Tag Archives: savings

What to Do with Your First Paycheck

As part of the changes you’re gearing up for in the months after you graduate, you’re poised to enter the working world as a long-term employee, perhaps for the first time in your life. As you prepare for this transition, you might have dollar signs dancing in your head while you dream of what you’re going to do with your first paycheck.

Before you start planning a one-in-each-color shopping spree at the mall or a weekend in Vegas, check out our list of responsible things to do with your first paycheck.

Start an emergency fund

Your first step when earning a regular salary should be to start an emergency fund. According to financial experts, it’s best to have 3-6 months’ worth of living expenses socked away in case you are unable to work for any reason. Otherwise, an expensive emergency or surprise layoff can force you into debt that can take years to recover from. When working out a budget, set up a plan for building your emergency fund in as short a time as possible. Once it’s fully funded, you can use that money for other savings.

Open a savings account

If you haven’t already done so, open a savings account at USAgencies Credit Union and start putting away a small amount of money into it each month. There are several schools of thought regarding how much of your monthly income to earmark for savings, with most experts recommending that you set aside 20 percent of your paycheck. If you can’t afford to do that right now, especially as you work on building your emergency fund, it’s still crucial to put away as much as you can, simply to build the savings habit. You can use these savings for long-term goals, like buying a house or a new car within the next few years, and short-term goals, like a summertime getaway or a large purchase, like a new entertainment system.

Start saving for your retirement

Your retirement might still be light-years away, but the sooner you start planning for it, the less you’ll have to put away each month. Plus, you’ll have a bigger nest egg when you quit working.

First, speak to an HR representative at your workplace to ask about a 401(k). Many companies will match your contributions up to a set amount. These funds are not taxed until you withdraw them, so any money you contribute from your paycheck is almost like free money.

If your company doesn’t offer 401(k) contributions, you can also look into opening an IRA on your own.

Make a payment toward your student loan

Before you can claim the rest of your money as your own, you’ll need to make at least the minimum monthly payment on your student loan. If you haven’t started your job immediately after college, you may have already made the first few payments toward your student loan debt. But, whether this is your first payment or not, it’s best to maximize the amount you pay toward debt each month. Keep in mind that student loan companies, like credit card companies, are out to make money. The simplest way for them to do that is to keep you in debt for as long as possible by making it easy to pay only the minimum monthly payment. Beat the system by increasing your payments to the maximum amount you can handle.

Budget wisely

Now that you’ve gotten all of the boring stuff out of the way, you’re free to spend your money as you please. Establish responsible spending habits by setting up a workable budget that incorporates all of your fixed expenses and your non-fixed expenses. With careful planning and an eye toward the future, you can enjoy your new status as a responsible, working adult.


Need help getting started? USAgencies Credit Union is here for you. Connect with us today at info@usacu.org or call/text 503-275-0300.

The Importance of Being Financially Fit

Are you ready to stretch those financial fitness muscles? We hope so, because it’s time to get financially fit!

Being financially fit means living a life of complete financial responsibility. The Center for Financial Services Innovation (CFSI), also known as the Financial Health Network, defines four basic components of financial health: Spend, Save, Borrow and Plan. These components reference everyday financial activities. As such, every choice you make in terms of these four activities either builds or detracts from your financial fitness. Like physical fitness, you can beef up those fitness muscles a little bit more each day.

Being financially fit is crucial for a well-balanced, stress-free life. Here’s why (and how):

Expand your financial knowledge

A financially fit person is constantly broadening their money knowledge. They read personal finance books and blogs, attend financial education seminars and are aware of the evolving state of the economy. This enables them to make monetary decisions from a position of knowledge and power, leaving much less up to chance or luck.

Stick to a budget

A financially fit person knows that tracking monthly expenses is key to financial health. They are careful to set aside money from their monthly income for all fixed and discretionary expenses and to stay within budget for each spending category.

Minimize debt

A financially fit person is committed to paying down debts and seeks to live debt-free. Constant budgeting, ongoing financial education and planning ahead enables them to make it through the month, and through unexpected expenses, without spiraling into debt.

