Author Archives: Marketing Coordinator Nicole

How to Save Money By Simplifying Your Life

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save-money-travel-photo-ccNearly half of households in the United States are “liquid asset poor,” meaning they have less than three month’s worth of savings in the bank, according to a report this year from the Corporation for Enterprise Development, a nonprofit that tracks household financial security. Surprisingly, 25% of those who are considered “liquid asset poor” are in the middle class with earnings of $56,113 to $91,356 annually. What’s even more surprising is that 89% are employed.

Statistics like these might make you wonder how we got here. The fact is, modern life has become more difficult and complicated than ever. We not only have more inconveniences and responsibilities than previous generations, but we also have more bills to pay. We work more, relax less, and spend most of our time planning for the future instead of enjoying the present. Everything costs more than it did generations ago, which is another reason so many Americans are living paycheck to paycheck. And when you’re living a hand-to-mouth existence, it can be next to impossible to break the cycle.

Breaking the Cycle in 5 Simple Steps

But what if someone told you it didn’t have to be that way? What would you do if you discovered that merely simplifying your life could help you save and prepare for a brighter future? The truth is, a simpler existence might be exactly what it takes to transition from a lifestyle of struggle into one where you’re able to enjoy life a little. It may not be easy, but change might just be within your reach.

Here’s how:

  • Pare down your possessions. If you’re struggling to keep up and feeling bogged down by life’s ups and downs, it might be time to lighten your load. The truth is, many of the belongings that bring you joy could also be a source of stress either because they require upkeep, take up too much space or come with additional financial costs. So, instead of holding on, figure out what you can sell and take the necessary steps to do so. You’ll not only simplify your life, but you’ll also rake in some extra cash in the process.
  • Cancel unnecessary services. Many monthly bills are non-negotiable, including things such as utilities, insurance, mortgage or rent payments, and transportation costs. But the rest? You can typically do without it. If you really want to simplify and get ahead, consider canceling services that aren’t necessary. This could include things such as cable television, expensive gym memberships (when there are many more affordable monthly plans out there), pricey cell phone contracts, or other unnecessary monthly subscriptions (magazines, movie rental/streaming services, etc.). Eliminating or cutting even a few of your monthly expenses can make a huge difference in your bottom line over the months and years. Plus, who doesn’t want fewer bills to pay?
  • Pay down debt. If you’re like most people, you have a few lingering debts from the past. The bad news is, those monthly debt payments might be part of the reason you’re struggling. They might even mean the difference between mere survival and getting ahead. Unfortunately, the only real way to escape the grasp of your debt is to make a commitment to become debt-free. Use the money you’ve freed up by paring down your possessions and eliminating unnecessary services to work toward becoming debt-free once and for all. It may take a while, but it will be worth it.
  • Make a commitment to save. When you’re living paycheck to paycheck, one surprise bill or emergency is all it takes to knock you completely off track. That’s why it’s absolutely crucial to begin saving for the future and for any unexpected expenses that might arise. Saving money might seem like a lofty goal, but it can be done if you make the commitment to never give up. Your future self will thank you.
  • Make it automatic. If you’re worried you’ll fall off the savings wagon in a hurry, the best thing you can do for yourself is make all savings automatic. This generally means setting up an automatic account transfer on payday or at the end or beginning of the month. Making it automatic helps you accomplish your savings goals in two ways: First, it ensures you’re saving on a regular basis by forcing you onto a savings schedule. Second, it forces you to live on less than what you earn, which is required if you truly want to get ahead and stay ahead.

It’s true that modern life has become burdensome and overly complicated in some ways, but it’s also true that our decisions often make it worse. Fortunately, the key to escaping a lifetime of struggle is often within reach if you’re willing to look hard enough. All it takes is a fresh perspective, a willingness to live on less, and the fortitude to make it happen. A simpler and more prosperous life can be yours if you want it.

*Click here to view the article source by Holly Johnson of US News.

