Tag Archives: Budgeting Tips

Splurges that are Worth the Cost

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In the pursuit of savings, we often find ourselves tempted by budget-friendly options. However, what is sometimes overlooked is the hidden cost that comes with these choices. Opting for the less expensive alternative can mean making a trade-off on quality, which may prove costly in the long run. On the other hand, making splurges that are worth the cost by investing in higher quality options from the outset can be a savvy financial and practical choice. This can not only save both time and money over the years, but also ensure long term satisfaction and financial well-being. There are several areas in your lifestyle where splurges may be worth the cost, and prioritizing quality over cost is the best approach.

1. Health

Your health is your most valuable asset, and investing in it is always worthwhile. High quality, and healthy groceries for example, may seem expensive upfront – but can save you substantial healthcare costs down the road. Plus, a well-balanced diet contributes to your overall well-being. Splurging on a fitness program or gym that suits your lifestyle and preferences means you’ll enjoy your workouts and you’re more likely to stick with them. If you have an active hobby like cycling, hiking, or yoga – investing in quality gear will enhance your experience and motivate you to stay active.

2. Your Bed

A good quality mattress and pillow are investments in your overall health and well-being. These can both provide the essential support your body needs during sleep, promoting proper spinal alignment and alleviating pressure points. This translates to restful, rejuvenating sleep – which in turn can improve cognitive function, boost your mood, and enhance your physical health. Moreover, these investments are built to last – sparing you frequent replacements associated with cheaper options, and ultimately saving you money in the long run.

3. Office Chairs

Many of us spend hours at our desks, whether for work or leisure. A quality ergonomic desk chair is not just a piece of furniture – it’s an investment in both your comfort and health that can stand the test of time. These types of chairs are designed to offer optimal lumbar support, adjustable features, and cushioning that reduces the strain on your back, neck, and shoulders during long hours of work. By maintaining proper posture and alleviating the physical stress associated with prolonged sitting, a top-notch desk chair can prevent chronic back pain, improve circulation, and reduce the risk of musculoskeletal issues.

4. Kitchen Knives

Invest in a single quality chef’s knife instead of a collection of special purpose knives. A good knife is a kitchen workhorse that will last for years and make food preparation a breeze. In fact, many professional chefs advise against buying a set of knives altogether, as the quality of the tools is often compromised to lower the cost. They suggest slowly building a collection of better quality knives over time as your cooking needs grow. These knives will stay sharper for longer, which makes them safer to use.

5. Tools

Quality tools are a DIY enthusiast’s best friend and an asset to any household. They may cost more initially, but they’ll save you money over time by helping you tackle home improvement projects effectively. Plus, they can last a lifetime with proper care.

6. Quality Wardrobe Staples

Investing in certain wardrobe staples like shoes, jeans, and timeless basics, is not just a fashion choice – but a smart financial decision for a wardrobe built to last. While the initial cost might be higher, the longevity of these items more than justifies the investment. High quality shoes, for instance – not only elevate your style, but also back your health by offering superior arch support and cushioning, reducing the risk of discomfort and long-term orthopedic issues. Durable jeans and timeless basics never go out of style, ensuring that your wardrobe remains relevant and functional for years to come.

7. Experiences and Vacations

Investing in experiences and vacations is a financial decision that pays in both joy and peace of mind. While it may seem like a splurge, spending a little more on accommodations often translates to better customer service and a smoother travel experience. When unexpected issues arise, well-established travel providers can offer prompt solutions, sparing you the stress and additional expenses of scrambling for alternatives on your own. Beyond the practical benefits – creating lasting stories, memories, and connections enriches our lives in ways that material possessions cannot.

Remember that financial well-being isn’t about depriving yourself, it’s about finding a balance between enjoying life today and securing your future. By budgeting for occasional indulgences, you can satisfy your wants without compromising your overall financial goals. It’s like giving yourself permission to enjoy life while staying financially responsible. Allocate a specific portion of your budget for fun, prioritize your purchases, track your spending, take your time making decisions – and you’ll be able to make some nice-to-have purchases without throwing away your whole budget.

At First Financial, we’re here to support your financial journey. If you have questions about budgeting, saving, or managing your finances – feel free to reach out to us. We’re here to help you make the most of your money!

