Tag Archives: Financial Advice

Financial Tips That Stuck: Advice from First Financial Staff

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April is National Financial Literacy Month, an initiative aimed at instilling individuals and families with the foundation needed to make sound financial decisions. No matter where you are in your financial journey, this month offers the perfect chance to pick up some new financial tips – or reflect on money lessons that have made a life-long impact on you. It is often said that experience can be the best teacher, so we asked our staff: “What is a financial tip that has really stuck with you?” From maximizing the power of credit card rewards to simple budgeting techniques, here are some financial tips that our team swears by – and for good reason.

  1. “Avoid Lifestyle Inflation. When your income increases, resist the urge to upgrade your lifestyle immediately. Instead, direct that extra money toward savings, investments, and especially paying off revolving debt! Having too much revolving debt lowers your credit score considerably.” – Julianne Brandt-Olivier, Director of Lending
  2. “Treat your credit card like a debit card. If you have a rewards credit card, this tip can help you avoid interest charges and overspending while racking up your points or cash back. When you have a debit card, you can only spend what is in your checking account. By self-imposing this same limit on your credit card, you will not only avoid spending more than what you can afford – but you will also reap the benefits of charging purchases you can pay off immediately, to your rewards credit card. This helps your credit card work for you!” – Samantha Colella, Business Development Representative
  3. “Pay the balance on your credit card every week – not just once a month. I have an alarm set for Saturday morning that reminds me to pay off whatever I’ve spent during the week. Making a payment to my credit card weekly keeps me honest as to how much I’m really spending.” –Michelle Comitini, Training Manager
  4. “Live within your means. Don’t spend more than you can afford.” – Nancy Culp, Chief Lending Officer
  5. “Pay yourself first. Think of yourself as a monthly bill. By paying that “monthly bill,” or yourself first – you will always have money tucked away for the future.” – Doreen Cutrona, Assistant Vice President of Member Operations
  6. “Create a budget. Don’t spend it, if you don’t have it. Also, start investing early.” – Sanjiv Dave, Director of Member Services
  7. “If you have debt (and we all do), list the debt in the order of highest interest rate to the lowest. Pay the debt with the highest interest rate off first so that you pay less interest in the long run. This also helps prioritize and keep you on track. It keeps things in perspective and helps you tackle the debt in a methodical and systematic way. When the largest interest rate debt is paid, you can check it off and go right on down the line and feel a sense of accomplishment.” – Eun Sook Kang, Compliance and Risk Specialist
  8. “Work toward eliminating revolving debt. Try to allocate extra funds in addition to your minimum required monthly payment. Apply this extra money to the debt with the highest interest rate. When that balance is paid off, continue to add to the next debt with the second highest interest rate and so on. In this way, you’re attacking the debt that accrues the highest monthly finance charges first, to pay off remaining debt faster.” – Michael Walker, Assistant Vice President of Information Technology
  9. “It might be a bit old school in today’s digital world, but each time I get paid I go over and reconfigure my budget for the upcoming 2 weeks. By writing out the money I have available on paper, my upcoming expenses, and how much I am going to put toward any bills – it helps me keep track of my spending more so than just looking at my account on my phone or in online banking. I still do both of those as well and monitor all my transactions, but actually writing out where my money is going helps me stay on track.” – Jessica Tortorice, Vice President of Marketing and Business Development

At First Financial, our top priority is supporting our members in achieving their financial goals – and we believe in the power of financial education to help achieve them. Subscribe to our First Scoop Blog to receive financial resources and tips right in your inbox.

What is a finacial tip that has stuck with you? Let us know in the comments!

Accounts You Should Check Daily

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A big part of budgeting, preventing fraud and making sure your finances are on track – is monitoring your accounts. It’s always a good idea to do this regularly. Keep reading to find out what accounts you should be checking on a daily basis.

