Tag Archives: Money Management

Frugal Habits You Might Actually Enjoy

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Frugality often conjures images of cutting coupons and scrimping on every penny. However at First Financial, we believe that frugal living can be both enjoyable and enriching. It’s not just about saving money; it’s about making smarter choices that align with your values and lifestyle. Let’s explore some fun frugal habits that can brighten your life and bolster your finances.

1. Smart Streaming

We all love our TV time, but do we need multiple streaming services? Assess your subscriptions and keep only what you truly enjoy. This simple act can save you a surprising amount each month, and you’ll hardly feel the pinch. Plus, it frees up time to explore other interests.

2. Cooking at Home

Forget the notion that cooking is a chore. Transform it into a fun and creative adventure. Experiment with new recipes, bond over family cooking sessions, and relish the joy of homemade meals. Remember, an average American spends about $3,639 annually on eating out. Imagine the savings when you start packing your lunch for work!

3. Gardening

Gardening isn’t just for green thumbs. It’s a peaceful, therapeutic hobby that rewards you with fresh, organic produce. You’ll cut down on your grocery bills, eat healthily, and maybe even find a new passion.

4. Thrift Shopping

Think of thrift shopping as a treasure hunt where you uncover hidden gems at a fraction of the cost. It’s not just economical; it’s a thrilling quest for unique finds. You’ll be surprised at the joy of discovering something special in a thrift store, and how little it costs.

5. DIY Projects

Do-it-yourself projects are not just about saving money; they’re about expressing your creativity and adding a personal touch to your home. Whether it’s refurbishing an old piece of furniture or crafting home decor, these projects can be immensely satisfying and a great way to de-stress.

6. A No-Spend Challenge

Ever tried a no-spend month? It’s an exciting challenge that forces you to be inventive with what you have. Plan your expenses, stick to necessities, and discover the joys of simple living. You might just find new hobbies that are cost-free and fulfilling.

7. Affordable Fun

Fun doesn’t have to be expensive. Explore the outdoors, enjoy free community events, or host a movie night at home. You’ll find that these activities can be just as enjoyable as their pricier counterparts, if not more.

8. Budget Travel

Traveling doesn’t always require a hefty budget. Plan your trips wisely, look for deals, and consider budget-friendly accommodations. It’s about the experience, not the expense.

Frugal living doesn’t mean giving up the things you love. It’s about making informed, value-based decisions that will enrich your life. For more money-saving tips and insights into managing your finances, don’t forget to check out our website and subscribe to our First Scoop blog.

Financial Planning for Major Life Events

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In the journey of life, certain events stand out as significant milestones. These major life events, from starting a new educational path to retirement – shape our future in profound ways. First Financial can help you understand the financial implications of these events while maintaining sound financial health. Let’s delve into the intricacies of financial planning for these pivotal moments.

Continuing Education

The cost of education, be it college or post-graduate studies, is a significant investment. Exploring options like custodial accounts and 529 plans can ease the burden of saving for your or your child’s education. Considering the return on investment (ROI) is crucial, not just for traditional university programs but also for additional training that could lead to lucrative careers.

Getting Married

Getting married is more than a romantic commitment, it involves serious financial planning too. Budgeting for the big day is just the start. Discussing financial management with your partner, considering pre-nuptial agreements for asset protection, and updating insurance are vital steps in this journey. This is a time to re-title assets, revise estate plans, and align investment strategies with your shared goals.

Parenthood

Planning for a new addition to your family means preparing for pregnancy expenses and ensuring adequate health coverage. It’s also crucial to understand the financial aspects of fertility treatments or adoption if applicable, ensuring you’re ready for this life-altering event.

Navigating Divorce

If facing a divorce, it’s essential to prepare for its legal and financial implications. Maintaining financial independence and planning for life post-divorce are critical steps in this challenging phase.

Unforeseen Health Events

Illness or personal injury can strike unannounced, making health insurance and understanding workplace coverage indispensable. Similarly, the death or severe illness of a loved one necessitates having life insurance and an estate plan in place.

