Month: February 2017


HELOC: Use Your Home’s Value to Improve It

With spring around the corner, many homeowners start thinking about the improvements they’ve been putting off all winter. If your to-do list is long, but your cashflow is short, you might want to consider a home equity line of credit, also known as a HELOC.

These loans give you access to the value you’ve worked so hard to build and they provide the flexibility you need to make your projects a reality.

Many people don’t take advantage of their equity until it’s time to sell. With a HELOC, you can borrow up to 100% of your home’s value, minus your mortgage balance, right now. You can then use those funds to make unexpected repairs, complete residential enhancements to increase the resale value or accomplish pretty much anything you see fit.

One of the nice things about a HELOC is that it’s open-ended, meaning you can draw out money up to the approved limit and pay it back as needed — similar to a credit card, but with much better rates and terms. So, for example, if you’re remodeling your bathroom and you discover that your water heater needs to be replaced, your line of credit could cover that expense as well, without any additional applications or processing.

America First offers an interest-only HELOC, which gives you the lowest possible monthly payments for the first five years. During that time, called the draw period, you’ll only pay the loan’s interest back. When the draw period ends, the loan balance converts to a 10-year repayment plan. At that time, you can start paying down the principal or refinance your interest-only HELOC and start another five-year draw period.

However, please keep in mind that any interest-only HELOC principal balance still needs to be paid at some point. And defaulting on any home equity loan could result in foreclosure. You should practice responsible borrowing and only tap what you can reasonably pay back during the loan’s term. Using a HELOC in this way will help keep you out of financial trouble and give you short-term cashflow for home repairs and improvements.


Charitable Contributions: Financially Sound Generosity

We all know it is better to give than to receive. And, of course, the point of giving to a worthwhile cause is not expecting anything in return. Nevertheless, there are financial benefits to charitable contributions when you file your taxes. Here are a few tips & guidelines regarding taxes and charity.

What Is Deductible?

The IRS doesn’t allow deductions for funds given to specific individuals or families. Meaning, if you give a friend in need some money to help them pay for a medical issue, it doesn’t apply. The contribution has to be to a qualified organization, such as the Red Cross, public schools, churches and many other non-profit organizations. If you have a question a group’s tax-exempt status, contact the IRS online or call 1-877-829-5500.

Keep Detailed Records

If you deduct charitable donations on your return, you’ll need more than just a scribbled note on a napkin. There should be a written communication from the organization, including its name, the date and the amount you contributed. Detailed receipts will ensure you have accurate data and are invaluable in case of an audit.

How Much Can I Deduct?

You can actually deduct up to 50% of your adjusted gross income when it comes to charitable contributions. It’s one of the few itemized deductions that doesn’t have a floor, or lower limit, meaning you get to deduct every dollar that you give to qualified organizations until you reach half of your income level. Every dollar that you donate to charity beyond that 50% of your income will still give you warm fuzzies, but you don’t get to deduct it on your taxes.

It’s Not Just About Money

Cash contributions aren’t the only things that can lower your tax bill. You can also deduct the value of donated clothing, furniture, vehicles and more. To do this right means you have to get a receipt when you donate and determine fair market price of the item — which is, essentially, a reasonable price if you were selling it. There are also cases when you can deduct the cost of travel to and from a place where you volunteer your time, the price of a volunteer uniform and other endeavors.

Please remember that this article is for information only. We recommend consulting your tax advisor with questions regarding specific deductions and charitable donations. However, if you want to start donating today, the America First Community Assistance Program is a wonderful — and tax-deductible — effort you can join. Simply log in to your online banking account and make your contribution.


Valentine’s Day Single and on a Budget

St. Valentine’s Day can be a divisive holiday. On one hand, there are couples who have already set up a wedding savings account and love Cupid, flowers, chocolates and romance. On the other hand, there are people who are single and on a budget — who want to mark the occasion, but won’t be spending money on extravagant dates or giant teddy bears. If you’re in the latter group, here are a few ways to enjoy February 14 without breaking any hearts or the bank.

For the Single Ladies

To celebrate girl power and your love for all of your lady friends, “Galentine’s Day,” popularized by the television series Parks and Recreation, is an excellent option. Bust out your favorite pink and red dresses to really get festive. And if you don’t have a cute dress in the right color, visit a local thrift store to find something fun and affordable.

You’ll also want the surroundings to match the festivity. Here are some budget-friendly DIY decoration ideas for your celebration:

  • Fringed photo backdrop — cut several large strips of pink, white, and red crepe paper, then trim for a fringed border. Attach one side of each to the ceiling and twist the bottom for a great background for your photos.
  • Garland — cut out some felt hearts and hot glue them to a long ribbon or piece of twine. Then you’ll have something to hang over your windows and doorways.
  • Hugs & kisses — take a basic red, white or pink cotton tablecloth and use acrylic or fabric paint to draw simple Xs and Os on it.

