Making Money Personal

Tips for Buying from Online Marketplaces - Money Tip Tuesday

Online shopping is a quick and easy way to buy what you want from the comfort of your own home. However, you need to be careful to make sure you don’t get scammed. In this tip, we share some tips on how to safely buy from online marketplaces. 
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
If you’re planning to buy something from an online seller, an important first step is to make sure the website or the seller is trustworthy. For the website, make sure the URL starts with https. The https signifies the website is secure and has a layer of security that encrypts your information. Most browsers have a lock icon next to the URL to show that the website is secure.  
Check for poor grammar and spelling mistakes. Online marketplaces that have poor grammar, spelling errors, and weird formatting were most likely put together quickly without much thought and may not be legitimate.  
Most online marketplaces, such as eBay and Facebook, have seller ratings. Look at the seller reviews before buying to see what other people have said about them. You might learn that other customers have had a bad experience with the seller or were even scammed. You can also check the product reviews too, to see if it is worth buying. If possible, check the quality of the item before making the purchase. Request the seller send you additional pictures or if you can meet in person to look at the item yourself.  
Check to see if the online marketplace has some kind of consumer protection or if the seller has a return policy. If there isn’t consumer protection, the website might not be a safe place to buy from. You should also check other websites to see if they offer consumer protection. While there, look to see how much the other websites are selling the item for. If it is below market value, it might be too good to be true and most likely a scam. 
In addition to these cautionary steps, it is important  to protect your personal information. Don’t give out your personal information to a seller that seems untrustworthy. Use your credit card instead of your debit card. When meeting in real life, use cash or a person-to-person payment app. When buying online, always make sure it is on a secure internet connection. 
If you think you have been scammed, contact the seller and/or the marketplace. If you are not satisfied with the outcome and you have been scammed, report it to the Federal Trade Commission.  
We hope you found this Money Tip helpful. If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal FB page and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast. 

Episode 44: Strategies for Owning and Managing Rental Properties - Angelica Resto, Property Owner & Landlord

If you've ever considered the opportunity of buying and owning rental properties, today's guest will inspire you. In this episode, we're joined by Angelica Resto, manager of our South Nashua branch and longtime employee of Triangle Credit Union.
Angelica joins us to discuss her experience as a real estate owner and how she manages the responsibilities of running a successful rental property business.
Learn more about Triangle's Commercial Services for business planning and funding
Learn more about Triangle's Mortgage program or chat with a Mortgage Originator to discuss property funding options
View episode transcript.
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!

Simple Health Habits to Save You Money - Money Tip Tuesday

Healthy eating habits are good for you physically, as well as good for you financially. In this tip, we share how simple eating habits will save you money over time.
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal. 
Have you noticed the cost of groceries is through the roof? On today’s episode, we want to share how some simple eating habits will save you money. If you love to plan, you’re going to love the first step, which is to: plan out what you are going to eat for the week. Look at what is on sale at your local grocery store and plan what you are going to buy based on these sales. Buying on sale will definitely save you a few dollars. You can check the grocery store’s sales by looking at their weekly flyer or their website.  
Second, if you want to eat healthily, make sure you add fruits and vegetables to your cart. To save some money here, do some research as to which produce is in season. Produce is at its least expensive when it is in season. If you want your produce to be very fresh, you may want to consider making your own garden to grow whatever fruits and vegetables you want. Even if you don’t have a yard, you can buy an indoor greenhouse to grow your garden.  
Third, make sure that you eat whatever food you do buy, especially perishable items. Check the expiration date so you don’t buy food or drink that is about to go bad. Foods such as produce and meats can often be costly and not eating them before they expire can quickly become expensive and wasteful.  
Fourth, buy ingredients instead of premade food. Although it is more convenient to buy food that just needs to be cooked with no preparation, it tends to be more expensive. Buying ingredients allows you to make multiple meals while paying less overall. However, it ultimately comes down to whether you have time to do meal preparation. This same principle goes for packing a lunch instead of buying one. It is more convenient to buy lunch at a fast-food restaurant, but it is cheaper (and in most cases healthier) to pack a lunch when you know you’re going to be out for a while, which brings us to our firth point, try to avoid eating and drinking out. It is much cheaper to make your own dinner. Coffee can be made at home for much less and your favorite coffee brands most likely sell coffee that you can brew at home. Alcohol is also much cheaper to buy at a store than buying a drink at a bar.  
Another benefit of making your own food is that you have portion control. You can make extra food, so you have leftovers that you can eat on another day. Instead of having to pack lunch, you can just grab whatever you had for dinner. 
Making healthier food choices in general will save you money. A lot of high calorie foods that are not necessarily healthy for you, such as potato chips and soda, can add up quickly. It is important to look at both the nutritional value and the price of the item.  
Another way that you can save money is brushing your teeth after you eat. Taking care of your teeth on a regular basis helps you avoid cavities and a costly dentist's appointment. This simple activity only takes a few minutes out of your day and can save you from tooth decay and medical bills.  
If you found this episode helpful, we’d like to hear from you about thoughts on this show or maybe you have some ideas on other topics we should cover, email us at tcupodcast@trianglecu.org. Be sure to subscribe to the Making Money Personal podcast for our full episodes and weekly Money Tips wherever you listen to podcasts and follow us on Facebook for more great content. 
On behalf of the podcast team, thank you to our sponsor, Triangle Credit Union, and thank you, as always, for listening. 
Have a great day everyone! 

