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8 Things You Should Do With Your Money Before the New Year

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Checkbox 3DThe last thing we want to do right now while preparing for the upcoming holidays, is probably think about money. That’s what New Year’s resolutions are for, right? While it’s tempting to put off your finances until the New Year, you might miss some critical financial deadlines or lose the opportunity to save extra money. An end-of-year financial checklist gives you the opportunity to make changes and save before the clock strikes midnight on December 31st.

Here is a year-end financial planning checklist. Use these last few weeks to get your finances organized and under control — a great way to close out the year.

1. Look over your spending.

Ideally, you’ve been tracking your spending all year. What were your spending patterns? Did you go over or under in a certain category? Take a look at what you actually spent vs. what you had budgeted for. Do you need to change your expectations? Review your financial goals from last year and consider whether they will work for you in the coming year and make the necessary adjustments. If you paid off a loan, see if you can redirect that money into a paying off another debt or adding to a savings or retirement account. Don’t let the money get eaten up by miscellaneous expenses. If you don’t have a budget, start one now. Mint.com, Level and Check are all good free budgeting tools with features to help you create a budget from scratch, track your spending, and set financial goals.

2. Order your free credit report.

You’re entitled to one free yearly credit report from each of the three major credit reporting bureaus: Equifax, Experian, and TransUnion. Get a report now so you know where you stand before heading into the new year. Look over your report and check for errors or negative information. If your credit history could use some improvement, make this the year you get back on track.

3. Get your credit cards in check.

That means checking your balances, rates, and cash back or other rewards. Make a large payment if you are carrying debt and have extra money to do so. If you can’t pay down a chunk of the debt you accumulated this year, create a debt repayment plan that will get it down next year.

4. Make an extra mortgage payment.

Making just one extra mortgage payment each year can cut your loan down by years, saving you possibly thousands in interest. Also, making an extra mortgage payment means you may be able to claim an extra month of mortgage interest deductions this year. If you can’t afford an extra payment, try to make January’s payment before the first of the month. If the payment gets credited before January 1, it may still be tax-break eligible.

5. Review your insurance plans.

Look over your health, life, homeowner’s/renter’s, and car insurance plans. Do you need to adjust your coverage, premiums, or add any dependents? Do you need to purchase new coverage, like life insurance or disability? Did you get married, have a baby, or buy a house? Do you have any changes coming in the new year that you need to plan for? Those life events all trigger insurance changes.

PS: If you answered yes to any of those questions, you might need to make changes to your W-2, too.

6. Automate everything.

It’s time to finally automate your bills and savings. The more you can automate, the easier your finances will be. Automating helps you pay your bills on time and maintain a regular savings plan. This is also a good time to cancel any automatic subscriptions you aren’t using: video and music streaming, magazines, premium subscriptions, etc.

7. Make a tax-deductible charitable contribution.

If you are going to itemize deductions on your tax return, consider making a charitable contribution to a cause you believe in. The donation must be made to a qualifying organization and the tax benefit only saves you a fraction of what you donate, but you’ll be supporting a good cause to end the year.

8. Use your Flexible Savings Account.

If you have a Flexible Spending Account for healthcare or other qualifying expenses, now is the time to submit any outstanding claims. This is also the perfect time to make any year-end doctor appointments.

If you get your finances in order at the end of the year, it can only help you get more organized for the coming one!

Don’t forget to stop in to have your annual financial checkup before the year ends, or to kick off the beginning of the new year! Here at First Financial, we encourage our members to come in at least once a year to sit down with a representative at any one of our branches to make sure you are currently placed in the correct Rewards First tier for you, and also that you are receiving the best value, products and services based on your financial situation. Give us a call at 732.312.1500 or stop in to see us today!

8 Ways to Protect Your Identity While Shopping Online

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Concept of mobile shoppingAs we move into the most frenzied shopping season of the year, scam artists will be on the prowl for vulnerable shoppers. To avoid becoming a victim, consider taking steps now to keep your financial accounts and personal information safe.

1. Skip attachments and hyperlinks. Even attachments from people you know can be nefarious, since those acquaintances could be infected with a computer virus. If the email contains unusual or scant wording, don’t open the attachment. The same logic applies to hyperlinks in emails (or requests for information received over text message). First hover over the link to make sure it’s going to direct you to a valid address.

2. Don’t make purchases over coffee shop lattes. Any public Wi-Fi connection, such as those offered at coffee shops or libraries, carry extra risks, since they aren’t private. Try to avoid shopping online or engaging in any financial transactions, like logging into your bank account, from such hot spots.

