Keep or Shred: Spring Cleaning for Financial Documents

Posted on by
Reply

Along with spring cleaning our closets and homes, it’s also important to take a look at that pile of papers gathering dust in the kitchen drawer or your home office. Are you holding onto financial documents that can be shredded, or should you continue to (carefully) keep those records on hand? Here are four types of financial documents and tips for whether to keep them or shred them.

Credit Card Statements: ATM or deposit receipts can be tossed after the transaction is recorded, but credit card statements should be kept until a payment is made and appears on the next statement. Receipts for anything purchased on your credit card should also be kept until the statement arrives so you can confirm you were charged the appropriate amount.

Student Loans: When you originally took out your student loan you were given a master promissory note. This document shows how you promised to pay your loan and any accrued interest and it should be kept securely until your loan is completely paid off.

Mortgage/Lease: Because many mortgage lenders now allow for electronic payments, most documents associated with your home will be available anytime on their webpage. However, if you have paper copies of your closing documents – you may want to file these away for safe keeping anyway, and to have a hard copy on hand. If you are leasing your residence, transaction histories may not be available online, so hold onto your lease and any record of rent payments made. That way if there is a dispute with your landlord, you will have the necessary detailed documents handy.

Car and Health Insurance: Many insurance companies will send policies via email or will allow you to create an account on their website and access your secure documents at your convenience. If this is the case, there is no need to keep any paper copies that are mailed to you. If there isn’t an electronic copy, file away your policy information until the next year when the new plan information arrives. Life insurance policies are an exception and should be filed away forever.

Article Source: Wendy Bignon for CUInsight.com

5 Ways to Budget Being a Wedding Guest

Posted on by
Reply

Wedding season is upon us! When it feels like everyone you know is getting married, it can be overwhelming on your budget. Whether you are invited to weddings of friends, family members, or co-workers, here’s how to stay on budget.

Make a Yearly Budget.

How much can you afford to spend on weddings, parties, and gifts this year? Set a budget and stick to it. If your entire budget for the whole year is $600, then realistically, you may only be able to attend one or two weddings for the year, while still having money left over for other events and birthdays.

It is wise to divide your yearly budget by 12 and save up a little each month. This way you will have money set aside for a future wedding and the expense won’t be an unpleasant surprise to your budget.

It’s Okay to Say No.

It is important to prioritize events in your life, especially if you are on a tight budget or schedule. As much as you might like your co-workers, you don’t need to attend every event they invite you to. This goes for friends you have grown apart from.

There is no need to explain that money is an issue. Instead, graciously decline, saying that you have another commitment that day but that you hope their day is an amazing one. It’s important to tell the couple no right away if you know you won’t be attending, so that they can plan accordingly.

Remember to Count All the Costs.

As a wedding guest, your costs aren’t just the gift you give to the couple. You also have to calculate associated costs like attire, travel expenses, babysitter costs, etc. You might spend $100 on a gift, but a wedding can end up costing you more than double the gift amount after you calculate all of the other costs.

If you are part of the wedding, your costs are multiplied, considering the costs of wedding party attire, alterations, make up, hair, and all of the wedding events you are required to attend, such as showers and bachelor/bachelorette parties. Only assume the financial responsibility for close friends and family members if money is a concern.

Contribute to Group Gifts.

Try to contribute to a group gift if you can’t afford to give a large gift by yourself. Not only will you save money, but you will help fund a gift the couple really wants. This is an especially good idea for co-workers, since many people will feel obliged to give a gift but will want to save money.

DIY Gifts – Please Don’t.

While DIY projects save a lot of money in other areas of your life, it is probably best to give even a small amount of money or gift card – rather than risking a handmade gift. Obviously there are exceptions to this rule, like if you are extremely talented or the couple requests a handmade gift.

If you plan ahead and save a little at a time, sticking to your wedding guest budget will be a no brainer!

Article Source: Ashley Eneriz for MoneyNing.com

Financial Milestones Everyone Needs to Achieve

Posted on by
Reply

Everyone has a different life plan and different expenses. No matter what that looks like, make sure you’re checking off these financial milestones.

