SafeAmerica Credit Union

Walnut Creek

• By Kevin Alvarez

5 Reasons to Make a Budget – Financial Literacy Month

Information is brought to you by our partner, GreenPath Financial Wellness

Making a budget and following it are two powerful financial habits. It’s not always easy, or fun at first. But it is one of the best steps you can take to successfully manage your finances.  There are many reasons to budget and in the long run, it feels really good to see yourself accomplishing a goal.

 

Reasons to Budget (There's more Pros than Cons)

#1 – A budget helps you gain control of your finances

Think of a budget as a financial roadmap. It will guide you to your destination. It will also reduce arguments and improve relationships because you and your family will know where you are going financially, providing a smoother ride along the way.

#2 – Budgeting helps you achieve goals

Whether it is putting money aside for emergencies, a vacation or a college education, a budget helps you devote resources to those things that you determine are most important. Having a plan also promotes well-being and reduces stress.

#3 – A good budget keeps you honest

Documenting purchases allows you to figure out where your money is going.  It allows you to stay accountable to your goals. By keeping a budget, each dollar you spend is accounted for. That’s a powerful incentive to stay true to your good intentions.

#4 – Budgeting helps improve habits

If you spend more than you earn, you will drain your savings. And if it continues, you will take on debt.  By measuring how you spend your money, you will know for sure whether you’re headed for trouble, and you can take the steps necessary to improve your habits.

#5 – Budgeting helps you avoid debt and improve credit

By truly understanding how much it costs to be you, you can make adjustments to stop living from paycheck to paycheck. You may be able to identify ways to get out of debt and stay out of debt. By paying your bills on time and not taking on too much debt, you will take the most important step toward building good credit.

Use Greenpath's Budgeting worksheet to calculate your monthly expenses and income to get an idea of what you have to work with, what your commitments are, and what they have remaining to devote to their goals.

Click here for the Budgeting Worksheet

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• By Kevin Alvarez

Saving Money Isn’t a Luxury – It’s a Necessity

Information brought to you by our partner, GreenPath Financial Wellness

4 Reasons to Start Saving Now - Plus Tips for Getting Started

Saving money can often be a challenge — especially during times of financial uncertainty. As humans, we’re wired to take care of our needs now, and worry about later ... well, later. However, saving money is a critical component of financial wellness. Here, we break down why saving (even a small amount) can make all the difference:

Saving Helps to...

Prepare us for emergencies

Putting aside a set amount each month helps protect us in a financial emergency. Perhaps it’s a surprise medical bill, car repairs, or temporary loss of income. There are many reasons why an emergency fund is critical to help handle unexpected expenses. Plus, building up emergency savings to cover unexpected expenses is better than using high-interest credit cards or taking out a loan. An emergency fund gives you peace of mind and prevents you from going into debt.

Set us up to manage planned expenses:

For those anticipating making large purchases, saving money can help us prepare our budget to pay for expenses that we plan to take on–such as a down payment on a car, home improvements, or an upcoming vacation. Emergency savings are also useful for smaller cash outlays like costs for pets, car maintenance and other important bills Here again, by saving up for planned purchases whether they be the significant expenses or lower cost items, we can avoid using high-interest credit cards or taking on other debt. When you plan ahead, you take control of managing your monthly income.

Reduce Stress:

Financial stress is real. It can be overwhelming to have bills and expenses that we struggle to pay each month. In fact, many researchers see a significant connection between financial stress and mental health and well-being. During the ongoing pandemic, financial strain is felt by the newly unemployed, furloughed, and those still working but facing an uncertain future. When you build up savings, you reduce the stress many of us feel about our finances and give yourself a gift–peace of mind.

Provide a sense of freedom:

Gaining a sense of freedom might not be the first reason that comes to mind as a benefit of setting up a savings plan. Yet many of the people who contact GreenPath Financial Wellness report enjoying a sense of improved freedom and flexibility after building up savings, no matter the amount. Setting aside even $20 a paycheck is proven to provide a feeling of freedom due to the "buffer" savings "nest egg" exists gives people more freedom to choose how to handle their finances, rather than feeling stuck in a particular situation.

