Category Archives: Financial Advice

Financial Resolutions You Can Stick to in the New Year

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The New Year is a time for fresh starts, and what better way to begin 2025 than with resolutions that set you up for financial success? Whether you’re looking to pay down debt, grow your savings, or gain better control over your finances, these actionable resolutions can help you stay on track.

1. Create a Budget You Can Stick to

A well-crafted budget is the foundation of financial health. It helps you track your spending, identify areas for adjustment, and stay focused on your goals – whether you’re saving for a big purchase or paying down debt. Keep your budget realistic – instead of attempting drastic cuts, look for small ways to save, like switching to a less expensive grocery store or canceling unused subscriptions. Use First Financial’s Home Budget Calculator to identify where your money is going and where changes can make the biggest impact.

2. Review Your Credit Report Regularly

Your credit report is a vital tool for understanding your financial health. It details your credit history, including payment records and account balances, and can help you spot errors or signs of identity theft. Take advantage of the free annual credit report available from each of the three major bureaus (Equifax, Experian, and TransUnion) via AnnualCreditReport.com. Keeping an eye on your credit report ensures you’re prepared for any financial goals in the year ahead, like buying a home or securing a loan.

3. Build an Emergency Fund

An emergency fund is your safety net for unexpected expenses, like medical bills or emergency repairs. Aim to save 3-6 months’ worth of living expenses in a separate account from other savings. Start small and contribute regularly to grow your fund over time. A dedicated rainy day fund reduces financial stress, keeps you on track with your money goals, and ensures you won’t have to dip into your savings or investment accounts.

4. Maximize Employer Offered Benefits

Many employers offer financial wellness benefits that go beyond your paycheck. From retirement plans to student loan assistance, these perks can help you build wealth and reduce financial stress. Take full advantage of your compensation package by participating in employer matched retirement contributions, exploring wellness stipends, or accessing provided financial advisors. Every employer is different, but ask around and do some research on what is available to you. A dollar saved today can help secure your financial future.

5. Use a Rewards Credit Card Wisely

Credit cards offer valuable rewards and protections when used responsibly. Opt for a cash back or points-based card and use it for everyday purchases, but try to pay off the balance in full each month to avoid interest charges. First Financial’s Visa Cash Plus Credit Cards provide cash back and uChoose Rewards, which can be redeemed for travel, merchandise, gift cards, and more.* Credit cards can also be a safer choice than debit cards since they aren’t directly connected to a checking account. It can be much easier to recover funds used for fraudulent purchases than if a thief had gained access to your checking or savings account.

6. Consolidate High Interest Debt

High interest debt – such as credit card balances, can hold you back financially. Consider consolidating or refinancing this debt into a personal loan with a fixed interest rate and predictable monthly payments. First Financial offers competitive rates and flexible terms with personal loan options to help you simplify your repayment strategy.** By consolidating your debt, you can save money on interest and focus on paying off balances faster.

7. Reassess Your Insurance Policies

The start of a new year is an excellent time to review your insurance coverage. Changes in your lifestyle, financial goals, or your home’s value may require policy adjustments. From homeowners to auto and life insurance, ensure your coverage meets your current needs. First Financial can help you find options that protect your assets while supporting your overall financial plan.

8. Align Financial Goals with Your Partner

Money management as a couple requires teamwork. Sit down with your partner to discuss individual goals and create a shared financial plan. Regularly review your progress together to ensure your plan adapts to life changes and priorities. Open communication about finances strengthens relationships and ensures you work toward a shared vision for the future.

Make 2025 Your Best Financial Year Yet

Sticking to financial resolutions doesn’t have to be difficult. By setting realistic goals and using the right tools, you can make meaningful progress toward financial stability and success. For more tips or to explore our products and services, call 732.312.1500 or visit a branch today. Don’t forget to subscribe to our First Scoop blog for ongoing insights to help you reach your goals in 2025 and beyond.

*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. Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter.

**APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

6 Ways You’re Overspending Without Realizing It

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Overspending can sneak up on even the most budget-conscious individuals. Often, it’s not the big ticket items that derail our finances – but the small or recurring expenses that we overlook. By identifying your hidden expenses, you can save more and spend smarter moving forward into the new year. Here are six ways you might be overspending without realizing it — and how to take control.

1. Forgotten Memberships and Subscriptions

Gym memberships, streaming services, or monthly subscription boxes can easily become budget drainers if you’re not fully utilizing them. Many companies rely on automated payments to keep you locked in without noticing. Take time to review your bank or credit card statements for recurring charges and cancel any memberships or subscriptions that no longer add value to your life. With a few clicks, you could save hundreds of dollars a year.

2. Neglecting Utility Efficiency

Utility bills can quickly add up, especially if you’re not mindful of your energy usage. Simple changes like turning off lights when leaving a room, sealing drafty windows, or upgrading to energy efficient appliances can make a big difference. Consider installing a programmable thermostat to save on heating and cooling costs or switching to LED light bulbs for long-term energy savings. A few small adjustments can significantly reduce your monthly expenses.

3. Dining Out Too Often

Eating out might be convenient, but it’s one of the easiest ways to overspend. Instead, try meal prepping or cooking at home. Planning your meals for the week and buying ingredients in bulk can save both time and money. Packing lunches for work or school is another easy way to cut out unnecessary spending. You’ll save money while having more control over the quality of your meals.

4. Not Using Your Credit Card to Your Advantage

If you’re using a credit card, make sure you’re maximizing its rewards. Different cards offer perks like cash back, travel points, or discounts at certain retailers. Take note of where your card offers the highest rewards and use it strategically for those purchases. Be sure to redeem your rewards before they expire. The right credit card can turn everyday spending into meaningful savings. First Financial’s VISA credit cards offer cash back and our Cash Plus Cards offer uChoose Rewards redeemable on travel, merchandise, gift cards, and more!* With three options to choose from, you can easily find the perfect fit for your lifestyle.

5. Falling for Fees

Hidden fees, such as processing charges on tickets or unexpected service fees at hotels, can inflate your spending without you even noticing. To avoid these, carefully review the terms before making a purchase or signing a contract. If a fee seems unreasonable, don’t hesitate to contact customer service to ask for clarification — or even request a waiver. Comparing options to avoid businesses known for high fees can also help you keep costs in check.

6. Paying Unnecessary Bank Fees

Bank fees like overdraft charges, account maintenance fees, or ATM surcharges are common, but they’re also avoidable. Start by reviewing your accounts for any hidden costs, then explore alternative accounts with lower or no fees. At First Financial, we offer checking and savings account options designed to help you keep more of your money where it belongs — in your pocket.** Explore our range of options today to find the account that best suits your needs.

Save Smarter with First Financial

By addressing these common overspending habits, you can take control of your budget and redirect those savings toward your financial goals. At First Financial, we’re here to help you make the most of your money with personalized advice and cost saving account options.

For more tips on saving and managing your finances, call us at 732.312.1500 or visit a branch today. Don’t forget to subscribe to the First Scoop blog for ongoing insights and strategies to keep your finances on track.

*Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter. APR varies up to 18%, when you open your account based on your credit worthiness. This APR is for purchases and 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 Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; 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, volunteers, or attends school in Monmouth or Ocean Counties.

**$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. 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. Some restrictions apply, contact the Credit Union for more information.

How to Maximize Savings as Interest Rates Decrease

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The Federal Reserve announced a federal funds rate cut of half a percentage point at its September meeting, the first time it has lowered rates since the start of the pandemic in March 2020. There is also another Federal Reserve meeting scheduled to take place this week. Here are some key strategies to help you navigate a fluctuating interest rate environment and make the most of your hard-earned savings.

1. Consider High-Yield Savings Accounts

As interest rates fall, traditional savings accounts may offer minimal returns. However, many banks and credit unions offer high-yield savings accounts. These accounts generally provide better interest rates due to lower overhead costs, making them a smart option for those looking to grow their savings more efficiently.

