How to Choose What Financial Goals are Worth Setting

Posted on May 12, 2015 by Marketing Coordinator Nicole

save-saving-housing-house-money-cash-e1394569718602 Everyone needs financial goals in order to be efficient and successful, but determining which goals to prioritize can be difficult. If you don’t set enough goals, you may not save enough money. However, if you set too many goals it can be difficult to achieve all of them, and repeated failure can get you off track.

It’s best to prioritize how important different goals are in terms of the immediate future, as well as your long-term hopes and dreams. Once you know what is the most important to you, you can figure out which goals you should focus on. Survival should be your first priority; you need to pay for your basic needs first. After that, you can focus on longer-term goals. Consider these five questions as you set your next financial goals.

1. Do I need it to survive?

Obviously, you need food and shelter to survive. Your necessities have to come first. This means that you will need to have enough money to pay your rent and utilities, purchase groceries, and receive medical care when you need it. There are other things that may be necessary depending on your personal circumstances. You will probably require a job, and you might need a car to get there. You also will need clothing, so your first goal should be to afford basic necessities. If you can’t do that yet, then your other financial goals need to wait.

2. Is the goal too big or too small?

Setting goals that you can’t possibly achieve will only bring failure, and can potentially make you depressed or frustrated. If you can barely afford rent for your current one-bedroom apartment, you probably shouldn’t make a goal to purchase a four-bedroom home this year. But you can make long-term goals that include purchases you couldn’t possibly make now. Your income should increase as you become more experienced in your job field, and you can certainly make long-term goals that factor in your anticipated income.

You also shouldn’t spend too much time on goals that are really small. While setting some small goals may build your confidence (such as saving for a new dress or suit), setting too many small goals will pull your priority away from bigger goals.

3. How can I achieve my goal?

You can increase your chances of achieving your goal by taking extra steps to make it happen (outside of just making the goal itself). If you want to purchase a house, but you need to save for a down payment, start small. It’s good to start off by setting up a savings plan, finding out if you qualify for assistance, and cutting back on expenses. You don’t have to purchase a home (or a new car, or whatever else your big goal entails) right now. Make a plan for just how you can obtain your goal.

This is also true of other financial goals, such as moving up at work and making more money. If you want to move up, focus on the ways that you can improve your work performance and set yourself up for a promotion. Consider educational classes if necessary. You also might consider relocating if it will help you advance in your career. Taking proactive steps to achieve your dream will help you get there, and also may make you feel more accomplished and on-task.

4. Am I thinking about the future?

Vacations and fancy clothes can be wonderful, but you need to think about your future, too. Besides basic necessities, you should also prioritize your retirement savings. According to the United States Department of Labor, knowing your retirement needs, contributing to your employer’s retirement savings plan, learning about investment principles, considering using an IRA, and knowing about your social security benefits, can all help you plan for retirement.

Complete the necessary research in order to determine how much you might need to retire, and also to determine where you might want to live, which will affect how much money you need. You also need to consider your future health, and how it might impact your finances.

To get more information on planning for your retirement and schedule your complimentary appointment, contact First Financial’s Investment & Retirement Center at 732.312.1500, or email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com.

5. How much time do I need?

This question factors into many of the other questions on this list. One of the best ways to achieve your goals is to set realistic ones, and to figure out when and how you will achieve them. Determine how many years you think it will take you to save enough for the type of home you want, or how much you need to save each year (and for how many years) to be comfortable in retirement. If you want to save for a vacation, consider how you will have to alter your current spending, and for how many months you will have to do so.

Short-term goals often take less planning, but it will still help you to determine how much time you need to achieve those goals. It’s easy to tell yourself that you can save enough for a trip in a few months, but actually sitting down and determining how much you need to save each month, and for how long, will help prevent overspending.

Here at First Financial, our first priority is helping you achieve your financial dreams by defining your dream goals and lifestyle, empowering you through financial education, building your wealth, planning your retirement, and managing your risk. Establishing financial goals is an important part of saving enough money and being ready for the future, and we are here for you! Stop into any one of our branches and sit with a representative to have an annual financial check-up of your finances and portfolio.

*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:

2 Steps to Making Saving Money Easier

Posted on April 14, 2015 by Marketing Coordinator Nicole

saving-money It’s only the beginning of the second quarter, but if you’re most people, you’ve already failed at a New Year’s resolution (or five). One of the reasons so many resolutions fail is that they require that you take an action (or not take action) every single day. Saying “I won’t buy myself coffee every morning” is easy, but if you have to drive or walk by the coffee shop on a daily basis, it’s only a matter of time before your willpower gives out and you’re in line for some caffeinated bliss.

That’s why you experience more success by using strategies that fall into the category of “set it and forget it.” In other words, if you only have to do something once, then you don’t have to worry about a daily inner battle that you’re all too likely to lose. A little bit of effort up front can save quite a bit later. How do you do that? Here’s a simple two-step process for effort-free savings.

