Category Archives: Financial Advice

Easy Ways to Improve Your Finances this Year

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Have you already forgotten about or blown all those new year’s resolutions that you set for yourself last month? If you have, don’t worry – it’s still early enough in the new year to set some additional financial goals and attain them. In the process, you may even save yourself some money! Keep reading to see how you can remain on a great financial path for 2022, even if you already took a small detour.

Refinance your mortgage. Mortgage rates are still low. Do the math, and check out your current mortgage rate. If it’s on the high side, you may want to consider refinancing to a lower rate and lower monthly payments. This will allow you some wiggle room in your budget to put in your savings account, pay toward other bills, or even apply more to your mortgage principal and pay your home loan down sooner.

Did you know First Financial has recently brought back our Dream Decade 10-Year Mortgage? If you’re considering refinancing to a shorter term, this may be the perfect solution for you!*

Pay down debt. If you racked up a lot of credit card debt recently, make this the year you vow to pay it off and finally be financially free. Getting out of debt takes a lot of discipline, but you can do it! An easy way to start is by creating a spreadsheet and listing out all your balances owed, interest rates, and minimum monthly payments. Then you’ll need to create a debt repayment plan for yourself, to decide which to tackle first (usually the one with the highest interest rate and you’ll need to make more than the minimum payment each month to get it under control). If you need some help with a debt repayment plan, check out our credit management and debt reduction guide.

Create a budget and stick to it. No matter how much you bring home, creating a spending budget can still be a challenge. However, sticking to a budget that you set for the new year can really pay off in the end. If you need help getting started, check out our useful budgeting worksheet.

Stop overspending. If you’re using the budget you created and learning to automate savings by having extra funds sent to a special savings account from your paychecks, it should be a little easier to stop overspending. Here’s an eye opening spending challenge to try: don’t spend even one penny on anything you haven’t budgeted for the week (this includes morning coffee stops, lunch out, even a lottery ticket purchase or a pack of gum). At the end of the week, see how much more is left in your bank account by not purchasing all those little extras that can really add up.

Plan ahead, but don’t forget to look back too. Do you have any big life events coming up (weddings, births, vacations, retirement) that could definitely affect your bottom line? If so, start thinking about them now and putting some money away. This is also a good time of year to review all your current accounts and ensure you have up to date beneficiaries listed. Besides planning ahead, it’s also a good idea to look back on the previous year and take note of what might have gone wrong financially. If you didn’t have enough in your emergency savings account (or if you don’t have an emergency savings at all), this should be the year you start one or add some extra funds to it.

As always, if you need help creating and sticking to a financial plan – don’t hesitate to setup an appointment at your local First Financial branch. We’re happy to help!

*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. 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. 

Article Sources:

https://www.cuinsight.com/4-personal-finance-resolutions-for-2022.html

https://www.cuinsight.com/4-ways-to-improve-your-financial-situation-in-2022.html

Financial Tips for Pet Owners

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Welcoming a new pet to the family can be exciting, but also very expensive. While there are so many benefits to adopting a pet, it’s important to consider the financial obligations as well. As a pet parent, it is your responsibility to care for your furry family members in sickness and in health. But with a bit of financial planning, you can care for your dog, cat, or critter more comfortably. Here are our recommended cost-saving tips for pet owners.

Find out if you can afford a pet

If you’re desiring a little company around the house, start by creating a budget of all the expenses to consider throughout your pet’s life. According to the ASPCA, a dog will likely cost between $1,500 and $2,000 for the first year, while you can expect to spend around $1,175 for a cat. And that’s only in the first year. You’ll also need to prepare for more expenses as your pet ages, since more serious health conditions can come with hefty bills.

Adopt, don’t shop

There are so many benefits to adopting a pet through your local shelter, including reduced adoption fees. While many organizations still charge fees, they are usually significantly cheaper than adopting through a breeder. By adopting through a shelter, you’re also saving a pet’s life. It’s estimated that more than one million adoptable dogs and cats are euthanized in the United States each year, since shelters can only house so many pets at a time.

Schedule regular check-ups with your vet

It’s much more affordable to prevent an illness than treat one. As a pet owner, it’s crucial to regularly check in on your pet’s health – and that includes scheduling their yearly exams. Don’t skip out on researching local veterinary clinics as well – you might be surprised when you compare fees for preventative care.

Consider pet insurance

While pet insurance might not be right for every dog or cat, it could help you cut costs on emergency vet visits or treating a serious illness. It’s best to start shopping for pet insurance policies while your pet is young and healthy, for the best rates and coverage.

Groom your pet at home

It’s no surprise grooming visits can get pricey over time. That’s why we recommend doing nail trimmings, baths, brushings, and more at home. Your pet’s oral hygiene is important to stay on top of as well, since a lack of dental cleaning can lead to large health concerns and bigger vet bills down the line.

