Category Archives: Financial Advice

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.

Mapping Your Financial Future: The Power of Creating a Financial Bucket List

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In the journey toward financial security, having a roadmap can make all the difference. You likely wouldn’t embark on a road trip without a destination and a GPS or directions. Similarly, achieving your financial dreams requires a clear plan. That’s where a financial bucket list comes in.

A financial bucket list outlines your monetary goals, from paying off debt and saving for retirement, to traveling the world. A financial bucket list should focus on practical, achievable milestones that you can track and celebrate along the way.

How to Create an Effective Financial Bucket List in Five Simple Steps:

1. Envision Your Ideal Life: Take a moment to picture your ideal life, both now and in retirement. What does financial freedom look like to you? Whether it’s living modestly or traveling the world, having a clear vision will help guide your goals.

2. Assess Your Current Finances: Evaluate your current financial situation. Are you on track to achieve your dream life? If not, what adjustments are needed to steer you in the right direction? Whether it’s saving more each month or paying off debt, identify areas for improvement. First Financial’s Savings Accounts and Savings Certificates can help you get one step closer to reaching your goals by allowing you to save money according to your timeline.*

3. Set Achievable Goals: Break down your financial aspirations into bite-sized goals. Whether it’s paying off a credit card or saving a specific amount each month, setting achievable targets will make your journey more manageable.

4. Monitor Your Progress: Regularly review your financial bucket list to track your progress. Are you staying on course? Have any changes in the economy impacted your goals? By assessing your progress, you can make necessary adjustments and stay on track. First Financial’s Online Banking makes it easy to keep track of your finances with 24/7 access, as well as the Trends tab which once logged in – gives you a comprehensive overview of your finances, categorizes your expenses, allows you to set a budget, and monitors your financial goal progress.

5. Establish New Goals: As you accomplish items on your list, set new goals to continue your financial growth. Work toward paying off another debt or increasing your savings even more. Setting new targets will keep you motivated and moving forward.

With a financial bucket list as your guide, you can turn your dreams into achievable milestones and pave the way toward long-term financial satisfaction. So why wait? Start crafting your financial roadmap today and embark on the journey toward financial security and peace of mind.

At First Financial, our members are like family to us and we take pride in helping you achieve your financial goals. For more personalized financial assistance call 732.312.1500 or visit a branch today. Don’t miss out on more financial tips and advice – be sure to subscribe to our First Scoop blog.

*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. A penalty may be imposed for IRA and 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.

The Basics of Financial Fitness

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Quick question: Are you financially fit? If so, how financially fit are you?

There are really no clear guidelines as to what constitutes financial fitness, much less how to grade variations of that fitness. However, it’s a helpful question because it gets you thinking about your finances. More specifically, whether you’re on the right track toward your financial goals. Those goals differ by individual and include being able to retire, pay for a child’s wedding and college education, and even saving for that dream vacation. To make sure that you’re on the right track toward your goals, here a few steps to help get you started.

As a first step, put together a reasonable budget, detailing your income and expenses by month. This will help you understand your cash flow and identify areas where you can cut costs.

Next, start saving for unexpected expenses, like a medical emergency, major car repair, and an appliance replacement. Ideally, try to keep at least three months’ worth of living expenses in your emergency savings fund.

Check your credit report at least once each year, making sure that there are no mistakes. You’re entitled to a free copy of your credit report every year from the three major credit reporting companies, Experian, Equifax, and TransUnion.

As part of a long-term plan, begin saving for your retirement at the earliest age possible, working with a financial professional to create a portfolio that aligns with your appetite for risk, number of years until you expect or want to retire, and other factors.

Develop and review a financial plan. This is a written document that details your short and long-term goals with tactics and strategies to address them. Review the plan at least annually, making any necessary changes if your goals or personal circumstances change.

Finally, consider investing early and often. This has the potential to produce greater returns than investing a larger amount over a shorter period of time.

For instance, assume an equal rate of return for each of these two scenarios: If you invest $75 a month beginning at age 25 and continue until you are 65, your earnings will be greater than the 35 year old who invested $100 a month until reaching 65.

This is a hypothetical example and is not representative of any specific investment. Your results may vary, but you get the point. If you need help getting or maintaining financial fitness, contact a financial professional.

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This material was prepared by LPL Financial, LLC

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A Guide to Green Finances in Honor of Earth Day

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In celebration of Earth Day next week, First Financial is thrilled to share some principles of environmental stewardship with smart financial management. Adopting a green lifestyle doesn’t just contribute to the planet’s health — it can also bolster your financial well-being. Here’s how making eco-friendly choices can lead to savings and a more sustainable future.

Embrace Green Banking

As part of your journey to green finances, consider digital banking options. Online statements, mobile banking, and electronic bill pay reduce the need for paper, helping to conserve resources. First Financial offers a range of online banking services designed to make managing your finances convenient and environmentally friendly.