Buying or Moving Homes

Buying or moving homes involves more than just finding the right place to live and being able to afford your new monthly mortgage payments. It requires financial planning for insurance, property titling, home furnishings or renovations, and potential relocation costs too.

Career Shifts

Whether it’s about changing jobs or starting your own business, these decisions demand careful financial planning. Consider the costs of job training, the importance of emergency savings, and the need to protect personal assets. Developing an exit strategy, especially for business owners – is a prudent step. If you have questions about starting your own business, reach out to our Business Development Team today.

When planning for retirement, it’s all about ensuring a financially secure and fulfilling post-work life. Shifting investment strategies and planning for higher healthcare costs are also part of this stage, as is considering where you might want to settle down during your golden years.

Handling Windfalls

Receiving a large sum of money, be it from an inheritance, settlement, or a business sale, requires strategic planning. Consulting with advisors and tax attorneys is crucial to make the most of this financial bonus.

Economic Hardship

In times of economic hardship, like job loss or inflation – being prepared is key. This involves maintaining an emergency fund, avoiding debt, and making informed decisions.

Financial planning for major life events is not just about securing your immediate future, it’s about ensuring long-term happiness and security, regardless of life’s unpredictable nature. By preparing for both the expected and the unexpected, you can set the stage for your overall financial well-being. And if you need a little helping hand, check out our Financial Helper Loans – designed to help you manage life’s unexpected or necessary expenses.*

First Financial is your financial partner, no matter what happens in your life. To talk to a representative, call us at 732-312-1500, or visit a branch today.

*APR = Annual Percentage Rate. Rates are subject to change. Not all applicants qualify, subject to credit approval. A First Financial membership is required to obtain a Personal Loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. See credit union for details.

Building a Financial Plan for 2024

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As we approach 2024, financial planning for the new year is crucial. Surveys have found that people who have a plan have overall healthier money habits. Financial planning requires a mix of foresight, strategy, and adaptability. It’s a journey of managing your finances, from immediate needs to long-term aspirations. Here’s how you can gear up for financial success in the new year.

Understanding the Financial Planning Process

Financial planning isn’t a one-time event, but a continuous process. It’s about balancing short-term necessities with long-term dreams, reducing stress, and building a comfortable nest egg. Whether for retirement or creating generational wealth, the process supports your present while paving the way for your future.

Embracing the Framework

This structured approach is adaptable and can be started at any point. Don’t worry if you’ve already embarked on some of these steps – it’s all about progress and adjustment.

  1. Setting Financial Goals – Start by defining your financial goals for the new year and beyond. What do you want to achieve next year? Whether it’s saving for a down payment, paying off debt, or planning a big trip – clarity in your objectives is key.
  2. Planning for Taxes – Tax planning is an integral part of financial health. Explore potential tax credits and deductions. Remember, efficient tax planning can boost your savings substantially.
  3. Building an Emergency Fund – Life is unpredictable. An emergency fund acts as a financial buffer against unexpected expenses. Aim to save enough to cover at least 3-6 months of living expenses.
  4. Managing Debt – Debt management is critical. Create a plan to reduce high-interest debt and maintain a healthy credit score. Consider strategies like debt consolidation, if applicable. Here at First Financial, we have a consolidation loan which can help simplify paying your bills by combining multiple sources of debt into one monthly loan payment.*
  5. Utilizing Insurance – Insurance provides a safety net for life’s unexpected turns. Review and update your insurance policies, ensuring you have adequate coverage for your needs.
  6. Planning for Retirement and Beyond – It’s never too early to think about retirement. If you haven’t already, start contributing to a retirement plan like a 401(k) or an IRA.** Consider increasing your contributions if possible. Also look into other investment opportunities beyond traditional retirement accounts to maximize your financial growth. If you need help getting started, contact the First Financial Investment & Retirement Center.+

Starting Your Financial Planning Journey

Whether you’re crafting the plan yourself or seeking professional guidance, the key is to start. The journey to financial wellness in 2024 involves strategic planning and execution. By following these steps, you can build a solid foundation, giving you the confidence to face financial challenges and achieve your big picture goals.