You Need a Budget and Here’s How to Start

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In the hustle and bustle of daily life, taking time to manage your finances might seem like an additional chore. Before you dismiss budgeting as just another tedious task, consider the insights from financial experts who unanimously emphasize its significance. Building a budget isn’t just about crunching numbers; it’s a powerful tool that can shape your financial future.

Let’s dive into why you should have a budget.

To Take Control of Your Money

Money can often feel like an elusive force that impacts our emotional well-being. Instead of allowing money to control how you behave, building a budget allows you to control where your money goes. Budgeting can combat chronic financial stress. By gaining a clear understanding of your financial situation and actively managing it – you can reduce anxiety, regain control over your finances, and offer yourself a sense of peace.

Additionally, it’s easy to feel like you’re at the mercy of inflation. Budgeting involves vigilantly tracking income and expenses, and by keeping a close eye on your finances – you can identify patterns, adapt to changing circumstances, and make informed adjustments.

To Reach Your Financial Goals

Financial dreams such as early retirement, homeownership, education, or debt elimination, require careful planning. Budgeting opens the door to these dreams becoming a reality. It’s a roadmap to allocate resources wisely and stay on track toward your goals.

To Uncover Areas of Overspending & Understand What You Can Afford

Indulgent spending on hobbies, dining out, or subscription services can spiral out of control if not managed. A budget provides clarity on spending habits, enabling you to make informed decisions about cutting back on discretionary expenses and reallocating funds for more crucial needs.

Large purchases like homes or vehicles, may often lead to overspending. A budget offers clarity on your true financial capacity, factoring in variable expenses and retirement savings – enabling you to make informed decisions about significant purchases.

To Eliminate Debt

The ‘debt snowball’ technique leverages budgeting to accelerate debt elimination. Focusing on paying off the smallest debt first while maintaining minimum payments on others, can provide small victories that propel you toward becoming debt-free.

To Plan for the Future

Budgeting not only helps you manage current expenses, but it also aids in planning for the future. A budget guides you in contributing to your retirement fund, securing your financial well-being in the long run. In the case of a monetary emergency, budgeting is your lifeline during financial hardships. Regardless of your income level, creating a budget ensures that your resources are allocated wisely, helping you weather uncertainties or fund your future with confidence.

Getting Started with Budgeting

Now that you understand why you should create a budget, here are the first steps toward your budgeting journey.

Step 1: Calculate Your Monthly Income. The journey begins by calculating your monthly income. This includes your take home pay and any automatic deductions for savings, insurance, and retirement contributions. This holistic view provides an accurate picture of your financial inflow and outflow.

Step 2: Choose a Budgeting Method. The wealth of budgeting methods available can be overwhelming. Opt for a system that comprehensively covers your needs, some wants, and most importantly – provisions for emergencies and future endeavors. Examples include the envelope system, the zero-based budget, or the 50/30/20 rule – all of which ensure that essentials, wants, and savings are all given their due.  Automate your savings to effortlessly direct funds to specific purposes. An accountability partner or an online support group can provide the motivation needed to adhere to your budget.

Step 3: Track and Manage. Your budget is a dynamic document that needs constant monitoring. Consistency is key to obtaining a clear picture of your financial flow. Keep a record of your spending, either manually or using online tools – to ensure your actual expenses align with your budgeted amounts. Your financial circumstances, priorities, and expenses will evolve. Regularly revisit and adjust your budget to stay aligned with your goals.

In the intricate tapestry of personal finance, budgeting emerges as your guiding thread. With discipline and commitment, you’ll be able to navigate the challenges, seize opportunities, and enjoy the peace of mind that comes with a well-managed budget. Remember, budgeting isn’t about restriction; it’s about empowerment. It offers you the tools to make conscious choices, prioritize what truly matters, and build a stable financial foundation for a brighter future. So, take the plunge and embark on your budgeting journey today! Get started with our handy guide and fillable PDF budgeting worksheet. If you have additional questions or need help getting started, stop into your local branch or contact us today.

Costly Impulse Purchases and How to Avoid Them

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We’ve all been there—caught up in the excitement of a flashy advertisement or the promise of an improved life, only to regret our impulsive purchase later. These purchases can wreak havoc on our finances and majorly set back progress toward achieving financial goals. However, with a little mindfulness and strategic planning, we can resist the allure of impulse buying and make smarter financial choices. Let’s explore some common examples of impulse purchases and provide practical tips to help you avoid them.