3. Protect your smartphone. Web browsers and retailer apps on mobile devices make it easy to shop on the go, but doing so can also expose shoppers to extra risks since many phones don’t have the same kind of data encryption that’s often installed on computers. Even taking a relatively simple step, like enabling the password lock feature on your phone, will make it harder for a thief to access private data stored on the phone in case it’s lost or stolen. The computer security company McAfee also warns against downloading apps that might steal personal information.

4. Don’t trust your “friends.” Hackers target social media, including Facebook and Twitter, because they know it’s easier to get people to click on a link that appears to be recommended from a friend. McAfee has identified dozens of examples, including free dinner offers at Cheesecake Factory and fake mystery shopper invitations. Offers that sound too good to be true, such as free iPads or free iPhones, are also a common lure. The company cautions against clicking on fake alerts from friends, who may have been hacked themselves, and avoiding shortened links on Twitter that claim to offer deals.

5. Open e-cards with caution. They can be cute, but they can also be malicious. McAfee warns that some e-cards download viruses onto your computer when you download them. To avoid that outcome, the company suggests only opening e-cards from domain names that you recognize.

6. Upgrade your passwords. The holiday season can serve as a good reminder to give your passwords a makeover; security experts recommend changing them regularly as a precaution against hackers. Avoid common and simple words, use long combinations of words that also incorporate numbers or symbols, and never use duplicate passwords for multiple accounts. Sites that offer two-step authentication, such as Twitter and Gmail, can also add another layer of protection.

7. Check up on an e-retailer before making purchases. Some fly-by-night operations take advantage of the uptick in shopping around the holiday season to collect cash without ever mailing out the goods in return, warns the Better Business Bureau. The same applies to in-person exchanges on Craigslist or other online sites. To protect yourself, the bureau recommends never wiring money or paying in advance, and bringing a friend to any in-person exchanges.

8. Review your statements. The first sign of identity theft is often an unfamiliar charge on a credit card or bank statement; reviewing those statements carefully and contacting your financial institution or card provider with any concerns can prevent a theft from expanding. Credit cards usually come with some measure of automatic protection, as long as you report the scam relatively quickly.

Following these tips might leave you feeling overly cynical about the world, but the real downer would be dealing with a stolen identity just as the holiday season is heating up.

Article Source: Kimberly Palmer for US News – Money, Http://money.usnews.com/money/personal-finance/articles/2014/09/16/8-ways-to-protect-your-identity-while-online-shopping

 

Steps to Protect Against Credit Card Fraud

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Secure purchasesIn light of recent retailer data breaches and with credit and debit card fraud becoming more frequent, be sure to read and follow these 8 steps to protect yourself and your identity from being stolen.

1. Be sure to get a new replacement credit or debit card if yours was compromised. If you suspect fraudulent transactions on your card and your financial institution hasn’t contacted you or provided you with a replacement card – be sure to call and request one.

2. Check your bank account and credit card activity online to see whether your card was used at any retailer that was recently hacked. Don’t wait for your print statement to come in the mail; check the latest account activity digitally with online access to your account information or by using a mobile banking app. Also watch out for changes to your debit card PIN.

3. Be alert for post-breach phishing attempts. Hackers don’t always get everything they need to break into your accounts, so they will typically send you emails or even call on the phone and pose as your bank or card issuer to try to trick you into giving up the missing pieces, including mother’s maiden name, account username and password, date of birth, and Social Security Number. Do not give this information out – your bank will never call, text, or email you for the information you already provided when you opened your account.

4. Lock down your credit report with a security freeze, which essentially shuts off access to your credit history by new would-be lenders. If a hacker applies for a loan in your name, the creditor is less likely to approve it if he or she can’t see your credit file. Freezes are typically free for victims of identity theft.

5. Get as many free credit reports as you can per year so you can regularly monitor them and keep an eye out for fraudulent new accounts. You can get three free credit reports (one from each credit bureau) from annualcreditreport.com.

You’re also entitled to a free credit report from each bureau after you file a 90-day fraud alert, which you should do every 90 days if you’ve been a victim of a data breach, or have a good-faith suspicion that you’re about to become a victim of identity fraud.

6. Change your passwords regularly on your various financial accounts and use strong passwords to thwart hackers and protect yourself online.

7. Don’t panic, but take a breach threat seriously, because this problem is now a fact of life until the big payment card brands, banks, and retailers improve the security of payment processing systems in the U.S.

