Tag Archives: Financial Advice

3 Easy Ways to Make Money on the Side

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Who doesn’t love some extra cash in their pocket, especially after the expensive holiday season? When you’re focused on your full-time job, it can be hard to find the time to search for additional sources of income.

Here are some easy examples:

Tutor. Do you have expertise in a certain subject matter that you may or may not use in your current line of work? Whether you’re looking to help out younger students or adults continuing their education, you can put your knowledge to good use. Look into working with an established company like Kaplan for SAT preparation, or get certified through the National Tutoring Association or the American Tutoring Association. Obtaining a certification may be an extra step, but in the end if you are able to show you are legitimately trained, you will stand out as a professional and generate more business and more dollars.

Drive. Even if you haven’t used Uber, you have undoubtedly heard of the transportation network company. Offering consumers a safe and convenient way to get around town, Uber is an excellent way to bring in extra money in your spare time. According to the company, depending on your location and how often you work, drivers could net on average about $25.00 an hour. Another advantage of becoming a driver is the ability to set your own schedule. Many drivers have a full-time job and drive at their discretion.

Dog sit. Do you love dogs but don’t want to commit to owning one? Becoming a dog sitter is a great way to spend time with “man’s best friend” without the long-term responsibilities that come with adding a pooch to your family. Check out Rover.com, a resource that connects pet owners with people who provide safe and loving pet care. Like Uber, Rover allows you the freedom to make money on your own schedule. According to Rover.com, depending on how often you take in an animal and for how long, you could make upwards of $1,000 a month.

Article Source: Wendy Bignon for CUInsight.com

6 Ways to Tweak Your Budget This Year

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Just because February is here doesn’t mean you should already be neglecting to improve your finances. In fact, no matter your resolutions (or if you’ve already abandoned them), it’s always a good idea to work on your finances.

If you’re looking for ways to tweak your budget to better effect this year, then here are some strategies you can follow to spend less and save more:

1. Factor in Infrequent Expenses

One of the biggest pitfalls of budgeting is forgetting about infrequent expenses. Some expenses may only be paid quarterly, or perhaps even once a year. It’s easy to forget to include them in the budget, especially if you create your budget during a month when you’re not making the payment. The fix is easy though.

As you tweak your budget this year, spend the extra bit of time to look ahead for infrequent expenses and include them. Break them down into monthly costs so that they are accounted for. Also ensure that the money is already there when they are withdrawn from your account.

2. Don’t Count on Irregular Income

Many of us like to look ahead and estimate our income. Unfortunately, we often over-estimate what is coming in. We rely on our estimates too heavily whether it’s a bonus at work, a tax refund or some other windfall. Instead of factoring future income into your budget, consider pretending it doesn’t exist. That way, when you do get a windfall, you can bank that instead of spending it. This way, you don’t end up in trouble if the extra money doesn’t appear like you thought it would.

3. Boost Your Savings

You can also use more no matter how much you’re setting aside, so look for ways to boost your savings. Even an extra $15 a week can help in the long run. Consider changing how much is taken from your paycheck and contribute it to your retirement account. You can also put more in your emergency fund. Just make a small tweak to the amount to make a difference down the road.

4. Check into Your Subscriptions

When was the last time you reviewed your subscriptions? Look at where your money is going on a monthly basis. If you aren’t using subscriptions, change things up so you aren’t spending on what you no longer use.

5. Review Your Insurance

Every six months or before renewal, do a quick comparison of your insurance policies. Could you be saving more elsewhere? If it looks like you can get a better quote someplace else, let your insurer know and ask for a match. If you haven’t changed your insurance for a few years, you might be surprised at what’s available and how much a quick search can save you.

6. Sign Up for Cash Back Sites

If you aren’t using a cash back site, now’s a good time to do so. Sign up for Ebates and Swagbucks to get some of your purchase-price back. Between these sites, plus use of a rewards or cash back credit card to pay, you could end up with serious savings overall. Yes, you want to spend less, but you also want to get a little back for the spending you do.

