IMPORTANT ALERT: Wheelhouse will not CALL, EMAIL or TEXT you to ask for login credentials, security codes, PIN, or Debit/Credit Card numbers. When in doubt, hang up and call 619-297-4835 during regular business hours. Visit our Security Center for details on other potential scams.
As homeowners, we are always looking for new ways to reduce our monthly expenses yet increase the value of our home. Installing solar on your home does both, and more. So, to share our passion for going Green and to help you decide on Solar, we are wrapping up our 20 Financial Tips for 2020 with five reasons to get solar today.
1. Reduce Your Electricity Bills
When you install solar panels on your home, you will generate power for the life of your panels (25+ years) and cover your energy consumption each and every month, sometimes covering more than 100% of your usage. Plus, you can feed that extra energy back into the grid for credit on your electric bill.
2. Increase Your Property Value
Experts have found that homes with solar systems have higher property values and sell more quickly than homes without.
3. Shield Yourself From Increased Energy Costs
Having your own solar energy system allows you to fix your electricity rate and protects you against unanticipated increases in energy costs.
4. Take Advantage of the Tax Credit Extension
At the end of 2016, a five year extension made tax credits available through 2021, on a sliding scale. From 2016 through 2019, the tax credit was 30 percent of the system’s cost. This year, solar owners can deduct 26 percent of the cost of the system from their taxes. The percentage drops to 22 percent in 2021, and then again to 0 percent for residential systems and 10 percent for commercial systems in 2022. So, if you are thinking about installing solar and want to make the most out of its tax deduction, 2020 is the time to buy.
As part of our 20 Financial Tips for 2020 series, we want to make sure you have the tips and tools to keep yourself, and your finances, safe.
1. Keep Your Private Information, Private
We never think we will become a victim of fraud until it’s too late. That’s why, it is important to always be cautious when you are contacted and prompted for personal information. A common fraud tactic is to impersonate a financial representative and make-up a scenario, such as there being fraud on your account, to encourage you to release private information.
Since your financial institution may indeed contact you, it is important to distinguish what they will not ask you for. At Wheelhouse Credit Union, we will never call you and ask you for:
Your Digital Banking username and/or password
Your Wheelhouse account number
Your Debit or Credit Card number, CVV, or PIN
If you are unsure of the caller’s identity, you should always hang up the phone and contact the institution directly. It is important to note, fraudsters may be using ‘line-tapping’ to stay connected after you hang up. This may allow them to remain on the line during your next call, or redirect it back to them. However, it is believed that line-tapping only remains in effect for several minutes after the initial call.
Therefore, we recommend you wait 5 to 10 minutes before calling the institution directly, or call immediately from another line.
2. Set Strong Passwords or Use an Alternative Method.
This is SO important, we cannot stress it enough. Here are a few dos and don’ts when setting up your passwords:
Do use 15+ characters. A great way to do this is to make up a sentence that you can remember. The longer the password, the better.
Do swap out letters with numbers, symbols and a mix of uppercase and lowercase.
Do have different passwords for each account. If a hacker gets your password from one platform/application, they can try and use it across your other platforms. If you have a different password on these platforms, you will reduce the chance of them getting in.
Do change your passwords every 3 to 6 months, depending on complexity.
Don’t use obvious numbers like your birthday, your wedding date, or your address.
Don’t use obvious words like your child’s name, your last name, or commonly used words.
Don’t use the same password across multiple platforms.
Don’t recycle old passwords. Your old passwords were likely less strong and more simplified. These passwords may have been breached at some point without you knowing. It is best to avoid this and just create new passwords.
Do you have a hard time remember passwords? Consider using a secure password management system such as Bitwarden or a tool such as a YubiKey.
3. Protect Your Personal Identification Number (PIN)
Be alert when making purchases
Pull hard on card scanners to make sure that a skimmer is not attached
Check for cameras that may be picking up your PIN
Cover the keypad when typing in your PIN
Look for anyone nearby that may be glancing over your shoulder
When possible, use metal keypads over silicone to protect from infrared readers
4. Use a Digital Wallet
Generally speaking, digital wallet applications are better secured than your physical credit or debit card. This is because the digital wallet app provides a unique, one-time code whenever you make a purchase. This code can only be used for that specific purchase, which means if a hacker got the code, they wouldn’t be able to use it. By using a code, it also eliminates the need for card details to be transferred, preventing an employee and/or a potential hacker from receiving your card details. To learn more about the security of digital wallets, you can check out this article on DefendingDigital.
5. Be Wary of Public WiFi
Public WiFi is both convenient and dangerous. The number one tip to remember when you are connected to public WiFi is to avoid making any financial transactions or logging into any financial account. You may want to consider using a Virtual Private Network (VPN) for an extra layer of security when using public WiFi. You can learn more about VPNs and see a provider comparison here.
As part of our 20 Financial Tips for 2020 series, we are here to share some of our advice on saving.
