Don't let skyrocketing fuel prices drive you crazy - there are many ways to put an immediate dent in your gas bill.

1. First, nothing will save you more money at the station than a fuel-efficient car. Large, heavy vehicles can burn up to three times as much fuel as small car - and as gas prices rise, your wallet will groan with every extra pound. If it's time for a trade in, seriously consider purchasing a car that was built to get good gas mileage. There are even tempting tax breaks for investing in the latest technology: if you buy a new hybrid car, you may be eligible for a one-time federal income tax deduction of $2,000. The following twenty-four additional tips will speed up your savings even further - print them out and keep them on your dashboard as a daily reminder!
2. Make sure your air filter is clean
3. Keep your tires filled with the right amount of air
4. Keep your clutch adjusted
5. Have enough - and clean - engine oil in your car
6. Choose the route with the flattest terrain and fewest stops
7. Use your air conditioner sparingly
8. Remove unused bike and luggage racks to make your car aerodynamic
9. Keep the windows closed when traveling at high speeds
10. Avoid traffic jams and stop and go traffic
11. Remove heavy objects from the car
12. Bike, walk, or use public transportation whenever possible
13. Turn the car off rather than idle (when appropriate)
14. Don't warm up new cars - most don't need it
15. Avoid traveling at fast speeds in low gears
16. Drive the speed limit
17. Use cruise control on the open road, when safe
18. Use downward slopes to your advantage
19. Accelerate slowly when leaving the stop light
20. Buy regular unleaded versus the highest priced gasoline - most cars are built for it
21. Don't rev your engine
22. Arranging for car pools to share the cost of gas
23. Use your car only for necessary trips
24. Use your navigation system (if available) to avoid getting lost and wasting gas
25. Combine errands into one trip

Source: 2005 Balance Financial Fit Program

Looking for a new car or truck? Click here to visit the GECU Car Buying Center and check out our current rates plus research vehicles, check insurance quotes and compare new vs. used vehicle pricing.

If you're looking for a pre-approval on an auto loan, GECU can give you the maximum dollar amount you qualify for a vehicle. Click here for more info.

GECU can help you transfer your existing auto loan to GECU from another lender. (Existing GECU loans cannot be refinanced.) Click here to learn more.

If you've already selected a vehicle you want and know how much you need to borrow GECU can help you with loan options. Click here to start.

Having a budget and sticking to it is an essential part of money management. How do you set up a budget?

First, find a time where you won't have any interruptions. Sit down with your spouse or savings partner. There are twelve budget sheets located throughout this guide to get you started on your first year of money management. You can also download GECU's budget spreadsheet at http://www.gecu-ep.org/home/fin. This will help you track all of your income and expenses.

Start by identifying all of your household income - how much you bring in, and when (weekly, bi-weekly or monthly).

Gather all of your bills and/or payments that you've made to anyone over the past three months, including mortgage, rent, utility bills, credit cards, groceries, entertainment, insurance, etc. If you're not sure where you're spending your money, be sure to track your spending by writing down everything you spend, and what you spend it on.

Remember the "pay yourself first" rule - don't forget to include yourself as a debt so you can set aside some savings for yourself.

As a guide, we've put together a graph showing how much of your income, by percentage, should be going for specific expenses like housing, transportation, savings, etc.

Getting Started
1. List your income and expenses on your budget form.
2. Be honest about your spending habits. It's the only way you can see how much money you're really spending.
3. Compare your total monthly income with your total monthly expenses.
4. For a workable budget, you'll need enough income to cover your expenses.
5. If your expenses are higher than your income, you'll need to find ways to reduce your expenses.

Putting It Down
1. The first things you're going to pay are household expenses (rent, utilities, insurance) and credit cards/loans.
2. Don't get caught in the late charges trap (they're costly). Know exactly when your bills are due, and be sure to pay them on time.
3. Don't budget for personal needs (groceries, clothing, entertainment, gym dues, grooming) until all monthly bills are paid.
4. Include saving money for an "emergencies" savings plan.

Remember...
A budget isn't set in stone - it's flexible. Life happens - your priorities are going to change.

You probably have a lot more questions. Check out GECU's Build a Budget 101 seminar. For the latest seminar schedule or to register for a Build a Budget seminar, click this link http://www.gecu-ep.org/home/new.Events? #BuildingBetterBudget

Source: GECU Intercom

If cash seems to disappear from your wallet, now's the time to find out where it's going! Becoming keenly aware of cash flow will help you reduce budgetary waste - and leave more money in your pocket for truly important goals and expenses. There are several good methods you can use to track spending:

• Carry a small notebook and record the details of each purchase you make. At the end of the day, total what you've spent. You'll soon have a good idea of where those $40 ATM withdrawals really go.
• Keep receipts for all of your purchases and tally them up daily. It won't be absolutely precise if you shop at places that don't give a receipt (such as a soda machine), but it'll be close enough to be revealing.
• Use a debit card for all or most of your shopping. Every purchase and cash withdrawal will be noted on your statement. Review it regularly.
• Use expense-tracking software. After monitoring your spending for a few weeks, enter the information into a long-term expense tracking system. A few months of doing so and you'll have an accurate picture of where your cash is going.

