Author Archives: VP of Marketing and Business Development Jessica

Strategies to Afford Your First Home Down Payment

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Buying a home is a pivotal milestone and a cornerstone of the American dream. Yet for many, the daunting hurdle of a down payment can seem insurmountable. The good news is that with careful planning and strategic saving, homeownership can become a reality sooner than you think. At First Financial, we’re here to guide you through the journey of saving for your first home’s down payment.

1. Open a Dedicated Savings Account and Automate it

One of the key steps to successfully save for your down payment is to open a dedicated savings account. By keeping your down payment fund separate from your regular savings, you will gain clarity on your progress. Consider opening a high-yield savings account to maximize interest rates and let your money work harder for you.

To make saving seamless, automate your contributions. Set up direct deposit or automatic transfers from your checking account to your dedicated savings account. Consistency is key – even modest contributions can accumulate over time and help you reach your goal faster.

2. Really Look at Your Income

Scrutinize your budget with a discerning eye. Trim discretionary spending wherever possible. Can you live without certain luxuries temporarily? The power of ruthless budgeting lies in redirecting these funds toward your down payment savings. For dual-income households, explore the possibility of living off of one income temporarily and saving the other. Remember, it’s not about deprivation – but about redirecting resources toward a meaningful goal. Your disciplined efforts will pay off when you step into your very own home.

3. Put Every Spare Dime Toward it

Windfalls, bonuses, tax refunds – seize every financial opportunity. Allocate these unexpected inflows directly to your down payment fund. Adopt a ‘spare change’ mindset by enrolling in bank programs that round up debit transactions to the nearest dollar, with the difference automatically transferred to your savings. A popular strategy is to apply the “spare change” concept to your regular finances. Whenever you receive a chosen amount in change, funnel it into your down payment fund. These seemingly small contributions can add up over time.

4. Look at Assets, but be Smart

While liquidating non-cash assets can provide a boost to your down payment fund, be cautious. Stocks, bonds, and CDs can be converted – but tapping into retirement accounts might compromise your long-term financial security. It’s essential to strike a balance between immediate needs and future financial well-being.

5. Set Specific Goals

Before embarking on your savings journey, establish clear goals. Determine the total amount you need for the down payment, closing costs, and other post-purchase expenses. A down payment calculator can help you gauge the target amount.

6. Scour Your Spending

Take a closer look at your expenses and identify areas for savings. It’s not about giving up life’s small pleasures, but about minimizing unnecessary spending. Compare insurance rates, bundle services, and eliminate unused subscriptions to free up extra cash. Tracking your spending for a month can reveal areas where you can cut back.

7. Automate to Maximize Savings

Automate your savings by setting up recurring transfers to a high-yield savings account. Keep short-term savings in secure options like money market accounts or certificates of deposit. Align the maturity of CDs with your anticipated home purchase timeframe to optimize returns.

8. Earn Extra Income

Explore side gigs or freelance opportunities to supplement your income. Be cautious of potential scams and do thorough research before committing to any income-generating opportunity. Additional income streams can significantly boost your savings efforts.

9. Keep Your Eye on the Prize

Regularly review your savings progress, celebrating each milestone achieved. Utilize tools like NerdWallet’s app to monitor your journey. Visual aids such as a savings chart on your refrigerator or images of your dream home, can provide motivation during challenging moments.

At First Financial, we understand the significance of homeownership. Saving for a down payment may require careful planning, sacrifice, and time – but the rewards are plentiful. By implementing these strategies and seeking our expert guidance, you can confidently work toward your first home purchase, turning your dreams into a tangible reality.

If you’re a first-time homebuyer in Monmouth or Ocean Counties, ask us about our Home Possible Advantage Mortgage Program.* Stop into your local branch or contact us to get started today!

*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 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. 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.

Protect Your Savings from Investment Scams

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We all dream of financial success, but when it comes to investing, we have to be cautious. Scammers will tout a once-in-a-lifetime opportunity that will earn high returns with little to no chance of loss. These investment scams take a variety of forms, from financial coaching and management schemes to cryptocurrency and fake investment companies. After the unsuspecting investor sends their money, the other person disappears – and then the money is gone.

Signs of an Investment Scam

A scammer may post an ad online – or contact you via phone, text, or email with an unsolicited offer that seems too good to be true. But there are some red flags you can look for that may indicate the opportunity is actually a scam.

  • No Risk of Loss. Be wary of opportunities that advertise a way to make easy money fast and promise financial security for years to come. Typically, all investments require some level of risk.
  • Use of Pressure Tactics. You might see an “exclusive offer” to join a program for a limited time. This is a pressure tactic designed to rush you into making a decision without thinking it through or fully vetting the opportunity.
  • Upfront Payment is Required. If an investment opportunity requires you to send money upfront through cryptocurrency or a digital payment method, don’t engage.