Common Impulse Purchases to Look Out For

  • Food and Dining: Buying takeout or eating out frequently instead of cooking at home can drain your budget quickly. Impulse purchases of snacks, drinks, or expensive meals can add up over time, and throw off your budget in a major way.
  • Subscription Services: Signing up for various subscription services without thoroughly assessing their value or necessity, can result in accumulating monthly expenses. Subscriptions for streaming platforms, beauty boxes, gym memberships, or online courses should be carefully considered to avoid unnecessary spending. Try using apps that help you cancel unwanted subscriptions so you can lower your monthly bills.
  • Cosmetics and Beauty Products: Impulse purchases of makeup, skincare, or beauty products can be tempting, especially when influenced by online trends. Buying products without considering your actual needs or the expiration dates of existing items can lead to wasteful spending.
  • Hobby-Related Purchases: Engaging in new hobbies can be enjoyable, but impulsive purchases of equipment, instruments, or materials related to these hobbies should be carefully considered. Take the time to research and assess your commitment to the hobby before spending a substantial amount on supplies.
  • Trendy Clothing and Accessories: Impulse buying of trendy clothing or accessories can quickly eat into your budget. Purchasing items solely based on current fashion trends may result in regret once those trends fade. Focus on timeless pieces that align with your style and can be worn for years to come.

How to Avoid Impulse Spending

  • Recognize Your Triggers: Identify the emotional triggers that lead to impulse buying, such as stress, boredom, or the desire for instant gratification. By understanding your triggers, you can develop strategies to counteract them, such as finding alternative stress-relief methods or engaging in free activities to combat boredom.
  • Create a Detailed Budget: Establish a comprehensive budget that outlines your income, expenses, and savings goals. Allocating a specific amount for discretionary spending and adhering to it will help you resist the urge to make impulsive purchases that exceed your financial means.
  • Make a Shopping List and Stick to It: Before shopping, create a list of items you genuinely need and stick to it. This practice will help you stay focused and avoid getting swayed by temptations. Prioritize essential items and resist the urge to buy outside of your list unless necessary.
  • Practice Waiting Periods: Adopt the 24-hour rule or the “sleep on it” approach. When you have the urge to buy something, wait for a predetermined period before making the purchase. This cooling-off period allows you to reflect on whether the item is truly necessary or just a passing desire, helping you make more informed decisions.
  • Distinguish Wants from Needs: Clearly understand what it means to want something vs. needing something. Wants are items you desire but can live without, while needs are essential for your well-being and daily functioning. Evaluate each potential purchase against this criterion to prioritize spending and avoid unnecessary expenses.

Costly impulse purchases can feel like small, infrequent occurrences – but can disrupt your financial stability and hinder your progress toward financial goals. At First Financial, we put your financial wellness first by providing useful tools and publications designed to help you achieve your goals and avoid common money mistakes. We also offer our members* financial products, services, and benefits that help make their lives easier. Visit a local branch or call 732.312.1500 to get started!

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*$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. A First Financial membership is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties.

3 Ways to Save Money and Simplify Your Life

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We’re all busy, and life is pretty crazy. Juggling your personal life and a career can be quite stressful, and at times, very expensive. How often do you feel this way? If the answer is too often, it may be time to make a few changes. Here are three ways you can simplify your life and save money in the process.

Set it and forget it: Keeping up with all of your financial responsibilities can be a hassle and an unnecessary stress in your life. To make this process easier, create a budget, stick to it, and automate as many payments as you can. When you don’t have to think about bills and savings accounts, it’s a lot less stress in your life, plus you don’t have to worry about late fees and missed payments.

Stick to your household budget and learn how to create one with First Financial’s budgeting guide.

Get rid of your junk: After a long day, it’s nice to enjoy your home and all your “stuff.” But how much of that “stuff” are you really using? What’s important and what’s just clutter? You really think that kayak from college is going to ever be more than an artifact collecting dust? Getting rid of the clutter in your life can bring you peace and put a few extra dollars in your pocket. Have a garage sale and donate whatever doesn’t sell to a local charity.

Downsize your life: Are you running yourself to death getting from Point A to Points B, C, and D? Slow down a little. Between baseball, soccer, cheerleading, and ballet, your family can get way too busy. Figure out what’s important and cut out the stuff that doesn’t really matter. Being on-the-go less means being at home more, relaxing, and spending less money on fast food and sporting goods.