We all know food can make or break a party. Brunch is great because it’s affordable and easy for everyone to contribute. It doesn’t have to be elaborate or expensive:

  • Waffles — this staple is always a favorite. Have everyone bring their favorite waffle topping (whipped cream, chocolate, strawberries, etc.) to save some money.
  • Omelets — find items at the supermarket to create an omelet bar. Simple ingredients such as mushrooms, peppers, onions, tomatoes, spinach and cheese are inexpensive, yet delicious.
  • Add granola and dried or fresh fruits to a small bowl of yogurt for a hearty and satisfying snack that is also easy on the pocketbook.

You can also gather to binge-watch your favorite chick flicks via streaming services; it’s much cheaper than heading out to the theater. Give each other Valentine’s-themed manicures as you’re watching. Another idea is to end the evening with a lip-sync battle featuring the all-time greatest girl power songs.

For the Single Men

Don’t worry, guys, we didn’t forget about you! This season is also a good time to celebrate your bromance with your friends! Here are some suggestions for you.

Have a tournament. You probably already own most of the necessary equipment, so it shouldn’t cost much. Just print out a bracket, invite some of your guy friends over, pick a team name and show who is the best at:

  • Basketball — play three-on-three, H-O-R-S-E, or lightning in your driveway or at a nearby gym or blacktop where you can play for free.
  • Football — flag football is fun for large and small teams. You can also search online for pick-up games happening in your area.
  • Ping-pong — go one-on-one in single elimination or compete in doubles. Blast the Rocky soundtrack to make it even more epic.
  • Foosball — you’ll have to determine if your house rules allow spinning or not, but this is even a crowd pleaser for those who don’t like sports.
  • Video games – host a LAN party or dust off your old N64 and play some Goldeneye.

Food is also essential here. Pizza is a good, inexpensive way to feed a large group. Here are some other dishes that you can bring to a bromantic potluck:

  • Seven-layer dip — as long as you have beans, sour cream, guacamole and cheese, people usually won’t count the actual layers. Don’t forget the chips!
  • Pulled pork — shoulder (or Boston butt) roast usually goes for about $2 a pound. Watch store prices and buy when it’s on sale.
  • Hot dogs — add some diversity to your dogs with inexpensive toppings such as ketchup, mustard, Dijon mustard, pickles, relish, onions, sauerkraut, chili, banana peppers and BBQ sauce.

So instead of feeling sad or lonely on Valentine’s if you’re single, have some fun with your friends and do it without spending too much.

FOX5 Surprise Squad: Super Edition (30 Minute Special)

The FOX5 Surprise Squad delivers a 30-minute special featuring the biggest surprises and follows up on families like the Chili’s waitress who received a $12,000 tip from the Squad. This heartwarming show packs a powerful dose of feel-good and inspirational stories. Hosted by FOX5’s Monica Jackson and Cassandra Jones.



Save Money with a Spending Freeze

Have you ever taken a break from spending money? If so, for how long? One or two days? Three? What if we told you that it’s possible to not spend money for an entire week? Of course, everyone’s financial situation is different, but if you’re up for the challenge, here’s how to complete your seven-day spending freeze.


First, choose your starting date and mark it on your calendar. If you don’t know what your weekly budget is, track your spending for a few weeks beforehand. This will give you an idea of how much you can save and it will make you more aware of unnecessary spending.

Just before you begin your freeze, gas up your car and go grocery shopping. Plan a menu for the week and only buy what you’ll need. Don’t stock up on excessive amounts of food the day before — that would defeat the purpose of this exercise. Your goal is to use what you have for the next seven days.

Exclusions & Exceptions

Your monthly bills need to be kept current, so make sure to take care of those. If possible, choose a period when you don’t have to pay any reoccurring payments. Additionally, you should always pay the necessary costs of emergencies (basement flooding, broken bones, alien invasion, etc.) and move your spending freeze to another time, if necessary.

Next, set aside your estimated weekly budget and put those funds in a separate account such as money market savings. This will be your backup fund, but otherwise it is off limits. And now, with your gas tank full, your refrigerator full, your bills paid and your money set aside, you are ready to begin.

Get Going

Spend each of the seven days using what you already have. Follow your meal plan, pack lunches from home and don’t stop for fast food on the way home from work. You may even have unexpected leftovers from dinner that can double as lunch for the next day — which will extend the life of your pantry supplies.

Try to avoid unnecessary travel during this week. Oftentimes, we don’t think about the gas we use when we’re out and about. If you can, walk or use a bicycle to run errands. And instead of driving to the city to see a movie, for example, watch something at home that you already own. It’s perfectly acceptable to be a homebody during your freeze.

Follow Up

You did it! And you now have a full week’s budget available to pay off debt, complete a home repair, or put toward a long-range goal. Resist the urge to spend your newfound funds on something frivolous. Keep increasing your savings to you can make your money work harder.

Spending freezes are like juice cleanses — they should be done in moderation. But if you were able to handle a week, you might want to consider periodic freezes several times throughout the year and use the money to make deposits in an America First dedicated savings account for future needs. You’ll be surprised how quickly your financial resources grow when you’re not spending them.