Your Main Checking Account

If nothing else, your main checking account is one you really need to be reviewing daily. If you use your debit card to make frequent purchases from your checking account, you will want to check your account balance and review each transaction everyday to make sure all purchases made are legitimate and that you have enough money in your account for future purchases or bills. If you get paid via direct deposit and it comes into your main checking account, you’ll want to review that as well. You’ll want to make sure you have enough of a balance in this primary checking account, to avoid overdrafts and fees. By checking this account each day, you can track all your expenses and weed out unnecessary purchases.

Credit Card Accounts

If you have a credit card or cards you use frequently, you should try to remember to login online and check these accounts each day. Better yet, if your credit card company offers purchase alerts, payment due alerts or payment received alerts – sign up for them. These types of alerts will then be sent to your phone as a text or to your email, to help you monitor your account and charging activity. If you are carrying a credit card balance, we recommend logging into your account each day to ensure accuracy and to be sure any pending charges or posted purchases are yours. Even if you have credit card transaction alerts set-up, it’s still a good idea to check your online account everyday and review all activity to prevent or quickly notice any fraudulent charges.

Your Savings Account

While you probably don’t use your savings account very often, it’s important to review your balance and make sure you have enough saved for a rainy day, to meet any financial goals or big ticket items you’re saving up for, and that withdrawals and activity in this account are minimal. Regularly checking up on your savings will hold you accountable for reaching your monetary goals.

Business Accounts

If you’re the owner of a small business, it’s important to be up to speed on all your business accounts. You truly need to know what money is going where on a daily basis when you own a business. Checking your business accounts daily will ensure what you’re spending isn’t exceeding what you’re bringing in. You’ll also want to make sure your business invoices are paid on time, and that you have the funds to purchase any supplies or equipment your business needs each week.

The team at First Financial can help you better manage your money and reach your financial goals. Call us at 732.312.1500 or stop by any of our local branches if you have any questions about personal finance.

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*A First Financial membership is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan.

Financial Literacy Month: Money Advice from First Financial Staff

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April is Financial Literacy Month, also known as Financial Capability Month! To celebrate, the First Financial team is sharing their best money advice to help you build the financial skills you need to meet your goals. Knowledge is power, and the more you know about finances, the better habits you’ll build over time!

What is financial literacy?

Before we begin, let’s talk about what financial literacy is and what it means for your future. Financial literacy is the ability to understand and use money management skills like budgeting, properly using credit cards, investing, and more. Having a strong relationship with money is crucial in being able to navigate through life. For example, the more financially literate you are, the more likely you’ll be able to avoid fraud or debt. The more you understand about credit cards, the less likely you are to rack up charge after charge and lower your credit score.

How to become more financially literate

There are so many ways to build your financial management skills! For one, you can read and subscribe to financial blogs like ours (wink wink). Many credit unions like ours also offer no-cost virtual seminars and publications about various financial topics. If you’re on the go and prefer podcasts, we recommend you take a look at this list for ideas as well! Overall though, working with a financial professional will help you get the guidance you need based on your situation. Be patient—financial literacy is a lifelong journey and we are here to help!

Tips from First Financial employees

Some of our financial experts shared their top money tips they want everyone to know. Our staff’s advice ranges from budgeting and credit card management to everyday savings.

  1. Create a simple budget: “To start your own simple budget, create a list of your total take-home income, your total fixed expenses, your total variable expenses, and your monthly savings. Check back once a month to see if you’re on track or if you need to adjust your budget.” – Issa Stephan, President/CEO
  2. Review your subscriptions: “Take the time to cancel any unused or unwanted subscriptions (like streaming services), and reallocate those expenses into your budget on something you do use – or put the extra money toward any existing debt.” – Julie Brandt-Olivier, Lending Manager
  3. Limit your spending: “Make a budget, set and stick to limits for discretionary spending such as entertainment, travel, and other non-essential items. Always include savings into your budget too.” – Terriann Warn, Chief Financial Officer
  4. Pay your bills on time: “On-time payments have the greatest impact on a good credit score.” – Nancy Culp, Chief Lending Officer
  5. Learn debt repayment strategies: “To eliminate revolving debt on multiple credit cards, focus on paying extra on the card with the highest interest rate. When that debt is eliminated, take that monthly payment and add it to the regular monthly payment of your next card with a balance and high rate, until that debt is eliminated. Repeat as needed.” – Michael Walker, Assistant Vice President of IT
  6. Don’t live beyond your means: With regard to credit cards, don’t live beyond your means. If you can’t afford it, you don’t need it. – Doreen Cutrona, Assistant Vice President of Member Operations

You can find more money advice on our First Scoop blog! Or, if you’re looking for more specific advice based on your situation, call us at 732.312.1500 or stop by any of our local branches. Together, we can increase your financial literacy and help reach your goals!