Embark on your financial planning journey today, and set the stage for a prosperous new year! For more financial tips, subscribe to our blog, get in touch, or stop into your local branch today.

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. 

**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.

+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:

Splurges that are Worth the Cost

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In the pursuit of savings, we often find ourselves tempted by budget-friendly options. However, what is sometimes overlooked is the hidden cost that comes with these choices. Opting for the less expensive alternative can mean making a trade-off on quality, which may prove costly in the long run. On the other hand, making splurges that are worth the cost by investing in higher quality options from the outset can be a savvy financial and practical choice. This can not only save both time and money over the years, but also ensure long term satisfaction and financial well-being. There are several areas in your lifestyle where splurges may be worth the cost, and prioritizing quality over cost is the best approach.

1. Health

Your health is your most valuable asset, and investing in it is always worthwhile. High quality, and healthy groceries for example, may seem expensive upfront – but can save you substantial healthcare costs down the road. Plus, a well-balanced diet contributes to your overall well-being. Splurging on a fitness program or gym that suits your lifestyle and preferences means you’ll enjoy your workouts and you’re more likely to stick with them. If you have an active hobby like cycling, hiking, or yoga – investing in quality gear will enhance your experience and motivate you to stay active.

2. Your Bed

A good quality mattress and pillow are investments in your overall health and well-being. These can both provide the essential support your body needs during sleep, promoting proper spinal alignment and alleviating pressure points. This translates to restful, rejuvenating sleep – which in turn can improve cognitive function, boost your mood, and enhance your physical health. Moreover, these investments are built to last – sparing you frequent replacements associated with cheaper options, and ultimately saving you money in the long run.

3. Office Chairs

Many of us spend hours at our desks, whether for work or leisure. A quality ergonomic desk chair is not just a piece of furniture – it’s an investment in both your comfort and health that can stand the test of time. These types of chairs are designed to offer optimal lumbar support, adjustable features, and cushioning that reduces the strain on your back, neck, and shoulders during long hours of work. By maintaining proper posture and alleviating the physical stress associated with prolonged sitting, a top-notch desk chair can prevent chronic back pain, improve circulation, and reduce the risk of musculoskeletal issues.

4. Kitchen Knives

Invest in a single quality chef’s knife instead of a collection of special purpose knives. A good knife is a kitchen workhorse that will last for years and make food preparation a breeze. In fact, many professional chefs advise against buying a set of knives altogether, as the quality of the tools is often compromised to lower the cost. They suggest slowly building a collection of better quality knives over time as your cooking needs grow. These knives will stay sharper for longer, which makes them safer to use.

5. Tools

Quality tools are a DIY enthusiast’s best friend and an asset to any household. They may cost more initially, but they’ll save you money over time by helping you tackle home improvement projects effectively. Plus, they can last a lifetime with proper care.

6. Quality Wardrobe Staples

Investing in certain wardrobe staples like shoes, jeans, and timeless basics, is not just a fashion choice – but a smart financial decision for a wardrobe built to last. While the initial cost might be higher, the longevity of these items more than justifies the investment. High quality shoes, for instance – not only elevate your style, but also back your health by offering superior arch support and cushioning, reducing the risk of discomfort and long-term orthopedic issues. Durable jeans and timeless basics never go out of style, ensuring that your wardrobe remains relevant and functional for years to come.

7. Experiences and Vacations

Investing in experiences and vacations is a financial decision that pays in both joy and peace of mind. While it may seem like a splurge, spending a little more on accommodations often translates to better customer service and a smoother travel experience. When unexpected issues arise, well-established travel providers can offer prompt solutions, sparing you the stress and additional expenses of scrambling for alternatives on your own. Beyond the practical benefits – creating lasting stories, memories, and connections enriches our lives in ways that material possessions cannot.

