How to Prepare for Tax Season

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We’re in the midst of prime tax season. Have you filed your taxes yet? If not, or if you are unsure of how to be best prepared – keep reading! Being organized can help you reach your financial goals as well as make the filing process easier for both you and your tax professional.

What items should you bring with you when you have your taxes done?

  • A valid photo ID
  • A social security card or verification letter, or individual TIN (Taxpayer Identification Number) for all family members.
  • W-2 forms for all jobs worked the previous year
  • Form 1099-G for unemployment compensation, if applicable
  • Any childcare provider information from the previous year paid (name, address, tax ID number, and total paid).
  • A copy of last year’s state and federal tax returns
  • Any banking/mortgage interest statements, federal loan documents, retirement statements, and organizations you made charitable donations to with the amount donated.
  • Form 1095-A, B, or C and any affordable health care statements or health insurance exemption certificates.
  • Bank account information and a voided check (for receiving your return via direct deposit).

If you are married and filing jointly with your spouse, you will want to make sure you and your spouse are both present at the appointment so you can each sign your joint return. Depending upon your individual financial situation, there may be other documents you will need to bring with you. If you have questions about other items you think you may need to bring to your annual tax appointment, contact your tax preparer in advance.

How do you make the most of your tax return?

  • If you are getting a return back, it’s a good idea to have it deposited to your bank account with direct deposit. There is no cost to do so, it arrives faster than a check, and will be right there in your bank account for when you need it.
  • It’s always a good idea to save for the future – every little bit helps!
  • Do you have outstanding revolving credit card debt? Pay it down with this year’s tax return.
  • Another good use of your tax return is to save for retirement in an IRA account.

If you have additional questions, it’s a good idea to consult with your tax professional during your appointment. Staying organized and prepared is the best way to get through tax season, and should you receive a return – saving the money for a rainy day, your financial future, or to pay off debt is never a bad idea. Happy filing!

Article Source: Consumer Financial Protection Bureau

How to Stay Out of Debt this Year

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Are you one of those people who continually carries debt into the new year? Let this be the year you really say goodbye to lingering debt. Here are a few tips for not racking up any new debt and paying off previous debt.

Forget about any extra money: It’s a new year, so more than likely your paycheck just got a little bump. If you do have some extra money in your paycheck due to a new year’s pay raise, do something productive with your extra cash before you can spend it on things you don’t truly need. Set your new year’s budget as if you are still making the same salary as last year. Put the extra money into your 401k or into your emergency fund. Another idea is to open a new savings account that will help you save for trips or entertainment plans for the year ahead that you’d normally put on a credit card.  Even if you only got a small raise, over time it all definitely adds up.

Set goals and keep them: Money goals are key to keeping your finances on track. Your budget is probably your most important money goal. You know how much you make, and if you haven’t set a strict annual budget for yourself yet in the new year – it’s time to map out your monthly bills and truly stick to your spending allowance. Automating bills and direct deposit right from your paycheck is an easy way you can help yourself stay on track.

Stop using your credit card: Of all the cards in your wallet, your credit card should be the one you reach for last. If you’d like to see your debt disappear in the new year, you’re going to have to start telling yourself no. Sure, shopping is fun – but how often are things that aren’t necessities worth having more debt over?

If you need help creating a budget this year, check out our easy budgeting worksheet. For more tips on managing your credit and reducing debt, view our credit management and debt reduction guidebook.

Article Source:  John Pettit for CUInsight.com

Ways to Get Through Winter on a Budget

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Winter can be expensive – between higher utility bills, paying for heavier clothing, indoor activities, transportation in regard to weather conditions, and more. Here are a few tips to help you save during the coldest months of the year.

Lower Your Heating Bill

You have probably heard this before, but it really does work: add an extra layer of clothing and lower your thermostat at home. You may not like wearing heavier clothes around the house at first, but when you get your heating bill in the mail – you will be very glad you did. Besides lowering your home thermostat, other ways to save on your electric or gas bill in winter include making sure you have properly insulated windows and doors. All of these items can really add up and become a huge waste of resources, and your money.

Pay Less for Winter Clothing

If you have children, take a look at their winter coats. Can they be handed down from one child to the next, or how about extended family – do you have anything you can pass on or maybe other family members have coats that can be passed onto your kids? Winter coats aren’t cheap, so if you can avoid having to buy new ones each winter before they get outgrown – family or friend hand me downs are a great idea.

