January Newsletter
A message from your CE0
Dear Member,
Happy New Year.
I hope your 2024 is starting off well. This has traditionally been a time to reset, refocus or make other adjustments in our lives to propel each of us into the future. Best wishes to all as we strive to make the next year better than the last.
2023 was a good year for Horizon Credit Union. We continue to serve our members and live our mission statement, “Horizon Credit Union promotes the financial well-being of its members.” In an ever-changing world where instant access to information is the standard, we continue to enhance our offerings to assist with this desire. One of my favorite hidden gems for many of our members that use our Debit and Credit Cards is our Card Defense app. This app allows you to turn on and off your cards for greater security. But that is not all, you can set up notifications and controls based on location, merchant types, transaction types, and spending limits. If you are not using it now, I strongly encourage you to download it and give it a try.
During 2023, we completed the renovation of our Clearfield branch, providing a beautiful and inviting location for our members to conduct their business. We are continuing to prepare for the future, and we prepare our facilities to serve our membership in the future (please see note on our Farmington office).
I’d also like to recognize and thank Michael Schwab for his more than 2 decades of volunteer service to each of us as he has served as a member of our board of directors. He is an advocate for our membership and provided insights and guidance during his service. I wish him well in his future endeavors. The board of directors has appointed Jessica Everett to fill the remaining term of Michael Schwab. I look forward to working with her as she volunteers her experience, energy, and time for the continued success of the Credit Union.
We look forward to assisting our membership with their financial needs and ask that as you review your borrowing or saving needs you think of your Credit Union first. If you have recently financed a vehicle at a dealership, we may be able to save you some money, a quick call or visit to one of our branches is all it takes. Another hidden gem that many of our members may not know about is our mortgage lending department. If you are looking to make improvements to your home, refinance your existing home, or move to a new home, we are here to help.
Best wishes for a prosperous and safe 2024.
Page Bennett
President & CEO
New Building Update
Horizon Credit Union has been serving members since 1956. Due to your continued membership growth, the Credit Union continues to grow. In the 1970s the Credit Union built the current building in Farmington. This building has served the Credit Union for about 50 years. As we look to the future, the decision has been made to demolish this older building at the Farmington location and build a new building that will help take us into the future. Branch services will continue to be available at a temporary branch being built in the Operations building that we built to the east of the current building in 2020 while construction is taking place.
Please watch your email for additional information on the timeline for the construction.
It’s the final month of the Special Holiday Skip-a-pay! Skip a payment for January on a qualifying loan. Come to a branch or call 801-451-5064 and speak with our expert lending staff.
Warm The Soles
Warm the Soles is a fundraiser we hold all year round. Our major donation period is during the winter months. Our Holiday Skip-a-Payment event helps with a majority of the donations.
Warm The Soles is a fundraiser that helps raise money for community outreach. One of the ways it helps is by donating new shoes to local kids and their families in need. Horizon Credit Union collected donations from its members that were used to provide new shoes to students at local schools. Horizon CU and the faculty of schools worked together to gather shoe sizes for children in need. The Horizon team was able to donate around 175 pairs of shoes between three schools.
The three schools were grateful for the donations and Horizon CU is hoping to support those same schools next year among other schools if possible. We can only do that with the help of the community!
Transfer your high-interest credit card from another institution, like another credit union, store credit card etc., to Horizon Credit Union for NO transfer fee, NO annual fee, and a lower interest rate! We always offer this service! Use this helpful and secure link to find the transfer request from to easily start the process.
Credit Card Balance Transfer Request Form
Building a Budget That Works in the New Year
Achieving financial well-being requires careful planning and discipline. Budgeting is a crucial tool in this endeavor, offering you the means to take charge of your finances. Various budgeting methods exist, each with its own strengths and flexibility, allowing you to align your financial habits with your goals.
We’re here to assist you in finding the most suitable budgeting method for your needs, enabling you to make meaningful progress toward your financial goals in the new year. Join us as we explore effective budgeting strategies, helping you choose the approach that fits seamlessly into your journey ahead.
Pay Yourself First
The “Pay Yourself First” method functions as it sounds: the first “bill” you pay is to your own savings account. Afterward, you continue to pay your other bills and expenses, then spend the remaining funds as you see fit. Treating your savings contributions as a fixed monthly expense allows you to shift savings to a priority rather than an option. When you prioritize saving, you ensure you have funds for the future when you need them.