To maximize your returns, compare rates regularly. Even a small increase in your savings account’s interest rate can make a noticeable difference, especially over time. First Financial’s Savings Accounts offer quarterly dividends.*

2. CDs are Another Option for Savings

If you’re concerned about declining interest rates, certificates of deposit (CDs) can offer a more stable option. By locking in a fixed rate, you ensure your savings will continue to grow regardless of future rate cuts. When your CD matures, you can decide whether to reinvest at a potentially better rate or keep the funds available for other financial needs. First Financial’s Savings Certificates offer terms ranging from 6 to 72 months.**

3. Focus On Your Emergency Fund

In any interest rate environment, your emergency fund is critical. Experts typically recommend keeping 3 to 6 months’ worth of living expenses in easily accessible savings. With rates dropping, now might be a good time to reassess that fund.

You should never move your emergency savings into riskier investments, but it’s smart to ensure that it’s earning the best rate possible. High-yield savings accounts or short-term CDs may offer the liquidity you need, while providing a modest return. Keep in mind that the goal of an emergency fund is security, not high returns – so focus on accessibility first.

4. Stay Informed and Be Flexible

Interest rates can fluctuate based on economic conditions, so stay informed and be flexible. Review your financial plan regularly and be willing to adjust your savings strategy as needed. What works in a high-interest environment likely won’t be effective when rates decline and vice versa, so be prepared to shift tactics if necessary. However, you shouldn’t continually make drastic changes just to keep pace with the market either. Consult with a financial professional and take time to conduct research.

You can also subscribe to financial newsletters or consult with a financial advisor to stay updated on changes in the rate environment and how they may impact your savings. By staying proactive, you can ensure your money is always working as hard as possible, regardless of the current economic conditions.

Make Your Savings Work Harder with First Financial

Navigating a changing interest rate environment can feel challenging, but with the right strategies, you can continue to grow your savings. For personalized financial guidance, call us at 732.312.1500 or visit a branch today. Don’t forget to subscribe to the First Scoop blog for more tips and insights on managing your finances.

*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. View full Rewards First program details at firstffcu.com. Some restrictions apply, contact the Credit Union for more information. If balance falls below $5, a monthly service fee of $5 will be imposed.

 **A penalty may be imposed for Certificate withdrawals before maturity. See your Important Account Information for Our Members document for details. The Annual Percentage Yield is based on the assumption that dividends will remain in the account until maturity and the minimum balance is maintained.

7 Questions to Ask Yourself Before Spending Your Emergency Fund

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An emergency fund is essentially a financial safety net, designed to ‘catch you’ in an emergency by helping you navigate unexpected challenges without going into debt. However, deciding when to tap into these savings is a crucial decision that requires many considerations. Before you dip into your emergency fund, evaluate the situation carefully to ensure spending that money is essential. Here are seven questions to ask yourself before spending your emergency fund, to help you make the right decision.

1. Is This Expense Truly a Necessity?

The first question to ask yourself is whether the expense you’re facing is truly essential. Your emergency fund is meant to cover critical needs, such as keeping a roof over your head, ensuring you have food on the table, or covering medical emergencies. If the expense isn’t vital to your survival or well-being, it may be wise to reconsider using your emergency fund. This might mean postponing non-essential expenses like entertainment or luxury items until your financial situation is more stable.

2. Are There Other Resources Available to Help?

Before using your emergency fund, check if there are any external resources available to help cover the expense. In times of financial crisis – many organizations, banks, and utility companies offer assistance programs such as deferred payments, waived fees, or discounted services. Additionally, food pantries and community services can provide essential support in times of need, reducing the need to use your savings. By leveraging these resources, you can stretch your emergency fund further and preserve it for truly critical situations.

3. Do I Have Other Cash Reserves?

Consider whether you have other cash reserves that can be used before tapping into your emergency fund. This could include money saved for non-essential purposes, like a vacation or new car fund, or extra cash in your checking account. Utilizing these funds before turning to your emergency savings can help you avoid depleting your emergency fund unnecessarily. However, be cautious about pulling money from long-term investments like retirement accounts, as this may have significant consequences in the future.

