Community

Freedom’s support of and activity in the Harford County, MD community.

How Do I Give Myself an End-of-Year Financial Review?

Year End Financial Check Up

 

Freedom Federal Credit Union Recommends This 6-Step Financial Check-up Before 2021

Q: With 2020 drawing to a close, I’d love to give myself an end-of-year financial review before it goes.  Where do I begin?

A: Giving yourself an end-of-year financial review is a wonderful way to check on the progress you’ve made toward your goals, highlight areas needing improvement and update your accounts, funds and investments. Here’s all you need to know about this important end-of-year ritual from Freedom Federal Credit Union.

Step 1: Review all your debts and create a payoff plan

Take a few minutes to list all your debts and their interest rates. Have you made any real progress toward paying them off this year? Or have you stuck with minimal payments each month, leaving the actual balance to pile up since you’re mostly just paying for interest?

If your debt needs some help, you have two primary options for how to proceed:

  • The avalanche method. Focus on paying off the debt with the highest interest rate first, and then continue to the debt with the second-highest interest rate. Move through the list until you’ve paid off all debts.
  • The snowball method. Work your way through your debts, starting with the lowest-balance debt. Then, once it’s paid off, apply the payment that was previously committed to that debt to your new lowest debt. Repeat through the rest until all debts are paid off.

For both methods, be sure to pay the minimum balance on all your other debts each month. Try to boost your income and/or trim your monthly spending for extra cash and use it toward the first debt you are paying off completely.

 

Step 2: Automate your savings

Review your savings from 2020. Have you reached your goals? Have you forgotten to put money into savings each month?

Going forward, make it easy by automating your savings. Give us a call at to set up an automatic monthly transfer from your checking account to your savings account. [You can also set this up through your online and/or mobile banking with us.] This way, you’ll never forget to put money into savings again.

 

Step 3: Review the progress you have (or haven’t) made on financial goals

Have you made measurable progress toward your financial goals in 2020?

Take a few minutes to review your past goals, taking note of your progress and determining how you can move toward achieving them.

 

Step 4: Review your retirement account(s) and investments

As you work through this crucial step, be sure to review the following variables:

  • Your employer’s matching contributions. Are you taking advantage of this free money, or leaving some of it on the table?
  • The maximum IRA contribution limits for 2021. You will likely need to make adjustments for the coming year.
  • Management fees and expense ratios for your investments. Fees should ideally be less than 0.1%.
  • Your stock/bond ratio and investing style. You may want to take more risks in 2021 or decide to play it safer this year.
  • Your portfolio’s balance. Does it need adjusting?

 

Step 5: Create an ICE Binder

The events of 2020 underscored the importance of making plans in case one becomes incapacitated for any reason. Create an In-Case-of-Emergency (ICE) Binder to hold all your important documents in one place in case the unthinkable happens. Because of the sensitive nature of the information it holds, be sure to keep this in a safe place where it will not fall into the hands of identity thieves.

Include the following in your binder:

  • Medical information
  • Account information
  • Child care and pet care details
  • Online accounts and passwords
  • Insurance policy documentation and details
  • Investment accounts and details
  • A copy of your life insurance policy
  • A copy of your living will
  • A copy of your last will and testament

 

Step 6: Set new financial goals for 2021

As you finish reviewing your financial progress of the past year, look forward to accomplishing greater financial goals in the coming year.

A great way to turn dreams into reality is to set goals that are SMART:

Specific

Measurable

Attainable

Realistic

Timely

Here are some goals you may want to set for the coming year:

  • Create a monthly budget before January. Be sure to include all expense categories. Review on the first of each month and tweak as necessary.
  • Review the week’s spending with your partner each Friday night.
  • Pay off your largest credit card bill by 2022.
  • Start a vacation fund in February.
  • Cut out two subscriptions you don’t really use by mid-year.
  • Slash your weekly grocery bill by 10% before May.

Wishing you a financially healthy New Year!

Your Turn: Do you have any additional steps for your own end-of-year financial review?  Tell us about it on Facebook, Twitter, or Instagram. @FreedomFedCU

SVP of Business Banking Named to Department of Social Services Advisory Board

Bob Wehland
Bob Wehland
SVP of Business Banking
Appointed to Department of Social Services Advisory Board

Bel Air, MD –Freedom Federal Credit Union is pleased to recognize Bob Wehland, Senior Vice President of Business Banking, on his recent executive appointment to the Department of Social Services (DSS) Advisory Board in Harford County.   Wehland received commendations on his appointment by County Executive Barry Glassman and County Council President Patrick Vincenti.

