing obligations while minimizing interest accumulation and costs.

Successful management offers a range of long-lasting benefits, including:

Reduced Financial Stress

Having a clear and actionable game plan can reduce the emotional and psychological stress that often comes with money troubles. Understanding how to manage repayments reduces stress and keeps you focused on achieving your goals.

A Road Map to Steer Clear of Bankruptcy

A well-planned strategy helps you avoid drastic measures like bankruptcy and the lasting impact it can have on your credit. Staying organized ensures you are ready to handle unexpected expenses that life may bring. This proactive approach builds stability and boosts your confidence in managing your finances effectively.

Improved Credit Score

Sticking to a structured debt repayment plan can boost your credit score. Regular, on-time payments strengthen your credit profile, opening the door to better loan terms and financial opportunities.

Greater Financial Flexibility

Successfully managing your obligations frees up more of your income for savings, investments, or other goals. This newfound flexibility allows you to build a stronger foundation and prepare for future expenses or emergencies.

Effective Debt Management Strategies

Managing your finances effectively requires focus and consistent effort. Staying organized helps you maintain progress and regain control of your money. Here are several proven strategies you can use to regain control:

Assess Your Debt Situation

Understanding your financial situation is the first step toward creating a realistic plan. Review your credit report to identify everything you owe, including balances, interest rates, and minimum payments. This provides a clear picture of what you owe and helps prioritize repayment.

Create a Budget

Review your bank account activity regularly to understand your income and spending patterns. Break down your expenses into categories to see where your money is going. Use this information to create a realistic monthly budget that aligns with your goals.

Prioritize Debt Repayment

High-interest debts, like credit cards, often cost the most over time, so tackling these early on can save you money. Alternatively, some prefer to start with smaller ones to build momentum. Consistency is key to whichever approach you choose. Paying more than the minimum whenever possible will help you reduce your principal balance faster.

The Snowball, Avalanche, and Power Payment Methods

Debt management involves choosing the correct method(s) for paying off your bills as quickly as possible. There are three key approaches to consider:

The Snowball Method: This method starts by targeting the smallest balance first. After paying it off, apply that payment amount to the next smallest balance. Repeat this process until you’ve fully paid off all balances. The snowball method builds momentum and gives you a sense of accomplishment as you progress.

The Avalanche Method: Focus on paying off bills with the highest interest rates first. Continue this process with each account until you’ve paid off all your bills. The long-term financial benefit of the avalanche method is that it may save you more money in interest payments over time.

The Power Payment Method: After paying off one loan, you apply its monthly payment to another balance to pay it down faster. This method boosts your progress and builds momentum as you work toward full repayment.

Consider Debt Consolidation

Debt consolidation loans are a viable way to simplify your payments and potentially lower interest rates. This process involves taking out a single loan to pay off multiple debts. This leaves you with a single and more management monthly payment. It can be especially beneficial if you have high-interest credit card bills or student loans.

Negotiate with Creditors

Don’t hesitate to negotiate with your creditors. Many prefer reduced payments over the risk of receiving nothing at all. Reach out to discuss your circumstances and explore options for repayment terms that work better for you.

Financial freedom begins with the steps you take today. Staying focused and consistent will allow you to transform your monetary challenges into growth opportunities. Every action you take strengthens your foundation and improves your ability to handle future challenges with confidence. 

How GLCU Can Help You Achieve Financial Freedom

At Great Lakes Credit Union, we offer a range of practical solutions tailored to your unique situation. For example, our debt consolidation loans allow you to simplify multiple payments into one monthly payment. We also offer Debt Protection services that shield you from the financial impact of unforeseen life events.

Our members have access to expert financial advisors whenever they need guidance. We provide free credit counseling services and a variety of educational resources. Regularly held workshops and one-on-one consultations give you the knowledge you need to take control of your finances.

Take the First Step Towards a Debt-Free Future Today!

We understand that managing debt can feel overwhelming, but you don’t have to face it alone. Our team is here to provide the tools, resources, and personalized support you need to take control of your finances.Click below to learn more and see how we can help you get out of debt.

Join GLCU Today for Expert Debt Management Support!

Contact GLCU for Personalized Financial Advice

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice.

You should consult a licensed financial advisor before investing in any financial product or service.

Imagine hitting your 40s and realizing your retirement nest egg is…well, more like a few stray twigs and feathers. While it’s not quite time to panic, it suddenly becomes clear that you’d be in a much better financial position had you started saving much sooner in your career.

The good news is that early retirement planning will allow you to build wealth steadily over the decades. You’ll eventually reach your 40th birthday and have peace of mind knowing you’re on track to a financially secure future.

Read on to learn more about saving for retirement in your 20s and 30s.

The Importance of Early Retirement Planning

You’ve probably heard that retirement is getting more expensive as the years go by. In 2022, The Bureau of Labor Statistics (BLS) reported that the average retiree spends around $55,000 annually. That roughly breaks down to around $2,100/mo. income you’ll need for basic retirement necessities. 

Retirement planning involves taking all these considerations and developing a comprehensive strategy to ensure a financially secure future. This often involves setting financial goals, estimating future expenses, and determining the best savings and investment vehicles.