Finance Options for Your New Home Purchase - Money Tip Tuesday

You’re pre-approved for your new home purchase and just found your dream home, now what do you do? In this tip, we talk about your next step on how to find the best mortgage for your new home purchase. 
Learn more about the different mortgage options at https://trianglecu.mymortgage-online.com/
Contact one of our Triangle Mortgage Originators: https://trianglecu.mymortgage-online.com/OurOriginators.html
View current mortgage rates: https://trianglecu.mymortgage-online.com/MortageRates.html
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
NMLS# 528721 - Equal Housing Opportunity - Federally insured by NCUA - Certain restrictions may apply. See website for details.
Transcript:
I’m Ryan from Triangle Credit Union’s Mortgage Advantage Team and you’re listening to Money Tip Tuesday from the Making Money Personal podcast. 
If you’re already pre-approved or pre-qualified for your new home purchase, you’re most likely working with a mortgage representative from your local credit union. That’s perfect! Finding and connecting with a mortgage originator is a smart move. Like local realtors who know their markets, mortgage originators are experts in their home lending programs and can help guide you into the best lending product for you. 
If you’re looking at purchasing your first home, you may qualify for our First Time Homebuyer program which means you can purchase with as little as 3% down.  
Too often new homeowners just look at rates when determining which bank, credit union or mortgage company to use, but there ARE many finance options for your new home purchase and the one you select should be the one that fits best with your budget, your financial goals, and your future. Conversations about where you want to be in 5, 10, or 30 years helps the lending team identify a mortgage that is most aligned with you and where you see yourself today, tomorrow and in the years to come. 
For example, if you’re a new homeowner, you may be purchasing a starter home. Traditionally, this is a smaller home located on a smaller lot size. You’re probably in your thirties and your experiencing success in your career, but you know you’ll be in a much better position financially in another 5-7 years. If this is a scenario that resonates with you, then you may want to consider an Adjustable Rate Mortgage, which is also referred to as an ARM (capital A R M). An ARM offers historically lower rates and lenders usually offer options to choose from. As a Mortgage Originator from Triangle Credit Union, I can explain about one of our favorite products, which is the 5/5 ARM. In a nutshell, when you see a rate like this, there is a number, then a slash or diagonal line, and then another number. The first number represents how long the mortgage is fixed for—in this case, the 5/5 ARM has a fixed rate for the first five years; after that period, the mortgage rate becomes variable and adjusts every five years, which is what the second five represents. There are factors to consider when looking at an ARM as a mortgage option, but a good lender will explain everything to you. You should never walk away confused about your mortgage rate and terms.  
Most lenders offer adjustable rate and fixed rate mortgages. Fixed rate mortgages are commonly referred to as CONVENTIONAL fixed. Again, most lenders have CONVENTIONAL fixed options. These options are tied to the term of the loan with common fixed rate terms at 10-, 15- and 30-year loans. 
The term of your loan can be extremely important in high real estate markets where home prices are over the national norm. For example, Triangle Credit Union serves the southern NH housing market and home prices are considered high in our service area. One of our ARM products offers a 40-year term, which means the loan dollars are amortized or extended over 40 years, rather than the traditional 30 years; this extended period of 10 years reduces the monthly mortgage payment and makes purchasing a new home affordable for many homebuyers. 
Lending rates can fluctuate daily, sometimes hourly so it’s good to work with a local lending expert to lock in a rate. A lock-in or rate lock on a mortgage loan means that your interest rate won't change between the time you make an offer on a house and the time you close on your new home loan—providing you close within the specified time frame and there are no changes to your application.  
Whether an Adjustable Rate or CONVENTIONAL Fixed Mortgage is best for you and your situation is a decision you can work through with your local lender.  
Visit trianglecu.org, select Mortgages at the top of the website. Triangle’s dedicated Mortgage web portal gives you the information you need, whether you’re ready to apply for pre-approval, search our lending programs and rates, or connect with our team. If you’re ready to step into homeownership, our Mortgage team is here to help you with your journey. 
If you found this episode helpful, be sure to listen to our other episodes in this Homebuyer Series: How Do I Get Pre-Approved for My New Home, and the Benefits of Buying Local and Borrowing Local. As always, we’d like to hear from you about thoughts on this show or maybe you have some ideas on other topics we should cover, email us at tcupodcast@trianglecu.org. Be sure to subscribe to the Making Money Personal podcast for our full episodes and weekly Money Tips wherever you listen to podcasts and follow us on Facebook for more great content. 
On behalf of the podcast team, thank you to our sponsor, Triangle Credit Union, and thank you, as always, for listening. 
Have a great day everyone! 