The Department of Social Services Advisory Board is involved in every phase of DSS planning, operations, and funding.  The agency itself works under the mission to aggressively pursue opportunities to assist people in economic need, provide prevention services, and protect vulnerable children and adults.

Wehland comes to the board with over twenty years of banking management experience, and a long history of community involvement.  Wehland is currently the Vice President for the Mason-Dixon Business Association, for which he has also served as both President and Treasurer since his initial involvement in 1999. Around the same time, Wehland also joined the board of Mason-Dixon Community Services, for which he has been the Treasurer for the last eight years.

Wehland is also the current chair of the Veterans Committee for Abingdon Elks Lodge # 2354, where he recently coordinated and assisted in delivering 115 boxed lunches and 105 hot dinners to Veterans at Perry Point.

In addition to his role at Freedom Federal Credit Union, Wehland has coordinated employee volunteers to participate in over twenty different non-profit causes and over 1,500 hours of volunteer time as Chairperson of Freedom’s Community Outreach Committee, a role he has held since 2015.

When asked to join the DSS Advisory Board, Wehland expressed that he was both “humbled and honored to be considered for such an opportunity”.  “I have always believed it is important to give back to the community,” Wehland stated.   “Fortunately, Freedom Federal Credit Union shares this philosophy of giving back and people helping people.”

“Offering a hand up, especially in a time of crisis, makes our world and our community a better place,” Wehland continued.  “I hope to bring my knowledge, experience, and wisdom, along with my compassion and commitment to the DSS Advisory Board. I am very grateful for this opportunity and look forward to serving the citizens of Harford County in this new role.”

“Bob Wehland is as dedicated to his community as he is to the Freedom Federal Credit Union Team, and we could not be prouder” stated Mike MacPherson, Freedom’s President and CEO.  “Over the years, it has been incredible to see our community being served in meaningful ways by our Freedom employees, board directors, committee volunteers, and members.”

The Credit Union encourages employees to volunteer their time and skills to better serve the Harford and Baltimore County communities, including serving on local non-profit boards and county government boards and commissions.

WMAR-2 News Covers the #FreedomToHelpChallenge in a special segment

WMAR-2 Interviews Ashira Quabili

WMAR-2 News Segment and Article on Freedom’s #FreedomToHelpChallenge
WMAR-2 News recently interviewed Freedom Federal Credit Union Marketing Communications Coordinator, Ashira Quabili, on their 3rd annual #FreedomToHelpChallenge.

“The best part about the #FreedomToHelpChallenge is any charity any non-profit big or small can be involved and get something great out of it, you can enter a photo and reach thousands of people in a week that may never have heard of your cause,” said Ashira Quabili, the Marketing Communications Coordinator for Freedom Federal Credit Union. She added, “all of these charities are doing amazing things in our communities and this is a great opportunity for them to get their name out there and get their missions out there.”

Learn More about the Freedom To Help Challenge

 

Read more:
WMAR-2 News Segment and Article on Freedom’s #FreedomToHelpChallenge
About Freedom Federal Credit Union

Freedom serves and is open to anyone who lives, works, worships, attends school, volunteers, or has family in Harford or Baltimore County, MD. As a credit union, we are committed to putting you first, not shareholders, and helping you achieve your financial goals. Learn more at freedomfcu.org or call us 800-440-4120 to see how we can help.

Your Turn: Submit a photo for the #FreedomToHelpChallenge.  Post a picture on Facebook, Twitter, or Instagram. Don’t forget to include the hashtag: #FreedomToHelpChallenge and tag us @FreedomFCU on Facebook and @FreedomFedCU on Twitter or Instagram.

Banking Reimagined My Foot

December 4, 2020

You know what annoys me?  Commercials.  One in particular gets under my skin.  It’s the commercial for Capital One.  It’s bad enough they talk about having no fees or minimums on checking accounts like they just thought of it or that you can bank on the go with a mobile app like no one else offers that.  No, it was the phrase “banking reimagined”.  You know what banking reimagined is?  A CREDIT UNION!!!