Build a savings account for pet expenses 

Rather than relying on insurance or dealing with expenses as they come, building a savings account dedicated to pet bills can be the best way to fund hefty fees in the future. Start by putting away at least $5 per paycheck into a pet savings account. You’ll be surprised how fast the account grows, and will thank yourself later when the next vet bill comes.

Want to open a new savings account to cover pet expenses? We can help! Visit a First Financial branch or contact us to speak with a representative today.

*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. Some restrictions apply, contact the Credit Union for more information.

 

Tips for Recovering Your Finances After the Holidays

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If you overspent during the holidays this year, you’re not alone. According to a survey, 36% of consumers went into debt during the holidays, owing up to an average of $1,249. Regardless of how much you owe, there are steps you can take to help recover your finances after the holidays are over. Here’s what we recommend for building your finances back up after an expensive holiday season.

Assess Your Finances

The first thing you’ll want to do is assess your overall financial situation. This includes fully understanding your monthly budget and determining your short and long-term financial goals. Then create a spreadsheet of your expenses, debts, payment due dates, and interest rates. If you’re new to budgeting, our make a budget worksheet is a great place to start.

Cut Unnecessary Expenses

Once you’ve fully mapped out your budget, you should have a better understanding of where you spend your money most. You’ll likely notice there are expenses from products or services that you don’t need or even use. When paying off debt or building savings, it’s best to trim down your expenses as much as you can. For example, you can cancel any underused subscriptions that you might have forgotten about. You can also try cutting back on frivolous expenses like dining out, Starbucks coffee, or delivery services. If the purchase is for something non-essential, see if you can find a less expensive version or cut it from your budget entirely.

Evaluate Credit Card Usage

Take an inventory of all the credit cards you’re using and evaluate if they have any rewards or annual fees. If you’re using cards with high fees or you’re carrying debt across multiple accounts, consider consolidating your debt with a balance transfer to a low-rate credit card. This way you can pay down your balance without the extra interest. It’s also recommended you find room in your budget to pay more than the minimum monthly payment. This will not only help you pay down the debt faster but will help your credit score, too.

Start Planning For Next Year

It’s never too early to start planning for the year ahead. Start by putting away $50 a month toward holiday gifts for the end of the year. Before you know it, you’ll have enough funds to cover gifts for your family and friends. Make a list of the people you’re buying gifts for now, and potential ideas to see how much you’ll need to save up for. Some items will likely be cheaper to buy out of season, which will help with your overall holiday budget for next year.

Whether you need assistance with debt repayment, creating a budget, or even opening an account, First Financial can help! Visit one of our branch locations or contact us to speak with a representative today.

 

Ways to Manage Price Inflation and Increasing Costs

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You’ve most likely noticed increasing prices as you check out at the grocery store and fill up your gas tank lately. Last month, consumer prices on goods took a huge jump and increased by 7% from the previous year. This is the highest inflation rate our country has seen in 40 years!

Here are some ways you can manage the current inflation environment and help your bottom line at the same time:

Shop Your Cabinets and Pantry First. Before you hit the store – check your cabinets, pantry, and shelves to see what non-perishable items you already have at home. This will allow you to see what you have already bought previously, shorten your grocery list, and save you some money on your food shopping bill. This also goes for checking toiletry items and cleaning supplies you already have at home, as well as look in your freezer too. It’s easy to forget what you may have already purchased and didn’t realize you had!

Meal Prep. Planning your meals ahead and making a grocery list based on the ingredients you’ll need for the week, will allow you to (hopefully) stick to the list in front of you and not buy extras. Try not to deviate from your list, oftentimes these additional purchases end up spoiling before you get a chance to use them and then end up in the garbage can.

Reduce Waste. This goes hand in hand with meal prepping. Plan out your meals and ingredients for the week ahead. Try to find recipes and ingredients that you can use in multiple meals. For example, say you purchase and cook a whole chicken on Sunday. Use the leftovers for lunches for the week ahead by making a grilled chicken salad on Monday, chicken noodle soup on Tuesday, and a chicken burrito bowl on Wednesday.

Try Using Store Brand Products. Most of the time, you’re going to pay more for a name brand product. While in the store, comparison shop. Typically, you’ll find that the generic store brand is cheaper and is essentially the same exact item.

Buy in Bulk. When you can and if you have the storage space, it’s usually cheaper to buy items in bulk. Think toiletries and household cleaning supplies, pasta, rice, cereal, etc. If you don’t have the space or need that much at the moment, see about splitting the items and costs with a friend or family member.

Cut Back on Meat. Meat tends to increase one’s grocery bill. Try going meatless once or twice a week if you can, and switch to less expensive protein alternatives on those days like beans, lentils, and cheese.

Save on Produce. Try to buy produce that’s in season, which will be cheaper – or buy from your local farm market. Also buying frozen fruit and vegetables will help you save money too.