What Every Student Should Know About Student Loans - Money Tip Tuesday

Are you thinking about going to college and not exactly sure how you are going to pay? In this tip we talk about student loans and the many options you have available to finance your college costs.
Check out this Nerdwallet Article for more information about student loans 
Check out studentaid.gov for more information about college funding options
Listen to our other Money Tip Tuesday about Using a Home Equity Line of Credit to Cover College Costs
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal. 
Student loans are loans designed to assist students in paying for college or university. This means that student loans can only be used for academic related expenses, such as tuition, textbooks, and housing. 
The first thing you need to know about student loans is that there are two different kinds: federal and private. Federal loans are preferable over private loans for students for a variety of reasons. For instance, federal loans have income-based repayment plans, forgiveness, and don’t require credit history. This may not always be the case with private loans. It’s also important to consider what type of federal loans are being offered. Subsidized loans don’t acquire interest while in school, while unsubsidized loans do. Federal loans usually offer lower interest rates than private loans.  
However, there is a cap on the amount of money you can borrow in a year, which depends on what year of school you are in and whether you are a dependent or an independent student. For purposes of student loans, a dependent student means you are under 24 years old, not married, don’t have any dependents yourself, not currently serving in active duty or a veteran and you have a parent or guardian. If you have dependent student status, you have to report your information and your parents' information on the FAFSA. Independent students only have to report their own information and their spouse’s info, if married. 
With the exception of subsidized federal loans, you will be acquiring interest on the money you borrow while you’re in school.  This interest is added to the amount of money you have to pay back for the federal or private loans. Also, unless you get a fixed rate, the percentage of interest could go up or down on your loan. 
Another thing to keep in mind about student loans is that you should only borrow what you need and what you can eventually repay. The amount you borrow should keep your payments at 10% percent of your projected monthly income, after taxes. 
Once you leave college, there is a six-month grace period before you need to pay your first bill. You can also refinance your student loans, which will save you money by replacing the previous loan with a newer low-cost loan through a private lender. This may reduce your monthly payment. To qualify to refinance your student loans, you will need a credit score at least in the 600 range (or higher) and a steady income. If you don’t have either of these, you may need someone who does qualify to co-sign with you. 
You can learn more about federal loans at studentaid.gov. Nerdwallet.com has plenty of resources to see which private loan is best for you. 
If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal FB page and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

How Do I Get Pre-Approved for My New Home? - Money Tip Tuesday

The thought of buying your first home is exciting and overwhelming. Where do you start? In this tip we start at the beginning of the home buying process and walk you through how to get pre-approved for your new home purchase.
View current mortgage rates
Start your pre-approval with Triangle 
Contact a Mortgage Originator
Watch our First Time Homebuyer Webinar on YouTube
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
With real estate apps today, it’s easy for prospective homebuyers to search for new homes, but that’s not really where you want to start the homebuying process. The first step is to find how much home you can afford and the best way to do that is to work with a mortgage originator at your local credit union to pre-qualify you for your home purchase. 
In this critical step, you will apply for a new home purchase and based on your income, debt, and current credit score, you will receive an estimated amount that you are qualified for to borrow for a mortgage.  
The process is quite easy—you simply apply online. You will be guided through the application process with a series of questions. You will need this information on hand to answer some questions, so it’s best to have it before you start the application. Here are the items you’ll need:  
Current paystub reflecting year-to-date earnings 
Two month’s bank statements (all pages) from other banks you bank with 
W-2 Form from the most recent year & prior year 
Verification of other income sources (mutual funds, Social Security, pension, alimony, child support) 
Most recent statement of Retirement, 401K, IRA’s accounts 
If Self employed  - 2 years tax returns and a year to date Profit and Loss statement 
 
