Financial management tips | blog.firstffcu.com

April is Financial Literacy Month and First Financial is here to guide you on getting in touch with your finances with smooth sailing. While financial automation can be a great way to bring ease into managing regular expenses and savings, it also demands a vigilant approach to ensure your financial health remains robust. Here are some important things to keep in mind when automating your finances and areas of consideration when conducting necessary financial check-ups.

Catch Mistakes Early

Automation doesn’t guarantee perfection. Errors in billing amounts or unexpected charges can occur. Regularly reviewing your accounts allows you to spot these discrepancies early, preventing minor issues from escalating into financial headaches. At First Financial, we encourage members to utilize our mobile banking app and card management resources for effortless monitoring of finances.

Maintain Awareness of Spending

It’s easy to let automation lead to an out-of-sight, out-of-mind attitude toward your finances. However, this approach can cause you to lose track of where your money is going and lead to unnecessary spending – deviating from your financial goals. First Financial offers budgeting tools and resources that help you stay on top of your spending habits, ensuring you’re always aligned with your financial aspirations even when you’re not actively thinking about them.

Strategic Financial Planning

Automation should enhance, not hinder your ability to plan for the future. Regular check-ins with your personal financial plan and budget will allow you to adjust as needed, keeping you on track toward your long-term goals. Whether you’re saving for retirement, planning a major purchase, or building an emergency fund – our planning resources are designed to support your journey toward financial stability and success.

Conducting a Financial Check-Up

Don’t overlook the value of a comprehensive financial check-up. First Financial’s suite of online tools and personalized advice from our team can guide you through this process, ensuring your financial well-being is always at its peak.

Key Areas to Review:

Net Worth: Start by evaluating your current net worth to understand where you stand financially. Compare it with past assessments to gauge your progress or identify areas needing attention.
Financial Plan: Revisit your financial goals and the plan you’ve laid out to achieve them. Are you on track? Adjustments may be necessary to realign with your objectives.
Insurance Coverage: Review your insurance policies thoroughly. Ensure you have adequate coverage for your assets while also identifying opportunities to optimize premiums.
Investments: Examine your investment portfolio. Check if your asset allocation aligns with your risk tolerance and financial goals. Look for ways to reduce fees and improve returns.
Spending and Saving Habits: Assess your spending patterns and saving practices. Ensure they’re aligned with your financial priorities and adjust where necessary, to meet your goals.

By regularly performing these checks, you’ll maintain a strong pulse on your financial health and adapt more effectively to life’s changes. First Financial is here to support your financial check-ups and to help you navigate your financial journey with ease and confidence. Remember, your financial well-being is our top priority. Let’s make this Financial Literacy Month a milestone in your journey toward financial empowerment! For more personalized financial assistance call 732.312.1500 or visit a branch today.

College graduation is a big milestone to feel good about. And as you head out into the world, you’ll be learning new things, facing new challenges, and making big financial decisions. One of the most helpful skills to have as you get older, is being able to manage your money. And luckily, you don’t need a class to learn financial management – you can get familiar with these skills through educational resources like ours! Keep reading for our top money management tips for recent college grads.

Learn how to budget

Budgeting is one of the most important financial skills you can learn. Maintaining a budget can help you be smart about your spending and plan for your financial future. We recommend using the 50/30/20 strategy as a rough guide for how you should spend your money. This means you should aim to spend 50% of your budget on essentials, 20% on savings and investments, and 30% on other remaining expenses.

Calculate your expenses (rent, student loans, utilities, food, transportation, etc.) and variable costs (dining out, vacations, shopping), and make sure your expenses do not exceed your income.

Start saving money

No matter what your financial goals are, opening a savings account is always a good idea. You can start by dedicating a certain amount of your paycheck toward your savings. While it’s recommended to keep 20% of your income for savings and debt repayment, you’ll need to evaluate what works within your budget and when you’ll need the funds. Even if you’re starting small, you’ll be surprised how quickly the account can grow!

Want to open a savings account?* We’re here for you! Contact us or stop by your local branch to speak with a representative today.

Plan for retirement

It may seem too early to start planning for your retirement, but it will make a big difference to start saving right out of college. For example, a 22-year-old who starts investing is going to have nearly twice the amount of money saved by 67 than someone who starts at 32. Most employers offer a retirement plan match program like a 401(k) or 403 (b) that is typically deducted straight from your paycheck. If your employer offers matching contributions like this, make sure to take advantage – since it’s essentially free future savings.

Pay off student loans

According to Forbes, there’s currently $1.75 trillion in total student loan debt with an average of $28,950 owed per borrower. And while graduating and starting your career may be exciting, paying back student loans can be daunting – to say the least. When it comes to paying off your student loans, you should take the time to look at your budget and determine how much you can afford to pay toward your debt payments. It’s recommended to start paying off the debt with the highest interest rates first, and then focusing on the debt with lesser amounts or lower rates like federal student loans. There are sure to be plenty of repayment options to choose from based on your current income and budget.

Don’t forget about your credit score

Having a decent credit score is going to be very important throughout your life. A credit score essentially is a rating that financial institutions use to determine how likely you are to pay off your debt. Whether you’re renting an apartment, opening a new credit card, or buying a car – your credit score will play a factor in what you’ll be able to obtain.

A credit score is determined by:

Your payment history
Your amounts owed
The length of your credit history
New credit
The variety of credit products you have

As a new college graduate, understanding financial management can feel overwhelming – but you’re not alone. Our financial experts can give you advice based on your situation. Contact us to get started, or stop into your local branch to speak with a representative today!

*A $5 deposit in a base savings account is required for credit union membership before opening any other account/loan. 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. Some restrictions apply, contact the Credit Union for more information.