Try to Save on Gas Prices. Can you carpool to the office or work from home at all? If not – look into signing up for a fuel rewards program, use a credit card that offers cash back on gas purchases, or download a comparison app to see which gas stations near you are the cheapest.

Share. Instead of making large purchases during these times, for items that you probably won’t use every day – see if you can share with or borrow from a friend or family member for expensive tools, appliances, or equipment.

While it may seem that prices and cost of living continues to increase, the suggestions above can certainly help you save some hard-earned money these days. Don’t forget to review this list before you visit the store next!

Article Source: The Penny Hoarder

Get a Fresh Start to Your Finances with these Resolutions

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Entering the new year means setting an annual resolution. Whether you’re looking to better your wellness, career, or relationships – there’s one resolution that’s crucial to all aspects of your life: improving your financial fitness. Rather than investing in a pricey gym membership or a resolution that’s difficult to stick to, take the opportunity to set financial goals that are easier to achieve than you think. Here’s our guide to getting a fresh start to your finances in 2022.

Create a Budget

Creating a budget may sound scary, but it can actually be very empowering once you’ve finished. Having a full understanding of your income and expenses can help you be more aware of your financial state and help you save more money down the line. There are steps you can take to make the process easier.

  • Review your expenses from 2021 to see where you spend your money and how you can better save.
  • Create a list of essential spending categories such as rent, food, transportation, clothing, internet, cell phone, insurance, etc. – and write down how much you spend on each.
  • Add up your monthly income and deduct your expenses. The amount left can be used toward building savings or on entertainment.

When building a budget, it’s recommended to use the 50/30/20 concept when planning out your expenses. Meaning, 50% of your income should go toward necessities, 30% on wants, and 20% on savings and debt repayment.

Reduce Debt and Improve Your Credit

Speaking of debt repayment, another goal to make for yourself in 2022 is to work toward reducing any debt that may be lingering. To start, make a chart of everything you owe and organize it by the size of the debt and interest rates. Check your credit score to better understand your financial fitness and where there’s room for improvement. Then, calculate what you owe and use the monthly budget you created to build a realistic repayment plan.

To prioritize debt repayment, you’ll need to trim your budget and eliminate any unnecessary expenses that are not essential. We also recommend refraining from using credit cards and allocating cash for your needs instead. While this is not ideal, a tight budget will only be temporary until you’re in better financial standing and your credit score improves. Plus, you can always treat yourself once you’ve achieved your repayment milestone (within reason, of course)!

Build Your Savings

Having a savings account is essential whether you need an emergency fund, money for retirement, or to buy a home. While it may sound daunting to build and maintain a savings account, the key is to start small. You’ll want to first evaluate what you’d like the savings to be for and how much you’ll need. Then, dedicate a certain amount of your paycheck to go toward your savings and make the transfer automatic. While it’s recommended to keep 20% of your income for savings and debt repayment, you’ll need to evaluate what works within your budget and when you’ll need the funds. Even if you’re starting with $25 per paycheck, you’ll be surprised how quickly the account will grow without you even thinking about it.

If you need help with creating a budget, managing debt repayment, or building savings, the team at First Financial is here to help! Visit one of our branch locations or contact us to speak with a representative today.

 

Money Moves to Make Before Year’s End

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It’s almost a new year – are you financially ready? Have you hopefully started planning ahead and setting financial goals for the new year? Here are a few things you can do to prepare your finances for the end of one year and beginning of the next.

Review Retirement Contributions: How much are you putting away for retirement? Before the start of a new year is an ideal time to review this amount, so that if you need to make any adjustments – you can start fresh in January. It’s also a good time to see if you would be able to increase the amount going into your retirement account(s). Did you get a year end raise, and if so – can you increase your retirement savings moving into the new year?

Spend Any Flex Account Dollars: If you have a Flexible Savings Account (FSA), the money usually needs to be used by 12/31 every year or you will lose it. Check out your FSA and see if you have any remaining money available that can be used on a year end eye exam, new glasses, dental work, or medical supplies.

Donate to Charity: The end of the year is a great time to make a donation to your favorite charity. Not only will it allow you to clean out your home and donate any clothing, appliances, or toys in good condition that you no longer use – you’re also helping a local worthy cause during the season of giving. Donations are also tax deductible, so be sure to get a receipt for tax time.

Review Your Budget: This is the perfect time to review your budget from the year that’s ending, and decide if it worked well enough to continue into the new year – or if you need to make some adjustments. Sit down and really look over the numbers. Ask yourself what worked well and what went wrong – and be honest. If something didn’t go as well as you had hoped this year, decide how you’re going to revise your budget to allow it to work in the new year.

Wishing you a happy, financially healthy holiday season and upcoming new year!

 

Article Source: Moneyning.com