Ways to Avoid an Investment Scam

If you think a scammer may be targeting you, remember to slow down and ask questions. If something seems too good to be true, it probably is. Pay close attention to the details and do thorough research before making any financial decisions. You can also contact the Better Business Bureau and any applicable government agencies to see if other consumers have filed complaints against an individual or company.

At First Financial, our goal is to help protect our members from scams and identity theft. If you have any concerns or questions about any of your First Financial accounts, please call member services at 732.312.1500 or visit one of our branches.

To learn more about scams and ways to protect yourself, visit zellepay.com/pay-it-safe.

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

 

Tips for a Last Minute Vacation on the Cheap

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There are (unfortunately) just a few more weeks left of summer. If you’re looking to plan a last minute getaway without breaking the bank, follow our money saving vacation tips!

Stay with Family or Friends – Do you know any family or close friends who live in or near a great vacation spot or a city you’ve always wanted to visit? If so, staying with those you know gives you a chance to catch up and spend time with them, as well as it’ll spare you the cost of paying to stay in a hotel. Be sure to not wear out your welcome though. During your stay – offer to buy groceries, help out around the house, clean up after yourself, and cook for or take your host out for a decent meal or two. Another idea is to rent a house or cabin with friends or family. This will allow you to split the cost of wherever you decide to stay with however many other groups there are in your party.

BYO Food – Dining out during a week of vacation can rack up a hefty bill fast. While it’s nice to not have to cook for yourself and eat out at a trendy restaurant or two while on vacation, if you do so three meals per day for a whole week – it can really blow your budget. If you’re staying with someone you know or renting a house/condo for the week, bringing your own groceries is easy and will help you keep your costs down. Even if you’re staying in a hotel, you can still pack some food items to keep on hand so you don’t have to buy extra during your trip. For example, if your hotel has a small refrigerator – you can bring some small groceries to store in there (think milk for cereal or coffee creamer to make your own coffee in the room), or stretch your restaurant leftovers out and have them for lunch the next day. You can also bring some non-perishable snacks like protein bars, to keep on you for during the day to avoid having to purchase a big breakfast or lunch out. If you find that you are dining out quite a bit, try to make dinner a lower cost meal such as checking out one of the local pizza spots. You’ll spend less money on dinner, and who doesn’t love pizza?!

Hit up Free or Low Cost Attractions – If you’re visiting a new city, sometimes it’s fun to just walk around and explore the area without spending a dime. Or if you’re near a beach, lake, or park – this is usually a relatively inexpensive day if you plan it out right and bring your own drinks, food, and snacks in a cooler. Some beaches charge entrance or parking fees for the day, but they are generally pretty affordable. Local museums are another low cost alternative, which also will provide an educational experience and fun for the whole family. Do some research before your trip, and find out which attractions you’d like to see and how much they cost. Community calendars or area Facebook groups may also help give you some more ideas from locals.

Transportation – Is it absolutely necessary to rent a car on your trip? If you’re staying with someone you know, can they let you borrow theirs for the day or drop you off and pick you up? Also, look into whether there are modes of public transit like a bus you can take to get around, train, rent a bicycle – or are there things to do within walking distance? If you do need to rent a car, see if there’s an online promotional coupon code you can use when you book or a first-time customer discount.

There you have it, you can still plan an end of summer vacation and save money in the process. To stay updated on the latest financial insights as well as money saving tips and strategies – be sure to subscribe to our First Scoop blog or our monthly e-newsletter. Wishing you enjoyable end of the season travels!

You Need a Budget and Here’s How to Start

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In the hustle and bustle of daily life, taking time to manage your finances might seem like an additional chore. Before you dismiss budgeting as just another tedious task, consider the insights from financial experts who unanimously emphasize its significance. Building a budget isn’t just about crunching numbers; it’s a powerful tool that can shape your financial future.

Let’s dive into why you should have a budget.

To Take Control of Your Money

Money can often feel like an elusive force that impacts our emotional well-being. Instead of allowing money to control how you behave, building a budget allows you to control where your money goes. Budgeting can combat chronic financial stress. By gaining a clear understanding of your financial situation and actively managing it – you can reduce anxiety, regain control over your finances, and offer yourself a sense of peace.

Additionally, it’s easy to feel like you’re at the mercy of inflation. Budgeting involves vigilantly tracking income and expenses, and by keeping a close eye on your finances – you can identify patterns, adapt to changing circumstances, and make informed adjustments.

To Reach Your Financial Goals

Financial dreams such as early retirement, homeownership, education, or debt elimination, require careful planning. Budgeting opens the door to these dreams becoming a reality. It’s a roadmap to allocate resources wisely and stay on track toward your goals.