All you need to do is look at our history to know that banks are still banks no matter what kind of pretty package you put it in or spin you put on it.  You still get your best deal, have your best experience, at a credit union and with people like you.

Mike

 

The Ultimate Guide to Applying for a Business Loan

Business Loans

If your business has reached a point where it needs an infusion of funds in order to grow, you may be in the market for a business loan. A business loan can help a struggling small business establish itself better, or help a thriving company expand its line of products, open an additional location, move to a larger site, hire new team members or purchase expensive equipment.

Here’s all you need to know about applying for a business loan:

Make sure your credit is in order

Before applying for a business loan, check your personal and business credit health.

A personal credit score is measured in the hundreds, with scores ranging from 300-850. A score that falls from 580-669 is considered fair, 670-739 is good, 740-799 is very good, and 800-850 is considered exceptional. You can check your personal credit report once a year at no cost from AnnualCreditReport.com. Review your score for any inaccuracies or fraudulent charges and be sure to dispute these immediately through any of the credit bureau websites: Experian, Equifax or TransUnion.

Business credit scores are measured differently.

Experian uses Intelliscore Plus as its credit scoring model, with scores ranging between 1 and 100.

Equifax assigns each business three different scores: a payment index score, which assesses the company’s payment history with the score ranging between 0 and 100; a credit-risk score evaluating how likely it is the business will not meet on-time payments with the score ranging between 100 and 992; and a business failure score measuring how likely a business will fail, with the score ranging between 1,000 and 1,880.

Business credit scores are also measured by the Dun & Bradstreet Corporation. The D&B score range is 0 to 100 and the key factor it considers is the timeliness of payments made to previous creditors. In order to receive a D&B score, a business must file for a free DUNS number and information about the company’s borrowing habits must be provided by a minimum of four lenders or suppliers.

Finally, the FICO Small Business Scoring Service (SBSS) score ranges from 0 to 300 and considers variables, such as the business owner’s personal credit score, the company’s payment history, number of employees and the age of the business.

If your personal and/or business credit scores are low, work on improving your credit before applying for a loan by meeting your monthly payments on time and keeping credit utilization low.

Update your business plan

Be sure to have a fully crafted business plan to show a prospective lender before applying for a loan. The plan should include details about how the company intends to use the funds from the loan, the anticipated increase in revenue and plans for repaying the loan.

Consider arranging supplemental collateral

Lenders generally prefer to reduce the risk of a borrower defaulting on a loan by securing collateral for the loan. For business loans, this usually takes the form of the company’s accounts receivable, equipment or other valuable assets. The lender can seize the collateral if the business fails and the borrower cannot repay the loan.

When applying for a business loan, you can offer additional collateral to the lender, such as personal assets, like real estate or other valuables. This will make you more likely to qualify for the loan and may bring down the interest rate on your loan as well.

Organize your personal and business documents

You’ll need the following documents and identifying paperwork to apply for a business loan:

  • Photo ID
  • Accurate monthly financial statements from the past two years
  • Business license
  • Any commercial leases
  • Business insurance plans
  • Payroll records
  • Incorporation documents
  • Current financial obligations
  • 3 months of bank statements
  • Personal and business tax returns
  • Collateral, if required

Research potential lenders

It’s best to take some time researching potential lenders before applying for a loan. Learn about each lender’s eligibility criteria so you can anticipate whether or not you will qualify for a loan. Look up average loan interest rates for each lender, as well.

As you complete this step, choose a general source for your loan.

Startups may not qualify for a large loan and can be better off pursuing a microloan, or a small, short-term loan offered by a nonprofit lender. These loans can often be applied for online.

If you need a larger loan, consider applying for a business loan through a credit union. A credit union will offer you personalized service, looser qualifying criteria and a competitive interest rate that will help you keep more money in your business throughout the life of the loan.

Freedom FCU’s business loans offer generous terms and competitive rates. Call, click, or stop by today to apply.

Submit your application

Once you’ve gotten all of your paperwork in order and you’ve chosen a lender, you’re ready to apply for a loan. Depending on your lender, you may be able to begin and/or complete the application process online. Be patient; loans can take anywhere from one day to several months from application to funding. With luck, you’ll soon have the funds you need to take your business to the next level.

