Tag Archives: Saving Money

10 Ways Too Many People Throw Money Away

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Packs of dollar in the garbage can. Waste of money or currency collapse concept. 3d

There are all sorts of ways to cut spending and boost your savings, and there are just as many ways to sabotage your own finances. In addition to missing out on money-saving discounts, making unwise shopping decisions, and purchasing unnecessary items, you might also be throwing your money down the drain without even realizing.  Keep reading to ensure this doesn’t happen to you!

1. Never redeeming gift cards.

Even if you don’t want your gift card, at least give it to someone who will use it. According to statistics compiled by Gift Card Granny, more than $41 billion in gift cards went unused over a 6 year period. American households also average $300 in unused gift cards, and nearly half of recipients do not use the full value of the card. Don’t let dollars go down the drain!

2. Letting Groupons expire.

According to Yipit, roughly 15% of Groupons go unredeemed by the time the expiration date rolls around. Make a note of your daily deal coupon’s expiration date to ensure this doesn’t happen to you. And if your Groupon does expire, you may be able to contact the merchant directly to get some value from it.

3. Buying tickets and not showing up.

Purchasing tickets for a concert, sporting event, or other cultural activity often requires planning far in advance. But if you change your mind later or something comes up, you’ve already spent that money. These days people even buy movie tickets in advance online. If you can’t get a refund, you may be able to at least pass along your tickets to a friend. To make every dollar count, when possible it’s best to wait until you are certain to actually buy your tickets.

4. Paying late fees.

Even small late fees add up quickly. This can include everything from overdue library books, Redbox DVD rentals, or late payments on utilities. To avoid incurring late fees on your credit card, pay in advance of your due date, schedule automatic payment, or set a reminder for yourself. If you are hit with a late fee, call customer service and ask to have the charge waived. On your first offense many companies are willing to let the late fee go.

5. Paying bank fees.

It seems like every year big banks come up with new ways to nickel and dime their customers. Between minimum balances, fees for checking accounts, and ATM fees – these charges can add up. Avoid these unnecessary fees by joining a local credit union like First Financial! Credit unions typically offer free checking accounts and savings accounts with better interest rates.

6. Not returning unwanted goods.

It’s easy to let unwanted items or gifts just sit there in the closet, but with a little effort, you could be getting money back in your pocket. Even if you are past the return date, give it a try anyway. You may be able to at least get store credit. For online purchases, many retailers even cover the cost of shipping for returns. Some retailers will even take returns without a receipt.

7. Failing to ask for a refund.

Consumers who are dissatisfied with their service often don’t take the time to voice their concerns. The ones who do however, could end up with a full refund or at least a discount. If you have a bad experience, don’t be shy about speaking up. Even if you don’t get any money back, retailers and service providers should know when their customers aren’t satisfied.

8. Never disputing mistakes on a bill.

If you think your bill may be incorrect, it’s worth disputing the charges with the company. At most respectable businesses, the error will quickly be corrected. Unexpected medical bills are also a growing problem, and patients almost never file a complaint with a state agency. The Consumers Union online insurance complaint tool is a good place to start.

9. Forgetting to follow up on a rebate.

The sneaky thing about mail-in rebates is they are designed to be so complicated that consumers either forget to mail them in or do so incorrectly. More than $500 million in rebates go unfilled every year, often due to deceptive practices. The Wall Street Journal reported that about 40% of mail-in rebates go unredeemed or are filed incorrectly and denied. Think twice before getting involved in a rebate in the first place. If you are waiting on a rebate check from weeks or months ago, file a complaint with the Federal Trade Commission.

10. Not claiming money that’s yours.

Every year, unclaimed money is reported by the government, and rightful owners are encouraged to step forward and claim their funds. In 2013, states, federal agencies, and other organizations together reported $58 billion in unclaimed cash and benefits. This can include unclaimed IRS refunds, old bank accounts and stock holdings, unclaimed life insurance payouts, mortgage refunds, forgotten pension benefits, and more. Health insurance companies report forgotten funds as well. And if that money isn’t claimed, it gets turned over to the state.

The moral of the story – pay attention, follow up when necessary, and don’t throw good money away!

What To Do With Extra Cash

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Excited-Woman-Holding-CashFor the first time in a long time – thanks to a rebounding economy and an increased minimum wage in 23 states – salaries are on the rise. Great news, right? If you’re one of the fortunate recipients, what are you going to do with the extra cash? Step one is to make an actual plan to put it to use. Here are a few suggestions to get you started.

Flesh out your emergency fund.
A fully-funded emergency cushion should include enough cash to support 3-6 months of mandatory spending, but this doesn’t mean you have to cover all of your costs. Your emergency fund doesn’t need to include what you usually would spend in 3-6 months, but what you have to spend. This includes rent, bills, food, gas, and other necessities. This should also be enough to bail you out of a jam if your car breaks down or your plumbing gets backed up. If you dip into your emergency fund, you’ll want to spend the next few months replenishing it.

Pay down debt.
Here’s the deal on debt: The return on your money is equal to the interest rate you’re paying. So prepaying your mortgage – at 3% or 4% before the tax deduction – is less valuable to your bottom line than paying off a credit card at 15% or 19%.

Treat yourself.
This goes back to having a plan. When you get a raise, you have to avoid making impulsive decisions. The last thing you want is to look back years later and regret how you spent your extra cash. But the feeling that you deserve to celebrate is certainly common – and warranted. There is no one way to do this, but think about it long enough to try to spend money on something that makes you happy and that will last. The lasting impact doesn’t have to be material, either – a vacation can create memories that you’ll never forget!