Source: Balance Financial Fitness Program

Download Monthly Budget Worksheet

For a list of upcoming seminars and events click here!

How to start your own Savings Challenge. Download PDF

Credit card debt is usually the number one debt people carry after a home or car. By managing your credit card debt wisely, you'll avoid finding yourself owing lots of money to many different creditors - debt that could take years to repay!

First - try to avoid credit card debt altogether! Only charge in the event of an emergency, or what you would be able to pay in full the following month. Know the difference between what you "need," and what you "want." You don't need an expensive new watch or purse; you want them. If it's something you want, think twice before you charge it!

When looking for a credit card, shop around. You'd be surprised how many different rates are available. And read that fine print: look at what credit card companies charge for late fees and what their grace periods are. Check on the penalty interest rates on late payments - they can be exorbitant! Check out the fee you'll be charged if you don't charge a certain minimum amount each year. Ask if your payments will be applied to the lowest interest rates first. Find out what the annual fee for the card is and what balance transfer fees and terms will be.

Be aware of those low introductory rates; they usually expire in a short amount of time, leaving you to pay a much higher rate on purchases. And guess what? Once your rate goes up, you'll be paying off your balance at the new, higher rate! Always pay on time - and always pay in full or more than the minimum due each month. Avoid cash advances - those rates are higher than the rates charged for purchases.

Most importantly, check on your credit score. You should know your FICO score - because it affects your borrowing and the rate you'll be charged. Access your credit reports from each of the three major credit bureaus, then review them for accuracy - and dispute any incorrect items. You can get a free annual credit report each year from the Annual Credit Report Request Service at www.annualcreditreport.com.

GECU also has a number of seminars that can help you better manage your credit and your debts. These include, "Understanding Credit," and "Get Out of Debt." For information on these and other seminars, visit our website at click here.

Know Your Starting Point
Obtain a copy of your credit report from all three credit bureaus so that you have a clear understanding of what it says about you and your current credit scores.

Develop a Plan
If there are errors on your credit report, have the credit bureaus investigate and correct them. Set goals and time frames for future major credit endeavors.

Bankruptcy Today - Homeowner Tomorrow
If you recently filed bankruptcy or if you don't have any open credit, it's necessary to have new positive items being reported on your credit report. Try to obtain several new accounts or sources, like a secured credit card, department store cards or being put on someone else's account as an authorized user. The lower your starting credit scores, the more your need to have positive items reporting.

For secured cards remember the following:
• Never carry over balances, the interest rates are very high.

• Purchase one thing on credit you would normally pay cash for - say for $20.00 and as soon as the bill arrives write the check and pay the bill. If paid in full during the 25-day grace period no interest is charged. Follow this practice consistently and NEVER miss a payment.

Keep Older Accounts Open
If you already have credit open, keep the accounts you have had for the longest period of time. Even if there were late payments on it in the past, pay it on time now and the length of time it has been open will help your credit.

Make Your Payments On Time, Always!

Pay Down Your Credit Card Balances
Target yourself to have the total amount of outstanding revolving debt at 40%, or less, of the total available credit limits.

Once new positive sources are created, avoid all unnecessary inquiries - don't fill out additional applications for credit.

For home purchase or refinance, old collections/judgments/unpaid taxes/ unpaid child support/ must be dealt with. Look at the date of the item, compare to statute of limitations for that item, and plan a strategy to address each.

Source: 2005 Balance Financial Fit Program

If used carefully, credit can be a helpful financial tool. For example, using credit to purchase a home now, rather than trying to save up the whole purchase price, makes financial sense. The home provides a place to live that will perhaps increase in value and the mortgage interest offers a tax deduction. Credit may also help you deal promptly with costly emergencies.

Many consumers turn to credit when faced with unexpected home or auto repairs, as well as medical emergencies. Credit offers convenience, enabling you to rent a car or hotel room or buy airline tickets over the phone. In many situations, credit offers peace of mind; there's no need to carry large amounts of cash when shopping or traveling.

Despite all the advantages and conveniences credit can provide, there are some pitfalls associated with credit use. Credit can be expensive. Interest rates (often ranging from 14% to 22%), finance charges, annual fees, and penalties can dramatically increase the cost of any purchase made on credit. Then, there's a tendency to overspend when using credit. It's much easier spending more than you can afford when all you have to do is pull out the plastic. Overextension gets thousands of consumers into financial trouble every year.