 

How to Jump-Start Your Savings

1. Assess your budget.

Use GreenPath's Budgeting Worksheet to get a  handle on your monthly income and typical expenses, including credit card debt or other loan payments.

2. Commit to a monthly savings amount.

Once you have a complete picture of monthly income, expenses, and debt, consider how much you can set aside each month to build up savings. How much you set aside will depend on your financial goals. For instance, if you're planning for a large purchase, break down the amount over a 6 month or 12-month period, and automate savings to meet that goal.

3. Automate your savings.

Automating your savings makes it more "painless." You'll be able to set it and forget it, by paying yourself first through automated deposits.

4. Maximize Interest

Ensure you're maximizing the interest you're earning by getting a competitive annual percentage yield (APY). Consider a money market or other higher interest account.

5. make it a family affair.

Setting a savings goal with loved ones lets you come to a consensus about goals and dreams. That way, it is easier for you all to plan and encourage each other to save for emergencies, planned expenses, or other goals.

Saving for your future is closer than you think.

Building savings can seem like a daunting task, but you will start to see results with practice and patience.

If you're unsure how much you can reasonably save each month or need a helping hand getting started, you can request a free financial health assessment with a GreenPath NFCC-certified Financial Wellness Expert.

Our professional, caring coaches will work with you to assess your situation, explain the options or solutions available, and help you create a plan to meet your goals. It's free, confidential, and no pressure.

For additional insight view an on demand webinar: 10 Ways to Start Saving Money.

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• By Kevin Alvarez

The Impact of Stimulus Payments on Your Taxes

What a year 2020 has been! New Year’s celebrations were barely over when the coronavirus turned things topsy-turvy. But one bright spot for 159 million people was the $1,200 Economic Impact Payment that appeared in their mailbox or checking account.

If you didn’t receive a payment, you may be wondering, why? And if you did, you may be wondering, what’s the catch? We are here to help put your mind at ease, so let’s tackle your questions, one by one.

Do I owe tax on the money I received? That’s an easy one: No. The stimulus payment was designed to impact the economy, not your taxes, so it won’t reduce your 2020 refund or increase your tax due.

I didn’t get a payment – why? If your income for 2019 or 2018 was over $75,000 ($150,000 if you filed jointly, $112,500 if you were head of household), then your payment was reduced by $5 for every excess $100 you earned. And if you didn’t file a tax return for either year, you may not have gotten a payment. But don’t despair, you still may be entitled to payment.

Really? What can I do now? If you were supposed to file a 2019 tax return and didn’t, file right away. If your income was too low to file, at IRS.gov you can click on the tab marked “Non-filers” and fill in your basic information. If the IRS determines you are eligible for a payment, they will send it to you.

What if my income has gone down? If your 2019 income was too high for you to receive a payment, but your income this year is much lower, you are in luck. You can claim your stimulus payment on your 2020 income tax return, and it increase the refund you receive (or reduce any tax due).

My 2020 income is higher than in 2019 – will the government want the money back? No. If you received a stimulus payment based on lower income in 2019, that payment is yours to keep even if your income increased above the threshold in 2020.

When it's time to file your taxes TurboTax is here to help!
From simple to complex taxes, TurboTax® has you covered. And when you need help, real experts are standing by — and can even do your taxes for you, start to finish with TurboTax Live®. Getting your biggest possible tax refund has never been easier. And as a credit union member you can save up to $15 on TurboTax. Click here to get started today!

The information in this article is for general educational purposes only and not intended to provide specific advice or recommendations.Please discuss your particular circumstances with an appropriate professional before taking action.

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• By Lisa

SafeAmerica Credit Union Reaches $500 Million Milestone

SafeAmerica Credit Union is now a $500 million credit union! We've reached this incredible milestone  in asset size through the dedication and hard work of our employees and through our members who have, since 1953, placed their continued loyalty in us.