If you do need to buy a new winter coat for your children, try to purchase it at the end of the winter season for next year. If you don’t get a chance to buy off-season, remind yourself to take advantage of winter sales at the end of the year on Black Friday and Cyber Monday. These tips work for adult winter clothing as well. Plus, don’t forget to check out apps like Poshmark and Mercari where you can often find new or gently used brand clothing items for a steal (and even sell your own clothing and shoes).

Save on Winter Sports

Does your family enjoy winter sports? Winter sports like skiing, snow tubing, and snowboarding can get very expensive when you take into account the cost of equipment, maintenance, and warm clothes and boots. Plus, if you don’t live near the mountains – the added cost of travel, hotel, access tickets, or equipment rental.

This is another area to buy winter sporting equipment and clothing off-season to save money. At the end of this winter season, look for items that can be used next winter and get them on sale. You can also look for deals on access tickets online or if you’re a frequent visitor, research and see if you can save by buying family passes for the entire season.

Winter Activities

Because it’s often too cold to be outside, winter indoor activities can really add up. When it’s warmer out, it’s easy to go to the local park and allow your kids to play outside (for free). If you find your family going to the movies each weekend (which isn’t cheap either) and then buying refreshments there, or going to an indoor theme park and again paying for what seems like endless amounts of food and beverages – think about doing some research and making a few changes to the winter family activity budget. Maybe some weekends you can instead rent a movie at home and purchase popcorn and snacks from the grocery store, have a family baking or cooking day at home, and look for coupons online if you do decide to hit that indoor theme park or the movies. It may take a little legwork and planning, but doing so can really help your bank account and still allow for plenty of family fun during winter months.

Article Source: Vered Deleeuw for Moneyning.com

Smart Money Moves to Make in January

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It’s January, and if you looking at the upcoming year – you are (hopefully) thinking about your finances and trying to plan ahead. Here are three items to definitely include in your annual financial outlook, and this is a great time to review them.

Review Your Credit

With mobile phones, laptops, tablets and apps, it’s easy to stay connected to our finances these days. Your credit score is something that you should especially be paying close attention to. If you are thinking about buying a house, car, or acquiring any type of loan, knowing your credit score is very important. It’s also significant to review your credit report to see if everything is accurate, especially if you were subject to recent fraud or a data breach. Everyone is entitled to a free credit report from each credit reporting agency every year, and the start of a new year is a good time to review yours as you plan for the year ahead. Not sure where to start? Check out annualcreditreport.com – it’s free, easy, and monitors your credit from all 3 major credit bureaus!

Focus on Saving Money

Even if you did a great job of saving money last year, you probably don’t have as much saved as you might like as of now. Fortunately, it’s the beginning of the year and there are many ways to reach your savings goals by December. An easy way is to automate your savings. More than likely your paychecks are directly deposited to your bank account. It’s extremely easy to add another account to your direct deposit, all you need to do it choose an amount you’d like to save for this year and redirect those funds to a separate savings account that you’ll vow to not touch during the year. Another way to save is add more to your retirement savings. If your employer matches or contributes in any way to your retirement – be sure to look at this and participate. This will mean a great deal later in your life. Not sure where to get started with retirement planning? Make an appointment with the Investment & Retirement Center located at First Financial.* Our financial advisors are here to talk you through the planning process and ensure you feel comfortable in your financial future!

The last way to save money is to go on a “financial fast.” We can almost guarantee that most of your spending doesn’t fall within the “need” category, right? Take a good look at how you’re spending your money and cut out your “wants.” This year, try not to waste your money either. Are you actually using the gym membership you are paying for, or watching Netflix or Hulu? If you aren’t – think about canceling these types of services and only pay for ones you are using on a regular basis.

Are You Prepared for the Unexpected?

If your emergency fund isn’t in good shape, or if you don’t have an emergency fund at all – make it your immediate new year’s resolution. If you have credit card debt that has been lingering for years, don’t let it stay around another year. Review your monthly budget as well, and make sure it fits your lifestyle and expenses. Maybe you keep track of your monthly bills, but what about the annual ones you might sometimes forget about? Be sure to think about any annual fees coming for the year ahead and try not to let them sneak up on you (i.e. property taxes each quarter, annual gym membership fee, and so on). A good strategy to follow this year is to write down or make a note in your smartphone for any once a year or quarterly bills that come up – this way you won’t forget about them moving forward.

Don’t forget that as a First Financial member, you are eligible to make an appointment or stop into any branch for an annual financial review. If you’d like to get your new year off on the right foot, contact us today!