It's possible to have the best of both worlds, though. Designing a realistic spending and savings plan so you are aware of how much credit you can afford, as well as comparing the cost of credit and shopping around for the best deals, will help you avoid credit trouble.

Here are a few more tips:

• Keep your charge receipts in an envelope with a running total on the outside. If the total exceeds an amount you consider appropriate, you know it's time to curtail your spending.
• Save monthly for expenses such as auto maintenance, holiday gifts, and the kids' school clothes. That way you don't need to use credit to cover these expenses, or, if you do charge them, you can pay the balance in full when the bill arrives.
• Monitor interest rates. Choose lower-rate financing options whenever possible.
• Limit the number of open credit card accounts you have. You don't need more than one or two major credit cards, and it's much easier to keep track of your total outstanding debt with just a couple of accounts.

How Much Debt is OK?
As a rule, no more than 15% of your net (take home) income should be committed to unsecured debt payments each month. Another way to determine how much debt is appropriate for you to carry is to first complete a family budget. The amount remaining after you deduct your monthly savings and living expenses from your net income is the most you should have going to debt repayment. If you're sending more than that to your creditors each month, you may want to consider credit counseling to help you reduce your debt load.

It Pays to Shop For Credit
When shopping for a credit card, decide how you plan to use it so you can compare features. It'simportant to understand the difference between a charge card and a credit card. The balance on a charge card must be paid in full every month. Paying only a portion of the bill will cause your account to be delinquent. A credit card allows you to carry a balance for as long as you want, provided you make at least the minimum monthly payment due.

If you pay your credit card bill in full every month, a low annual fee is important. If you usually carry a balance, look for the lowest interest rate. Shop for a grace period, or the amount of time after your purchase during which finance charges are not assessed. Some financial institutions give you up to 30 "free" days, while other card issuers start assessing finance charges immediately upon purchase. In fact, interest starts accruing immediately on cash advances - there's no grace period and the interest rate is higher than that applied to regular purchases.

Depending on your payment and credit use habits, you may also be affected by late and over-limit fees. (Changes in legislation have allowed credit card issuers to increase the miscellaneous fees they charge customers, so it is very important to read all the terms of the credit agreement.)

Source: 2005 Balance Financial Fit Program

Are you considering transferring your credit card debt to a "teaser rate" card (where a very low interest rate is charged on balance transfers for a specific amount of time)? If so, don't just do the math - there are other factors to take into account before moving your balances.

Negotiate with your current creditor
Why change if you don't have to? If you have an excellent payment history with your current credit issuer, but aren't satisfied with the interest rate you are being charged, call the company's customer service number and speak with a manager or supervisor. Explain that you have been a responsible customer and would like to continue doing business with them. Request an interest rate similar to the offer you are considering. No one wants to lose good business, so they may do what they can to keep you.

Maintaining a relationship with the creditor you already have has its advantages: you don't have to begin again with a new company, nor monitor the date the deal ends. Also, bouncing debt around with too many transfers can negatively impact your credit score, since part of your score is determined by length of credit history.

Assess your money management style
Do you forget about paying bills and then get charged late fees because of it? Are you "too busy" for money management? Then balance transfers may not be your best option, no matter how low the introductory rate.

One late payment will usually trigger the ultra-low interest rate on balance transfers to increase dramatically. To get the most out of these transactions, you'll need to be on top of due dates, pay on time, and know when the deal expires.

Get the best deal
Balance transfers can definitely work to your financial advantage, and great deals do exist. After all, the less interest you are charged, the more of your payment is going toward the principal, allowing you to repay the debt efficiently. Look for balance transfer offers with:

• The lowest introductory interest rate for the longest amount of time
• A low post-introductory interest rate
• No or low annual fee
• No or low balance-transfer fees (which can be up to four percent, equaling $200 on a $5,000 balance)

Understand the terms
As with all contracts, make sure you're completely aware of the terms before you sign on the dotted line. Many offers sound too good to be true - and in some cases they are. Be aware of:

• Offers that only waive fees for "initial balance transfers." Other transfers are treated as cash advances and subject to cash advance fees and immediate interest.
• Misleading offers. Not everyone who gets an offer qualifies for the super low rate.
• Universal default. Late payments on other cards or a drop in your credit score may cause your new card's APR to rise.
• How long you must keep the account before being able to transfer again.
• The interest rate you'll be charged for new purchases, which is often much higher than the balance transfer rate.