To Uncover Areas of Overspending & Understand What You Can Afford

Indulgent spending on hobbies, dining out, or subscription services can spiral out of control if not managed. A budget provides clarity on spending habits, enabling you to make informed decisions about cutting back on discretionary expenses and reallocating funds for more crucial needs.

Large purchases like homes or vehicles, may often lead to overspending. A budget offers clarity on your true financial capacity, factoring in variable expenses and retirement savings – enabling you to make informed decisions about significant purchases.

To Eliminate Debt

The ‘debt snowball’ technique leverages budgeting to accelerate debt elimination. Focusing on paying off the smallest debt first while maintaining minimum payments on others, can provide small victories that propel you toward becoming debt-free.

To Plan for the Future

Budgeting not only helps you manage current expenses, but it also aids in planning for the future. A budget guides you in contributing to your retirement fund, securing your financial well-being in the long run. In the case of a monetary emergency, budgeting is your lifeline during financial hardships. Regardless of your income level, creating a budget ensures that your resources are allocated wisely, helping you weather uncertainties or fund your future with confidence.

Getting Started with Budgeting

Now that you understand why you should create a budget, here are the first steps toward your budgeting journey.

Step 1: Calculate Your Monthly Income. The journey begins by calculating your monthly income. This includes your take home pay and any automatic deductions for savings, insurance, and retirement contributions. This holistic view provides an accurate picture of your financial inflow and outflow.

Step 2: Choose a Budgeting Method. The wealth of budgeting methods available can be overwhelming. Opt for a system that comprehensively covers your needs, some wants, and most importantly – provisions for emergencies and future endeavors. Examples include the envelope system, the zero-based budget, or the 50/30/20 rule – all of which ensure that essentials, wants, and savings are all given their due.  Automate your savings to effortlessly direct funds to specific purposes. An accountability partner or an online support group can provide the motivation needed to adhere to your budget.

Step 3: Track and Manage. Your budget is a dynamic document that needs constant monitoring. Consistency is key to obtaining a clear picture of your financial flow. Keep a record of your spending, either manually or using online tools – to ensure your actual expenses align with your budgeted amounts. Your financial circumstances, priorities, and expenses will evolve. Regularly revisit and adjust your budget to stay aligned with your goals.

In the intricate tapestry of personal finance, budgeting emerges as your guiding thread. With discipline and commitment, you’ll be able to navigate the challenges, seize opportunities, and enjoy the peace of mind that comes with a well-managed budget. Remember, budgeting isn’t about restriction; it’s about empowerment. It offers you the tools to make conscious choices, prioritize what truly matters, and build a stable financial foundation for a brighter future. So, take the plunge and embark on your budgeting journey today! Get started with our handy guide and fillable PDF budgeting worksheet. If you have additional questions or need help getting started, stop into your local branch or contact us today.

Preparing Your Business for Slow Seasons

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As a business owner in a seasonal industry or location, preparing for slow seasons is a make-or-break in sustaining long-term success. These periods present unique opportunities to boost your business, refine strategies, and nurture customer relationships. Explore essential steps to prepare your seasonal business for slow seasons, empowering you to turn challenges into growth opportunities.

1. Organize Your Finances and Brainstorm New Revenue Streams

Start by organizing your finances and gaining a clear understanding of your budget for a slow season. Analyze past financial data to estimate expected revenue and expenses. This preparation will help you make informed decisions, allocate resources effectively, and maintain financial stability during quieter times.

Harness your creativity to brainstorm new revenue streams that align with your business’ core offerings during a slow season. For instance, if you run a ski rental business during winter, consider offering guided hiking tours or outdoor adventure gear rentals in the summer months. Looking outside the box will help you see new opportunities to thrive, even in the off-season.

2. Get Rid of Extra Inventory

Optimize your inventory by identifying any slow-moving or excess stock. Consider offering discounts or bundle deals to clear out surplus items before the slow season arrives. Reducing inventory levels will not only free up capital, but will also create space for new products relevant to the upcoming season.

3. Check-in with Your Customers

Retaining existing customers and nurturing those relationships is more cost-effective than acquiring new ones. Before slow seasons, prioritize customer retention efforts by reaching out through email campaigns or loyalty programs to offer rewards, personalized deals, or exclusive access to upcoming products or services. By nurturing these relationships, you’ll foster loyalty – encouraging repeat business and positive word-of-mouth referrals.

Additionally, consider pivoting your client focus to tap into demand during slow seasons. For example, a summer-focused landscaping business could shift to offer snow removal services during winter.