The 50/30/20 Rule
The 50/30/20 rule is another strategy many find helpful when creating a budget. With this simple approach, your budget is precisely portioned between three different categories as follows:
- 50% of your net income (or your take-home pay) is allocated to your needs. This includes housing costs, utilities, insurance payments, groceries, etc.
- 30% is dedicated to wants or discretionary spending, such as entertainment, dining out, or keeping up with the latest fashion trends.
- 20% goes to your financial priorities, such as contributing to your savings and investment goals or paying down existing debt.
Depending on your unique financial situation, you can adjust the proportions to fit your needs and goals. For example, you may find it better suited to achieving your goals to dedicate 30% of your budget to your savings and 20% to your wants.
MoneyMap
Introducing MD 4.0 – completely re-designed to offer a convenient, engaging, and complete money management experience that is consistent with it’s award-winning mobile counterpart, MoneyMap. MoneyMap’s sleek new look is seamlessly integrated into online banking with a “widget” like implementation and functionality. Now you can have an engaging money management experience securely within online banking. Along with the new look and feel, MoneyMap also includes new and updated features like Bubble Budgets, Expense Tracking, Debt Management, and more. Not only will you be able to see all your financial accounts, balances, and transactions in one place – you will be able to visualize and interact with that data in new and meaningful ways – all conveniently and securely within online banking. Use MoneyMap and know that your information is safe, secure and protected from third party buyers.
Zero-Based Budgeting
In a zero-based budget, a role is assigned to every single dollar earned, leaving you with $0 remaining once all expenses are accounted for. This method requires you to anticipate all your upcoming expenses so you can allocate your income appropriately. The level of planning and detail required for this method gives you a clear view of where your money is going. With a zero-based budget, you can ensure that you have a plan for every dollar and avoid impulse purchases.
The Envelope System
The envelope system is a classic budgeting method. In the traditional form of this method, you assign a specific amount of money to each spending category, then place cash for each in its designated envelope. Your categories can include things like bills, groceries, dining out, travel, and so on.
Once you have spent all the cash from a particular envelope, you’re out of money for that category for the remainder of the month – unless you move money over from another envelope. This method can be updated to a more modern approach by using “envelopes” in the form of separate checking and savings accounts at the credit union. When you run out of money in one category, you can transfer from another account if desired.
We’re Here to Help!
No matter which budgeting method you choose, your goal remains the same – to create a blueprint that allows you to align your savings and spending with your financial goals. By adopting the budgeting system that works best for you, you will gain control over your finances now and sow the seeds for a brighter financial future.
If you have questions about budgeting or want to discuss ways to increase your savings in the new year, we’re here to help. Please stop by any of our convenient branch locations or call 801-451-5064 to speak with a team member today.
IRA: Traditional Vs. Roth
With IRA season now upon us, remember the contributions to the prior year has a deadline of Tax Day, April 15, 2024. Contribution limits for 2023 are $6,500 for those under 50 years of age and $7,500 for those over 50 years of age. Contribution limits for 2024 are $7,000 for those under 50 years of age and $8,000 for those over 50 years of age.
A brief breakdown on IRAs: Traditional Vs. Roth.
There are two different types of IRAs with different rules and benefits. With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.
Key Points
- Roth-Enjoy tax-free withdrawals in the future.
- Traditional-Take advantage of tax benefits today.
Smart Money Moves for Members Under 30
Life in your twenties can be exciting and full of new opportunities. There are many milestones young members might cross off their lists during this period: graduating college, beginning their careers, getting married, and even starting families.
While long-term financial goals might seem a lifetime away, the decisions you make today can significantly impact your future fiscal success. When it comes to building wealth, time is your best friend. The sooner you begin laying the foundation for the future, the better your position will be when you approach your next financial milestone.
Here are several wise money moves you can make in your twenties to prepare yourself for financial events yet to come.
Track Your Expenses
Knowing where your money goes and identifying your spending habits are two crucial skills to master early. The best way to build your savings is to create a budget and regularly monitor your expenses. You can download many free apps to track your spending or review your monthly account statements to get a better picture of your fiscal habits.
Members have access to Money Map which is an engaging money management experience securely within online banking. MoneyMap has features like Bubble Budgets that helps you visualize and interact with your budgets, Expense Tracking that tracks spending and give insights on where your money goes as well as Debt Management to take control of your financial future. Not only will you be able to see all your financial accounts, balances, and transactions in one place – you will be able to visualize and interact with that data in new and meaningful ways – all conveniently and securely within online banking. Use MoneyMap and know that your information is safe, secure and protected from third party buyers.