Avoid costly delays
Incomplete balance transfer paperwork can cause a serious delay, so make sure you fill in forms carefully. Continue to make the minimum payment on the old card while waiting for the balance transfer to take effect, which may take anywhere from two to four weeks. Finally, verify complete balance transfers with both your old and new card.

Don't get into future debt
Transferring balances makes the most sense when you're not going to acquire more debt and concentrating on repaying what you owe. If you keep the old credit card open and use it to accumulate more debt, the benefit of the reduced interest rate is watered down by a higher overall balance. Cancel or suspend use of the old card. Since you'll likely be charged a high interest rate for purchases you make with the new card, avoid racking up more debt on it as well.

Can you save money by taking advantage of low interest balance transfer offers? Absolutely! Just beware the potential downsides, know what you are getting into, and use them wisely.

Source: 2005 Balance Financial Fit Program

The GECU Platinum MasterCard can help you use your credit wisely by offering NO transaction fees, NO annual fees and NO cash advance fees. No matter how you look at it, the GECU Platinum MasterCard is the only card you'll ever need. Click here for more information or to apply.

For a list of upcoming seminars and events click here!

Everybody would like to be financially ok. Everyone wants to be able to spend some money, put some into debt and still be able to save a little. So, to reduce debt you can start little by little and once you've made the commitment, before you know it, you're halfway there!

Using the Payment Pyramid Method
1. Start by making a larger payment each month to the highest rate loan or credit card you owe, while continuing to make the minimum payments to your other creditors. You can also start with the smallest loan or credit card you owe.
2. Once you've paid off that bill, use the monthly payment and a little extra to target the next highest rate or smallest balance account.
3. Continue this strategy and slowly, but surely, you've learned to manage and conquer your debt.
4. If an unexpected expense comes up and you need to use the extra money you've allocated to reduce your debt, no problem. Life happens. Just resume your debt education strategy as soon as you can.
5. It makes good financial sense to save money first and then purchase what you want. You're committed to your financial health when you understand the difference between needs and wants.

Download Payment Pyramid PDF

Wondering how much your minimum payment would be on a loan. It's easy by using our loan calculator to figure it out. Click here to get started!

For a list of upcoming seminars and events click here!

You've made the commitment to do a better job managing your money. Now what? Your first step - setting up your financial goals.

We're not talking soccer goals, field goals or any other sports-related goals. We are talking about setting an attainable goal that you can work toward and measure your progress along the way.

There are several types of goals for you to consider: short-term (under a year), mid-term (one to three years), and long-term (three plus years). So what's an example of a short-term goal? You could say, "make a $3,000 deposit into my IRA account by April 1st." A mid-term goal could be to "reduce your credit card debt by 50%." And a long-term goal could be to "save $10,000 for retirement."

To meet you goals, you'll need a strategy. Find out how much each one of your financial goals will cost, then divide that amount by the number of months you have set to achieve them. That's the amount you'll need to set aside each month to meet your goal.

Write down some of your own financial goals.

Goal #1
Description:
Total estimated cost:
Cost per pay period:
Target date:

Goal #2
Description:
Total estimated cost:
Cost per pay period:
Target date:

Goal #3
Description:
Total estimated cost:
Cost per pay period:
Target date:

Track your monthly expenses. If you find that you're spending more than you're bringing in, consider ways to reduce your spending or new ways to add to your income.

Set up a savings plan. Make sure you set aside several months of living expenses in a savings account you can access. This will give you peace of mind in case of emergency. You can make your automatic deposits into your savings by using direct deposit designations.

Finally, make sure your spouse works with you to set your goals. If you're single, find a partner who will help you stay on track toward you're savings goals and managing your money.

Because of the high cost of most real estate, very few people can purchase a home with savings alone. If you're like the vast majority of people, you'll be borrowing money from a financial institution to purchase the property you want. Called mortgages, these loan products can be complicated. Knowing the basics of how mortgages work can help guide you to the loan that is most appropriate for you.

MORTGAGE LOAN TERMS

How long is it going to take you to repay the loan? That depends on the term of your mortgage. A term is the number of years that you agree to pay back the amount you borrow.

The term also affects the cost of your mortgage payments. Shorter repayment periods mean higher monthly payments but less interest you pay over the life of the loan, while longer terms will give you lower payments but will cost more over the long run. The traditional mortgage term is 30 years, but they can range from ten to 40 years.

TYPES OF MORTGAGES LOANS

There are several types of mortgages available, with the most common being fixed-rate, adjustable, and interest-only.

Fixed Rate Mortgages
Fixed-rate mortgages come with an interest rate that remains constant over the life of the loan. 30-year mortgages are the most common, but you may also choose a 20-year, 15-year, and even 10-year fixed-rate mortgage. In certain high-cost areas some mortgage lenders are even offering 40 year-loans. Though the mortgage interest rates tend to be higher than for other loan types, the rate is fixed and your payment won't change. This stability makes them the most secure type of mortgage for buyers.