Maximize savings 

A financially fit person prioritizes savings. In fact, savings is a fixed item on their monthly budget instead of something that only happens if there’s money left over. This allows them to think ahead and build a comfortable nest egg or emergency fund. In turn, having a robust safety net means sleeping better at night knowing there’s money available to cover unexpected expenses or a change in life circumstances.

Maintain complete awareness of the state of your finances

A financially fit person knows exactly how much money they owe, the accumulated value of their assets and the complete sum of their fixed and fluctuating expenses. This awareness takes the stress out of money management, allowing them to make better financial choices.

Maintain a healthy credit score

A financially fit person knows that an excellent credit history and score is a crucial component to long-term financial health. They are careful to pay all bills on time, hold onto their credit cards for a while and to keep their credit utilization low. This enables them to qualify for long-term loans with favorable interest rates, which saves them money for years to come.

Help your money go further

A financially fit person does not waste large sums of money on interest charges for purchases made using borrowed funds via credit cards or loans. They live within their means and only use these resources for purchases they can actually afford, or for large, long-term assets, like a car or a house. This means they have more funds at their disposal to help build their wealth through savings and investments.

Create concrete financial goals

A financially fit person has long-term and short-term financial goals. This enables them to keep their focus on the big picture when making everyday money choices, empowering them to actually realize their financial dreams.

Achieve financial independence

A financially fit person is independent. They don’t rely on loans from friends or family members to get by, and they don’t need to pay with plastic at the end of the month because they ran out of money. Their well-padded emergency fund means they don’t depend on their monthly income to put bread on the table, either. By sticking to a budget, prioritizing savings and maintaining an awareness of their finances, they are strong, secure and completely independent.

Being financially fit means living a life without battling anxiety about getting through the month or stressing about the future. You can achieve financial fitness by committing to making choices in each of the four components of financial health (spend, save, borrow, plan) that are forward-thinking and help to build your financial wellness.


Are you looking for more financial tips? What if you could get paid to learn about finance? Well, now you can. USAgencies Credit Union has partnered with Zogo, an app where users earn money while they learn about money. Download the free app using code “USACU”, and earn while you learn about finance!

Connect with us today at 503-275-0300 or email info@usacu.org to learn more.

How Should I Spend My Stimulus Check?

The stimulus checks promised in the Coronavirus Aid, Relief and Economic Security (CARES) Act are starting to land in checking accounts and mailboxes around the country. The $1,200 granted to most middle class adults is a welcome relief during these financially trying times.

Many recipients may be wondering: What is the best way to use this money?

To help you determine the most financially responsible course of action to take with your stimulus check, USAgencies Credit Union has compiled a list of advice and tips on how to use this money.

Cover your basic life expenses

First and foremost, make sure you can afford to cover your basic necessities. With millions of Americans out of work and lots of them still waiting for their unemployment insurance to kick in, many people are struggling to put food on their tables. Most financial experts agree that it’s best not to make any long-term plans for stimulus money until you can comfortably cover everyday expenses.

Charlie Bolognino, CFP and owner of Side-by-Side Financial Planning in Plymouth, Minn., says this step may necessitate creating a new budget that fits the times. With unique spending priorities in place, an absent or diminished income and many expenses, like subscriptions and entertainment costs, not being relevant any longer, it can be helpful to reconfigure an existing budget to better suit present needs. As always, basic necessities, such as food and critical bills, should be prioritized.

Build up your emergency fund

If you’ve already got your basic needs covered, start looking at long-term targets for your stimulus money.

Emergency funds should ideally be robust enough to cover 3-6 months’ worth of living expenses. If you already have an emergency fund, it may have been depleted during the pandemic and need some replenishing. If you don’t yet have an emergency fund, or your fund isn’t large enough to cover several months without a steady income, you may want to use some of the stimulus money to build it up so you have a cushion to fall back on during lean times that are likely to come in the months ahead.

Pay down high-interest debts

According to the Federal Reserve Bank, Americans owed a collective $930 billion in credit card debt during the fourth quarter of 2019. Using some of your stimulus check to pay off high-interest debt would be a great way to get a guaranteed return on the money, says Chris Chen, of Insight Financial Strategists in Newton, Mass.