4. Make a Marketing Plan

Start crafting a comprehensive marketing plan tailored specifically for the slow season. Develop strategies that focus on maintaining brand visibility, engaging your audience, and promoting special offers or seasonal discounts. A well thought out marketing plan will keep your business top-of-mind among customers during quieter times.

Create enticing seasonal specials that will attract customers to your business during slow periods. These promotions could include limited-time discounts, loyalty rewards, or exclusive packages to incentivize spending and boost revenue.

The slow season is an ideal time to experiment with new marketing initiatives or operational strategies. Test different approaches, gather data, and assess effectiveness. Implementing successful strategies can elevate your business during the slow season and beyond.

5. Invest in Business Improvements and Training

Use the lead-up to the slow season to invest in your business’ growth and development. Look for opportunities to improve the way things work in peak season, and consider upgrading equipment, revamping your website, or enhancing staff training to deliver exceptional customer service when it’s slow. These investments will pay off in improved efficiency and enhanced customer experiences.

6. Create Slow Season Programming

Develop engaging activities, workshops, or events that cater to your customers’ interests during slow periods. These initiatives will not only attract existing customers, but may also bring in new ones seeking unique experiences.

Consider exploring strategic partnerships with complementary businesses or local organizations. Collaborating on cross-promotional events or joint marketing campaigns can expand your reach and attract new customers, even during the slow season.

7. Set Aside Funds and Stay Active

Perhaps most importantly, set aside a portion of your revenue during peak season as a contingency fund for slow periods. Having a financial buffer ensures you can cover essential expenses even during off-peak times. Additionally, maintain an active online presence through social media, blog posts, or email newsletters to consistently engage with your audience.

By taking steps to prepare, your business will be better equipped to navigate slow seasons successfully. Organizing your finances, optimizing inventory, engaging customers, and adopting strategic marketing initiatives will help maintain momentum and drive growth during off-peak periods. Embrace the opportunities that slow seasons offer, and learn to transform them into profitable ventures for your business.

At First Financial, we are committed to being your trusted partner in making sound financial decisions for both yourself and your business. For any business account related inquiries, please email business@firstffcu.com. To stay updated on the latest financial insights, tips, and strategies – be sure to subscribe to our First Scoop blog or stop by one of our local branches.

Online Safety: Tips for Managing Passwords

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As your trusted financial institution, safeguarding our members’ sensitive information is at the core of our mission. Ensuring the safety of your online accounts starts with strong and unique passwords. By educating our members about the significance of strong and unique passwords, we aim to fortify their defense against potential breaches of their personal information. Let’s explore the best practices for online passwords and how to protect yourself from cyber threats.

The Importance of Strong and Unique Passwords:

The first line of defense against cybercriminals is a robust password. Using the same password for multiple accounts increases the risk of compromise if that password is breached. Cybercriminals often use automated tools to use breached passwords on various accounts, a tactic known as “credential stuffing.” If you’re not following best practices, especially if you’re reusing your passwords for financial accounts – you’re putting yourself in harm’s way. To prevent this, always create strong and unique passwords for each online account.

Tips for Creating Strong Passwords:

  1. Length and Complexity: Aim for passwords with at least 12-16 characters, combining uppercase letters, lowercase letters, numbers, and symbols. Longer passwords are more secure and harder to crack.
  2. Phrases and Random Word Combinations: Consider using a memorable phrase or a combination of unrelated words to increase password strength. Avoid using common phrases or easily guessable information.
  3. Avoid Personal Details: Stay away from using names, birthdays, or other easily obtainable personal information in your passwords. Hackers can easily guess such details from your online presence.
  4. Regular Password Changes: Change your critical passwords, especially for financial and important accounts – regularly. This practice ensures that even if a breach occurs, the compromised password will become outdated.

The Role of Password Managers:

Remembering numerous complex passwords can be challenging. That’s where password managers come to the rescue. A password manager is an online tool that generates and stores strong passwords securely for each of your accounts. By using a password manager, you can focus on creating long and unique passwords without the need to memorize them all.

Embracing Multifactor Authentication:

Multifactor Authentication (MFA), or two-factor authentication, is a game-changer in enhancing account security. MFA adds an extra layer of protection by requiring a secondary form of verification, such as a one-time code sent to your phone, in addition to your password. Even if someone manages to obtain your password, they would still need the second factor to access your account.

Social Media and Your Information:

While social media platforms are an integral part of our lives, sharing too much personal information can be risky. Cybercriminals can gather information from your posts to craft targeted attacks. Limit the information shared with strangers, adjust privacy settings, and avoid oversharing to maintain your privacy and security.

Protecting your online accounts begins with responsible password practices. By following these guidelines, you can significantly reduce the risk of falling victim to cyber threats and ensure the safety of your online presence. Stay vigilant and keep your passwords strong and secure! For more safety and finance tips, subscribe to our blog.