Adjustable-Rate Mortgages Loans
Adjustable-rate mortgages (ARMs) have a period of fixed interest, but the payment changes with whatever index the loan is based on. The period of fixed interest may be three, five, or seven years. With a 5/1 (the first number stands for the number of years in the initial fixed period, while the second indicates how often the new rate will adjust) ARM, for example, the initial interest rate remains fixed for the first five years, and then adjusts annually for the remaining term.

There are several types of caps that may apply to an ARM:

- an overall cap limits how much the interest rate can increase over the life of the loan
- a periodic cap limits the amount the interest can increase from one period of adjustment to the next
- a payment cap limits the amount the monthly payment can increase at each adjustment.

While ARMs are less secure than fixed-rate mortgages, they tend to have lower initial rates and therefore lower monthly payments. They can be a good option if money is tight in the early years, as long as you are confident you can meet future interest and payment increases.

Interest-only Mortgage Loans
Interest-only mortgages are loans that allow you to pay just interest for between three and ten years. Once that period is over, the payment rises to include both principal and interest. While qualification can be easier and the monthly costs can be lower than other mortgage types, they can be a gamble. A downturn in housing prices could mean that you end up owing more than you own and an interest rate hike could put the payments beyond your reach.

Certainly there are benefits and drawbacks to each mortgage type. Long before you borrow, consider each option carefully to know which is most appropriate for your situation. With so much money at stake, making the best mortgage decision is important.

Source: 2007 Balance Financial Fit Program

As exciting as buying a home is, it's also a serious decision that requires quite a bit of planning. Long before you make an offer on your dream property, know how much you can afford to pay for housing costs, accumulate enough cash for pre-purchase expenses and make sure your credit history and score is attractive to lenders.

Determine a comfortable monthly housing payment
One of the most important steps in preparing for homeownership is understanding how much you can afford to pay for monthly housing costs. Many people jeopardize their financial security by overestimating the amount they can realistically handle.

Determine your comfort zone by analyzing your cash flow. List and total your monthly expenses, then subtract that figure from your monthly net income. If you're like most people, you'll need to track your spending for at least a few months to be accurate.

Your mortgage payment plus all related housing costs should fit easily into your budget. Project for maintenance and increased utility expenses, especially if you intend to move into a larger home than you are in now. As a rule of thumb, total housing costs (mortgage, property taxes, homeowner's insurance, utilities, upkeep, etc.) should be no more than 35 percent of your net pay. Therefore, if your household income is $2,200 per month, a safe figure is $770. If its $3,900 a conservative sum is $1,365.

Save for pre-purchase expenses
Before you buy, you'll need enough cash for a down payment, closing costs, and at least a few months' worth of mortgage payments in reserve. Consider what you may need for such extras as moving costs, repairs, and furniture too.

In most cases, the down payment will be your biggest expense. While putting 20% of the purchase price down may not be required, the more you put down, the less your mortgage payment will be and the better loan you may get. If your down payment is less than 20%, you may either have to purchase mortgage insurance until you build up 20% in home equity, or obtain a second loan to cover the remaining 20%. Closing costs are often between three to five percent of the purchase price.

It can take months or even years to accumulate enough for the home you want, so if you don't have what you need saved up now, start setting aside money on a regular basis. Break down the goal amount by your purchase time frame. For example, let's say you need $8,000 to buy a home one year from today. You currently have $4,500, and so need an additional $3,500. If you set aside $292 per month beginning today ($3,500/12 = $292), You'll reach your goal.

Get your credit in order
Your credit rating is a primary factor in qualifying for a mortgage, so pull copies of your report from Experian, TransUnion, and Equifax at least three months before you intend to buy. You can get a free copy of your credit report from each of the bureaus once every 12 months from Annual Credit Report Request Service (www.annualcreditreport.com/877-322-8228). Read each report carefully to make sure all information is accurate. Errors can significantly impact your ability to get a desirable home loan. If there is incorrect information on your reports, immediately dispute it with the bureaus. This process can take several months.

Also know your credit scores. The most commonly used score is the FICO, which was developed by Fair, Isaac and Company. It ranges from a low of 300 to a high of 850. In general, the higher your score, the easier it will be for you to get a mortgage loan with a lower interest rate.

To access your scores, either purchase them as you get your free reports from Annual Credit Report Request Service, or pay for them when you buy your reports from the credit bureaus:

• Equifax - www.equifax.com/800-685-1111
• Experian - www.experian.com/888-397-3742
• TransUnion - www.transunion.com/800-916-8800

If the information on your report is negative but accurate, take action to improve your credit. It may make sense to delay a home purchase until your credit report looks positive to lenders. You can make a major difference to your score in as few as 12 months by using credit regularly, paying all accounts on time, repaying any collection accounts you may have, and keeping balances at zero or well under the credit limit.