Start saving for retirement.

It’s very important to start saving early for your retirement. You benefit more from saving early, and the longer you wait, you’ll have a lot less.

Pay off student loans.

Education is getting more and more expensive and the student debt crisis is consistently in the news as a serious problem. Some students have resigned to never paying their debt off and just perpetually rolling them over. Pay them off as soon as you can.

Establish a good credit history.

While you may have missed some payments when you were younger and made some mistakes with your finances, it is important to redeem them. Developing a solid credit history will help with big purchases and shows how responsible you can be with paying your bills.

Invest in more than a retirement plan.

Whether it’s something simple like mutual funds or something more advanced like stocks, it is important to have your money diversified in something beyond a basic savings account.

Maximize employer benefits.

If you work somewhere that provides you with perks, you should be using them to the fullest. Employer match accounts are effectively the closest thing to free money that exists, so the sooner you maximize your benefits, the better.

Have a positive net worth.

This is the moment that everything you earn becomes pure profit. There is nothing more exciting than when assets – liabilities = a positive number.

Buy your first home.

Buying a home is easily one of the largest financial obligations most people will experience, and it may determine your spending habits for the future.

Deciding when to retire.

There are quite a few things to consider when it comes to retirement, and they differ for everyone. Deciding when to collect social security, how much you need in savings, and how you plan to spend are just a few of the things you may need to think about.

If you need advice or help with putting any of these financial milestones in place for your lifestyle – contact First Financial! We can help you purchase a home, create and manage a budget, assist you with improving your credit score, consolidate your debt, and our Investment and Retirement Center can help you retire and invest with peace of mind.* Contact us today to get started.

*$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. Membership is open to anyone who lives, works, worships, volunteers or attends school in Monmouth and Ocean County.

Article Source: Tyler Atwell for CUInsight.com

 

5 Ways to Keep Your Credit Card from Sabotaging Your Finances

Posted on by
Reply

Understand the terms of the card.

You shouldn’t apply for a credit card without reading the terms. Evaluate the card based on the fees, interest rates, and possible rewards. The many cards available each fit different consumers. You have a lot of options and choosing the wrong card could threaten your financial health.

Pay in full.

Making only the minimum payment each month increases the amount of time it will take to pay off your debt. That increase in time allows the interest rate to add on to your debt. Always make sure to pay off as much of your balance as you can each month.

Don’t use your card on everyday purchases.

Using you credit card as a substitute for cash is a bad habit that can easily lead you down a path to debt. When you buy food, clothes, or gas, try to use cash or your debit card so you won’t overspend.

Don’t go over your limit.

If you’re getting close to your limit, clearly you are spending too much. The last thing you can afford to do is go over that limit and incur the additional fees that come with it. These situations are avoidable by responsibly monitoring your spending.

Understand how it effects your credit score.

Ideally you should be paying off your debt every month. If you are unable to do that, you have to make sure that you are paying off at least the minimum (but preferably more than the minimum). This will not damage your credit score, but it will not improve it either. If you miss a payment you can do major damage to your credit score. If you look untrustworthy to creditors it’s not beyond reason that the credit card company would lower your limit. It is a vicious cycle that can be easily avoided by paying in full each month.

First Financial’s Visa Credit Cards come fully loaded with higher credit lines, lower APRs, no annual fees, a 10-day grace period+, rewards, and so much more!* Click here to learn about our cards and apply online today.

*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.

+No late fee will be charged if payment is received within 10 days from the payment due date.

Article Source: Tyler Atwell for CUInsight.com

 

5 Ways to Stop Identity Theft

Posted on by
Reply

As a lot of us have had to find out the hard way, identity theft is a real threat and it can be damaging to your finances and personal life. Make sure you’re doing all you can to keep yourself safe. Here are 5 things you can do to stay protected.

Have secure passwords.

Stop using the word ‘password’ as your password. And don’t use your mother’s maiden name. Create a complex password that only you can remember. For instance, maybe you’re a big Alabama football fan. Use initials, symbols, and numbers to create your password. For example: *BamaWins3020!  Nobody’s going to guess that one. According to howsecureismypassword.net, it would take a computer millions of years to crack that password.