This advice only applies to credit cards and other private, high-interest loans. The federal government put a 6-month freeze on most student loan debts, so they should not be as high a priority right now.

Boost your savings

If your emergency fund is already full and you’ve made headway on your debt, it can be a good idea to use some of the stimulus money to add to your USAgencies Credit Union savings account. The money in your savings can be used to cover long-term financial goals, such as funding a dream vacation or covering the down payment on a new home.

Consider all your options before choosing how to spend your stimulus money. In all likelihood, this will be a one-time payment received during the pandemic.


How are you spending your stimulus check? If you need further assistance, don’t hesitate to connect with us at 503.275.0300 or info@usacu.org. We’ll be happy to help you maintain financial stability during these uncertain times.

What Should Be on My Financial To-Do List This Spring?

Q: Spring is here, and I’d love to review my finances to improve them however possible. What should be on my financial to-do list this spring?

A: It’s wonderful that you’re using the season to take a deep look at your finances. Let’s review some ways to improve your finances and general money management this time of year.

De-clutter your finances

As you sift through the “stuff” piled up around your home and throw out useless clutter until each closet would make Marie Kondo proud, it’s a good idea to do the same for your finances.

Review your monthly budget and cut out extra expenses that may be cluttering it up. Think about things like subscriptions you don’t use anymore or upgraded apps and services you don’t really need. Next, simplify your monthly bill-paying by moving all due dates to the same day and setting up an automatic payment so you’re never late.

Clean up your finances by using Money Management to budget and keep track of your spending with minimal effort. Finally, simplify your savings by setting up an automatic monthly transfer between your USAgencies Credit Union Checking Account and USAgencies Credit Union Savings Account.

Review your W-4 

Post-tax season is the perfect time to look over your W-4 to determine if you’re withholding too much money — or too little. Remember: A generous tax refund might seem like good news, but what it really means is that you’ve been giving the government an interest-free loan throughout the year. You don’t want to withhold too little money and end up with a big tax bill to pay at the end of the year, either. To find that perfect sweet spot, work out the numbers using the IRS’ withholding calculator; use tax software like TurboTax; or ask a professional accountant to help. Don’t forget to submit a new W-4 to your workplace with your new withholding amount in place.

Protect your personal information 

Now that you’ve paid your taxes, it’s a good time to get rid of any documents that can compromise your safety. In today’s digital world, there are very few hard-copy documents you’ll need to hold onto. You can safely shred account statements, credit card bills, utility bills, insurance bills and more. Make sure to keep a copy of anything that requires your signature, such as the deed of your home and your car title, and hold onto unpaid loan statements and your tax returns. Keep these papers, as well as your most important sensitive documents, like your Social Security card, birth certificate and marriage certificate, in a fireproof box or in a locked file cabinet.

It’s also a good idea to clean up your computer and phone, deleting any downloaded documents that can compromise your privacy and deactivating your accounts on websites you no longer frequent. You may want to let your devices “forget” your password and payment history on retail sites as well. The less of your life you have online, the lower the risk of your personal information being compromised if any of these sites is hacked.

Throw away a debt

Did you resolve to work aggressively toward paying down your debts this year? Dust off that New Year’s resolution and take a hard look at your progress this spring. Is the debt going anywhere, or are you still trapped in the cycle of making just minimum payments that mostly go toward interest?

Get serious about getting out of debt by making a list of all debt in order from smallest to largest. Work out a plan for maximizing your payments on this debt, acquiring the necessary funds by pruning an expense category on your monthly budget or taking on some freelance work for extra cash. Once you’ve paid off the smallest debt, work on the next-smallest debt until you’re completely debt-free. As you progress through your list, be sure not to neglect the minimum payments on any of your debts.

Start saving for summer

If you haven’t already done so, now’s the time to start putting money away for your summer getaway. Every little bit adds up, and the earlier you start saving, the more money you’ll have to spend on your bucket list.

It’s springtime! As you celebrate the season of renewal, spruce up your finances to help stay on track for the rest of the year.


Questions? Connect with our Member Services Specialists today at 503-275-0300 Option 4, we are here to help!

News and Events happening at USACU