After you know what you can afford to spend on a home payment, you've saved enough for the property you want, and your credit is attractive to lenders, you are ready to begin shopping for that special piece of real estate!

Source: 2007 Balance Financial Fit Program

Thinking about buying a home? Click here to visit the GECU home buying center where you'll learn how to get started, special programs available and the types of mortgage loans that maybe right for you.

Whether you're looking to buy, refinance, or make improvements to your home, GECU can help you find the right loan to fit your needs. Click here for more information.

Want to know the monthly payment on the home of your dreams? We have the tools to help. Find helpful calculators to guide you through your home buying process here!

For a list of upcoming seminars and events click here!

For a list of upcoming seminars and events click here!

Set financial goals - Think about what you really want to do with your money. Figure out how much each of those financial goals will cost and divide that by the number of months you have to achieve them. That's the amount you'll need to set aside each month. (see goals category)

Develop a budget - Track your monthly expenses and subtract the total from your income. If more is going out than coming in, consider ways to reduce your spending or add to your income.

Establish a savings plan - Having a few months of essential living expenses in a liquid savings account provides stability and peace of mind. Make automatic deposits into savings by updating your direct deposit designations.

Review your retirement plan - Make the most of your income by contributing to a tax-deferred retirement plan. Don't miss out on compound interest, and if your employer matches your contributions, free money!

Use credit wisely - You can use credit to your advantage by charging only when you can afford to repay the balance in full. Use loans for goal achievement, such as starting a business, buying a home, or paying for an education.

Check your credit report - Access your credit reports from each of the three major credit bureaus, then review them for accuracy and dispute any incorrect items. You can receive a free copy of each once a year from Annual Credit Report Request Service: www.annualcreditreport.com/877-322-8228.

Manage your money - Designate a space in your home to work on your finances, keep your private financial information, and organize bills so they don't get lost under a stack of other mail.

Source: 2004 Balance Financial Fitness Program

Wouldn't it be nice if yo could adapt to change easily and gracefully or to easily offset the wallet-shock an unexpected life change brings? You can. Whether you have one year or one week to adjust to monetary upheavals, like marriage, divorce, a growing family, or military deployment, you can sail through financial bad weather - as long as you PLAN for it.

Prepare: This first step will help you understand how much money you have to work with. It's vital to put together a practical strategy for the future. If you don't already have your financial documents in one place, it may require a little hunting and gathering (and once you do, keep them accessible, wether it's on your computer or in a folder in a corner of the kitchen. Get and remain organized for the next inevitable change). You'll need recent bank and credit card statements for account balances, current loan papers, pay stubs with income, tax, and deduction information, and your checkbook register for household bill information.

Have it all together? Good. Now carefully examine and notate your current income, expenses, assets and liabilities. You'll need this data for the next step in your PLAN...

Learn: Ignorance is not bliss! Learn how this event will alter the way you currently spend and save. If there will be additional or increased expenses, You'll need to be aware of their type and cost. More gas for a longer commute? Diapers or daycare for a baby? The last thing you want is to be hit with a big, unexpected expenditure after you worked out a feasible money management plan.

To know how the change will affect the numbers in your financial picture, conduct some research. There's an abundance of free to cheap (yet high-quality) information available. Websites, books, magazines, friends and family members who have experienced what you are about to go through are all useful sources to tap. Contact your financial institution for ideas and options. If you're in the military and facing deployment, be sure to investigate the programs specific to your needs and situation.

Often a life change will inspire new goals. You may want to start an education IRA to fund your child's college tuition or save for a down payment on a home. Take the time to assess long-term objectives and figure out how much it will take to achieve them. These will also need to be factored in to your budget.

Act: Now put your PLAN into action. Because you have completed the first two steps, you should have everything necessary to transition from old to new. Plug the revised numbers into your budget. Are you over or under? You may have to modify spending habits, reduce expenses, or even sell assets to meet the needs of the pending change in circumstance. Other action items may include opening a savings or investment account, adjusting tax deductions or exemptions, obtaining or modifying insurance coverage, or meeting with a financial professional for long-term planning.

Resist inertia - sitting around hoping things get done is tempting but self-destructive. All the knowledge and assistance in the world won't help if you don't do what you need to do.

Network: Finally, reach out and connect with those who are, or have been, in the same position as you. This financial predicament may be new to you, but there are scores of people out there who have weathered the storm and come out of it okay. They can provide you with not only information, tools, and ideas, but also the support you needed to be successful with even the most challenging of changes. Ask people in your familial and social circle for suggestions and connections, contact your employee assistance program for free programs and services, log onto online forums and chat rooms. You may be surprised how enthusiastic others are to share their wisdom and encouragement.