5 Budget Killers You Can Avoid

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budgeting-money-to-conquer-debtCreating a budget is the first step in taking control of your finances. Sticking to your budget is another challenge altogether.

Even when you believe you have factored in every cost you may encounter by week, by month or by year, somehow you end up needing more money than you allocated – right? If this sounds like you, you are likely encountering a budget killer (or several). Below are some of the most common costs that can cause you to veer off your budgeting course.

1. Account Maintenance Fees: Some big bank accounts and credit cards tack on fees if you don’t maintain your account or meet specific requirements. Some charge you extra if you don’t maintain a certain balance, if you write too many checks, or if you don’t make enough transactions. These can add up quickly. Make sure when choosing an account or credit card, you read the specifics of your account agreement carefully. Look into which checking accounts and credit cards offer services that fit your lifestyle.

Be sure to check out the variety of flexible Checking Account options that we offer here at First Financial. Plus, if you’re on the hunt for a great new maintenance-free credit card with rewards, click here to learn more about our low-rate Visa Platinum Cash Plus Credit Card and apply online.

2. Subscriptions: While seemingly low monthly fees can be attractive, subscription magazines and online services (think Netflix, Hulu, etc.) add up. These costs are hurting your budget if you are not using the services or if you could find them elsewhere online for free. Eventually, these just become another add-on to your monthly payments so it’s a good idea every so often to re-evaluate whether yours are worth keeping.

3. Credit Card Interest: Credit cards have several attractive features: allowing you to buy now and pay later, providing cash back, and helping you earn points toward a new car, vacation or night out. Paying installments on your purchases over time may appear to be a great way to buy all your monthly and superfluous purchases. However, high interest rates add up over time if you carry a balance and you can find yourself deep in debt before you know it. You may think you are paying off your purchase when all you are doing is treading water by paying off the interest. To avoid this, it’s important to know the interest rates of your credit cards, pay off your balance in full every month, and save before you purchase. Carrying a lot of debt can have longer-term implications on your credit scores too.

Did you know that our Visa Platinum Cash Plus Credit Card has one of the lowest interest rates around and offers rewards?* It’s a good idea to check the APR of some of your current credit cards to see if it’s time to switch! You can apply for a balance transfer by stopping into any branch or calling 732.312.1500, Option 4.*

4. Excess Phone, Cable & Utility Bills: Many households are paying hundreds of dollars for TV, Internet, cell phone, and utility expenses each month. No matter how comfortable these tools make us, they are taking up valuable space in our budgets. Look through your bills carefully and try to scale back from services you aren’t using or do not need to use, from running the air-conditioning while you are at work to paying for a DVR on a second TV you never even watch. Also, be sure you are not paying for a level of service you don’t need. If these alterations don’t bring a big enough impact on your budget, consider alternatives like prepaid phone services and switching cable providers.

5. Convenience Fees: Certain businesses tack on “convenience fees” when you utilize their goods or services as a way to make up any added expenses that can incur during your transaction. Be wary of these types of fees before you make various transactions, to see if there is a less expensive way for you to do so.

Having an emergency fund can be a big help when you come in over budget. This money can save you from stress when you have fallen victim to these and other budget killers. It’s a good idea though to deal with the root issue instead of repeatedly ruining your budget and having to dip into your emergency fund. If you do have to use that money, it’s important to replace it and frequently evaluate your budget to match your changing lifestyle.

Article source courtesy of Fox Business.

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

How to Get Your Child Financially Prepared for College

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college-students-awesomeAfter high school graduation, your teen will probably be spending the summer gathering dorm necessities, picking classes and hunting for the cheapest textbooks.

One major point of focus should also be signing up for the right student financial accounts, specifically checking accounts and credit cards. With so many choices, it can be confusing for parents and students, but there are simple approaches to getting college-bound kids financially prepared.