The continued rising cost of living and inflation mean that you will likely need to save a significant amount to maintain your desired lifestyle in retirement. This reality underscores why beginning your retirement planning journey in your 20s and 30s isn’t just a good idea – it’s necessary for long-term financial well-being.

One popular and smart way to save for retirement is to set up an Individual Retirement Account (IRA). These plans offer tax advantages that help your savings grow over time. The ability to choose from various investments, such as mutual funds within the IRA, further amplifies this growth potential. 

Understand Compound Interest

Compound interest is one of the fundamental concepts you must grasp when planning for early retirement. It’s often described as “interest on interest”. It’s when interest accumulates on your initial investment (principal) over time, and you earn additional returns. As a result, your wealth doesn’t just grow linearly; it expands exponentially.

Think of compound interest as a snowball effect. The more time you give your money to grow, the bigger it becomes. For example, if you invest $5,000 annually with an average annual return of 7%, you would have approximately $1.1 million in 40 years.

Key Takeaways

Key Takeaway 1: Compound interest multiplies your wealth significantly over time. Early saving and investing are critical for building a strong financial future.

Key Takeaway 2: Build strong savings habits by saving consistently from your 20s or 30s. Automate your savings to ensure regular contributions, and review your plan periodically to make necessary adjustments.

Key Takeaway 3: Fully leveraging your company’s 401k plan by maximizing employer match and increasing contributions annually can significantly boost your retirement savings.

Key Takeaway 4: Managing debt effectively is essential for freeing up more resources for retirement investment. Build an emergency fund, pay off high-interest debts, and live within your means to stay on track.

Develop Good Savings Habits

Establishing strong saving habits forms a cornerstone of successful retirement planning. These consistent actions over time significantly contribute to building a substantial nest egg. Implementing the following strategies can make saving feel less like a burden and more like a natural part of your financial life:

Start Early and Consistently Save: Small and regular contributions can grow significantly over time with the help of compound interest. The key is to start as early as possible and be consistent with your savings.

Implement a “Pay Yourself First” Strategy: Automatically deposit a set amount into your savings or investment account when you receive your paycheck. This ensures that your savings remain a priority rather than an afterthought.

Increase Savings with Every Raise or Bonus: Consider increasing your savings whenever you receive a raise or bonus. Doing so will boost your savings without affecting your current lifestyle.

Review and Adjust Your Savings Plan Regularly: Periodically assess your financial situation and adjust your savings plan as necessary. As your income, expenses, and financial goals change, so should your savings plan.

Leverage Technology: Budgeting apps, financial calculators, and automatic transfers make saving easier and more consistent. These tools let you track your spending and establish better financial habits while keeping you on track.

Prioritize Long-Term Financial Security: Be mindful of your spending habits and aim to eliminate unnecessary expenses. Always prioritize your long-term financial security over immediate short-term pleasures. This mindset will help you stay focused on your retirement goals.

Cultivating strong savings habits is key to ensuring a secure retirement. Adopting this strategy will allow you to roll with life’s punches as you save throughout your career.

Take Advantage of Your Company’s 401k

A 401k is a retirement savings plan many employers in the United States offer. It allows you to contribute a portion of your pre-tax salary to tax-deferred investments. You do not pay taxes on contributions and earnings until you withdraw them in retirement.

The IRS has raised the annual contribution limit in 2025 to $23,500. The $500 increase over last year’s limit might seem small. However, it adds up to an additional $10k by itself over 20 years. With a 7% annual return on investment, that additional $10,000 could grow to over $20,000. This growth can make a meaningful difference in your retirement savings.

If your employer offers a 401k plan, here’s how you can maximize it:

Maximize Employer Match: Many employers offer a matching contribution up to a certain percentage of your salary. This is essentially free money that can significantly boost your retirement savings. Many employers offer to match 50% of your contributions, up to 6% of your salary. Contribute 6% to receive the full match and maximize your benefits.

Increase Contributions Annually: Most 401k plans allow you to adjust your contribution levels annually. As your salary increases over time, consider increasing your contributions proportionally.

Don’t Withdraw Early: Withdrawing from your 401k before age 59.5 typically results in a penalty. You’ll also lose the benefits of tax-deferred growth. Only consider this as a last resort.

Take Advantage of Catch-up Contributions: If you are age 50 or older, you can make catch-up contributions to your 401k. This lets you contribute more than the standard annual limit. It is an effective way to grow your retirement savings if you began saving later in life.

Fully leveraging your company’s 401k plan allows you to amass substantial retirement savings with tax benefits. The key is to start as soon as you’re eligible, contribute consistently, and avoid early withdrawals.

Avoid Debt (If Possible)

Debt blocks progress toward your retirement goals by diverting funds you could otherwise invest in your future. Here’s how you can navigate and avoid debt to enhance your retirement planning:

Establish an Emergency Fund: Save three to six months’ worth of living expenses. This helps you cover unexpected costs without relying on high-interest debt like credit cards or personal loans.

Pay Off High-Interest Debts: Debts such as credit card balances, personal loans, and some student loans usually have high interest rates. Aim to pay these off as quickly as possible. The interest you pay is money you could invest towards your retirement.