Remember, change isn't a matter of if - it's when and how. Think of it as an opportunity to grow and be self-sufficient under even the most daunting of financial conditions. You can do it. It just takes a good PLAN.

Source: 2009 Balance Financial Fitness Program

Don't buy what you can't afford. Simple, right? Well, sort of. While restricting spending to the finite boundary of a paycheck is the foundation of sound money management, actually doing it can be extremely difficult. There are plenty of reasons, but primary among them is the belief that living in debt is not only unavoidable, it's acceptable. It's this mindset that's self-destructive. Even though changing your attitude is hard, it has to be done.

The widespread availability of credit has made not having cash to pay for both necessary and discretionary items inconsequential. Currently about 190 million Americans hold at least one credit card, each card equipped with a typical $3,000 limit. Having immediate access to such a sum inspires many to quickly charge their way into impenetrable arrears. Though the average per-household consumer debt currently exceeds $8,400, balances in the six-figure range are not unheard of. Credit cards have morphed from their true purpose as a convenient payment tool to instant emergency account, holiday bonus, vacation fund, and salary increase all rolled into one.

It's not just plastic that makes descending into debt so easy. Payday loan institutions have exploded onto our landscape. We can now tap into our future earnings just by writing a check. Many who have "discovered" these businesses become tangled in a never-ending balance cycle, complete with interest rates that would make a loan shark gasp.

Having consumer debt is generally not fun. In fact, it may cause you to be stressed and worried. It may also make it difficult to save for such things as retirement and higher education.

How do we reverse the trend? Here are some ways:

• Don't believe the idea that maintaining debt is inevitable and just another way of managing money.
• Redefine yourself as a "saver" rather than a "consumer."
• Relish the feeling of living within, rather than beyond, your income.
• Accept that you may not be able to have everything you want (or even need) today, and that a quick cash fix won't really bail you out of a bad situation, it will just make the following month more difficult.
• Borrow only when you are absolutely certain you can repay the entire balance when the bill comes in.
• Reject the idea that it is your responsibility to keep the economy rolling. It is not. It is to save for (rather than borrow from) tomorrow, so you and your family can be financially independent, prepared and secure.

If you're unable to cover your expenses, don't get a loan - get help. BALANCE offers free, high quality assistance. If you're contemplating a purchase outside of your means (and if you don't know what your "means" is, you are not alone, but once again, contact us. We can work with you to develop a budget.), stop and think hard before you borrow for it. Don't buy what you can't afford. Sometimes it's really that simple.

Source: 2005 Balance Financial Fitness Program

For a list of upcoming seminars and events click here!

For a list of upcoming seminars and events click here!

Whether you're interested in developing a workable spending and savings plan, getting out of debt, taking a look at your credit report, buying a home, or planning for your financial future, GECU wants to help. That's why we've provided access to free and confidential financial counseling and education through BALANCE. To learn more click here.

Free budget and debt counseling is available Monday through Thursday, 6 am to 9 pm, Friday, 6 am to 6 pm, and Saturday, 9 am to 6 pm (PST). Call BALANCE toll-free 888-456-2227 or visit www.balancepro.net.

BalanceTrack allows you to explore all of the essential elements of personal finance. Each of the learning modules is interactive with links to helpful resources and has a quiz to allow you to test your knowledge of the subject. Visit BalanceTrack at www.balancetrack.org.

Find financial tools to help you budget, save and plan for retirement here.

For a list of upcoming seminars and events click here!

How to start your own Savings Challenge. Download PDF

The easiest way to start saving money is to pay yourself first. Why? Because paying yourself first is the best way for you to get into the habit of saving a portion of your income every month - savings that you'll need in case of a financial emergency, as well as savings for your future. Emergency funds should amount to 3 - 6 months of expenses. You can easily figure out that amount from your budget.

Even an amount as small as $5 or $10 each month is important, because when you earn interest on your savings, your money grows over time. Then you start earning interest on your savings AND your interest - that's called compound interest. You'd be surprised how fast your money will grow when you keep adding to your savings every month. And remember, savings gives you more personal control and helps you reach your short- and long-term financial goals.

Let's talk about jump-starting your savings. Here are some surefire ways to begin a savings routine for yourself:

• From your budget, figure out how much you can save each month. Even if it's just a few dollars, start now.
• Set up an automatic transfer from your checking to your savings, or use payroll deductions right from your paycheck. What you don't see - you won't miss.
• Put any of your bonuses, income tax refunds, birthday gifts or other special occasion monetary gifts into your savings account.
• Watch your money - start buying only what you absolutely need and put the difference into savings.
• Save all of your loose change. All of those quarters and dimes add up fast!
• Once you've paid off your car or any other installment obligation put that same amount into savings.