Pick the Right Checking Account

When looking for a checking account, parents may be quick to sign their children up to their own banks or to a major bank close to home. However, that approach may not be the best for the college student.

Since college students may need cash for spontaneous occasions, it is important to have an in-network ATM at or near the college campus. Constant cash withdrawals at out-of-network ATMs can amount to plenty of fees. At the 10 largest U.S. banks, the average out-of-network ATM fee is $2.45. Furthermore, the operator of the out-of-network ATM has the right to impose a surcharge, which typically ranges from $2 to $3.

Besides location convenience, parents also have to consider their ability to fund their kid’s accounts. Parents and students should research which financial institutions are around campus and near home to find the one with a student checking account that would allow them to stay financially connected. Parents, you should also make sure that the financial institution you choose has instant transfers during the times you have to transfer money into your child’s account electronically – you don’t want a 1-2 day delay period.

First Financial’s has a great Student Checking Account available for 14 to 23 year old students!*

Sign Up for the Right Credit Card

Credit cards are less attainable by college students since the Credit Card Act of 2009 took effect, requiring anyone under age 21 to provide proof of reliable income to qualify for a card. If a student can qualify for a credit card on his or her own, it is crucial to evaluate spending and repayment habits to maximize any rewards and minimize interest paid.

For instance, a student who will be driving around campus may prefer to get a credit card that offers rewards on gas purchases. Or if a student doesn’t expect to be able to pay off their balances every month, he or she may opt for a card that doesn’t have rewards but carries a lower interest rate.

The more likely situation would involve parents adding their children as authorized users on an existing credit card account. Parents can limit how much their children can spend on their authorized cards, and when the occasion calls for it, they can raise or reduce the limits accordingly. As authorized card users, students can also start building their credit profiles, which can increase their chances of qualifying for credit cards and loans in the future.

Keep an Open Line of Communication

Do your children know what to do in the case of a financial emergency? College students may encounter dilemmas that cannot be solved with the financial means available to them.

Parents should keep an open line of communication that would allow their children to contact them in the event of financial distress, regardless of how bad the situation may be. It’s important for parents to continue providing financial and emotional support, so their kids can focus on the most important aspect of college: their education.

Click here to view the article source courtesy of Simon Zhen of US News.

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Accounts for children age 13 and under are excluded from this program. 

The Best Times to Buy, Sell, or List a Home

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selling-home-vegasA common question from a buyer or seller is: what is the best time to buy or sell a home?

In the clothing world, it makes sense to get the best “deal” on winter clothes at the end of winter and that you likely will pay top dollar for a swimsuit when it’s warmer. Does the same trend hold true for real estate purchases and sales? Not really. But there are some considerations a buyer or seller should make as they enter the market that could have an impact on the transaction.

Spring and fall are better times for buyers.

Let’s be clear. You can’t ever time a home purchase. Buying a home isn’t like buying a car or an iPad. The home buying process is a journey, one that happens on your own time and only after you’ve done enough research, seen enough homes, and have your financial house in order.

At any one time there is a brand-new buyer entering the market and then another who has done enough research and becomes a very serious buyer. Nobody can control the evolution, but something for a buyer to consider is that real estate inventory tends to fluctuate by season. Each spring and fall we tend to see an increase in home inventory, and more inventory means more options for buyers.

Holidays and winter are the best times for sellers.

It’s not conventional for a seller to list their home before the holidays or in the dead of winter for obvious reasons, but serious buyers don’t care about the season or timing. At any one point of the year, there will be a very motivated, experienced buyer ready to make an offer, no matter the season. There have been contracts written on Thanksgiving, escrows closed on New Year’s Eve and there are even serious buyers who have made offers using DocuSign from a beach in Hawaii.

Sellers believe that it’s more conventional to list for the spring “selling” season and then again after the summer. If you go the conventional route, you will see more competition. If you can sell “off season,” you might fare better because there are still serious buyers, but less homes for sale.

Best time to list a home.