1. Do Not be Afraid to Return
Look, we get it, sometimes you just can’t resist making an impulse purchase. We do it too! What’s important is that you remember you CAN return items. Most retailers have a return policy that aims to make the customer happy; if you get home and decide your purchase was a mistake, don’t be afraid to return it. If you’re unsure of your favorite stores’ return policies, you may want to look them up. If their policies tend to be unforgiving, consider shopping at other retailers.
2. Get. Those. Points.
Yeah, you guessed it, we are talking Rewards Credit Cards. Rewards Credit Cards are an awesome way to get a return on your expenses. The return comes in the form of points that can be redeemed for a wide array of items, sometimes even cash back. You’ll want to do some research to see what card works best for you. Love to travel? Look into a Travel Rewards Card that makes your points worth more when used on travel purchases. You’ll also want to consider any bonus point opportunities to determine which Rewards Card is right for you. A word of caution though: only spend money you have. Just because your Credit Card has a limit of $25,000, does NOT mean you should be spending $25,000. Work within your budget, make purchases on your Rewards Credit Card, and pay that bad boy off at the end of each week.
A fun side–note: Here at Wheelhouse Credit Union, we offer both a Rewards Credit Card and a Rewards Debit Card, so you can get the most out of all of your purchases. And, you can COMBINE your Credit Card and Debit Card reward points to earn more rewards and/or cash back. Plus, if you would like to start instilling good money habits in your children, consider opening them an Access Checking Account (for ages 16 to 25). Access Checking comes with a Debit Rewards Card so your kiddos can earn points too! Isn’t that awesome?! We think so.
3. Forget the Traditional Checking and Savings Accounts
So you still have that traditional savings account that was required when you opened a traditional checking account 50 billion years ago? Yeah, it is time to upgrade both of those my friend. Let’s break it down. Think about that checking account that is earning zero, zip, nada, nothing, on your money. Think about that savings account that is earning you around 0.10% APY*.
Now let’s take a look at this scenario: Traditional checking accounts do not pay interest, so in this case you are earning zero on the money in your checking. Additionally, if you have a traditional savings account earning you 0.10% APY*, and you have say, $10,000 in this account, you would be earning $10 in a year. Sounds lame.
So how about this? Put your money in an account like our Inspired Checking1 and Inspired Savings, which will earn you up to 1.00% APY* and up to 0.50% APY* respectively. So now you are earning 1.00% APY* on the money that you were earning nothing on, and you are earning 0.50% APY* on your savings. If you had $10,000 in your checking account, you just made you $100 in a year. Can I get a “so much better than $10?”
4. Pay off Higher APR** First
You may be wondering why this is under “Savings” and not “Money Management.” Well, honestly, most of these tips could go under either category. The reason we put it here is because it is saving you money in the long run.
Let’s look at an example: If you have a credit card at 16.00% APR* and an auto loan at 3.00% APR*, you will want to pay these in order of interest, high to low. Ideally, you pay the minimum amount on each loan and use whatever extra money you have to pay down the higher interest (APR) debt. By paying the minimum, you avoid extra fees and charges. Then, by paying more on the high interest debt, you spend less on interest in the long run, ultimately saving you money.
Here are some fictional numbers for a nice visual.
$20,000 on the credit card (x 16.00%) = $3,200 in interest per year
$10,000 on the auto loan (x 3.00%) = $300 in interest per year
In this scenario, if you focus on paying down the smallest balance first, you will actually be paying more money in the long run. Why? Because your $20,000 credit card debt is racking up more than 4x the interest than your auto loan is, every year. So if you paid the $10,000 auto loan off in a year, you also gained approximately $3,200 of debt† from the credit card. On the flip side, if you paid the $20,000 credit card balance off in two years, you will have gained approximately $600 of debt† from the auto loan. That is approximately $2,600 that you saved yourself from spending on interest in just two years.
†Not accounting for the minimum payment made which decreases the overall, interest-accruing, balance.
5. Think About Purchases in Terms of Hours Worked
A simple and effective tactic to saving instead of spending is to think about the cost of a purchase in terms of how many hours of work it takes you to make that amount of money. This is a great way to understand the cost of an item and the value you perceive it to have. So if you make $15 an hour, you should divide the cost of the item, say $100, by your hourly wage. Is that item worth around 6 to 7 hours of work? It may be, it may not be.
Coming up in our next blog, tips on security and keeping your finances safe.
*APY = Annual Percentage Yield.
**APR = Annual Percentage Rate. 1Inspired Checking is a variable rate account and rate and yield are subject to change without notice. Inspired Checking requires monthly direct deposit of $450 or more, an active online banking registration and eStatements within 90 days of account opening. Electronic deposits are defined as ACH or Automatic Clearing House deposits. If requirements are not met and maintained, account will be converted to a Basic Checking Account. Membership is required.
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