Shred sensitive information.

Your weekly routine probably involves bringing your garbage can out to the street on trash day. Make sure when this happens, you’re not throwing anything away that an identity thief could find valuable. Anything that contains account numbers, banking information, or social security numbers would be a gold mine for a thief. Get online, buy a paper shredder and put it to work. This is the easiest way to help yourself stay protected.

Check your credit report.

If checking your credit report isn’t something you do regularly, you should make it one. If a thief opens up an account in your name, this will affect your credit score and that can be an easy red flag to detect. Try annualcreditreport.com.

Be careful with the internet.

Cybercriminals can get your information a few ways, one of which is phishing. Phishing is when a cybercriminal defrauds you of sensitive information by posing as a legitimate company that you trust. Make sure you never click a link in an email that’s asking you for personal information. You’ll never get an email like this if you didn’t request it, and even then, contact the company and have it verified. Also, make sure you’re not doing sensitive things like logging into your bank website from a coffee shop’s wifi. Wait until you get home to check your account balance.

Monitor your accounts.

It’s important to login to your online banking often, and review each transaction. If you find something that wasn’t purchased by you, contact your financial institution immediately. It’s very important to monitor your accounts regularly and keep a close eye on your money.

Article Source: John Pettit for CUInsight.com

6 Tips for Making Fiscal Fitness Goals Stick

Posted on by
Reply

A sporting equipment - two red dumbbells. Isolated over white.

If you often struggle with setting financial goals and making them stick throughout the year, try these six tips.

1. Use the SMART principle.

The acronym SMART is a good way to remember an effective strategy for setting your fiscal finance goals. Make them specific, measurable, attainable, relevant, and time-specific. In other words, instead of deluding yourself that you’ll completely overhaul years of poor money management, start to tackle it in bite-size portions. Keeping goals specific also makes them seem more real and tangible than the undefined “improving my financial fitness.”

2. Incorporate the new practice into your routine.

Science shows we are creatures of habit. Once something is part of our routine, even if it’s an unpleasant task, we don’t seem to mind it as much. Getting to that point requires making a deliberate effort to incorporate new financial habits into your routine. To make this step easier, set up reminders on your smartphone calendar for specific times and dates you’ll set aside to address various aspects of your finances, whether it’s daily, weekly, or monthly.

3. Keep doing it – repetition leads to habit.

The more frequently you perform a new financial task as part of your routine, the sooner it becomes a habit – something that doesn’t require any willpower. That’s the trick.

4. Don’t judge yourself for failures – expect them.

Half the battle of following through with new goals of any kind is how you handle failure. If we were to ask the people who succeed at sticking to their goals what their secret was, you can almost guarantee it involves expecting and accounting for failure. Instead of hoping you won’t fail, plan to fail. That may seem pessimistic, but it’s more realistic than thinking you’ll be perfect! After all, we’re just human. It’s what you do after you fall that makes the difference between permanent failure at financial goals and long-term success.

5. Give yourself some wiggle room to account for slacking off.

You should create some wiggle room into your fiscal fitness improvement plans. Round up or down, schedule a “slack” day or two, and don’t make plans that are too rigid or that depend too heavily on your own consistency. This will take some of the pressure off and allow you to move forward even if you are taking a step back every once in a while.

6. Hold yourself accountable.

Even as you expect to fail and leave yourself some room to slack off, don’t go to the opposite extreme of approaching your fiscal fitness goals without purposefulness. One of the best ways to hold yourself accountable is to make your intentions public and ask others to support you. There’s power in numbers. Just as it’s easier to commit to a 5 a.m. workout if you have someone by your side, it’s easier to change the numbers that determine your financial fitness when you use the buddy system.

Instead of refusing to make financial goals because you’ll inevitably fail, use the expectation of failure, along with these tips, to move beyond that cycle this year. Gradually and deliberately improve your financial well-being and turn that ship around toward financial success.

Article Source: Jessica Sommerfield for MoneyNing.com