2020 was a year that presented it’s own sets of challenges with the onset of the pandemic, but through it all, we persevered. We thank you for your membership and for continuing to place your trust in us. Together, we're stronger and better than ever.

Thank you for making us $500 million strong!

Our History

$500 Mil SACU History - Final
  • 1953 - Two credit unions from San Francisco got together to serve Northern California Safeway employees
  • 1965 - Moved offices from San Francisco to Burlingame
  • 1966 - The credit unions merged to form Safeway San Francisco Employees Federal Credit Union
  • 1982 - Moved operations from Burlingame to Hayward
  • 1983 - Changed its name to Safeway Federal Credit Union
  • 1985 - Reached $100 million is assets
  • 1989 - Changed its name once again, to SafeAmerica Federal Credit Union
  • 2003 - Became a State Chartered credit union, changing it's name to SafeAmerica Credit Union
  • 2008 - Reached $250 million in assets
  • 2013 - Celebrates 60 years of service
  • 2020 - Reached $500 million in assets

Images Through the Years

About Us

• By Kevin Alvarez

Your Top Tax Question About Working Remotely, Answered

Last spring, many of us were asked to leave the office and begin working remotely from home. If you were one of them, you know that presented a lot of issues to be solved as you juggled work and family, including children newly banished from their schools. It was a tumultuous time, and congratulations for dealing with it powerfully and creating solutions that worked for everyone. Whew!

Now, with tax time approaching, there are tax implications of working remotely that you need to address, and we are here to help. So, let’s take a look at the tax issues of remote employment.

What tax issues? I still pay tax on my income, right? Yes indeed. The income from your job will be reported to you on a W-2 in January, and you’ll report that income on your tax return. Nothing there has changed, at least for the federal tax return. But you may have special tax issues to deal with when you file your state income tax return unless you live and work in a state that has no income tax.

What’s different about state returns for remote employment? If you live in the same state in which your employer is located, state taxes are pretty straightforward. But when the pandemic hit and commuting to the office became a thing of the past, many people left urban areas and moved to the less-populated country where it was less expensive to live. If you crossed state lines to do that and now live in a different state from your former office, you may be dealing with the income tax rules of two states, not just one.

Oh no, do I owe taxes to both states? Good question – it depends. Most states look to your physical presence in determining whether to tax you. If that’s the case, if you live and work in one state for an employer in another state, you will only owe tax to the state in which you live and work. But each state is different, so be sure to use tax preparation software such as TurboTax® that considers the facts and circumstances of your employment situation in light of the tax laws of the states involved.

Can I deduct the costs of working from home, such as my computer, internet, office furniture, and supplies? Probably not. Unfortunately, the tax act passed at the end of 2018 axed those deductions for most employees, with the exception for teachers that allows them to deduct up to $250 for supplies used in the classroom. If you aren’t entitled to a deduction for your expenses, your best bet is to ask your employer to give you a non-taxable reimbursement for those costs.

When it's time to file your taxes, TurboTax® is here to help!

From simple to complex taxes, TurboTax has you covered. And when you need help, real experts are standing by — and can even do your taxes for you, start to finish with TurboTax Live®. Getting your biggest possible tax refund has never been easier. And as a SafeAmerica Credit Union member you can save up to $15 on TurboTax. Click below to get started today!

The information in this article is for general educational purposes only and not intended to provide specific advice or recommendations.Please discuss your particular circumstances with an appropriate professional before taking action.

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• By Kevin Alvarez

What is a balance transfer?

A balance transfer is a financial resource that doesn't get as much recognition as it deserves. Let's shed some light on balance transfers and go over how you could take advantage of paying down debt with a lower interest rate and get you on track for your next financial goal.

What is a balance transfer?

It's moving high interest debt (usually credit card debt) amount from one account to another account that has a significantly lower interest rate.

How does a balance transfer work?