Step 1: Determine how much you want to save and work backward.
How much do you want to be putting aside every month, and why? Once you know that, then all you have to do is to figure out how to keep that money from hitting your checking account where it’s likely to be spent.

Let’s say you set a goal to save $200 per month. Rather than having your entire paycheck from your job go into your checking account, set up direct deposit to be split between two accounts. Assuming you get paid twice a month, a hundred bucks from every paycheck can go directly into a high-interest savings account. The rest can be deposited into a checking account normally.

Since the money went straight to savings without having to lift a finger (or get tempted by its presence), you’re forced to budget around the money you can see. Obviously, you can get to your online savings account if you need to access it. However, the pain in the rear of having to figure out how much you need, set up the transfer, and wait for the money to arrive means you’ll give frugality a thought first.

Step 2: Determine your budget categories and reduce fixed expenses.
Okay, so Step 1 ensures that you’re meeting your emergency fund goals without even trying. However, if you’re like most of us, this step will also highlight just how much money you’ve been spending — maybe without even noticing! Now’s the time to figure out what bills can be reduced or eliminated to bring your spending in line with your new income.

Some expenses (rent, cell phone, Internet, cable, student loans) are fixed. If the bill is the same every month, that helps with planning. Other expenses (electric or other utilities, groceries, gas) may vary but usually fall within a fairly predictable range. It’s often easiest to plan around the higher end of the range.

If you’re trying to reduce spending without even trying, the easiest thing to do is to reduce or eliminate fixed expenses. This is because then you’ll automatically benefit from the lower (or nonexistent) bill without having to keep a price book for the grocery store or ask yourself things like “Can I afford this salad dressing?” Strategies for reducing fixed expenses include things like:

Moving to a cheaper place (or getting a roommate to share expenses)
Switching to a prepaid or discount cell provider
Getting a lower tier of Internet service
Canceling cable
Talking to your loan servicer to see if there is another student loan repayment option that could save you money

So this plan isn’t entirely effort-free, you have to put in a tiny bit of effort up front by adjusting your direct deposit and giving your recurring fixed bills a once-over. However, once that’s over with, you can enjoy effort-free savings month after month!

Article source courtesy of Georgie Miller of MoneyFool.com.

3 Reasons Your Tax Refund Might Not Be As Big As You’re Expecting

Posted on February 21, 2015 by Marketing Coordinator Nicole

09ba4dd1-bbe3-4f1f-9400-940dc6df347f Everyone tells you not to plan on having a tax refund. If you’re living paycheck-to-paycheck, though, you know where every dollar is going. You might be counting on that money to give you the breathing space you need.

Even if you’re a little further ahead than that, you may still have made plans for your tax refund. You might be planning to pay off a credit card from the holidays or hoping to put a down payment on a car. You might just be hoping to take a little vacation over spring break!

Whatever your plans for the money, it’s a good idea to temper your expectations. Unfortunately, you can’t count on the same tax refund you got last year. Here’s why.

1. Student loan garnishments.

If you’re behind on your student loans, you might not see much of your refund. If you don’t have much of an income, it’s easy to get behind and it’s hard to catch up. Student loan companies know that, for people with minimal income, tax refunds are a source of a big chunk of money. Also, since it’s not a regular source of income, the rules regarding garnishment are more lenient. Ordinarily, creditors are only allowed to take 15% of your discretionary income if you have one loan, or 25% if you have multiple loans. For a tax refund, the Department of Education can instruct the IRS to apply the full amount of any tax refund you’re due to the balance of your loan.

Even if you’re paid off in full, it might be wise to check with your spouse. This process can also apply to your refund for his or her defaulted student loans. As far as the IRS is concerned, you’re one taxpayer with one set of obligations.

This process can apply to federal student loans, federally subsidized loans and some private loans. You’ll receive a notice of proposed offset from the IRS. You have 65 days from receipt of the notice to object to the offset. Deferments can be provided for up to 3 years for economic hardship and unemployment. They may be provided indefinitely for individuals seeking an advanced degree or for people with disabilities.

It’s also possible the “loan” may just be a paperwork error. If you’ve unenrolled from classes but haven’t yet received a repayment from the school, for instance, you might get your refund back with a short letter. The notice of referral will provide you instructions to request a review.

2. You made more money.

Usually, getting a raise is something to celebrate. If you got one this year, that’s good news for your career future. It’s less good news for your refund. The refund is the difference between what you paid in taxes and what you ended up owing. Your taxes are withheld from your paychecks assuming they stay the same all year. If you got a raise in June, then you were effectively under-withholding for the first half of the year.