 

Personal Finance: 5 Areas You Shouldn’t Ignore

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piggy bank savings - top viewPersonal finance is not just something to think about now and then, such as when you review your bank statement – it affects your life on a daily basis. Ask yourself how well prepared you are in each of the 5 personal finance items below, and how you might be able to do better.

1. Credit and Debt

If you have significant credit card debt, you should pay it down as quickly as you can. Fortunately, it can be done. One good strategy is tackling your highest-interest-rate debt first. Switching to paying for most things with cash instead of credit cards can also help by reining in spending.

Beyond that, you need to strive for a spotless credit report and strong credit score. Check your credit report regularly, have errors fixed, and build a high score. Healthy credit is a key aspect of personal finance.

2. Insurance

Yes, you might have home insurance, car insurance, and health insurance, but how about life insurance if anyone relies on your income? How about renter’s insurance if you rent your home or apartment? This personal finance category also includes umbrella insurance that offers excess liability protection, which insures you against lawsuits. Disability insurance can protect your income stream in case you become unable to work. Long-term care insurance can support you if you need to be cared for at home or in an assisted-living facility for a while. It’s well worth exploring, as you’re more likely to need it than you might expect, and buying it while you’re relatively young can save you money in the long run.

3. Real Estate

This personal finance category includes buying a home, owning and maintaining one, and selling it at some point. To do well in this category, you need to maintain a strong credit rating and qualify for a low-interest-rate mortgage. You might opt for a 15-year mortgage to build equity faster. It’s important to take good care of your home but you should also think twice before embarking on expensive remodelings that might not let you recoup most of their cost.

It’s also smart to consider refinancing your mortgage at some point. Conventional wisdom suggests that it’s smart to do so when you can snag an interest rate about 1 percentage point lower than your current one. That’s not enough of a reason though, be sure that you plan to stay in the home long enough for the savings to outweigh the closing costs.

If you’re looking to purchase or refinance a home, First Financial has a variety of options available to you, including 10, 15, 20, and 30 year mortgages. We offer great low rates, no pre-payment penalties, easy application process, financing on your primary residence, vacation home or investment property, plus so much more! For rates and more information, call us at 732.312.1500, Option 4 for the Lending Department.*

4. Taxes

Smart taxpayers make smart tax decisions all year long. Here’s a tip that not enough people take advantage of: Set up and use a flexible spending account throughout the year. It lets you put aside pre-tax dollars to pay for qualified health care expenses.

5. Estate Planning

This is another critical area of personal finance. Your estate plan might include a will, a durable power of attorney, a living will, advance medical directives, beneficiary designations on financial accounts, and possibly a trust. Don’t assume you have everything covered with just a will, as you might be able to save your loved ones a lot of headaches, heartache, and money with some more planning and preparation. A living, or revocable trust, for example, can let you avoid the sometimes long and costly (and public) process by directing how your property is to be handled before and after your death.

There’s a lot more to learn about each of these personal finance topics. Spend a little time on them, and you may find that they’re not so boring, and the prospect of saving a lot of money (and being able to spend it now or in retirement) is exciting. And if you need help, don’t be afraid to consult a financial professional.

Questions about retirement savings, estate planning, or investments?  If you would like to set up a no-cost consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1500 or stop in to see us!**

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

**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:  http://www.fool.com/how-to-invest/personal-finance/2014/08/10/personal-finance-5-areas-you-cant-ignore.aspx by Selena Maranjian.

How to Build Credit if You Have a Small Income

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Building and maintaining a good credit score is one of the best moves you can make for piggy bankyour financial health. It might seem intimidating at first – the credit scoring system is definitely complex – but when it comes time to apply for a mortgage or other loan, you’ll be happy you made building a solid score a priority.

How does the picture change if you make a small income? As it turns out, not much. You don’t need to be a Rockefeller to achieve good credit. Take a look at the details below to learn how to build a great score, no matter how large or small your paycheck is!

First, know what makes a good score.

Before digging into specific recommendations, it’s important to understand the factors that affect your credit score. The FICO scoring model – which is the most widely used credit scoring system in the United States today, takes a lot of variables into account to create your score. These include:

• Payment history
• Amounts owed
• Length of credit history
• Mix of credit accounts
• Recent credit inquiries

You’ll notice that income is not one of the factors used to determine your credit score. This means that earning a big salary doesn’t equate to earning a high credit score. Even if you have a small income, you can succeed at scoring high, as long as you’re using the right strategies.

Obtaining credit is an important first step.