Let's use an example; you have a credit card balance of $1,200 at 24.99% APR from your favorite retailer and transfer that total debt amount to another financial institution with an interest rate of 10%.

Think of the financial position you would be in with an interest rate of 10% or even 0%. Instead of paying $299.88 in interest with your 24.99% APR account, you'd now pay $120 with your new 10% APR account or even $0 with a 0% APR.

Does a balance transfer hurt my credit?

As long as your credit account from the previous financial institution is kept open, your credit will improve.

Is there a fee to transfer a balance?

Many big banks charge a balance transfer fee between 3% and 5% of the amount that would be transferred. Let’s continue to use the $1,200 at 24.99% APR scenario for another example. When you transfer over to a financial institution with a lower rate but charges a balance transfer fee of 5% be prepared to pay the additional $60. As situations vary from person to person, the fee itself may be the deciding factor for transferring over a balance. Of course, be aware of all fees in order to make sure a balance transfer is truly beneficial to your current financial situation. Remember as a member of our credit union, you receive a lower or no balance transfer fee, one of the many differences between your local credit union and the big banks.

Should I close my old credit card after a balance transfer?

You definitely should not close any of your credit cards. Since balance transfers are linked to a credit card, you would be increasing your credit utilization amount, which would then improve your credit score. As long as you have no balance and are not charged an annual fee, it won't cost you to keep the account.

Does a balance transfer count as a payment?

A balance transfer does not count as a form of payment. You transferred a balance in order to make lower payments.

What is a typical minimum payment on a balance transfer?

Minimum payments vary with financial institutions and its always good practice to clarify with your financial institution.

Do balance transfers earn reward points?

This would also vary between financial institutions. For the most part, financial institutions would not offer rewards points for balance transfers. This would be something to verify with the financial institution when applying for credit cards with the balance transfer feature.

How long does a balance transfer take?

Industry average is between 14 and 21 days to complete the process of paying off your previous lender.

Is a balance transfer the right financial resource for me?

A balance transfer can be very beneficial for those who have manageable debt with high interest rates. The objective is to take advantage of any promotional 0% periods to pay down as much debt as possible which in turn, is going towards paying down the principle rather than any interest.

SafeAmerica Credit Union can help. If you're interested in transferring a balance you have at another financial institution, we're currently offering 0% APR on purchase and balance transfers through September 30, 2021 when you open a new credit card through March 31, 2021.

How SafeAmerica Credit Union's balance transfers work:

  • Balance transfers often take 2-3 days compared to industry standard of 14 to 21 days.
  • We're currently offering 0% interest through September 30, 2021 on balance transfers done from January 1, 2021 to March 31, 2021
  • We charge no balance transfer fees on our balance transfers.

To learn more on how you can take advantage of balance transfers and start paying less interest on your debt, click below.

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• By Kevin Alvarez

New Year, New Money Habits!

The New Year is a time for powerful new beginnings. It also presents an opportunity to look at our everyday habits – whether those habits relate to our health and fitness or our money habits as we manage any financial challenges.

What is a habit? A good working definition is that a habit is a routine behavior that is repeated regularly and tends to occur without a lot of conscious thought.

Many of us already have healthy habits that we do by routine – like brushing our teeth or washing our hands.

We might also have healthy money habits. Carefully reviewing your credit card statements each month could be a habit you already have in place, for example.

As the year gets underway, there are opportunities to reinforce healthy money habits that already work for you. And it’s an opportunity to create new habits like
writing down financial goals or building savings.

Make It a Habit

Building positive money habits can affect your entire well being. Here are a few ideas to try as the New Year gets underway.

1. Make a Goal (and Write It Down)

Goal-setting gives you direction. You can decide on your destination and make a plan to get there. This action might seem small, but it’s not. Make it a habit to look at monthly finances and jot down one or two goals. The goal could be taking a bite out of your credit card balances or setting aside a small amount each month for a large purchase.