About Freedom Federal Credit Union

Freedom serves and is open to anyone who lives, works, worships, attends school, volunteers, or has family in Harford or Baltimore County, MD. As a credit union, we are committed to putting you first, not shareholders, and helping you achieve your financial goals. Learn more at freedomfcu.org or call us 800-440-4120 to see how we can help.

Your Turn: What are your best tips for taking out a business loan?  Tell us about it on Facebook, Twitter, or Instagram. @FreedomFedCU

BadCredit.Org Profiles Freedom’s Services for Families Struggling With Debt

Hope for Families in Debt

BadCredit.org’s Article: Freedom Federal Credit Union Offers Products and Services Aimed at Families Struggling with Debt

BadCredit.org recently interviewed Freedom Federal Credit Union CEO, Mike MacPherson, on all the ways Freedom helps indebted families overcome obstacles to achieve financial stability.

Credit unions are known for their efforts to go above and beyond to serve both their members and their communities. And Freedom Federal Credit Union in Maryland is no different. The long-running financial institution strives to provide products and services that will benefit people struggling with debt, including its innovative Anything Loan.

The credit union also sponsors numerous events and activities in its communities as well as promotes volunteerism among its staff by paying them for their volunteer work. Freedom Federal Credit Union also provides financial literacy resources for its members and the community at large through a number of initiatives, including its online Financial Education Center and school programs.

Read more:

BadCredit.org’s Article: Freedom Federal Credit Union Offers Products and Services Aimed at Families Struggling with Debt

About Freedom Federal Credit Union

Freedom serves and is open to anyone who lives, works, worships, attends school, volunteers, or has family in Harford or Baltimore County, MD. As a credit union, we are committed to putting you first, not shareholders, and helping you achieve your financial goals. Learn more at freedomfcu.org or call us 800-440-4120 to see how we can help.

Your Turn: Are you struggling with debt?  Do you have advice to share? Tell us about it on Facebook, Twitter, or Instagram. @FreedomFedCU

Overcoming 2020 Challenges Together

November 5, 2020

Dear Freedom Members,

Over the years, we promised to uphold our core value of people helping people by focusing on creating a memorable experience for members, employees and the community we serve.  Year after year we stayed true to this philosophy as it drove achievements and stability.  Now as we near the end of the year, that strategic focus has proven vital in successfully navigating in 2020.

In recent years, we worked on our infrastructure and improving various processes, products, delivery channels, etc.  We put greater effort into expanding and enhancing call center capabilities and online services and refined every avenue to allow you to conduct business virtually to provide the options and convenience that would create a better experience.  As it turned out, these efforts were also the key in adapting to the “contactless” world thrust upon us by an unexpected pandemic.  Before times had changed, we were already preparing for you to have the ability to conduct business without leaving your home.

As a result, and despite the situation, we never shut down, we never stopped serving.  Yes, we had to keep our distance, we had to modify some operational aspects for everyone’s safety, but, like always, we were here, we heard you and we responded.  We responded not just to the normal business of the day, but to those of you who needed extra help created by the impact of the virus on our lives and economy.

We helped 95 businesses by providing more than $2 million in Paycheck Protection Program loans.  We processed over 1,400 payment deferral requests on loans and mortgages.  We provided lunches and PPE supplies to first responders and over 25 Harford County organizations and, even though some plans and events were cancelled, Freedom maintained our financial support of each organization as originally committed.

Of course, you, our members, were also key to our ability to successfully adapt to this crisis.  Every step of the way you have been resilient, understanding, supportive and more.  You demonstrated the most important part of a cooperative; that we achieve more together when we work towards a common purpose.  We are grateful for you and we appreciate you.

Finally, I cannot be more proud and appreciative of all the employees of Freedom, especially those who are on the front lines, who come in every day, and work tirelessly to ensure they provide the hands-on service you have come to expect.

Freedom will continue to earn your trust by holding to the values we established over 67 years. Our name is built by living up to our vision and mission. Our name is synonymous with respect, compassion, service, integrity, trust, and safety. Our name reflects all of the good and dedicated people that help and serve. Our name is Freedom and Freedom will continue to care for our community, one member at a time.

Sincerely,

CEO Signature

Michael MacPherson
President and CEO
Freedom Federal Credit Union