The Sunday open house, particularly the first Sunday of the month, is the holy grail of real estate.

For decades, agents and sellers worked hard on a listing with a deadline being the first open house. The “for sale” sign, which made the listing official a generation ago, would go in front of the house days leading up the first open house. In the digital age, the listing goes “live” online.

Sellers and agents work hard to clean, paint, or prep the home in time for the photo shoot. Agents and sellers tend to rush to the finish and you will see many listings hit the market late Thursday afternoon or Friday morning, with Sunday being the first showing. Instead, try listing on Monday or Tuesday and don’t do any showings until the open house on Sunday. You can build momentum and have a very strong first open house.

As much as buyers and sellers try to strategize the timing of a real estate purchase or sale, it’s never that easy. Unlike Macy’s or Target, who control inventory and monitor competitive activity, there isn’t one seller in real estate. Sellers are unrelated and disconnected and the types of homes are different making it nearly impossible to “time” a purchase or sale.

If you’re looking to purchase or refinance a home, First Financial has a variety of options available to you, including 10, 15, 20, and 30 year mortgages. We offer great low rates, no pre-payment penalties, easy application process, financing on your primary residence, vacation home or investment property, plus so much more! For rates and more information, call us at 732.312.1500, Option 4 for the Lending Department.*

First Financial also offers a Mortgage Rate Text Messaging Service so you can receive updates on our low Mortgage Rates straight to your mobile phone. You can subscribe to our Mortgage rate text message service by signing up for text alerts, and receive instant notification when our mortgage rates change.**

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

**You must check the Text Message Signup box when registering in order to receive rate change text messages.+ If you do not receive an automated confirmation message after enrolling, please text “Yes” to (201) 808-1038

+The Text Message Signup box must be checked in order to receive text messages. Standard text messaging and data rates may apply.

Saving May be Tough but Here’s How to Get a Handle on It

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saveGetting on top of your finances can be a tough task. On paper the idea sounds simple, but in real life, it’s easier said than done.

By the time you pay down your consumer debt, put a dent in student loans, pay off your mortgage, and put extra money away for your children’s college fund and not to mention your own retirement, the list of demands for your savings is long! Online tools and advice from financial advisors suggest we can make it work but we need to rethink our approach and strategy. Here are some ideas to help you manage your savings goals:

Get real. If retirement sounds far away and “a rainy day fund” sounds kind of depressing, it’s time to rename these goals. For short-term savings objectives, identify what you want to buy and decide whether it’s important for you to finally take that dream vacation you’ve always wanted, or send your kids to college. The same extends to retirement. What does retirement look like to you: a vacation house, writing a book, or doing volunteer work? Visualize it then put a picture on your fridge so you can actually see it. It’s recommended that you should identify how much money you want to have put away at various ages in your life. Sixty-five may be hard to visualize, but goals targeted to ages 30, 40, and 50 will shorten your timeframes, making them more measurable and do-able.

Get started. The decision to save is based on a cumulative series of well thought out choices. You tell yourself you’ll save tomorrow and tomorrow never comes. If you don’t save one month it’s not terrible, but a series of those choices over your lifetime has consequences. Starting early really pays off and online tools and calculators will make the concept more real and easy for you.

Make savings planning a family affair. Providing an inheritance to your children is also about passing down values. The money tips we teach our children can be beneficial or crippling, even when we say we want our children to be financially educated to manage their finances in the future. Don’t be afraid of having money conversations as a family and talk to your kids about savings goals, spending and savings trade-offs, and even higher-level concepts such as inflation and investing, keeps everyone budget conscious.

Put your savings on autopilot. Did you know that you’re losing out on a lot of money when you don’t contribute the maximum allowable amount to your retirement plan? By committing to increase your 401(k) contribution by a percentage equal to your yearly raise will help you grow your pre-tax dollars before the money even gets distributed. Putting a stop to your daily temptations is also important – avoid going to the mall, only carry a small amount of cash in your wallet or simply leave your credit cards at home to cut back on your spending habits.