Live Within Your Means: It might sound like basic advice, but it’s essential. Avoid overspending and accumulating unnecessary debt. Stick to your budget, and save for large purchases in advance rather than relying on credit.

Use Credit Wisely: While it’s best to avoid debt, it’s also important to build a strong credit history. Use credit cards judiciously, and pay off your balances in full each month to avoid interest charges.

Avoiding unnecessary debt lets you redirect those funds into retirement investments. Over time, this approach builds financial stability and provides greater freedom to achieve your long-term goals.

Types of IRA Accounts

GLCU offers a variety of IRA options tailored to meet your unique retirement savings needs. Each type provides distinct advantages, allowing you to customize your savings strategy effectively. Here are three IRA accounts to help you get started:

IRA Savings: This account helps you grow your money faster with daily dividends. Flexible funding options allow you to contribute at your own pace and consistently build your retirement savings.

IRA Money Market Accounts: Diversify your retirement portfolio with this higher-yield account. It offers competitive interest rates and easy access to funds when needed, providing a balanced approach to retirement saving.

IRA Share Certificates: These certificates offer a secure way to save for retirement with fixed terms and guaranteed returns. They provide competitive rates, ensuring stable, long-term growth.

Optimize Your Retirement Strategy with Expert Help

Consulting with a financial professional can help you maximize your retirement planning efforts. They offer advice tailored to your financial goals. This guidance lets you better understand and choose from the many financial products available.

At Great Lakes Credit Union, we offer our members free access to financial advisors who provide personalized retirement strategies. Click below to schedule a consultation and start achieving your financial objectives.

Speak to one of our financial advisors and start investing today!

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.

What is an IRA?
An individual retirement account (IRA) is an investment account that helps you save for retirement.

There are four popular types of IRAs — traditional, Roth, SEP and SIMPLE — and all offer tax benefits that reward you for saving. You can open an IRA at credit unions and, depending on the type of IRA, your contributions may be tax-deductible, or withdrawals may be tax-free.

How do IRAs work?
Investing in an IRA allows your money to grow and compound. You can invest in stocks, bonds and other assets. How your account balance grows over time depends on how your account is invested and how much you contribute to the IRA.

IRAs have annual contribution limits. Generally, you must have earned income to contribute to an IRA. There are also withdrawal rules. You may face a 10% penalty and a tax bill if you withdraw money before age 59 1/2, unless you qualify for an exception.

What are the types of IRAs?
There are four popular types of IRAs: traditional, Roth, SEP and SIMPLE.

Traditional IRA
A traditional IRA is a tax-advantaged plan that allows you significant tax breaks while you save for retirement. Anyone who earns money by working can contribute to the plan with pre-tax dollars, meaning any contributions are not taxable income. The IRA allows these contributions to grow tax-free until the account holder withdraws them at retirement and they become taxable. Earlier withdrawals may leave the employee subject to additional taxes and penalties.

Contributions:
Contributions to traditional IRAs are often tax-deductible. For example, contributing $6,000 to a traditional IRA could reduce the amount of your taxable income by $6,000. Then, in retirement, withdrawals from traditional IRAs are taxable as ordinary income. The contribution limit for traditional IRAs in 2021 and 2022 is $6,000 per year. People 50 and older can contribute up to $7,000 per year.

If you’re married and you or your spouse has a retirement plan at work, the amount of your traditional IRA contribution that you can deduct is reduced, or eliminated altogether, once you hit a certain income. You can still make contributions, but they won’t be tax-deductible. If you and your spouse don’t have retirement plans at work, then you can deduct your IRA contribution no matter how much your income.

Distributions:
Generally, you can take distributions from a traditional IRA starting at age 59 1/2. If you take money out before then, you may have to pay a 10% penalty (there are some exceptions). You must start taking required minimum distributions when you reach age 70 1/2 or 72, depending on your birthday.

Pros:
–Offers some valuable tax benefits, and it also allows you to purchase an almost-limitless number of investments – stocks, bonds, CDs, real estate, etc.
–No tax owed until you withdraw the money at retirement.

Cons:
–Can be costly to access your money because of taxes and additional penalties.
–Requires you to invest the money yourself. You’ll have to decide where and how you’ll invest the money, even if that’s only to ask an adviser to invest it.

Roth IRA
A Roth IRA is a newer take on a traditional IRA, and it offers substantial tax benefits. Contributions to a Roth IRA are made with after-tax money, meaning you’ve paid taxes on money that goes into the account. In exchange, you won’t have to pay tax on any contributions and earnings that come out of the account at retirement. It’s an attractive option for investors who have a long time before they retire.

Contributions:
In 2021 and 2022, the annual contribution limit is $6,000 ($7,000 if 50 or older) for modified adjusted gross incomes below $140,000 for single filers in 2021 ($144,000 in 2022) or $208,000 for people married filing jointly ($214,000 in 2022).

Pros:
–Ability to avoid taxes on all money taken out of the account in retirement, at age 59 ½ or later.
–Provides lots of flexibility, because you can often take out contributions – not earnings – at any time without taxes or penalties.
— Can be opened by anyone. Your employer does not need to offer access to a Roth IRA as a benefit.