Article Source: John Pettit for CUInsight.com

10 Life Hacks to Help You Free Up Money

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Screen-Shot-2015-09-17-at-2.15.00-PMAre you looking for ways you can cut down on expenses and put a little extra money aside? Maybe you’re looking to budget more efficiently, fund that big vacation or save for retirement.

This post is dedicated to little tricks to keep more of your money in your pocket. You can have a little fun with these things, too.

1. Call to Cancel. See How They React.

Savings doesn’t always mean going without. Sometimes when you call to cancel a service (e.g. cable, Internet, satellite radio, etc.), they’re very motivated to retain you as a client. After all, some of your money is better than none at all.

If they’re focused on retention, they may give you a reduced rate for a certain period of time or direct you to a plan that costs less without 37 channels that show 20-year-old movies.

Another good strategy in this situation is to research their competition. Tell them you’re switching to Competitor X who’s offering the same or better level of service for $50 cheaper. Play them against each other. Even if they just offer to match, this works to your advantage. You don’t have to take the equipment back.

2. Cut the Cord.

A lot of people are cutting the cord and canceling cable for good. A couple of technological developments happening right now make this very possible.

For starters, you can now get HDTV out of an antenna to watch your local programming. You can also subscribe to multiple services like Netflix, Hulu and even HBO online to get your television for less than you would pay on a monthly basis for a cable subscription.

However, you might run into a problem with sports. Many games are shown on cable, but all the major professional leagues have their own subscription services now. Just be aware you may have to pick and choose sports to make cutting the cord cost-effective.

3. Reacquaint Yourself with Your Local Library

Take some time to browse your local public library. While it is good to see they still have books at the library, they also have a large selection of CDs and DVDs.

You can also check out e-books! Seriously though, your library may have a lot more education and entertainment options than it used to. It may be worth checking out if you haven’t been there in a while.

4. Lunch at the Grocery Store.

Check out your grocery store’s sample selection – it’s worth your while. A motivated person has many choices, often including dessert, from various sample lines. Why do you think everyone is queued up when you go in there on a particularly busy Saturday? They’ve discovered a secret.

“Of course I’ll try the chicken cordon bleu…Why yes! I think I’ll have a butterscotch cookie.”

It’s important to note that the portions are small. You can definitely make this work for lunch, but not dinner.

5. Pay Attention to Those Receipts.

After you’ve done your shopping (and maybe gotten a midday meal in the bargain), it’s time to head to the cash register. However, it’s important to remember the savings doesn’t always stop when you check out.

Many stores add coupons to the backs of receipts now. It’s their way of keeping you coming back for more, but it also saves you money to use those coupons.

6. Get That Deposit Back.

Many states charge a small deposit on the purchase of all bottles and cans. You get that deposit back when you bring them back to the store and feed the machine.

You won’t be able to retire early on the amount you get back, but it will give you some spare change for the drive-through.

7. Save Those Ketchup Packets.

Save those extra ketchup packets from fast-food restaurants. If they give you four sauce packets and you only use two, stick the others in a drawer. They could come in handy when you run out. You’ll also be well-stocked when the zombie apocalypse causes a worldwide shortage of whatever that stuff is they use for onion ring sauce.

8. Rewards Programs.

Many businesses have rewards programs for their customers. You can shop around to see who gives you the best deal. There are programs for things like credit cards, airline miles and grocery stores. Although these are the more traditional ones, you can find rewards programs for all sorts of things like movie theaters, pharmacies, etc.

9. Attend Matinee Movies.

There’s not many things you want to roll out of bed before 9 a.m. on a Saturday for, but it might be worth it for a matinee movie. Different theaters will have different times, but if you go to one of the early showings, you can often get a ticket for $5 or $6.

It can be super cheap entertainment if you manage to run through without succumbing to the smell of the popcorn stand. But there is one trick that could save you a couple bucks: If you and your friend are going to drink the same beverage, don’t go with two smalls. It’s often cheaper to get a large drink and two straws. Just make sure you know whose is whose. Plus, the same matinee strategy will work if you go to the theater for a play as well.

10. Gift Card Sites.

There are sites online where you could sell such unwanted gift cards to someone else at a slight discount to benefit you both. Convert a gift card you’re not going to use into cash and get a great deal on something you would use!