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: Miranda Marquit for MoneyNing.com

5 Ways to Make Budgeting Easy Even Around the Holidays

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A budget is essential because having a budget is the first step to achieving financial success. “It’s the backbone of everything else that you do financially,” says David Weliver, founder of financial blog MoneyUnder30. “It all comes down to that golden rule of spending less than you earn. A budget is how you control that.” Think you can’t budget around the holidays?  Think again. You can use these helpful budgeting tips all year long!

Follow the Rules

One guideline of budgeting is the 50/30/20 rule. In the simplest terms, 50% of your income should go to your needs, 30% for wants, and 20% for savings.

What’s a need? For most people, that will include housing costs, whether that’s rent and rental insurance or mortgage payments and homeowner’s insurance. Beyond that, spending priorities can vary greatly. Essentials also might include groceries, car payments, cell phone bills, and utilities.

Wants would fit in the flexible spending category. They might include eating out, going to the movies, buying clothes, or other day-to-day expenses that can vary greatly from month to month.

Finally, the 20% you save should go to your financial goals, whether it’s short-term goals, such as saving for a vacation, or long-term goals like funding your retirement.

These guidelines can be adapted to your personal situation. “It’s okay to set your own ratios,” Weliver says. “But the goal is to try to live so that your essentials are 50 percent or less of your income, and then you have money left over.”

Organize Your Money

Once you set your budget, there’s a good chance you’ll need help tracking your progress. You may want to do so using an Excel spreadsheet, a pencil and paper or an online budgeting tool.

You may even try the envelope method, for which you use cash that you divvy up between a number of category-labeled envelopes. Once an envelope is empty, you’re done spending for that category that month. It’s an extreme strategy, especially in today’s world of plastic and online payments, but it really works.

Weliver suggests a twist on the envelope method: Try using different bank accounts for different types of spending. One account can be reserved for your fixed essential costs, another for groceries, another for dining out and so on. Of course, you need to make sure you are using fee-free accounts.

Focus on Repaying Debt

If you’re carrying a lot of debt, it can quickly consume your budget.

The minimum amount due on any debt you have must count among your essential expenses. Ideally, you want to pay more than the minimum, even if it means socking away less in savings and investments. “Paying down debt is a form of savings,” says Weliver. The faster you pay off your debt, the more you save in interest charges.

There are two common approaches to paying off debt. With one, you tackle the balances with the highest interest rates first. This one will save you the most on interest charges in the long run. The other strategy, often called the snowball method, involves paying off the smallest debt first, which makes you feel good and encourages you to keep rolling until your debt is gone.

If you are carrying a lot of high interest debt across multiple accounts, it may make sense to consolidate or refinance those loans.

Go Digital

Mint is the reigning king of free budgeting sites and apps, but there are tons of other options that work pretty similarly.

The big idea: You connect the site to your accounts with other financial institutions. The site then tracks all of your money’s movements in one place, automatically categorizing each transaction and organizing your expenses into colorful charts and graphs to help you identify spending trends.

Set Spending and Saving on Autopilot

Once you have your budget in place, setting up automatic contributions for your savings and automatic payments for regular bills can make it a breeze to stay on track. Some companies even provide discounts to people who sign up for automatic payments.

Two apps can help you automate your savings further:

  • Acorns rounds up to the nearest dollar on every purchase you make with a linked checking account and automatically invests the change into a diversified portfolio for you. You can customize your risk tolerance and adapt your investments based on personal preferences.
  • Digit monitors your spending habits and, when it determines you can safely afford it, transfers a small amount of money (typically between $5 to $50 every few days) from your linked checking account to a special Digit savings account.

Automating your budgeting and spending will encourage you to save more and make it easier to achieve your financial goals, even when you’re holiday shopping too!