How to Stop Thinking Your Paycheck isn’t Enough

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Do you ever feel like your paycheck just isn’t enough to do everything you’d like to do? Maybe in some cases it may not be or you may have to find other ways to supplement your income, however most of the time – this feeling is a mindset that you can make positive changes to.

Here are five ways to change your thinking:

1. Stop comparing yourself to others. Social media is very good at allowing us to compare ourselves to other people. You see your friends posting a brand new car, going on lavish vacations, buying expensive shoes or clothes, and the list goes on. If you want what others have, you will always be disappointed. You also don’t know another person’s financial situation – maybe they put all those vacations on a credit card and will spend the next five years trying to pay it off. The bottom line is, stop looking at what others have and focus on all the good things in your life that you are grateful for.

2. Pushing your lifestyle ahead of schedule. What you can afford is different if you earn $20k a year, $100k a year, or $1 million a year – and for everything in between. If you make $50k a year but are trying to live a lifestyle of someone who makes $100k or more – your paycheck will never be enough and you will probably be in a great deal of debt. Change your mindset and live and spend within the means of your annual salary and your annual salary alone.

3. Take note of what you have, not what you’re lacking. If you make an espresso in a regular large coffee mug, it won’t look like a lot of coffee – right? The answer here is that it’s not about volume, but about contents. Don’t look at the glass as half empty, but instead half full. What are you thankful for? Try to appreciate what you do have rather than what you think you’re missing.

4. Cut off your spending on occasion. This idea is in relation to things that are not necessities. For example, think about any subscription services you pay for (cable, Netflix, gym, Amazon Prime, etc.) or extras that you might buy (coffee each morning on the way to work, snacks from the office vending machine everyday, and so forth). Do you “really” need these to survive? If you take a break from them do you miss them, or can you find other ways to satisfy these habits? This exercise will make you realize what are truly necessities and where you can scale back on your spending and save the money for something else more important.

5. Look for alternatives. There is probably a cheaper option out there for pretty much anything you want to do or purchase, you just have to do a little research. For example – do you really need brand name food? Opt for the store brand instead, you are guaranteed to save money and most times it is the exact same product. If you’re looking to cut your cable bill you might try using just Internet service and connecting through an online subscription like Hulu to save some money. The possibilities are endless, you just have to experiment and find what works for you.

The moral of the story here is that if you think your paycheck is never enough, it never will be. The goal is to change your mindset, save as much as you can, and research cheaper alternatives to getting what you want. You can do it!

Article Source: David Ning for Moneyning.com

The Rising Cost of Healthcare

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It’s open enrollment season, and most of us are thinking about the best healthcare option for us going into the new year. Only one thing is certain when it comes to healthcare: the cost for us to stay healthy is constantly increasing. When it comes time to choose a plan, there are multiple factors to consider so you can budget wisely.

Choose your plans based on more than the premium. 

People often select their healthcare plan based on the monthly fee they will pay for coverage. However, when you choose a plan based solely on this component, you could end up paying more in the long run. There are several other factors to consider when choosing a healthcare plan that will fit your health as well as your financial needs. Factors include:

  • Co-payment (the flat dollar amount you pay when you need care)
  • Deductible (the amount you must pay before the insurance begins to pay)
  • Co-insurance (the percentage of permitted charges for covered services that you’re required to pay)
  • Maximum out-of-pocket costs (the maximum amount you will pay for healthcare services).

Take your previous health history into account. 