Beyond the difference in payment, you may find your raise puts you just above the threshold for credit programs. Credits like the Earned Income Tax Credit (EITC) have income eligibility requirements. If you made more money this year than you did last year, you may not qualify. The same is true for subsidized insurance premiums through the Affordable Care Act (Obamacare). If your income changed after you obtained coverage, you may have to hand back a part of that subsidy.

The EITC is fairly significant, particularly if you have kids. It may be worth your time to look for other deductions you can take to get your gross income under the threshold. Consider working with a professional tax preparer, too.

3. You were the victim of identity theft.

The past few years have seen an increase in tax returns filed fraudulently on behalf of victims of identity theft. A crook uses your Social Security Number and fabricates financial information to get a hefty tax refund, then cashes the check. You’re not only out your tax refund, but also may be facing criminal charges for the phony info on “your” return.

With cuts to the IRS budget this year, its enforcement and investigation of these crimes has dropped. You should contact the IRS immediately if you receive notice that more than one tax return was filed using your Social Security number or if you are issued a W-2 (an income statement report from your employer) by an employer you don’t recognize. These are red flags that someone is fraudulently using your identity.

The FTC recommends you contact the IRS’s Specialized Protection Unit at 1-800-908-4490. You should also prepare proof of your identity, like a copy of your drivers’ license, Social Security card, or passport. The IRS has a form, IRS ID Theft Affidavit Form 14039, that will start the investigative process. Recovering from this crime will take time, but you will get the refund you’re due.

Business Basics: Getting Your Business Started

Posted on February 19, 2015 by Marketing Coordinator Nicole

Start-Your-Own-Online-Business Joe has this interesting hobby where he collects broken items and then turns them into furniture. In 2001 he created a coffee table and a chaise lounge made entirely of surfboards. In 2004 he made a lounge chair out of old skateboards and another in 2007 out of broken hockey sticks. Not only are these comfortable, they are different, hip and unlike anything anyone has ever seen.

In 2009, Bob, a friend of a friend, who runs the pro shop at a local indoor hockey rink suggests he sell them in the shop with a nice price tag attached. After about a month he has 3 more chairs on order. Joe strangely finds himself making weekly rounds to local ice rinks and placing want ads on craigslist to find broken hockey sticks.

Fast forward to early 2011, a sales rep for KOHO sees the chair in the pro shop and loves it. He wants to have one in his office and asks about adding something like this to his regional sales catalog. 2 design patents and about 6,000 hockey sticks later Joe is having a hard time keeping up with the demand. He needs to start a business! How does he do that?

The first key piece to starting a business is writing a solid business plan. In a nutshell, it is a detailed summary of who you are, what you do, marketing strategies, financial plans, competition etc… If you have never done this before there are several excellent resources out there. SCORE and the NJSBDC have chapters in almost every county and are eager to help you get started.

Next is choosing the type of business. Limited Liability Company, Corporation, Sole Proprietorship and partnership are common examples. Based on your size, volume, industry and structure there are so many variables involved that seeking professional help is strongly recommended. Find a trusted accountant, attorney, or seasoned business owner for the best advice. Once you have made your choice, simply register your business with the state or county and obtain a tax ID number from the IRS. These steps may be done right from home on the World Wide Web.

Separating business income/expenses from personal will save hours when tax season arrives. The best way to accomplish this is by opening up a business checking account. First Financial Federal Credit Union does not have a minimum balance requirement or monthly maintenance fee on their business accounts. This is unheard of in the financial services industry!

A Business Checking Account is a required in order to accept payments using a merchant services provider. Providing your customers the ability to pay with their debit or credit cards will result in more sales for your business. They are also less expensive than using Square or Paypal. In the highly competitive merchant services industry it is a very good idea to research the provider prior to signing on with them. If you already have a provider, it may pay to shop around. Many merchant services companies will pay your early termination fee to get you out of your existing contract. As always, contact your local Credit Union to see if they have any trusted professionals that they can refer you to.

For more information about any of First Financial’s business accounts and services, contact Business Development at business@firstffcu.com, call 732.312.1421, or simply leave a comment below!

How To Save When You’re Young

Posted on February 10, 2015 by VP of Marketing and Business Development Jessica

It’s hard to save money when you’re young. If you’re lucky enough to have a job, you’re probably not overflowing with cash. With a ton of young and talented job seekers, companies also have little pressure to offer generous starting salaries.

Meanwhile, apartment rents have steadily risen for 23 straight quarters, and life’s other inevitable expenses — utilities, food, taxes, etc. And these haven’t gotten any cheaper.

Let’s not forget educational expenses too. Inflation in college tuition has massively outpaced broader consumer price inflation for decades, meaning most college graduates start their careers with large student loan debts hanging over their heads. A recent poll found that college graduates finish their studies with an average debt load of $35,200. And if you are the ambitious type who decided to go to graduate school, you might have multiple hundreds of thousands of dollars in student loan debt.