Remember that financial well-being isn’t about depriving yourself, it’s about finding a balance between enjoying life today and securing your future. By budgeting for occasional indulgences, you can satisfy your wants without compromising your overall financial goals. It’s like giving yourself permission to enjoy life while staying financially responsible. Allocate a specific portion of your budget for fun, prioritize your purchases, track your spending, take your time making decisions – and you’ll be able to make some nice-to-have purchases without throwing away your whole budget.

At First Financial, we’re here to support your financial journey. If you have questions about budgeting, saving, or managing your finances – feel free to reach out to us. We’re here to help you make the most of your money!

You Need a Budget and Here’s How to Start

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In the hustle and bustle of daily life, taking time to manage your finances might seem like an additional chore. Before you dismiss budgeting as just another tedious task, consider the insights from financial experts who unanimously emphasize its significance. Building a budget isn’t just about crunching numbers; it’s a powerful tool that can shape your financial future.

Let’s dive into why you should have a budget.

To Take Control of Your Money

Money can often feel like an elusive force that impacts our emotional well-being. Instead of allowing money to control how you behave, building a budget allows you to control where your money goes. Budgeting can combat chronic financial stress. By gaining a clear understanding of your financial situation and actively managing it – you can reduce anxiety, regain control over your finances, and offer yourself a sense of peace.

Additionally, it’s easy to feel like you’re at the mercy of inflation. Budgeting involves vigilantly tracking income and expenses, and by keeping a close eye on your finances – you can identify patterns, adapt to changing circumstances, and make informed adjustments.

To Reach Your Financial Goals

Financial dreams such as early retirement, homeownership, education, or debt elimination, require careful planning. Budgeting opens the door to these dreams becoming a reality. It’s a roadmap to allocate resources wisely and stay on track toward your goals.

To Uncover Areas of Overspending & Understand What You Can Afford

Indulgent spending on hobbies, dining out, or subscription services can spiral out of control if not managed. A budget provides clarity on spending habits, enabling you to make informed decisions about cutting back on discretionary expenses and reallocating funds for more crucial needs.

Large purchases like homes or vehicles, may often lead to overspending. A budget offers clarity on your true financial capacity, factoring in variable expenses and retirement savings – enabling you to make informed decisions about significant purchases.

To Eliminate Debt

The ‘debt snowball’ technique leverages budgeting to accelerate debt elimination. Focusing on paying off the smallest debt first while maintaining minimum payments on others, can provide small victories that propel you toward becoming debt-free.

To Plan for the Future

Budgeting not only helps you manage current expenses, but it also aids in planning for the future. A budget guides you in contributing to your retirement fund, securing your financial well-being in the long run. In the case of a monetary emergency, budgeting is your lifeline during financial hardships. Regardless of your income level, creating a budget ensures that your resources are allocated wisely, helping you weather uncertainties or fund your future with confidence.

Getting Started with Budgeting

Now that you understand why you should create a budget, here are the first steps toward your budgeting journey.

Step 1: Calculate Your Monthly Income. The journey begins by calculating your monthly income. This includes your take home pay and any automatic deductions for savings, insurance, and retirement contributions. This holistic view provides an accurate picture of your financial inflow and outflow.

Step 2: Choose a Budgeting Method. The wealth of budgeting methods available can be overwhelming. Opt for a system that comprehensively covers your needs, some wants, and most importantly – provisions for emergencies and future endeavors. Examples include the envelope system, the zero-based budget, or the 50/30/20 rule – all of which ensure that essentials, wants, and savings are all given their due.  Automate your savings to effortlessly direct funds to specific purposes. An accountability partner or an online support group can provide the motivation needed to adhere to your budget.

Step 3: Track and Manage. Your budget is a dynamic document that needs constant monitoring. Consistency is key to obtaining a clear picture of your financial flow. Keep a record of your spending, either manually or using online tools – to ensure your actual expenses align with your budgeted amounts. Your financial circumstances, priorities, and expenses will evolve. Regularly revisit and adjust your budget to stay aligned with your goals.