Once you enter your information, the mortgage department will assess your request and determine how much home you can afford. At this point, you will receive an email that you have been pre-approved and the amount you are pre-qualified to borrow for your new home purchase. This email can be shared with your realtor so he/she directs you into the right home for you, and one that you can afford. 
As soon as your pre-qualified or pre-approved for the mortgage amount, you can begin your new home search using the amount as a guide. Please keep in mind, there are other factors to consider when estimating your home costs. For example, how much are the monthly taxes and homeowner insurance on the property and do these additional costs fit within your monthly budget? 
Another unexpected expense for many new homeowners is closing costs. Closing costs are the fees and charges in excess of the purchase price of the property due at the closing of the real estate transaction. Closing costs vary and can be fairly expensive. Typically, new buyers can expect to pay between 3-6% of the purchase price in closing costs so be prepared for this additional expense and budget accordingly. 
When you receive your pre-approval amount from your financial institution, that offer is good for 60 days, but you can request an extension if you feel your house hunt will extend beyond that time period. If your search goes beyond the 60 days, and you haven’t requested and received an extension, you will have to reapply. 
Visit trianglecu.org, select Mortgages at the top of the website to start your pre-approval today. The whole application process should take about 30 minutes to complete, which is a short amount of time for a journey that can last a lifetime! 
If you found this episode helpful, be sure to listen to our other upcoming episodes in this Homebuyer Series: Finance Options for Your New Home Purchase and the Benefits of Buying Local and Borrowing Local. As always, we’d like to hear from you about thoughts on this show or maybe you have some ideas on other topics we should cover, email us at tcupodcast@trianglecu.org. Be sure to subscribe to the Making Money Personal podcast for our full episodes and weekly Money Tips wherever you listen to podcasts and follow us on Facebook for more great content. 
Thank you to our sponsor, Triangle Credit Union, and thank you, as always, for listening. 
Have a great day everyone! 
 
 

What’s a Federal Rate Hike? - Money Tip Tuesday

What does it mean when the Fed raises rates? Well, if you have a savings account, loans or a mortgage, a rate hike will impact you. This tip covers a few of the things you can do if the talk of raising rates seems a bit scary.  
Learn more about the Federal Funds Rate
Learn more about the Prime Rate
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal.  
There has been a lot of buzz in the media about the Federal Reserve Board raising rates. If you don’t follow finance or banking closely, you might be wondering what it means and how it could impact your life?  
When people talk about the Fed rate they are referring to the Federal Funds Rate – which is what commercial banks use when they lend money to each other. 
It is set by the Federal Reserve Board and can be adjusted up or down.  
One reason the Fed chooses to raise rates is to slow inflation. 
If you’re noticing an increase in the prices of goods and services around you, that’s likely due to inflation. To help keep inflation in check, the Fed raises the Federal Funds Rate.  
At the time of this recording, the Federal Funds rate was recently adjusted from .25% to .5%. 
The Federal Reserve has also announced it may raise rates 6 more times this year. That means that each time they review the rate, it's likely to adjust.  
Now, when you borrow money from your credit union or bank, you’re not getting the Federal Funds rate. Banks and lenders use a rate based off the Federal Funds Rate called Prime Rate which is typically 3% higher than the Fed rate. 
If the Fed rate is .5% then Prime Rate will be 3.5%. If the Fed rate goes to .75%, then Prime will be 3.75% and so on.  
The Prime rate is what banks and lenders use when they determine what interest rate they’ll charge consumers like you and me when we borrow money.  
If the fund rate goes up, then all the others are likely to follow. 
If you have loans, credit cards and savings accounts, a rate hike will have an impact on you in both bad and good ways. 
Here are a few things you can do to prepare for when rates go up: 
First, you can take advantage of any existing low rates and refinance. If you have an auto loan, a mortgage or a personal loan and you haven’t done it already, refinancing can get you a lower rate on your loan now, especially if you know they will be going up. 
Another thing you can do is pay down your debt as best as you can. Credit Cards and other loan rates will likely adjust to coincide with the rise in the Fed rate. If those rates go up on you, your monthly payment will also go up.  
And finally, keep an eye on deposit rates, which may start to rise. When the Fed rate is low, deposit accounts like CDs, Money Markets and savings accounts don’t give you much of a dividend. But when it goes up, you may start to see deposit accounts offering you a higher percentage on your money. Deposit accounts could become a good place to park extra cash, so keep an eye on the interest rates for CDs, Money Markets and other savings accounts 
When the rates rise, there’s much to consider. It’s best to be aware of what’s going on in the financial world so you can position yourself to make the most of how these changes will affect you. 
If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal FB page and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day! 