4. Can I Find a More Affordable Solution?

Another important consideration is whether there’s a less expensive way to handle the situation. Your emergency fund is a finite resource, so it’s important to stretch it as far as possible. Look for cost-effective alternatives, such as buying generic products instead of name brands, reducing utility usage to lower bills, or finding discounts on necessary items. Frugality and resourcefulness can minimize the amount you need to withdraw from your emergency savings.

5. Do I Have Other Ways to Generate Cash?

Before withdrawing from your emergency fund, consider whether there are alternative ways to generate the cash you need. For example, taking on a temporary side gig or selling unused items around your home may provide the extra income you need to cover an unexpected expense. This approach can help you preserve your emergency fund for more dire situations. Remember, your emergency savings should be a last resort, so explore all other options before making a withdrawal.

6. Will I Need This Money for Something More Urgent Later?

When considering whether to use your emergency fund, think about potential future expenses that could arise. If your job is unstable or you have an older car that might require costly repairs, you may need your emergency fund for these situations. While it’s impossible to fully predict future expenses, it’s important to weigh the current need against possible future emergencies. If you anticipate larger, more pressing expenses down the road, it might be better to hold off on using your emergency fund now.

7. How Much Will Remain in My Emergency Fund After This Expense?

Finally, consider how much of your emergency fund will be left after covering the current expense. It’s crucial to maintain a sufficient balance to handle future emergencies. If withdrawing for this expense would significantly deplete your savings, leaving you vulnerable to future crises, you may need to think twice about using the funds. Financial experts generally recommend keeping three to six months of living expenses in your emergency fund, so consider whether your balance will still meet this guideline after making a withdrawal.

Protect Your Financial Future

Your emergency fund is a vital tool for financial security, but it’s important to use it wisely. By asking yourself these seven questions, you can make informed decisions about when and how to use your savings, ensuring that your emergency fund remains intact for when you truly need it. For more personalized financial advice and tips on managing your finances, contact us at 732.312.1500, visit a branch, or explore our services online.

5 Things You Can Do to Live Below Your Means

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Living within your means is one thing, but living below your means is a completely different challenge. Successfully living below your means opens doors to significant savings and debt reduction so you can one day reach financial freedom. According to a recent CareerBuilder survey, 78% of U.S. workers live paycheck to paycheck, and over a quarter do not save any money each month. These alarming statistics highlight the importance of financial discipline, especially when planning for the future.

Living below your means is a crucial step toward financial stability. While it may seem daunting, it is achievable with the right strategies. Here are five practical tips to help you live below your means and take control of your finances.

1. Dissect Your Discretionary Spending

Understanding exactly where your money goes is the first step to controlling it. Start by analyzing your discretionary spending, which includes non-essential expenses like entertainment, dining out, and hobbies. Scrutinize every transaction to identify patterns and pinpoint areas where you can cut back.

Use statements, credit card bills, and other financial records to track your spending habits. With First Financial’s Online Banking, you can view all your spending in one place. You might find that certain purchases like frequent takeout meals, are unnecessary. Recognize these spending patterns and make adjustments, such as cooking at home more often – to save money.

2. Create an Effective Budget and Stick to It

A well-planned budget is your roadmap to financial success. Now that you have pinpointed unnecessary expenses, you can put together a budget that includes only the necessities. Begin by determining your total income from all sources. Next, track your monthly expenses and categorize them into fixed (i.e. rent and utilities) and variable (i.e. groceries and entertainment) costs. This budget should ensure that your spending is well below your income and that some portion each month is placed into savings and/or used to pay down debt.

The key is to find a system that helps you manage your spending and stay on track. First Financial offers various tools and resources, including an in-depth home budget calculator and a simplified budgeting worksheet, to assist you in this process.