Most importantly, don't panic or give up if you experience a setback - you can always readjust your budget and make it up the next month or in future installments.

You have wants. You have needs. And you have two ways of paying for them - pull out the credit card or use the money you have set aside. Which would you prefer?

It's a safe bet that most people would choose to have a stash of cash from which they could pay for everything from impulse purchases to long-term financial goals. But how do you save when there are bills to pay and a paycheck only goes so far?

Do it now. Even without a specific goal, saving immediately will make you feel good. Have debt? Put a little aside anyway. Acquiring a savings habit as soon as possible is critical. By setting a little aside each month while aggressively paying down your obligations, you'll graduate into being debt free with a nice savings account in place. And in the event of an emergency you won't have to touch the credit cards and feel like you're driving in reverse.

Set a goal. All achievable goals share the same four factors:

• Really want it - or you won't be motivated
• Know the price - so you know how much to save
• Set a time frame - and break it down into reasonable and consistent deposits
• Be flexible - contribute less if you have to, but don't give up

Put it somewhere. How much you have, your time frame, and personal risk tolerance will determine the best home for your money. A few accounts you may consider are:

• Savings account - A great starter account. Interest and risk are low and minimum deposit is small.
• Money Market Account - This savings account pays slightly better interest but may require a higher minimum balance.
• Money Market Fund - A very secure mutual fund account. Invested in high-quality, short-term investments. Higher deposit, interest and risk.
• Certificates of Deposit - Three months to six years investment commitment, CDs offer higher and fixed interest rates, but with a greater initial deposit and penalty for early withdrawal.

For mid to long-term goals, you may opt for investment rather then savings vehicles. After you've saved enough in one of the above accounts, you can transfer your money to mutual funds, bonds, or individual stocks if you wish.

Impossible? Not at all. With careful planning, savings is the key to successfully managing your money and getting everything you want.

Source: 2005 Balance Financial Fitness Program

Most of us give in to temptation from time to time - buying on impulse, choosing name brands rather than generic or splurging on an expensive meal. Indulging is fun and even healthy in moderation. Watch out. Not paying attention to the small purchases will result in a lot of money you could have saved. The path to savings (for things that you really do want) is paved with pennies. It starts with awareness. Each time you make a purchase, consider the cost. Here are a few ideas to get you started:

• Brown bag your lunch. $7 per day totals $140 a month.
• Substitute water for juice. A family of four can save over $500 a year by cutting just one glass of juice per person per day.
• "Health" bars run about $2 apiece, and are often no more than glorified candy bars. Switch to a banana and whole-wheat bagel for half the price.
• Use coupons at grocery stores and buy house brands instead of name brands whenever possible.
• Throw pocket change in a jar and deposit it in a savings account when it's full.
• Cut your cable television down to basic.
• Hand wash instead of dry cleaning.

It's never too early (or late) to start saving for a strong financial future.

Source: Balance Financial Fitness Program

Pay Yourself First
Don't forget your commitment to yourself. Remember to pay yourself first by putting money into a savings account, even if it's only $10 a paycheck. That's how you begin saving.

• Saving gives you more personal control and helps you reach your short- and long-term financial goals.
• Every deposit you make adds up, no matter how small.
• Put $1 a day plus pocket change into a jar. In one month you'll have $50; in one year you'll have $600.
• Include saving as part of your spending plan.
• Have money deducted automatically from your paycheck and transferred to a savings account.
• Place some of your tax refund or a bonus into a savings account.

Source: GECU Intercom

The Rule of 72 shows how quickly your money will double with compound interest by dividing 72 by the rate of interest.

Example: The money you've deposited in a certificate of deposit, for example, is earning a 2.0% return. *

72 divided by 2.0% = 36

It will take 36 years for you to double your money if you don't deposit any additional money in your account.

*The 2.0% interest shown is for example purposes only and does not represent current rates for GECU's savings products.

To help you determine a savings plan to reach your financial goals, access our Savings Calculator.

Ready to start saving! For information on the various types of Savings Accounts offered through GECU and how to open an account please click here.

Looking for higher yield on your savings? A Certificate of Deposit might be the answer. CDs usually require a three-month to six-year commitment and although they might include a greater initial deposit and penalty for early withdrawal, they typically have higher and fixed interest rates, compared to savings accounts.

Only $50 to open, GECU's No Excuse Savers Club makes it easy to save. Deposit any amount during the year whenever you want. To learn more about GECU's No Excuse Savers Club and other CD's offered by GECU click here.