Episode 43: Tech Defense Against Financial Crime with Jaime Ramirez CEO of Preventor

We talk a lot about cybersecurity and identity theft on our podcast. In this episode we chat with Jamie Ramirez, founder and CEO of Preventor, about the rising trends in financial crime and what you can do to stand against it.   
Learn more about Preventor
Check out other Preventor resources
Learn more about Triangle's Better Checking account with IDProtect
View episode transcript.
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
*Triangle Credit Union does not use Preventor services and cannot endorse the use of its products. This podcast episode is for informational purposes only.  
 

What is a Sinking Fund? - Money Tip Tuesday

It may be a little early to talk about Christmas but this tip will show you how a sinking fund can help you pay for gifts without panicking in December and without going into debt. 
Open a new savings or checking account to get your sinking fund started.
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal Podcast.  
It is mid-March as I record this for you. We’ve had a couple of days of warm weather here in New Hampshire but we are all still recovering from Winter and everything that came with it. Christmas is likely the very LAST thing on our minds.. it was just about three months ago after all. If you are like many Americans, it is likely that you scrambled at the very last minute to get gifts for those special people in your lives.. The average person waits till about November to begin shopping and many of us wait until December 15th. Waiting until the last minute to shop is hard enough but it is even harder if you also didn’t have any separate funds saved to pay for it. This is where a sinking fund comes in!  
A sinking fund is a separate account containing money to pay for something in the future. This fund or these funds can be used for whatever you want.  
Lets say you plan to spend $500 on gifts at Christmas and you start a sinking fund in January. Simply take 500 and divide by 12 months. Just like a bill, every month you would pay (or transfer) $42 to a separate savings or checking account that is specifically for Christmas. You can even label it “Christmas Fund” so you know what you are saving for.  
I love sinking funds. It is a stress free way of paying those items that don’t occur each month. I use them for insurance premiums, activities for my daughters like ballet and gymnastics, and Christmas! I know many people who also use them for other items like a new phone every couple of years, or a new car they know they will need to get in the future. You can do this for anything and it can even be for items you pay monthly. I love to do this for my rent every month! I take my rent payment and divide it by the number of times we are getting paid in the month and I transfer that to my rent savings account. On the first of the month, that money is there! 
Do you have any additional tips or advice that will help our listeners with this topic or other financial matters? Send us an email! That email address again is TCUPodcast@trianglecu.org or look for our Facebook page and get connected!  
Thanks for listening to today’s Money Tip Tuesday and be sure to listen to our other tips and episodes on the making money personal podcast. 