You can’t predict the exact amount of insurance you or your family will need. However, you can take your past medical history and family medical history into account when you’re selecting a plan.
By taking these factors into account, you should be able to get a ballpark idea of the amount of coverage you’ll need, barring no serious medical emergencies.

Choose wisely. 

When you’ve signed on for healthcare coverage and the open enrollment period passes, you aren’t able to change your plan during the year unless you experience a big life event. Healthcare.gov describes a big life event as marriage, having a baby, or losing your other healthcare coverage. If you experience one of those situations, you can typically amend your plan outside of open enrollment. Because of this, it’s important to choose a plan that works best for your health as well as your budget.

Plan ahead.

While healthcare coverage can be good to have when it comes to covering medical expenses, it never hurts to have extra funds. Before an unexpected medical expense arises, plan ahead and set aside some money every month in a savings account. Anything you can stow away for a rainy day will be helpful when the time comes to use those extra funds.

First Financial is here to help. Talk to one of our Member Service Representatives today about setting up a special savings account and be prepared for the unexpected.**
Like most things in life, there’s no one-size-fits-all health insurance plan. You have to choose the best one for you and your budget.

*This blog was written for financial purposes only, and not written by a healthcare professional. This article should not be taken as medical advice.

**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. 

How to Make Your Money Work for You

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Every day you hustle. You’re working hard for your money, but have you ever stopped to think about how your money can work for you?

Making your money work for you goes beyond an emergency fund or simply being debt free – although, both concepts are a necessity in this instance. It’s about taking the money you’re already making and making it generate returns for you.

But, how? There’s no simple answer or even a single way to do it, but these tips can help you get started.

Get out of debt.

First things first, if you have debt – get rid of it. After all, you can’t invest in your future if you’re giving your money to other people or lenders. The first step to a debt-free life is figuring out exactly how much you owe. Most people don’t even know how much debt they’re in, according to a study from The Federal Reserve. Once you know how much debt you have, decide how you’re going to pay your debt off.

Budget.

The most important way to change the way you handle your money is to budget. By creating a budget, you are telling your money what you want it to do. When you assign each dollar into a category, you’re controlling where your money goes and what it does. It’s a great first step in reaching your financial goals. Think about it this way: your budget is like a fitness tracker in that it helps you monitor your money. When you monitor your money and know where it is and what it’s doing, it’s easier to make it do what you want it to do.

 Utilize retirement accounts.

Don’t sleep on opportunities to invest in a 401(k) or Roth IRA. A 401(k) allows you to contribute pre-tax money into your account, and you may even be able to get free money from your employer in the process too. Think about it like this: You earn $100,000 a year and your company offers a 3% match on your 401(k). If you invest $3,000 (3% percent of $100,000), and your company matches that – $6,000 will go into your 401(k). A Roth IRA works just a little differently. Unlike the 401(k), a Roth IRA leverages after-tax income. However, when you begin to withdraw the money at retirement, you won’t pay taxes on your withdrawals.

Start a side hustle.

Uber, GrubHub, Instagram – all of these companies began with an idea that blossomed into billion dollar companies. What’s your passion and can you turn that into a billion dollar idea? Consider starting a side hustle and find ways to make some extra money. It could be a traditional second job, a work-from-home job, or turning your ideas into ways that add to your savings. If you can structure your budget and expenses around your primary source of income, any money you make from your side hustle ideally would go straight into your savings.

 Create passive income streams.

Passive income is money you earn with little to no effort involved. Once it’s set up, passive income will earn you money while you sleep. For example, a rental property is a source of passive income. Creative passive income does require some type of investment upfront, whether that’s time, money or both – but it’s an investment that can lead to a bigger payoff later.

Building your future is important, and it takes a lot of hard work. At First Financial, we’re just as interested in your future as you are. We want to help you take the necessary steps to make your financial dreams come true. Maybe you need to consolidate your debt or look at options to pay off some debt. Maybe you’re looking to refinance your car in order to lower your payments and save a little money each month. Whatever it is, we’re here to help you. Stop by and see us or give us a call to get started!