As you age, your financial obligations will increase and become more complex. Having a family, for example, will increase your expenses in both the short-term (childcare, food, housing) and long-term (college savings). Knowing how to track and manage your spending will help alleviate stress and prepare you for any unexpected expenses.
Open a Roth IRA
While retirement may seem a lifetime away, your investments today could significantly impact your golden years. Whether your employer offers a retirement plan or not, you should consider a Roth IRA. This type of investment differs from the more commonly known Traditional IRA.
With a Traditional IRA, you can invest pre-tax dollars into the account now. Upon reaching 59 ½ years of age, the money withdrawn will be taxed according to the rates at that time. This type of IRA allows you to save on taxes now versus during retirement.
A Roth IRA operates the opposite. You invest after-tax money now, and your withdrawals during retirement will be tax-free. Two reasons young investors should consider a Roth IRA are:
· When beginning your career, your pay will likely be lower than later in life. Investing in a Roth IRA allows you to pay fewer taxes now and have tax-free retirement withdrawals.
· Tax rates today are relatively low. With increasing government debt, taxes will likely increase in the future. Paying lower taxes today saves you from paying higher taxes in retirement.
Save 15% of Your Income
You should aim to save between 10% to 15% of your take-home pay. While this may seem challenging initially, it’s much easier to get into this habit when you’re just starting out. If necessary, work your way up to 15% over time. For example, create a budget that allows you to save 5% of your monthly income now. Once this becomes routine, revisit your budget and work towards 10%, and so on.
Open a Health Savings Account (HSA)
A Health Savings Account (HSA) allows you to save money in an account specifically for future medical expenses. As a young adult, you’re likely very healthy. So while you might not need this money now, you (or your future family) will eventually have medical expenses. The reason this type of account is popular among savers is the triple tax benefit it provides:
- Contributions made to your HSA are not subject to federal income taxes.
- Earnings realized on funds within your HSA are tax-free, allowing your funds to grow unburdened by taxes.
- Withdrawals are also tax-free if they are for eligible (medical) expenses.
Build an Emergency Fund
Life is full of financial curveballs – from the unexpected car repair to the impromptu visit to the ER. Putting money aside for unplanned expenses will provide peace of mind and prevent you from seeking costly solutions, such as high-interest credit cards or payday loans.
When beginning to build your emergency fund, start with small deposits. Get into the habit of putting money aside regularly. As your balance grows, increase your savings rate. You should aim to set aside between three to six months of living expenses in your emergency fund. This might seem like a lot, but if you were to face a sudden job loss, it could hold you over until you find a new job.
Focus on Career Advancement
When starting your career, always be looking for opportunities to grow. Suppose your current position doesn’t offer room to advance long-term. In that case, you might want to find a job where you can grow and expand your financial opportunities. It’s easier to make these moves when you’re young and don’t have the responsibility of a family.
Also, use this time to invest in certifications or educational opportunities to boost your value to potential employers. The more credentials you have under your belt, the more sought after you’ll be, resulting in higher pay and job security.
We’re Here to Help!
While you may be unsure of what your future holds, taking extra steps now to ensure the security of your finances is the best financial move you can make. The earlier you start managing and saving money, the better off you’ll be later in life. If you’re interested in opening an emergency fund account, automating your savings, or would like to speak to a financial advisor, we’re here to help. Please stop by any of our convenient branch locations or call 801-451-5064 to get started today.
Activity Corner
Check out this Winter Word Search if you’ve got little ones looking for an activity!
Cherry Chocolate Chip Dip
Sweet and creamy dip with mini chocolate chips and maraschino cherries.
Ingredients
- 8oz light cream cheese (softened)
- 1/4 cup butter (softened)
- 3/4 cup powdered sugar
- 1/2 tsp almond extract
- 6 Tbsp finely chopped maraschino cherries
- 1/2 (heaping!) mini chocolate chips
Instructions
- Combine cream cheese and butter in a mixing bowl. Beat with a hand mixer till smooth and creamy.
- Beat in powdered sugar and almost extract till well blended.
- Stir in the chopped cherries and chocolate chips. Serve with graham crackers, vanilla wafers or fresh fruit.
Dates to Remember
January 1, 2024: Closed for New Years Day
January 15, 2024: Closed for Martin Luther King Jr. Day
February 19, 2024: Closed for Presidents Day
April 29, 2024: Credit Union Annual Meeting, 4:30 PM
You Love us? We Love YOU!
www.myhorizoncu.com