*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 The Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using The 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 The Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

Article Source: John Pettit for CUInsight.com

Meal Planning on a Budget

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The beginning of a new year is a great time to change up your diet in a way that fits your budget. Meal planning is popular among those who desire to eat healthy while maintaining a healthy budget. While there are many resources available for recipes, we have a few tips on how to make the most of your meal planning options.

Plan your shopping trips and meals in advance.
Take some time to look at the grocery store circulars or online deals to see what is on sale for the week. Once you know what meats and seasonal fruits and vegetables are being offered at a good price, you can research recipes to maximize your meal planning options for the season. Then, compare your recipes to determine your budget before you’re in the store.

Check out meal planning resources through Google search and on sites like Pinterest. There are meal prepping tips and plans available from places like Home Cooks and the Food Network. There are plenty of cost-effective options out there.

Choose different recipes with the same source of protein.
Whether you’re making meals for a family or you’re making lunches for yourself, buying in bulk is typically best. If you’ve found a few recipes for chicken that you think you’ll like, buy the chicken in bulk and freeze what you don’t use right away. For example, you could use chicken for the following meal planning recipes:

  • Chicken Burrito Bowls
  • Teriyaki Chicken Bowls
  • Chicken, Broccoli, and Rice

There are so many different choices that make meal planning flexible and customizable depending on your particular preferences and tastes. Be sure to mix it up, which is easy to do with meal prepping.

Choose recipes that require a limited number of ingredients. 
It’s easy to get carried away when you’re looking at what sounds and looks good for meals. Make sure to get recipes that have either a limited number of ingredients or items that you need to buy. If you find recipes that have common dried spices that you already have in your kitchen, this could be helpful to your wallet as well.  Have a little fun and experiment with flavors that you’re confident will work well together.

Be sure to budget for meal planning and keep track of all your transactions. If you use these simple tips and tricks, you will be well on your way to becoming a savvy meal planner – that works for both your taste buds and your monthly food budget!

 

Tips for Going on a New Year’s Financial Fast

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Worried about all the extra spending you did this past holiday season? While those around you are probably setting new year’s resolutions and going on strict food diets, have you ever thought about going on a financial fitness diet? By embarking on a financial fast – even for just a few weeks, you’ll build your savings back up, see if there are any areas in your budget you need to tighten up in the new year, and learn to be happy with what you have without going overboard on spending.

What exactly is a financial fast? It’s a period of time you’ll set for yourself in advance, to not spend any money other than on necessities. The fast can be a week or two, a month, or more – if you have the discipline to do it. In order to be successful, here are a few tips for staying on course.

What defines a necessity?

This might be the hardest part of a financial fast. A necessity is an actual “need,” something you really can’t live without. Groceries would certainly be defined as a necessity or medication, whereas buying coffee daily from your favorite local coffee shop on the way to work or going out to dinner with friends is a “nice to have,” but not a “need.”  Define your necessities in advance of beginning your financial fast and don’t let yourself stray off course.

Plan in advance.

Think about how long you’d like to go on this financial diet. Say you decide to financially fast for a month. You will need to plan ahead to see what things may come up in that month that you’ll need to prepare for.  Do any family members have birthdays in that month where you’d need to purchase a gift, do you have kids who may be attending a party and once again you’ll need to buy a gift, or are there any other upcoming events you have already RSVP’d to? You’ll need to plan ahead to be successful on this one. For any of the parties, can you bring a homemade gift or gift an experience? If not, you can still commit to trying to buy a less expensive gift in advance of your financial fast.

Pay only with cash.

Using a card to pay for items is easy – almost too easy. When you’re on your financial fast, leave the credit and debit cards at home and only pay for things with cash. A card makes it too tempting to keep spending. When you actually have to pay with physical money and see it disappearing from your wallet, that will have more of an impact on you and you’ll be likely to spend less.

Don’t get tempted.

While on your financial fast, try to stay out of places like the mall or other stores where you typically shop. You might even want to temporarily unsubscribe from advertising emails, and avoid viewing ads on TV or on social media. Try to escape from being tempted, and stick to your financial fast.

While it may be difficult in the beginning, after a short time on a financial fast – you’ll most likely see very quickly what some of your problem spending areas were. However, moving forward you’ll be able to pinpoint them, know what might be a temptation for you and how you can avoid it, as well as recognize the importance of setting a budget and sticking to it. You can do it!

Article Source: Emily Birken for Moneyning.com