3. Pick Up a Side Hustle

Sometimes, cutting expenses isn’t enough to balance your budget. In such cases, increasing your income can make a significant difference. Consider picking up a side job that leverages your skills and interests.

With the internet, opportunities for freelance work – such as writing and graphic design, or tutoring, are abundant. Identify what you’re good at and explore how you can turn it into an additional income stream. A side hustle not only helps you cover expenses, but also provides a financial cushion for savings.

4. Pay Down Debt

Debt can be a significant barrier to financial freedom. Focus on paying down your debt systematically to avoid high interest and late fees. Prioritize high-interest debt first, while making minimum payments on others, to reduce the overall interest burden.

Maintaining timely payments helps you keep more money in your pocket, which can be redirected toward savings or other financial goals. An effective budget and financial plan can assist you in managing this balancing act.

5. Stay Aware of Lifestyle Creep

Lifestyle creep occurs when your spending increases along with your income. Avoid this pitfall by remaining conscious of your spending habits, even as your financial situation improves.

If you pay off debt or receive a raise, resist the urge to immediately upgrade your lifestyle. Instead, revisit your budget and consider how the extra funds can be used to bolster your savings or pay down other debt. Making thoughtful adjustments ensures that your financial growth is sustainable and aligned with your long-term goals.

Let First Financial Help

Living below your means is not about depriving yourself, but about making smarter financial choices that lead to long-term stability and peace of mind. By successfully living below your means, financial freedom is possible.

For personalized financial advice and more tips on managing your finances, call 732.312.1500, visit a branch, or explore our services online.

It’s Time for a Mid-Year Financial Check In

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Can you believe it’s June already? The official start of summer will be here before you know it. Being that it’s now mid-year, this is a significant time to re-evaluate your financial goals from January. Think about what is working and what you may need to change up for the second half of the year. Keep reading to get some ideas on how to complete your mid-year financial review.

Organize Your Financial Records

If your financial records are a mess or you don’t know where to find important documents, now’s the time to get organized. Make sure you have original documentation for wills, deeds and any paperwork for inherited assets. Other records of importance? Be sure you are maintaining files on tax returns, retirement plan and investment statements, mortgage records, insurance policies, bills, important receipts, financial account statements, pay stubs, benefits information and any estate planning documents. You can either choose to maintain records of these documents in paper form or electronically on your computer or tablet – just ensure you have some record of this list or know how to access them quickly if needed.

Check Your Credit Score

Your credit score is a good indicator of your financial well-being. Double check your credit score at least annually to look out for any red flags, like missed payments or possible identity theft. Also checking your monthly account statements or regularly logging into online banking or your financial institution’s mobile app, can help you spot any fraudulent account activity right away.

Feed Your Emergency Fund

Credit cards are not substitutes for having cash on hand. It’s important to regularly add to your emergency fund, which should only be accessed for unexpected emergencies – like home or auto repairs. A good way to add to your emergency fund? Allocate your direct deposit. Even if you start with taking $20 out of each paycheck and having it deposited right into your emergency savings account every payday – this can really add up over time and most likely, you won’t even miss it. If you’re not sure how to set this up, ask your Human Resources or company payroll department for assistance.

Put Up Digital Walls

Cyber crimes are increasing in number by the day. It’s time to make sure you’ve updated your online passwords, that you’re using encryption or two-factor authentication to login to websites whenever possible, and that you aren’t sharing sensitive data or doing your banking over public Wi-Fi networks.

Re-Evaluate Your Financial Goals

Do your financial goals still make sense for the rest of the year? A lot can happen in 6 months, and you may have had some scenarios that warrant a second look. Have there been any other major financial changes this year? Think family, income, asset, debt or business related events. If there have already been or you know there will be changes to any of these items before the end of the year – reach out to a financial professional today.

At First Financial, our members are like family and we are here to help you achieve your financial goals. For more personalized financial assistance call 732.312.1500 or visit your local branch today. Don’t miss out on more financial tips and advice – be sure to subscribe to our monthly e-newsletter.