Still, the savings you manage to sock away while you’re young will have an outsized effect on the lifestyle you’re able to live when in middle age and your golden years.

Pay Yourself First.

Humans are hardwired to expand our spending to absorb any increases in income. In order to mitigate these impulses, you have to “pay yourself first” by allocating your first dollar of income to savings rather than your last. Figure out a dollar amount that you want to save, and set it aside before you budget your regular monthly expenses.

If your employer offers a 401k plan, this is easy enough to do. Your 401k contributions come out of your paycheck before you have a chance to spend them. Not including the value of employer matching, if your employer offers this – is an “out of sight, out of mind” way to save for your retirement one day.

Even contributing $500 per month to savings will get you to $6,000 per year, and many young workers can try to make do with $500 less per month.

Make it Automatic.

Very closely related to paying yourself first is making your savings as automated as possible. For example with a 401k plan, this accomplishes both. Once you set your contribution limits, your company’s payroll department will take care of the rest. It’s automated, and you don’t have to think about it.

But what if your company doesn’t offer a 401k plan? There are plenty of other ways to automate your savings process. Often times, your payroll department will allow you to split your paycheck among two or more accounts. This will allow you to automatically divert whatever sum you can afford away from your primary checking account and into a savings or investment account.

You can also generally instruct your brokerage account or savings account to automatically draw from your checking account on a specified day every month. The key here is automating the process so as to remove your discretion. If you have a real emergency, you can always suspend the automated instructions for the time being. Otherwise, you have made saving part of your monthly routine and made it a lot harder to throw the money away on something frivolous.

Slash Your Budget.

Let’s face it, it can be easier said than done when your monthly bills seem to get bigger every month. Here are a few concrete examples of how to save without crimping your lifestyle too badly.

First off, ditch cable TV. Most of the programming you watch is probably available for free over the airwaves or at a very modest cost with Hulu Plus or Netflix after a short delay. And the handful of shows not available probably aren’t worth the $100 per month or more you’ll pay in cable bills. If you can’t live without HBO, chances are good that one of your friends or relatives has a subscription that you can borrow from time to time.

Also, try to put off a new car purchase as long as possible. If you take reasonably good care of your car, it will last you 150,000-200,000 miles. Not only will you save money on a car payment, but the older your car the less insurance coverage you will need. And when you finally do need to replace your wheels, buy a late-model used car rather than a new one.

Did you know at First Financial, our auto loan rates are the same whether you buy new or used? Be sure to check them out today, and if you like what you see – you can apply for an auto loan online 24/7.*

Consider cutting your rent and utilities bills in half by having a roommate. Chances are, you did it in college. Why not share an apartment for a few more years? The average apartment rent is more than $1,000 per month, and it is considerably more in the popular urban cities that attract younger people. Cutting that bill in half will make reaching your savings goals a lot easier.

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties.

Article Source: Charles Sizemore for investorplace.com, http://investorplace.com/2014/12/how-to-save-when-youre-young/#.VL65zNLF8uc

First Financial’s Freehold/Howell Service Center is Open!

Posted on February 4, 2015 by VP of Marketing and Business Development Jessica

Press Release

First Financial Federal Credit Union’s newest branch is now open for business at 389 Route 9 North (next to the Howell Park & Ride) in Freehold, NJ 07728.

Pictured above: First Financial’s new Freehold/Howell Service Center – now open!

The credit union’s newest branch will be a primary banking location for approximately a quarter of the credit union’s 20,000 members. First Financial’s newest branch features many important banking conveniences such as a drive thru, drive up and walk up ATMs, and more.

In regard to the credit union’s latest branch location, Issa Stephan, First Financial’s President/CEO stated, “We look forward to bringing the Howell and Freehold community a high-tech banking facility featuring modern convenience. Member experience is extremely important to us, and our first priority is achieving our members’ financial dreams by defining their financial goals and lifestyle, empowering them with financial education, helping them to plan their retirement, and more – and our newest branch will be a key vehicle in helping us to fulfill this promise with our membership.”

A ribbon cutting ceremony and grand opening week featuring outdoor activities is planned for warmer weather.

Pictured above: The teller line inside the new Freehold/Howell Service Center.

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How to Choose What Financial Goals are Worth Setting

1. Do I need it to survive?

3. How can I achieve my goal?

4. Am I thinking about the future?

5. How much time do I need?

2 Steps to Making Saving Money Easier

3 Reasons Your Tax Refund Might Not Be As Big As You’re Expecting

Business Basics: Getting Your Business Started

How To Save When You’re Young

First Financial’s Freehold/Howell Service Center is Open!

1. Do I need it to survive?

3. How can I achieve my goal?

4. Am I thinking about the future?

5. How much time do I need?

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