Article Source: http://www.forbes.com/sites/tomanderson/2016/04/05/5-ways-to-make-budgeting-easy/2/#11f576f1558c

 

4 Retail Tricks You Don’t Know You’re Falling For

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The holiday shopping season is well upon us.  Don’t fall for these common retailer tricks while you are out buying gifts this year, try to keep as much of your own money in your pocket as you can!

The cold clothing store

Ever wander into a department store only to immediately notice a temperature drop? This change isn’t always made for the customer’s comfort. Often times, retailers will lower the temperature on purpose, prompting you to head to the coat section of the store. You may or may not actually purchase a jacket, but they have subconsciously made the thought cross your mind. If you don’t leave that day with new outerwear, you may be thinking now, “Do I need a new jacket? Should I come back and buy one later?”

The 10 for $10

On trips to the grocery store you may notice bins with signage shouting “10 for $10!” Before you fall for the trap, stop and think whether these items are ones you actually need. Do you really need ten boxes of cereal? Also, many customers don’t realize that even though the sign says 10, more times than not this deal often means one for $1 as well.

The “left-digit effect”

Ever wonder why something is priced one cent from the nearest dollar? This sales strategy has been proven successful according to a study by Colorado State University and Washington State University. The “left-digit effect” describes how customers overwhelmingly choose prices like $3.99 rather than $4.00 because when shoppers see the left-digit (lower) number, their brain has a stronger reaction.

The sneaky display

When you’re standing in line to check out and you see the random display of odd-and-ends (think travel coffee mugs, candles, or cookie gift bags) remember this isn’t an accident. There is plenty of room to display these items elsewhere in the store, but retailers choose to place them up front in an effort to add even more items to your purchase.

Article Source: Wendy Bignon for CUInsight.com

5 Money Moves to Make Before the New Year

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New year is loading. Holiday concept on a blue background with snow and snowflakes. New year template vector illustration.

Here comes the end of the year. Are you ready financially?

1. Review Your Retirement Contributions

Are you putting enough away for retirement? Now is a good time to check into that. Make sure you put aside what you can for your future. A tax-advantaged retirement account is a great way to go because it increases the efficiency of your earnings, and might even get you a bit of a break on your tax bill now.

Questions about retirement contributions or investments? To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1500, email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com, or stop in to see us!*

2. Spend from Your Flex Account

If you have a Flexible Savings Account (FSA), you need to use your money or you’ll lose it. This is a great benefit, and comes with a tax deduction, but if you still have money left over and don’t use it for a qualified expense within a certain amount of time, you could lose the money.

Look at your FSA and see if you can spend that money on something that qualifies, like eye exams, new glasses, some medical procedure you’ve been waiting on, or dental work.

3. Harvest Your Investment Losses

You shouldn’t sell an investment lightly. However, you can take advantage of the losses in your portfolio. Consider selling some of the losing investments and deducting the loss before year end. Your investment losses reduce your income by the amount you lose, which helps, especially if you made more money this year than last year. Just be careful to avoid getting caught in the “wash sale rule” from the IRS. If you sell a losing investment, you can’t buy it back within 30 days.

4. Donate to Charity

This is a great time of year to donate to charity. Clean out the house and donate items in good condition to a charity thrift shop. This way you can claim a deduction for charitable goods while also helping a worthy cause. You can also get a tax deduction for cash donations you make. Just be sure to get a receipt from the organization so you have it for your tax records, and be sure to itemize on Schedule A of the federal tax return.

5. Review Your Budget

Now is the time for a budget review. How are things going with your budget? Are you on the right track? What’s worked well this year? What hasn’t? Be honest about how the budget is working. You might need to tweak the specifics before the new year so that you are ready to hit the ground running in 2017.

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

Securities and insurance offered through LPL or its affiliates are:

Article Source: Miranda Marquit for Moneyning.com, http://moneyning.com/misc/5-money-moves-to-make-before-year-end/

10 Financial Habits You Should Start Today

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When you look at people who are financially fit, they all have several things in common. They know the value of money and have developed plans and habits that keep them in shape — financially speaking, of course. They are never late with their bills. They know the value of money. They have little to no debt at all.