Are NFTs a Fad or the Future? - Money Tip Tuesday

Are you familiar with NFTs? If not, this tip explains a little bit about what they are, why they seem so appealing and some things you should consider before purchasing any. 
Helpful resources about NFTs:
https://ethereum.org/en/nft/ 
https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq 
https://www.forbes.com/advisor/investing/nft-non-fungible-token/ 
https://www.investopedia.com/non-fungible-tokens-nft-5115211 
https://www.wsj.com/articles/bored-ape-nfts-so-expensive-11645709606 
Popular NFT marketplaces: 
https://opensea.io/
https://rarible.com/
https://foundation.app/
Like what you heard? Go ahead and share on your social media! Visit trianglecu.org to learn more about how we can serve you and don't forget to follow us on Facebook and Twitter!
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast. 
There’s so much buzz around the internet and in the press about NFTs.  
You’ve probably read stories or watched videos of people buying some for millions of dollars. Even companies are hopping on the bandwagon to make and launch new collections every day.  
If you’re not familiar with what they are, this tip can offer you more insight into these unusual assets.  
So, for starters, let’s explain what the word NFT means.  
NFT is an acronym that stands for Non-Fungible Token.  
A quick search in Google defines fungible as something that’s “able to replace or be replaced by another identical item; mutually interchangeable.” Fungible assets can be exchanged for the same value – things like crypto coins and dollar bills are widely considered fungible. 
Non-fungible means an asset is one of a kind. It’s not mutually interchangeable. It cannot be replaced or exchanged for something identical. Think of a piece of priceless art or real estate. These assets have an individuality that can’t be duplicated.  
Historically, assets have been physical objects, something you can touch, or hold in your hand, but now, with NFTs, assets can go digital.  
NFTs can be any file like a JPEG, PNG, an audio file, or video files.  
You’ve probably seen some of the most popular collections floating around like the Bored Ape Yacht Club. The digital graphics show a bored looking ape in different themes and dressed in different outfits.  
Well, believe it or not, one of these sold for $1.29 million. 
If you explore the popular NFT marketplaces, you’ll find all kinds of other types of NFTs. Some are animated files where the characters move. Others are video clips, created or recorded.  Some are even digital land plots for gaming platforms like Minecraft.  
What’s so appealing about them? Who would spend millions of dollars on a digital file? Especially when you can easily right click the image and save it to your computer?  
Well, the key lies in the technology behind NFTs. They run on the Ethereum network and use blockchain ledger technology which verifies the file is the original and not a copy. There is a lot more computer science explanation behind how this works, which we won’t cover here, but if you’re interested in learning more about blockchain technology, YouTube offers a plethora of videos to watch and you can read all kinds of online articles about it.  
The gist of it is, NFTs provide a digital authentication record that you’re the NFT owner. Even though the image can be copied, your NFT contains data proving that you have the original.  
Think of it as you would if you were collecting a piece of physical art. You can buy a copy of DaVinci’s Mona Lisa painting, but it’s not the same as owning the original piece.  
The proof of ownership verified through the technology behind NFTs enables the file to be bought and sold like any physical asset would be. And this gets appealing to anyone interested in making money off selling certain types of assets.  
The major appeal for many people is that they imagine they can make millions. And if you’ve read the stories, watched the videos and read the blogs you will find plenty of stories of people making a fortune off the sale of NFTs. 
But is the use of NFTs legitimate or just a fad?  
Well, for some people, NFTs can carry with them unique opportunities.  
For one, if you’re a digital artist, NFTs could offer an opportunity to create and sell some of your own art creations. There are also ways to collect royalties when the NFT is sold or used. Not a bad option for people looking to sell their digital art.  
On the flip side, maybe you’re not an artist yourself, but you want to support budding artists, you can purchase NFTs of their art. 
Recently, business owners are exploring them as new opportunities to expand their product offerings. Nike is selling NFTs of sneakers for avatars in the Metaverse. The NFL launched its own marketplace called NFL All Day where they sell digital video copies of NFL plays they’ve named NFL Digital Highlights. You can go to their site to check them out.  
But, like all budding markets, NFTs should be approached with caution because they are subject to certain dangers.  
There are plenty of NFT scams out there. Surprise, surprise. People have found a new way to trick others into handing over their money.  
First, there are reports of scams called rug pulls. Scammers get people to buy into the upcoming release of an NFT collection promising people that they’ll receive a portion of it after the release. But after the creators collect enough money, they close shop and all the information and pages disappear, leaving the hopeful investors angry about their loss. Kind like when someone pulls the rug out from under you.  
The other danger of NFTs is speculation. Highly speculative markets should be approached with a great deal of caution. This can lead to bad investment decisions and loss of money. Let me remind you of some of history’s lessons like the tulip bulbs, the dot com bubble? People get roped in seeing the stories of others making it big, so they don’t want to miss out. But please don’t let the hype lead you into making a bad financial decision. If you’re interested in learning more about NFTs, then do your research and approach them with an educated, and levelheaded perspective.  
Okay, so in summary:  
For some digital creators, collectors and pseudo investors, NFTs can be useful tools to grow your collection, store assets and make money. But, there are dangers with all new technologies, and non-fungible tokens are no different.  
Do your own research, investigate sources, and explore the platforms because NFTs may not be for everyone. 
Stay levelheaded. Don’t get caught up in speculation or greed and fight that FOMO. It’s better to make a wise financial decision than a hasty one that will leave you filled with regrets. 
I’ll take this moment to state the commonly referenced Latin phrase: Caveat emptor which means “let the buyer beware.” 
If you’re not comfortable enough to purchase NFTs, I don’t blame you. But if you want to search around the marketplaces to see what kinds of cool digital creations people have made, it’s kind of fun. There’s a lot to explore out there.  
Check the links in the show notes for additional information on NFTs and some common marketplaces to explore. 
If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal FB page and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.  
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  
Have a great day!