Merge Eco-Friendly Living with Savvy Spending

The path to a greener planet and a thicker wallet starts with small, daily decisions. Contrary to the myth that eco-friendly living is costly, embracing sustainability can actually cut your expenses. Simple acts like drinking from a reusable water bottle or cooking meals at home – not only saves you money, but also reduces your environmental footprint. By aligning your financial decisions with your green values, every dollar you spend (or save) supports a healthier planet.

Energy Efficiency: The Bright Idea

Switching to energy-efficient appliances like LED bulbs can slash your energy bills and carbon footprint simultaneously. ENERGY STAR-labeled appliances in particular, meet high energy efficiency standards. Remember, conserving energy isn’t just about upgrading your gadgets – it’s also about everyday habits. Turning off lights when you leave the room, unplugging idle electronics, and fixing leaks can make a big difference in your utility bills and resource conservation.

Rethink Your Ride

Eco-friendly transportation methods like carpooling, public transit, and electric vehicles reduce emissions and save money on fuel. For short distances, consider biking or walking — not only are these options cost-free, but they also offer health benefits. If your job allows remote work, see if you can work from home a portion of the week to cut down on commuting costs and decrease your environmental impact.

Waste Not, Want Not

Minimizing waste goes hand in hand with maximizing savings. Ditch single-use plastics for reusable alternatives, buy in bulk to reduce packaging waste, and embrace recycling and composting. Before tossing something out – think about whether it can be repaired, repurposed, or donated. These practices not only lessen your environmental impact but can also inspire a more mindful and economical lifestyle.

Earth Day Every Day

Making eco-friendly choices in your finances and lifestyle doesn’t just celebrate Earth Day — it honors our planet every day. By integrating these green practices into your life – you’ll not only contribute to a healthier planet, but also discover new ways to save.

For more personalized financial advice, call 732.312.1500 or visit your local branch today. Don’t miss out on more financial tips – be sure to subscribe to our monthly e-newsletters.

Get in Touch with Your Finances During Financial Literacy Month

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April is Financial Literacy Month and First Financial is here to guide you on getting in touch with your finances with smooth sailing. While financial automation can be a great way to bring ease into managing regular expenses and savings, it also demands a vigilant approach to ensure your financial health remains robust. Here are some important things to keep in mind when automating your finances and areas of consideration when conducting necessary financial check-ups.

Catch Mistakes Early

Automation doesn’t guarantee perfection. Errors in billing amounts or unexpected charges can occur. Regularly reviewing your accounts allows you to spot these discrepancies early, preventing minor issues from escalating into financial headaches. At First Financial, we encourage members to utilize our mobile banking app and card management resources for effortless monitoring of finances.

Maintain Awareness of Spending

It’s easy to let automation lead to an out-of-sight, out-of-mind attitude toward your finances. However, this approach can cause you to lose track of where your money is going and lead to unnecessary spending – deviating from your financial goals. First Financial offers budgeting tools and resources that help you stay on top of your spending habits, ensuring you’re always aligned with your financial aspirations even when you’re not actively thinking about them.

Strategic Financial Planning

Automation should enhance, not hinder your ability to plan for the future. Regular check-ins with your personal financial plan and budget will allow you to adjust as needed, keeping you on track toward your long-term goals. Whether you’re saving for retirement, planning a major purchase, or building an emergency fund – our planning resources are designed to support your journey toward financial stability and success.

Conducting a Financial Check-Up

Don’t overlook the value of a comprehensive financial check-up. First Financial’s suite of online tools and personalized advice from our team can guide you through this process, ensuring your financial well-being is always at its peak.

Key Areas to Review:

  • Net Worth: Start by evaluating your current net worth to understand where you stand financially. Compare it with past assessments to gauge your progress or identify areas needing attention.
  • Financial Plan: Revisit your financial goals and the plan you’ve laid out to achieve them. Are you on track? Adjustments may be necessary to realign with your objectives.
  • Insurance Coverage: Review your insurance policies thoroughly. Ensure you have adequate coverage for your assets while also identifying opportunities to optimize premiums.
  • Investments: Examine your investment portfolio. Check if your asset allocation aligns with your risk tolerance and financial goals. Look for ways to reduce fees and improve returns.
  • Spending and Saving Habits: Assess your spending patterns and saving practices. Ensure they’re aligned with your financial priorities and adjust where necessary, to meet your goals.

By regularly performing these checks, you’ll maintain a strong pulse on your financial health and adapt more effectively to life’s changes. First Financial is here to support your financial check-ups and to help you navigate your financial journey with ease and confidence. Remember, your financial well-being is our top priority. Let’s make this Financial Literacy Month a milestone in your journey toward financial empowerment! For more personalized financial assistance call 732.312.1500 or visit a branch today.