These are their habits. They all have this common thread, which binds them together. They know what to do when it comes to money — and what not to do. They may not have thousands of dollars in the bank, but they are still financially fit. They just handle money in a way that seems magical to many of us.

The truth is that it is not magic. There is no secret formula that they follow. They have one thing in common: Good financial habits.

Anyone can do this. You just need to know where to start. Below, you will find 10 habits that these people all have in common. Best of all, they are things you can start doing today.

1. Have a Written Budget

This is the key to any financial plan. Many people – sort of, have a budget. They know who they have to pay each month, but maybe it’s not in writing. When you have a written budget, you see exactly where your money goes. Best of all, you can direct your money where you want it to go. You can decide what you want to save and how much you want to spend on groceries. When writing out your budget, be sure to include every single expense (don’t forget about the coffee you stop for every morning or if you pay for parking each day). Your budget is your roadmap to financial success.

2. Pay Your Bills On Time

Never be late with your bills. There are so many ways to ensure they get paid on time, including easily setting up automatic payments or setting reminders on your phone. You can even use a calendar and write in due dates. When you pay your bills on time you show you are responsible. Not only that, but you won’t have to worry about late fees either.

3. No Need for Immediate Satisfaction

It can be tempting when you are shopping to pick up that new bag or pair of shoes. However, do you really need them? Will buying them truly make you happy? Why do you want to buy them? Asking yourself these questions can help you avoid emotional purchases, which typically only lead to buyer’s guilt later on. If you do want to buy something, use the 24 hour rule: Go home and think about it. Check your budget, and if 24 hours later you still really want and can afford the item – go ahead and purchase it.

4. Try Not to Use Credit or Debit Cards

Cash is one of the best ways to ensure you are financially fit. Even if you think you use credit cards the right way and pay them off each month, you could still be overspending. For example, if you only have $100 to spend on groceries, you can’t spend even $101 if you only have cash. If you are using plastic, it’s often too easy to spend more than you anticipate.

5. Keep the Lines of Communication Open

Have regular budget updates with your other half – look over your finances and check your spending. Don’t hide money or spending – just be honest. Try to make time for a monthly meeting, and add it to both of your calendars so you can go over your budget together.

6. Pay Down Debt

Take steps to pay off any debt you have. If there’s a lot of it, you will probably need to create a debt pay off plan. It may take some time, but you can do it!

7. Save Money Every Month

Your budget should include a line item for every penny you earn, including savings. Saving could be needed for retirement, holidays, emergencies, and so on. There is never a right or wrong thing to save for. The best trick here is to automate your savings. When it’s automatic, you can never make excuses for yourself that you can’t save. Instead, it’s money not available for you to spend – and this is never a bad thing!

8. Live Within Your Means

Who wouldn’t love a huge house or fancy car? We all would – but can you actually afford it? Everyone has a different income, therefore the way we live will be different based upon that income. The real difference is not in how much you make, but in what you spend.  If you can’t afford that huge house right now, you shouldn’t buy it.

9. Use Credit Wisely

Credit cards can be a great way to not only build your credit, but also to gain rewards and perks. But, you need to use credit cards the right way. Never charge more than what you have in the bank – if you only have $500 in your account, do not charge more. The reason being, a payday is never a guarantee. You should generally be able to pay your balance in full each month, and on time.

10. Balance Your Accounts Regularly

While you can use online banking 24/7 to check your account balances, there may still be transactions that haven’t posted yet, checks that haven’t cleared, and online bills that haven’t been reflected yet either. If you balance your account regularly, you know exactly what you have to spend.

These 10 habits will easily get you to be financially fit.  You don’t have to start with all ten at once – even if you master a few now and slowly add in the others, you’ll be financially fit in no time!

Article Source: Tracie Fobes for Gobankingrates.com, https://www.gobankingrates.com/personal-finance/financial-habits-need-start-today/