2. Set it and Forget It

You likely have many of your outgoing bills set to “automatic payment,” which is a positive money habit. Setting up “auto pay” on monthly utilities, cable, and other bills lets you be sure bills are paid on time. Consider setting up “auto save” as well. If you set a goal to save for a big purchase, like the down payment for a car, automate monthly savings to help you achieve your goal. Set up automatic transfers or use direct deposit from your paycheck to automatically place funds in your goal account.

3. Spend with Care

Mindful spending is a powerful financial habit to build. If you don’t already have one, build the habit of using a monthly spending or budgeting plan. You’ll learn how much money you have to work with, the amount that is going out each month for bills and expenses, what you need to set aside for other bills and living expenses, and how much you can devote to your goal from each paycheck.

4. Deal with Debt

Think about your habits when using your credit card and when considering your total debt situation. Are most of your purchases made with consumer credit cards? What are your current credit card balances and other debt balances? Listing out all your monthly debt payments helps you stay aware and act if needed. If you are in the habit of only making minimum payments on your credit card balances or experiencing collection calls, consider learning about how a Debt Management Plan can get help support healthy money habits.

5. Celebrate Your Progress

As we noted, you likely have many positive habits already. That’s something to be proud of, as you can apply those lessons to building new money habits. Make it simple. Tackle one habit at a time and celebrate your wins. The New Year is sure to be a success when you tackle one habit at a time and make it work for you.

Ready to build new money habits?

Our partner GreenPath specializes in helping people improve their financial wellness.

Learn more about building healthy financial habits here:

Redesign Your Financial Habits

• By Kevin Alvarez

5 Holiday Spending Tips to bring You Less Stress (and More Joy!) This Holiday Season

Information brought to you by our partner, GreenPath Financial Wellness

After a year full of twists and turns brought on by a global pandemic, many Americans are understandably looking forward to the holiday season.

This year, many Americans may find they are dealing with financial setbacks such as a loss of employment, reduced income, or other unanticipated expenses that may make it more difficult to avoid having holiday debt follow them into the new year.

Here are five tips designed to give you less stress and more joy this COVID holiday season:

Set a Holiday Spending Limit

During the holidays, it can be easy to let spending get out of control. Put a cap on your spending by creating a holiday budget / spending plan.

Be sure to factor in additional non-gift related expenses that can easily add up—things like holiday photos, decorations, food, and if your family gathering is cancelled, shipping of gifts to love ones.

Avoid Putting Holiday Debt on Credit Cards

The number one of financial wellness? Avoid spending money you don’t have. While it’s easy to do, putting holiday spending on credit cards can be risky—
especially if you don’t have the funds to pay it off when the bill comes due.

According to a recent survey, Americans racked up an average of $1,325 in holiday debt. Of those surveyed, 75% said they wouldn’t be able to pay it off in January, with 15% saying they only intended to pay the minimum monthly payment. In case you’re wondering, that translates to over $600 in interest and 5 years of making payments—ouch!

Trade Pricey for Priceless

A great gift doesn’t have to be expensive. Think outside the box and treat your loved ones to a thoughtful gift that generates excitement without the price tag.
Maybe that’s a handmade item, DIY project, a fun experience, a coupon book, or just the gift of your time.

Keep Your Personal Info Safe

The holiday season is a time when people are more vulnerable to identity theft scams. Not only are they making more purchases than at any other time of year, but they are often distracted when doing so.

According a recent Experian study, as much as 43% of holiday shopping identity theft occurs online. As the current COVID environment drives more people
than ever to online shopping, it’s important to be aware of the best ways to protect yourself from identity theft:

  • Stay up-to-date with online scams
  • Use strong account passwords
  • Monitor your credit report

Stay the Course with Free Financial Counseling from GreenPath

If you are caught up in the holiday frenzy, and you are stressed about overspending, the counselors at GreenPath can help. In fact, 90% of people surveyed report feeling better prepared to handle their finances after speaking with a financial counselor. Get a head of your holiday finances and connect with a counselor today—it’s free, no pressure, and 100% confidential.

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