Hold your feet to the fire. When you’re spending money, ask yourself if this is a need or a want? Making this a habit enables you to keep track of your purchases and helps analyze your spending. It’s a good idea to make your own consequences when you fail to abide by your commitments – so bet on yourself. For example, if eating out has put a huge dent in your wallet, say out loud that you’ll limit yourself to two dinners out a week for the next month and then stick to your plan!

Go social. Sharing money-saving ideas or picking up tips from free sites like Mint.com and Moneyning can help make the topic of finance more enjoyable. Maybe you may want to consider starting a friendly money-saving competition — it holds you responsible, will help you stick to your saving goals and helps take your mind off your struggles.

Here at First Financial, we encourage our members to come in at least once a year for an annual financial check-up – to sit down with a representative at any one of our branches to make sure you are receiving the best value, and products and services based on your financial situation. Give us a call at 732.312.1500 or stop in to see us today!

4 Ways Scammers Can Steal Your Tax Refund

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48d9f43eab68404d0dc0def19d14ba6dIdentity thieves LOVE tax season.

Any thief who has your personal information can easily file a tax return, collect the fraudulent refund and leave you waiting months to get your own refund back and clear up the issue. Unfortunately, it’s only getting worse – as the IRS launches hundreds of investigations into tax-related identity theft, where criminals use stolen personal information like Social Security Numbers to claim fraudulent refunds.

Here are some of the ways scammers use to steal your identity and how to avoid becoming a victim.

1. Fake calls from the IRS. As part of the scheme, callers impersonating IRS agents told victims that they owed taxes and needed to pay by wire transfer or a prepaid card. Other scams are carried out through email, and ask for personal information like a Social Security Number or birthdate — which can later be used to claim tax refunds.

To protect yourself, be wary of any correspondence from someone claiming to be from the IRS. The agency says it usually reaches out by mail, and it will never ask for personal information via email or phone. If you receive something questionable, reach out to the agency yourself and verify that it’s legitimate.

2. Rogue employees. Be careful about giving out your personal information. Don’t ever give away more personal information than you need to and don’t be hesitate to ask someone why they need any of your personal information.

Some tax preparers could potentially be a scam artist. To avoid being fooled, be wary of any preparers who charge fees based on the size of your refund and never let a preparer ask for the refund to be deposited into an account in their control rather than sent straight to you. To help you detect if you’ve been scammed, be sure to regularly monitor your bank accounts and credit card statements for any suspicious charges.

3. Data breaches. Data breaches occur when hackers break through a company’s privacy walls and access private customer information and scarily enough, it’s becoming increasingly common. Once that information is in a fraudster’s hands, it’s easy for them to file a tax return in your name. If you know or suspect that your information was compromised during a data breach, consider signing up for identity theft protection (see below) or start regularly monitoring your accounts on your own. Be sure to investigate any charges you don’t recognize, no matter how small they are.

Most of the time if someone has a stolen card, the thief will often test it with a small transaction first in order to see if the card is activated, to make a bigger purchase. And because there’s a good chance you will be more susceptible to identity theft after a data breach, make sure to strengthen your passwords utilizing at least 8 characters, including upper- and lower-case letters as well as numbers and special characters (!@#$%).

4. Snail mail. It’s not as common as online identity theft these days, but many fraudsters still use the old-school strategy of stealing mail from mailboxes to piece together the information they need to file a tax return in someone else’s name. Other times, thieves will go as extreme as dumpster diving – it’s a low-tech way to easily retrieve your information, so make sure you ALWAYS shred any personal documents.

Another easy way to protect yourself is to file early. Many scammers are able to get fraudulent refunds because they file before the victim does. If you file first, the IRS will be forced to investigate when a second return from the same person arrives.

LifeSizePennyClick here to view the article source by Blake Ellis of CNN Money.