Cons:
–You need to decide how to invest the money or have someone do that job for you.
–There are income limits for contributing to a Roth IRA.

SEP IRA
SEP IRAs are for self-employed people or small-business owners with few or no employees. Similar to traditional IRAs, the contributions are tax-deductible. Investments grow tax-deferred until retirement when distributions are taxed as income. SEP IRAs require proportional contributions for each eligible employee if business owners contribute for themselves.

Contributions:
In 2022, contributions are limited to 25% of compensation or $61,000, whichever is less. In 2021, the limit was 25% of compensation or $58,000. There’s no catch-up contribution at age 50+ for SEP IRAs.

Distributions:
SEP IRAs require minimum distributions beginning at age 72.

Pros:
–For employees, this is a freebie retirement account.
–For self-employed individuals, the higher contribution limits make them much more attractive than a regular IRA.

Cons:
–There’s no certainty about how much employees will accumulate in this plan.
–The money may be too easily accessible. If you tap the money before age 59 ½, though, you’ll likely have to pay a 10 percent penalty on top of income tax.

SIMPLE IRA
SIMPLE IRAs (Savings Incentive Match Plan for Employees Individual Retirement Accounts) are for small businesses with fewer than 100 employees. The same benefits are provided to all employees. Similar to traditional IRAs, the contributions are tax-deductible. Investments grow tax-deferred until retirement when distributions are taxed as income.

Contributions:
Employee contribution limits for a SIMPLE IRA in 2022 are $14,000 per year ($13,500 in 2021) for those under age 50. People age 50 and older can make an additional $3,000 catch-up contribution.

Employer contributions are mandatory. The employer has a choice of whether to contribute a 3 percent match or make a 2 percent non-elective contribution even if the employee saves nothing in his or her own SIMPLE IRA.

Pros:
–Opportunity for workers to make pre-tax salary deferrals and receive a matching contribution. To the employee, this plan doesn’t look much different from a 401(k) plan.

Cons:
–The employee contribution has a limit of $14,000 for 2022, compared to $20,500 for other defined contribution plans.

Is it better to have a 401(k) or IRA?
You can have both. You can get the full employer match on your 401(k), and open an IRA to boost your retirement savings.

If you don’t get an employer match, if you plan to max out your 401(k), or if your 401(k) has narrow investment options or high fees, it might be a good idea to invest primarily in an IRA.

The big difference between an IRA and a 401(k) is that employers offer 401(k)s, while you would open an IRA yourself through a credit union.

If you have an old 401(k), you can also move that money into a rollover IRA. A benefit of a rollover IRA is that when done correctly, the money keeps its tax-deferred status and doesn’t trigger taxes or early withdrawal penalties.

Savings account versus IRA
IRAs and savings accounts are two very different but very powerful financial tools. IRAs are helpful for preparing for retirement while savings accounts are great for housing money you need in the short term.

Taking full advantage of both and knowing how to use them will put you on the path to financial success.

Debt is more prevalent than ever in today’s society. Data shows that consumer debt has grown to more than $14.9 trillion in recent times, with the average consumer having about $92,727 in debt. And as it becomes more common, it becomes increasingly important to understand how to manage debt.

What is debt?

Debt is created when something, usually money, is borrowed by one party from another. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.

A loan is a form of debt but, more specifically, is an agreement in which one party lends money to another. Qualifying for a loan requires an approval process to verify the creditworthiness of the borrower and their ability to pay. There is a review of income, employment status, credit score and payment history on other loans and bills and may include verifying collateral to determine its value. The lender sets repayment terms, including how much is to be repaid and when. They usually establish that the loan must be repaid with interest which is expressed as a percentage of the loan amount. Interest is used to ensure that the lender is compensated for taking on the risk of making the loan.

Types of debt

Debt falls into four categories: secured, unsecured, revolving and installment. These categories can and do often overlap. Understanding how loans are classified—and how the classifications work—can help you with your financial decisions

Secured loans
— A secured loan is a loan backed by collateral. The most common types of secured loans are mortgages and car loans, and in the case of these loans, the collateral is your home or car. In addition to the standard review of income, employment, credit score and payment history, the collateral is typically verified and its value is assessed.
— When you take out a secured loan, the lender puts a lien on the asset you offer up as collateral. Once the loan is paid off, the lender removes the lien, and you own both assets free and clear.
— Secured loans represent lower risk to the lender which could mean more favorable financing terms and rates for the borrower.
— Types of secured loans:

— Mortgage
— Auto
— Secured credit card (cash deposit)
— Types of collateral (depending on the type of loan):
— Real estate
— Bank accounts (checking accounts, savings accounts, CDs and money market accounts)
— Vehicles (cars, trucks, SUVs, motorcycles, boats, etc.)
— Stocks, mutual funds or bond investments
— Insurance policies, including life insurance
— High-end collectibles and other valuables (precious metals, antiques, etc.)
— Cash

Unsecured loans
— Unsecured loans do not have any collateral behind them though you are still charged interest
and, sometimes, fees.
— Since there’s no collateral, financial institutions approve or deny unsecured loans based largely on your credit score and history of repaying past debts. For this reason, unsecured loans may have higher interest rates (but not always) than a secured loan. Lenders examine your credit by using credit reports.
— There are roughly 20.2 million personal loan borrowers in the U.S. You can take out a personal loan for nearly any purpose, whether that’s to renovate your kitchen, pay for a wedding, go on a dream vacation or consolidate debt.
— Types of unsecured loans:

— Student loans
— Personal loans
— Credit cards (traditional)

Revolving loans
— A revolving credit account is open-ended, meaning you can charge and pay down your debt
over and over—as long as your account stays in good standing.
— If you qualify for a revolving credit line, your lender will set a credit limit, which is the
maximum amount you can charge to the account. Your available credit then fluctuates each month, depending on how much you use it. Minimum payment amounts may change every month too. Any unpaid balance carries over to the next billing cycle with interest added on.
— Types of revolving loans:

— Personal line of credit
— Home equity line of credit (HELOC)
— Credit cards

Installment loans
— This type of loan is closed-ended, meaning that it’s repaid over a fixed period of time and
payments are made in equal installments (often monthly).
— Installment loans can be secured. That’s the case with auto loans and mortgages.
— Installment loans can also be unsecured. That’s the case with student loans.
— When you make installment loan payments, you’re paying what you borrowed and interest at
the same time. Often, the portion of each payment that goes toward interest decreases as the loan is paid down. This process is known as amortization.
— Types of installment loans:

— Auto loans
— Mortgage loans
— Student loans

Understanding your loans

It’s important to know about and fully understand each loan you have. For each loan, you should know your:

— Total balance
— Interest rate
— Minimum monthly payment
— Estimated payoff date

Once you understand your loans, you need to have a payoff plan for each one and make sure you are comfortable with the plan in light of your personal budget.

Before you’ve even deposited your paycheck, do you already know that there will be very little left over after you’ve paid for necessities like rent, utilities, groceries, or gas? If so, you’re not alone: with the rate of inflation outpacing the growth in wages over the last three years, many Americans are finding themselves living paycheck to paycheck. 

In October, a Bank of America Institute survey revealed that about 25% of households fall into the “living paycheck to paycheck” camp, with the criteria being that they spend at least 90% of their income on necessities. This means that if any emergency expenses pop up, there’s no safety net to cover them without going into some form of debt.

In this blog, we’ll walk you through 15 steps to stop living paycheck to paycheck so you can break away from this debilitating cycle and find the financial freedom you deserve.

1. Identify Barriers to Getting Started

You know that you’re living paycheck to paycheck, but have you spent any time trying to figure out why? This is an important first step in breaking the cycle. For many people, it’s a cash flow problem—they just don’t make enough money to cover the basic cost of living.

There are others, however, who overspend and dip into funds that should have been reserved for essentials or emergencies.

Keep in mind that living paycheck to paycheck can bring about many different negative emotions: stress, anxiety, and fear. Sometimes, these emotions paralyze you from taking action with your finances. Try these approaches to help neutralize your emotions: 

2. Find Your Why and Remember It

It’s important you believe that making some small changes now can make a big difference down the road. You need to have a strong reason to change your habits and believe that you can actually change them for the better.

To do that, think about the big future goals you’re working toward, like:

If those goals seem too unattainable right now and you just want to envision a life where you don’t have to worry about overdraft fees or hearing your card has been declined, then focus on that. 

Always try to remember your why when:

3. Set Financial Goals

Translate your future goals into financial goals. These goals are important because they’ll keep you focused and will serve as your “why” when it gets difficult to stay within your budget. Write them down and put them somewhere you can see them frequently, like the bathroom mirror or fridge door. 

Then as you make progress on your debt, savings, and budget—you can revise the goals accordingly.

4. Budget, Budget, Budget 

Budgeting is the foundation for successful money management, and it’s the first step toward ending the paycheck-to-paycheck lifestyle. When you budget, you know where your money is going instead of scratching your head and wondering why it’s all gone.

But how do you start? To set up a budget, write down your income and then start subtracting your expenses. These four essentials should be your top priority, so make sure your budget is ready to pay for them before anything else:

After these top four, make a list of everything else you need to pay (perhaps insurance, tuition, or childcare) and prioritize those in order of importance. 

Next, audit your past spending to “stop the bleeding” by figuring out where your money is really going. Look at your want-to-haves list and identify places to cut this type of spending. Once you’ve done all of the above, use your new, bare-bones budget for 6-8 weeks to reset your spending habits. 

Before spending any money at all, refer to your budget to keep yourself on track. This will be particularly helpful in areas like grocery shopping which can add up fast if you’re not paying attention. 

5. Build an Emergency Fund

The best way to save for an emergency fund is to put that money aside first, ahead of the rest of your spending. Set up an automatic transfer on paydays from your checking account to an emergency savings account. The more you can put on autopilot, the better.

6. Make a Plan to Manage Your Debt

First, establish exactly how much debt you’re carrying—across the board. Add up your debt total (with interest rate included) and determine what your monthly minimum payments are per debt that you owe. Then look at your budget to see if it’s possible for you to pay more than the minimum, to refinance any loans, or to transfer your balance to a lower interest rate loan.

7. Sell Stuff

Now it’s time to bring in more money! One of the easiest ways to get your hands on some extra cash is by selling whatever you can. With technology at your fingertips, you don’t have to organize a garage sale—you can sell many things through online marketplaces.

Open your closets, cabinets, and drawers to locate items that you no longer use or wear—but might be attractive to someone else, like:

If you can part with something and get cash for it—what’s stopping you?

8. Take on a Side Hustle 

Sometimes you just need to take on a part-time job for a while to supplement your income. Here are a few great options for making extra money outside of your regular day job: 

Use the extra money you earn to start an emergency fund or pay off more credit card debt. Once you have stashed some money in savings and started getting your debt under control, you’re on the right path.

9. Live Below Your Means

Many people think that increasing their income will fix their financial situation, but this might not always be the case. What can happen is that your standard of living increases WITH the increase in income—and the paycheck-to-paycheck cycle continues. 

This phenomenon is called lifestyle creep or lifestyle inflation. Suddenly, you can afford things you couldn’t before—but instead of saving the extra money, you fall back into the habit of being pretty loose with the purse strings.

If you sense this could be happening, refer back to Step #2! Remember why you took on that extra job in the first place, stay true to your budget, and continue to find ways to cut back for a few months by: 

10. Save Up for Necessary Repairs or Purchases 

If you own a car or a house, there will inevitably be a repair expenditure in your future. The tires will start wearing thin or the washing machine will wear down. These aren’t considered emergency repairs because you know in advance that they will eventually happen. The best way to combat this is to set up a separate account for these kinds of expenses. 

11. Make Lifestyle Changes If Possible

Sometimes you need to change more than just your spending habits to find financial freedom and stop living paycheck to paycheck. You could consider relocating to a less expensive area or downsizing your home or apartment to save money. 

Alternatively, you could go back to school or switch careers if you think your current professional situation is not providing you with an optimal income or a long-term trajectory to success. 

12. Choose Someone to Help You Stay on Track

Work with an advisor, relative, or trusted friend to help keep you on track. Set up regular check-ins to assess your progress as well as celebrate your successes. 

13. Be Patient With Yourself

This might not be the quickest process, so be patient and give yourself grace. Moving to a savings frame of mind when you haven’t been a saver can be difficult. Breaking old habits is always a challenge, but it is completely doable if you lock in and stay focused.

14. Make Time to Learn About Finances Every Week

Knowledge is power. Every week, set aside 15 to 20 minutes to expand your financial knowledge—for free—by:

You’ll be surprised how much you can learn in a short period. And the more you absorb about finance, the easier it will become to make good choices.

15. Remember: This Is About Your Financial Freedom

It can be daunting to think about how to stop living paycheck to paycheck. If you’re reading this blog, give yourself credit for taking the first step towards changing your financial circumstances for the better – you’re already on the path to financial empowerment. 

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.

The holidays may be a fun and festive time, but they can also bring additional safety concerns when you’re shopping for gifts. Thieves see the season of giving as a golden opportunity to steal your money or personal information, especially with more people shopping online for gifts.

There are all sorts of sneaky schemes scammers use to steal your hard-earned cash. But with a little know-how, you can outwit those thieves and keep your festivities fraud-free.

To stay safe and prevent crooks from ruining your cheer this holiday season, check out these shopping tips.

Use Your Credit or Debit Card for Peace of Mind

Not only are credit and debit cards more convenient than carrying cash, but they also provide an extra layer of security while you’re shopping. What’s more, using a debit card can prevent you from blowing your holiday budget.

With a debit card, you’re limited to the amount of money you actually have in your checking account, so you’re less likely to rack up debt or spend more than you can afford. Plus, some financial institutions offer special bonus rewards for using your debit card during the holiday season. That can help you stay on budget and keep you from overspending.

Most debit cards also come with built-in fraud protection. So if a scammer steals your card info and starts racking up charges, you likely won’t be on the hook for paying them. Your card issuer will investigate any dubious charges and reimburse you for the fraudulent ones.

And while you’re at it, set up account alerts so you get a text or email anytime there’s a charge over a certain amount. That way you’ll know right away if something shady is going on. While this might seem like extra work to keep tabs on your accounts, it’s worth the peace of mind knowing your hard-earned money is protected.

Guard Your Personal Info and Consider Using a Digital Wallet  

When you’re checking off that holiday shopping list, it’s easy to get caught up in the spirit of the season and let your guard down. One simple step to keep yourself safe is to be cautious about sharing details like your birthdate, Social Security number, or bank account info with stores, whether you’re shopping online or in-person. If a retailer asks for more than the basics to complete your purchase, think twice before handing it over.

Consider using a digital wallet instead of your actual card. A digital wallet generates a unique code for each purchase. It’s like putting a virtual lock on your financial data. It also lets you pay with your phone using features like Apple Pay or Google Pay.

All your sensitive payment info is encrypted and stored securely in your digital wallet, so even if your phone is stolen, the thief can’t go on a shopping spree with your money. Plus, if your phone has biometric security features like a fingerprint scanner, you can add an extra layer of protection.

Cheats and Swindlers and Scams – Oh My!

From fake charity drives to bogus gift cards, be on the lookout for anything that seems suspicious. Watch out for fake “delivery notification” emails that claim there’s a problem with your holiday package delivery. They might look legit, but clicking the links or downloading the attachments could install malware on your computer without you even realizing it.

Also be careful of any innocent looking “Happy Holidays!” e-cards or package tracking emails in your inbox. They could be phishing scams designed to steal your personal info. Stay alert and use common sense while online shopping this holiday season. If a deal looks suspicious or an email seems fishy, trust your gut and steer clear.

Social media scams are common around the holidays when everyone’s looking for deals and doing their shopping online. If you’re scrolling through your feed and an ad suddenly pops up promising a huge discount on the hottest new gadget or designer jacket, don’t click on it.

It may take you to a sketchy website asking you to enter your personal information and credit or debit card details. Once they have your info, the seller disappears without ever sending you what you ordered.

These “deals” tend to ramp up during peak shopping periods like Black Friday, Cyber Monday, and the weeks leading up to the holidays. The posts usually have a limited time frame to pressure you into forking over your credit card details or clicking a shady link without giving it a second thought.

Take a minute to scope out the company behind the offer before you buy. Check for typos and grammatical errors, too, which could be sign that the site is fake.

Stay Safe Online by Shopping on Secure Websites

Stay one step ahead by only shopping on secure websites, never sending money to unverified individuals, and keeping a close eye on your credit card and bank statements for any suspicious activity.

Staying safe shopping online requires constant vigilance and a keen eye. As you navigate the digital marketplace, it’s crucial to stay alert and attentively watch for any signs that indicate potential fraud or security risks, such as unfamiliar websites, unsecured connections, or requests for sensitive information. Then, take proactive steps to protect your personal and financial data.

First off, only buy from websites you know and trust. Look for the padlock icon and “https” in the URL at the top of the page to know it’s a secure site. If a deal seems too good to be true, it probably is! Be wary of any individual seller asking you to send them money directly. No matter how convincing their story is, just say no.

Another smart idea is to regularly check your credit card and bank statements. If you spot any charges you don’t recognize, report them to your financial institution. It could be a sign that a hacker got ahold of your information. The sooner you catch any fraud, the easier it is to clear up.

When you’re out shopping for gifts this holiday season, it’s important to keep your personal info safe and secure. Resist the urge to hop on that public Wi-Fi network at your local café to shop. Public networks are less secure than private ones.

Instead, stick to your mobile data plan or wait until you’re back on a network you trust. You can also use a virtual private network (VPN) to protect yourself while using public Wi-Fi.

Stay Merry, Bright, and Safe This Holiday Season

When you’re out there battling the crowds to get your holiday shopping done, the last thing you want to worry about is your personal and financial information getting compromised. Don’t let scammers dampen your holiday spirit. Stay sharp and savvy and you can jingle all the way to a scam-free season!

Learn more about protecting yourself from fraud and how GLCU can help.

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.

Your credit report is your financial secret weapon.

Your credit history provides valuable insight into your financial health and opportunities for improvement. And that knowledge helps you make informed decisions about your money.

Credit reports contain a wealth of information that can be initially overwhelming. But we’re here to walk you step by step through that document. Read on to learn how to understand your credit report and use it to guide your financial journey.

Why Your Credit Report Matters

Your credit report is a detailed history of your debts and how well you’ve managed them. A great history shows responsible use of credit—on-time payments, low usage of available credit, years of positive records, and more.

Better-than-average credit makes you an attractive applicant to lenders. So you’re more likely to be approved for loans, credit cards, and lines of credit and receive competitive terms.

But a solid credit history is vital for more than just financing. People with good credit typically see lower rates for home and auto insurance. And they’re more likely to receive approval when renting a property, setting up utility accounts, and even seeking some jobs.

How to Read a Credit Report

Wondering how to understand your credit report? Let’s examine each section to explore what’s in your history.

Summary

Some reports include a high-level synopsis of your credit history. This section may include a tally of each account type you possess, your total balances, credit limits, accounts in collections, and more.

Personal Information

This section features variations of your name, including maiden names, names with a middle initial, etc. You’ll also see your Social Security number, date of birth, current and past addresses, phone numbers, employers, and any existing security alerts or credit freezes you’ve placed on your report.

Accounts

Your report includes a list of all open debts, plus accounts closed within the last ten years. Here, you’ll see loans, credit cards, lines of credit, mortgages, student loans, and more.

Each account will feature details of that debt—account number, type of account, open date, outstanding balance, loan terms, etc.

Additionally, you’ll observe detailed records of your payment history for each account. Those data show payment dates, payment amounts, whether those payments were on time, and how delayed any late payments were. You’ll also find notes about foreclosures, collections, repossessions, bankruptcies, and more.

Public Records and Collections

This section of your report itemizes public records related to your finances—typically monetary judgments against you, tax liens, and bankruptcies. Your report may also include collections against you and bankruptcies you’ve filed.