In the intricate tapestry of personal finance, budgeting emerges as your guiding thread. With discipline and commitment, you’ll be able to navigate the challenges, seize opportunities, and enjoy the peace of mind that comes with a well-managed budget. Remember, budgeting isn’t about restriction; it’s about empowerment. It offers you the tools to make conscious choices, prioritize what truly matters, and build a stable financial foundation for a brighter future. So, take the plunge and embark on your budgeting journey today! Get started with our handy guide and fillable PDF budgeting worksheet. If you have additional questions or need help getting started, stop into your local branch or contact us today.

Costly Impulse Purchases and How to Avoid Them

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We’ve all been there—caught up in the excitement of a flashy advertisement or the promise of an improved life, only to regret our impulsive purchase later. These purchases can wreak havoc on our finances and majorly set back progress toward achieving financial goals. However, with a little mindfulness and strategic planning, we can resist the allure of impulse buying and make smarter financial choices. Let’s explore some common examples of impulse purchases and provide practical tips to help you avoid them.

Common Impulse Purchases to Look Out For

  • Food and Dining: Buying takeout or eating out frequently instead of cooking at home can drain your budget quickly. Impulse purchases of snacks, drinks, or expensive meals can add up over time, and throw off your budget in a major way.
  • Subscription Services: Signing up for various subscription services without thoroughly assessing their value or necessity, can result in accumulating monthly expenses. Subscriptions for streaming platforms, beauty boxes, gym memberships, or online courses should be carefully considered to avoid unnecessary spending. Try using apps that help you cancel unwanted subscriptions so you can lower your monthly bills.
  • Cosmetics and Beauty Products: Impulse purchases of makeup, skincare, or beauty products can be tempting, especially when influenced by online trends. Buying products without considering your actual needs or the expiration dates of existing items can lead to wasteful spending.
  • Hobby-Related Purchases: Engaging in new hobbies can be enjoyable, but impulsive purchases of equipment, instruments, or materials related to these hobbies should be carefully considered. Take the time to research and assess your commitment to the hobby before spending a substantial amount on supplies.
  • Trendy Clothing and Accessories: Impulse buying of trendy clothing or accessories can quickly eat into your budget. Purchasing items solely based on current fashion trends may result in regret once those trends fade. Focus on timeless pieces that align with your style and can be worn for years to come.

How to Avoid Impulse Spending

  • Recognize Your Triggers: Identify the emotional triggers that lead to impulse buying, such as stress, boredom, or the desire for instant gratification. By understanding your triggers, you can develop strategies to counteract them, such as finding alternative stress-relief methods or engaging in free activities to combat boredom.
  • Create a Detailed Budget: Establish a comprehensive budget that outlines your income, expenses, and savings goals. Allocating a specific amount for discretionary spending and adhering to it will help you resist the urge to make impulsive purchases that exceed your financial means.
  • Make a Shopping List and Stick to It: Before shopping, create a list of items you genuinely need and stick to it. This practice will help you stay focused and avoid getting swayed by temptations. Prioritize essential items and resist the urge to buy outside of your list unless necessary.
  • Practice Waiting Periods: Adopt the 24-hour rule or the “sleep on it” approach. When you have the urge to buy something, wait for a predetermined period before making the purchase. This cooling-off period allows you to reflect on whether the item is truly necessary or just a passing desire, helping you make more informed decisions.
  • Distinguish Wants from Needs: Clearly understand what it means to want something vs. needing something. Wants are items you desire but can live without, while needs are essential for your well-being and daily functioning. Evaluate each potential purchase against this criterion to prioritize spending and avoid unnecessary expenses.

Costly impulse purchases can feel like small, infrequent occurrences – but can disrupt your financial stability and hinder your progress toward financial goals. At First Financial, we put your financial wellness first by providing useful tools and publications designed to help you achieve your goals and avoid common money mistakes. We also offer our members* financial products, services, and benefits that help make their lives easier. Visit a local branch or call 732.312.1500 to get started!

For more money advice, subscribe to our First Scoop blog.

*$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. A First Financial membership is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties.