Financial Tips

Saving Up for a House? How to Avoid Holiday Debt This Year

Saving up for a house is exciting, but it’s also a major undertaking. The days and months pass and your savings account gets larger and larger. But then, suddenly, the holidays arrive and you start to worry about how to maintain your hard-earned savings during the season of gift-giving. Luckily, with a little extra care and planning, you can avoid holiday debt, stay on track with your budgeting goals, and keep saving to buy a home.

To help you get started, we tapped some of the top financial experts to ask for their best advice – and they delivered. So before you start your holiday shopping or take advantage of Black Friday deals, keep reading to learn how to avoid debt and stay on track with your savings goals this holiday season.

Have established expectations with the people on your gift list this year. Stick with cash and debit cards – and if you typically exchange with your “extended” family or friends talk with them this month about going with a small special gift or just dropping that practice. Most of us already have what we need – if you can’t, stick with specific gift cards of a certain dollar amount to control spending. – Balog + Tamburri, CPAs

Don’t let a lack of traditional financing options get in the way of your holiday shopping. By leveraging lease-to-own alternatives you can get what you need today and pay over time. Save money with a 90-day purchase option. This frees up cash rather than locking it up in a single purchase. – Acima

If you’re saving up for a house, be on the lookout for big bargains. It’s hard not to get sucked into over holiday spending. Make a game of doing the best gift for you; not having any holiday debt hangover in January. Budget an amount for each person that you will be gifting to and look for the big bargains. – Wiser Wealth Management

Take advantage of buying the low cost of stocks on the market as a gift. Stock shares can be gifted to your children to teach them about money and investing and also can be tailored to their interests or hobbies. There is a tax advantage to save tax dollars from the gain by granting stocks as a gift to them when they grow up. – Manay CPA Inc.

Sell items you no longer need or want online for some extra cash. A great way to avoid holiday debt while you’re saving up for a house is to round up key items around your home that you don’t need or want and then post them online to be sold. This can add a little extra cash to your holiday budget while also adding a little extra room in your home. It can also help you realize what you and your loved ones haven’t been using, which may help you narrow your hunt for the perfect, budget-friendly gift. – Wheelhouse Credit Union

Get creative with your gift-giving. Don’t put pressure on yourself to spend big during the holidays. Consider setting a gift budget that you can easily cover from your income, without dipping into savings. Rather than buying something online, get creative; the most thoughtful gifts often aren’t the most expensive. – Darrow Wealth Management

Use credit card points to purchase gift cards. Instead of paying cash for presents, you might want to consider using your credit card points to purchase gifts cards especially if you are delaying travel plans during the pandemic. If you are lucky enough to get a holiday bonus, consider using a portion of it to pay down high-interest credit card debt, start an emergency fund or make an additional contribution to your employer-sponsored retirement plan or IRA. – OneGroup Retirement Advisors

Go into the holiday season with a plan. The best tip in order to keep your finances in check during the holidays is to have a plan on what you can spend without breaking the nest egg or adding to credit cards and stick to it. Simple, but not easy. – WMGNA

Create a cash flow bucketing system. Don’t get snared by the dreaded holiday spending trap. Instead, continue earmarking and escrowing your hard‐earned dollars towards future household goals using a disciplined cash flow bucketing system. – Damian Winther, CFP® CSRIC™ – Principal – Financial Advisor, Birchwood Financial Partners, Inc.

Give the gift of time. A great way to save money this season, especially given the COVID pandemic, is to give the gift of time. Volunteer to help out friends and family with chores and errands that they need help with or possibly cannot do themselves. – FamilyVest

Originally published by Redfin

Simple Tips to Protect Yourself from Identity Theft

As fraud becomes more prevalent and fraudsters become more creative, it’s important to arm yourself with the tools to help protect you and your loved ones. The four steps below focus on how you can create obstacles to make it harder for fraudsters to garner your personal data and/or transact business using your hard-earned money:

Always password protect your digital properties, no matter what. And, when selecting passwords, it’s important to choose different passwords for each account, so if a fraudster is able to access one of your digital properties, they may not be able to access others.

Use complex passwords with a mixture of numbers, symbols and letters, upper and lower case. Refrain from using your telephone number, address, birthdate, or names of relatives, as these are the first things fraudsters will try.

If you suspect someone is attempting to get access to one of your digital properties, change your password immediately. You also may want to create a schedule so that you remember to change your passwords periodically throughout the year for added protection.

Slow down and be cautious as you go through your inbox and text messages, as identity thieves routinely send emails and text messages to phish for information. Moving too quickly may cause you to click on something that is not legitimate, leading you to provide your information on a fraudulent site. You should also consider enabling multi-factor identification when possible. That way, if fraudsters try to change your credentials, you may have an opportunity to stop it.

Fraudulent correspondence often use a generic opening, something like “Dear account holder”, instead of using your actual name. They typically have a sense of urgency, including subtle threats like “confirm your username” or “your account has been overcharged or frozen”. Often times they will use incorrect spelling or grammar.

If you feel compelled to respond right away, leave the text or email completely. Do not click on any links.

If the correspondence claims to be from your financial institution, call them directly using the telephone number on the back of one of your debit or credit cards.

If you accidentally click a link or open a suspicious document, call your financial institution immediately and change any/all passwords associated with the institution referenced.

Monitoring your financial transactions with alerts makes it especially hard for fraudsters to get away with multiple purchases. Real-time alerts will let you know as soon as a transaction is made, allowing you to know if and when an unauthorized transaction is made. If you receive an alert about a transaction you did not conduct, reach out to your financial institution immediately so they can monitor your account and decline transactions and/or close your card and order a replacement.

In addition to staying knowledgeable of current fraud tactics and implementing good security habits, it may be beneficial for you to purchase an Identity Theft Protection Membership.

Here are some of the things an ID Theft Protection Membership can do for you:

• Provide insurance coverage
• Monitor your credit reports
• Monitor your SSN, Email and Phone
• Assess your risk
• Provide access to a resolution team
• Dark web monitoring
• Alerts for new financial applications in your name

You can compare different ID theft protection companies and plans or see if your financial institution or workplace has options in place for you. For instance, Wheelhouse Credit Union Members can receive a free 30-day ID Theft Protection Membership and up to 30% the plans through Financial Lock. Learn more about the Financial Lock offer here.

Should You Add a Solar Battery to Your Home?

With many San Diego homes utilizing solar panels, and blackouts being more regular, it may be a good time for you to consider a solar battery system for your home. To help you decide if it’s the right time for you, we’ve put together this Solar Battery Quick Guide. (Download the Visual Quick Guide here.)

Living in the Golden State means there is an abundance of solar energy to harness. This typically results in solar panels generating more energy than you need on a day-to-day basis. This is why solar batteries are a great option for San Diegans who want to have electricity to utilize during blackouts, or “when you need more electricity than your solar panels are producing (later in the day or at nighttime).¹”

Like solar panels, solar batteries may be eligible for a federal solar tax credit (ITC). The tax credit mirrors that of the solar panels, which means the sooner you get your solar battery, the better. Systems installed in 2020 may qualify for a 26% tax credit; whereas in 2021 the ITC maxes out at 22%, and in 2022 it plummets to 0%.

In addition to the ITC, you may be able to take advantage of California’s Self-Generation Incentive Program (SGIP), which makes SDG&E customers eligible for a rebate on their energy storage system. The General Market rebate is approximately $250 per kilowatt-hour (kWh) stored in your solar battery. Some people may qualify for the Equity rebate of up to $850/kWh or the Equity Resiliency rebate of up to $1,000/kWh. For more details on the SGIP Residential Rebates, visit the SGIP website.

With more planned blackouts and unforeseen power outages, solar batteries can provide the protection and reliability you want to keep the lights on in your home. Energy storage systems also offer flexibility for you to use stored energy during costly Time-of-Use (TOU) hours, thus avoiding an expensive electric bill.

Download the Visual Solar Battery Quick Guide here