It’s empowering to know that the steps to good credit are about financial behaviors, not the size of your bank account balance. But what exactly should you be doing to get there?

Above all, it’s important to start using a credit account responsibly as soon as you can. Proving to potential lenders that you can be trusted with borrowed money is the best way to start building your credit momentum.

One of the easiest ways to do this is with a credit card. If you’re not earning much money, you might be shying away from plastic to avoid the temptation to overspend. But this may in fact stall your efforts to build good credit.

If you’re not interested in getting a credit card, obtaining another type of loan to establish a credit history is a good idea. You might have trouble getting approved if your income falls below the lender’s requirements. In this case, offering a big down payment or securing a co-signer might help you qualify as well.

Keep up with good habits.

Once you’ve gained access to credit, keeping up with good habits is essential to building your score further. Specifically, you should focus on a few important behaviors.

The two most important factors the FICO score looks at are:

  • Payment history – Are you making the minimum payment required on time every time? This accounts for 35% of the FICO Score.
  • Credit Utilization – Are you keeping the balances on revolving credit (typically credit cards) below 30 percent of your available credit? This accounts for 30% of the FICO Score.

In short, paying your bills on time and in full are the two most powerful things you can do to create and hold onto a good credit score.

And just to be clear: Neither requires a big income. Spend and borrow within your means, and it will be easy to manage your payments properly.

The takeaway: Those with small incomes have the same opportunity as their high-earning counterparts to build good credit.

Use the tips above to get started today!

Article Source: Lindsay Konsko of NerdWallet

http://www.usatoday.com/story/money/personalfinance/2014/09/01/credit-score-financial-health/13628811/

3 Ways Moving Can Hurt Your Credit Score and How to Combat Them

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Stack of cardboard boxWhether you are moving because it’s an upgrade to go along with a higher salary, or simply a change of scenery, many of us love to hate moving – and do so frequently. But between asking around for free boxes and trying to comprehend how you’ve acquired so much stuff, watch out for your credit! Here are three ways moving could impact your credit score and how to deal with them.

1. A credit check will initiate a hard inquiry.

When you apply for a new apartment, your apartment management company will likely pull your credit to see whether you’re responsible with money. This will trigger a hard inquiry, which can pull down your credit score a few points. Hard inquiries remain on your credit report for two years and affect your credit score for one.

Because of the minor impact of a hard credit pull, it’s generally not a huge concern. However, if you’re initiating multiple hard inquiries each year, you could hurt your score more significantly. Hard inquiries may include: applying for credit — such as credit cards, mortgages, and loans, or applying for a service that requires financial responsibility, such as a cell phone.

Solution: To keep your credit score from suffering multiple inquiries, you should limit your annual credit applications and take advantage of rate shopping when possible. This will keep your inquiries low and your credit score high.

2. Bills that go to your old address may go unpaid.

A new study released by the Urban Institute states that over 1/3 of Americans have an account in collections. But what does this have to do with moving? An account can easily end up in collections because it isn’t forwarded correctly, instead being sent to an old address. There are two easy things you can do to prevent such a mix-up.

Solution: First, change your address with the U.S. Postal Service before you move. It will forward your mail to your new address for one year. By that time, you should have your address changed on all of your accounts. Remember to update your address on your accounts as soon as possible.

While you’re updating your address, you may also want to enroll in paperless statements and automatic bill pay. In an increasingly paperless world, it’s best to handle your financial dealings electronically. If you don’t want to use auto pay, have statements sent to your primary email so you can pay them before the due date.

3. You’re putting too many moving expenses or new purchases on credit cards.

Moving can be expensive. Between paying for a moving truck and covering your security deposit and first month’s rent, it may be tempting to put moving-related expenses on credit cards. This is all well and good, but only if you have the funds to pay off your credit card in full before the due date to avoid accruing interest.

It’s also easy to fall into the trap of charging new items for your home. After all, new digs require new furniture, right? Wrong! Unless you can reasonably pay for your new purchases, resist the urge for now.

Solution: Save money well before your move-in date to cover all moving-related expenses. And in the case of buying new things for your new place, purchase the decor of your dreams slowly as you have the money. Your home shouldn’t be a source of stress, so make sure it isn’t filled with things that are hurting your finances.

Bottom line: Moving can hurt your credit score, but only indirectly. To keep your credit from being damaged by your upcoming move, avoid getting too many hard inquiries in any given year, change your address with the USPS and switch to paperless billing, and try not to buy anything moving-related or otherwise that you can’t pay for before your credit card due date.