Hard Inquiries and Soft Inquiries

Your report lists all hard and soft credit inquiries in your name.

You trigger a hard inquiry when you authorize a bank, lender, landlord, etc. to run your credit. These requests typically stay on your report for two years. Too many hard inquiries can negatively impact your credit history.

Soft inquiries have no impact on your history. These requests do not require your permission. You may see them appear when you check your own credit, when businesses review your existing accounts, or when a company wants to make you a promotional offer for credit.

Disclosures and Contact Info

Here, you’ll find contact information for the reporting credit agency. You may also see information about your credit report rights and the process for disputing report data.

What’s Not on Your Credit Report

While your credit report includes plenty of detail about your finances, it doesn’t provide these pieces of information:

Check Your Credit Report Annually

Your credit report matters. So set a reminder to review yours at least once a year.

Keep in mind that you typically have three credit reports—one from each of the major credit bureaus (Equifax, Experian, and TransUnion). A government-authorized website lets you access your reports for free once a year.

When you do, confirm the validity of the information. Mistakes could be simple errors or signs of identity theft. Each report provides details on how to dispute information you believe is inaccurate.

Harness the Power of Your Credit Report

When you understand your credit report, you’ve armed yourself with critical information about your financial health. From there, you’re ready to take action to improve your credit, if necessary. And you can empower yourself to reach your financial goals faster.

Looking to improve your credit score? Explore our credit builder loans.

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.

Between tuition, books, room and board, and meal plans, college costs can add up quickly. Managing your finances as a student can be challenging, but you don’t have to do it on your own.

Below, we answered the top questions students submitted to the GLCU Foundation for Financial Empowerment as part of our recent scholarship application process. Read on to learn more about college student finances, key financial terms, and more.

What Should Students Focus on as They Prepare for College?

As you’re getting ready to start the school year, here are a few things to consider:

It’s common to feel pressured by friends and social media to spend beyond your means (this is often called “keeping up with the Joneses”). However, budgeting for the things you want can help you not overspend. Consider setting boundaries for yourself so you don’t blow your budget.

What Is Some Common Terminology I Should Know?

Here’s some background on a few of the financial terms you may encounter on your financial journey:

How Does Applying for a Credit Card Affect My Credit Score?

Another part of transitioning to a more financially independent lifestyle in college is applying for a credit card. There are a lot of factors to consider when applying for a credit card, including if it can affect your credit score to apply for one. The answer is: yes, it can. When applying for a credit card, it can trigger a “hard inquiry” on your credit report.

Multiple hard inquiries within a short period of time can negatively impact your credit score, so be mindful when applying for new credit cards, and do your research on the terms, APR, and fees.

Giving Student Finances the Old College Try

Navigating the financial side of college can feel overwhelming, but armed with the right tools and knowledge, you can set yourself up for success. By making informed decisions and setting boundaries for spending, you can feel more confident and secure in your financial choices.

As a not-for-profit credit union, GLCU empowers its members through community giveback programs, financial education, volunteerism, and competitive interest rates. Learn more about our scholarships and student loans, and check out our college resource center.If you or someone you know needs help with college financial planning, contact us.

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.

*APY = Annual Percentage Yield.

*APR=Annual Percentage Rate.

Your credit score is a key part of your financial well-being. Think of your credit score as a report card that shows lenders how likely you are to pay back the money you borrow. If you have a good credit score – one that’s 700 and above – you’re more likely to be approved and receive better interest rates on loans.

A bad credit score – one that’s 600 and below – can make borrowing money more expensive and difficult. For example, if you apply for a loan with a low credit score, you’re more likely to be denied or charged a higher interest rate. A bad credit score can also impact your ability to rent an apartment.

Your credit score is based on the following factors:

Read on to learn about how to start building good credit.

Pay Your Loans and Credit Cards on Time

Because payment history is one of the key factors that impact your credit score, missing payments or making late payments can hurt your score. Instead, make sure you make your payments on time every month to build positive credit history.

Keep Your Credit Utilization Low

Maxing out your credit cards can hurt your credit score. Avoid spending more than 30% of the total credit available to you to improve your credit score. Paying your credit card balance in full each month can help keep your credit usage low.

Have a Mix of Credit Types

The types of credit you have impact your credit score as well. For example, it helps your score if you have a mix of credit types, like loans and credit cards. However, your credit score can be negatively impacted if you apply for too many types of credit at once.

Build Credit History

Showing lenders that you have a history of using credit responsibly can improve your credit score. Specifically, the longer credit history you have, the better.

Consider a Credit-Builder Loan

If you’re just starting out on your financial journey and don’t have a credit score yet, or you have a low credit score, a credit-builder loan can help you build or improve your credit score. Credit-builder loans provide an opportunity to increase your credit score through making on-time payments. With an improved credit score, you can continue working to meet your financial goals.

Securing a Strong Financial Future with Good Credit

Building good credit takes time. If you check your credit regularly and use it responsibly, you can improve your score in the long run. With a good credit score in hand, you’ll put yourself on the path to reaching your financial goals and securing your future.

The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.