Unfortunate Home Improvements

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Home-Improvement-ProjectHome improvement projects can be a lot of fun — and sometimes add value to your home — but are they worth the money they cost? If you have plans to one day move out of your home (or even if you don’t), you should consider how the project impacts the resale value. Below are some home improvement projects that are typically not worth the cash.

A new pool. We can’t blame you for wanting a pool. However, keep in mind that the cost of installing one and then maintaining it is quite high. Also, if you’re planning on selling down the road, remember that some buyers could be turned off by a pool, like parents with small children.

Extensive customization. While a lot of people might like a kitchen backsplash, the type of backsplash makes a big difference. You shouldn’t go overboard customizing (particularly if you’ve got unusual taste), because if you do, you could risk alienating buyers down the road.

Half measures. If you can add a bedroom, great. Those often are worth the money. However, don’t add square footage to your home in bits and pieces. Eventually the home will look disjointed, and buyers typically want a home that flows well.
Taking away a bedroom. Buyers will want a certain number of bedrooms, so try to avoid converting them when considering altering your space.

First Financial’s Home Improvement Loan is designed to help you create the home you’ve been imagining. It’s time to move your “wants” to the top of your to-do list.*

*Available on primary residence only. A First Financial membership is required to obtain a Home Improvement Loan and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. See credit union for details. Rate will vary based off of applicant’s credit rating. Not all applicants who apply will be approved, subject to underwriting guidelines and credit approval. Visit firstffcu.com for additional information.

10 Ways to Save Money Before Labor Day

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end of summer savingsLabor Day is only about a month away, which means summer is coming to an end. It also means your bank account might be bracing for a hit as you squeeze in a trip, start stocking up on back-to-school items for your children, or send a child off to college.

To prepare for these and other costs, you can take several steps to lower your expenses and save money on things you need to buy this month. Here are 10 ways you can save money before Labor Day:

1. Lower Your Cooling Costs.

If you’re cranking up your air conditioner to combat a heat wave, be prepared for a hefty electric bill. To keep costs low and stay cool, try the following tips:

  • Fans cost less to operate than air conditioners. You can raise your thermostat by four degrees and feel no reduction in comfort if you turn a fan on also.
  • You can lower your air conditioner’s energy consumption by 5% to 15% by replacing or cleaning dirty filters.
  • Cook outside using a grill to avoid heating your home with your oven.

2. Freeze Your Gym Membership.

If you’re not using your gym membership because you’re exercising outdoors or taking a summer trip, then freeze your membership. Putting your membership on hold can allow you to avoid any early termination fees if you have a year long contract, and save money on your membership fee during months when you’re not using the gym.

3. Save on School and Office Supplies.

Families are expected to spend an average of $97.94 on supplies such as notebooks, pencils and backpacks for school-age children this year, according to the National Retail Federation. You can keep the cost of school supplies under control by shopping back-to-school sales at retailers such as Target and Walmart, and office supply stores such as Staples.

Even if you don’t have kids, you can benefit from these sales – especially for office supplies.  Plus, you’ll find great deals on laptop computers in August as part of back-to-school sales, according to DealNews.com.

4. Take Advantage of Sales-Tax Holidays.

Seventeen states have back-to-school sales-tax holidays in August, according to the Federation of Tax Administrators. These holidays offer consumers an opportunity to avoid sales tax on clothing, footwear and school supplies. Some states even waive the sales tax on computers.

5. Start Price-Shopping for Holiday Travel.

The winter holidays are months away but now is the time to start comparing airfares “so you can lock in a good price when you find one,” said Holly Johnson, a frugal travel expert who blogs at ClubThrifty.com. To get the best price on airline tickets, you need to book flights at least 27 to 114 days in advance, according to a study by CheapAir.com. Flights for holiday travel fill up quickly, so you’re better off booking sooner rather than later.

6. Sign Up for a Rewards Credit Card.

If you are going to do some back-to-school shopping, book holiday travel or take a trip before Labor Day, take some of the sting out of that extra spending by using a credit card rewards.

Here at First Financial we offer a Visa Platinum Cash Plus Credit Card with no annual fee, a 10-day grace period+, and a uChoose Rewards program where you can redeem points for gift cards, merchandise items, travel, and so much more!*

7. Get Freebies From the Library.

If you have kids, you’re likely hearing them complain by now that they have nothing to do. To fend off boredom, take them to the local library to pick out books and DVDs for free. Whether or not you have children, you also can take advantage of free programs at your library, such as writing workshops or lecture series, in an air-conditioned environment.

8. Watch Inexpensive or Free Flicks.

Another way to keep the kids entertained in the weeks before school starts — without spending a lot of money — is to take advantage of discounted family movies at theaters. For example, Regal Entertainment Group, which operates 569 theaters in 42 states, charges just $1 for tickets for family movies at 10 a.m. on Tuesdays and Wednesdays.

Additionally, plenty of communities offer free movies in parks. Check for listings on community calendars, the parks and recreation department, or local government websites.  Or check out our First Scoop Blog’s monthly things to do on a budget in Monmouth and Ocean Counties series!

9. Cut Food Costs With Seasonal Produce.

A great way to lower your grocery bill is to buy produce that is in season where you live, because the prices will be lower on those fruits and vegetables than ones shipped in from other areas of the country or other parts of the world. You should be able to take advantage of late summer fruit and vegetable harvests to save money this month.

10. Snag Summer Clothing on Clearance.

Retailers are making way for fall clothing in preparation for back-to-school shopping crowds, which means you can score serious savings on summer apparel. Expect discounts of 60% or more on summer staples, which you’ll still be able to wear for a few months and into colder months by layering. If you shop before Labor Day, you’ll have a better and bigger selection.

*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.

How Much Should You Have in Your Emergency Reserve?

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emergency-savings29% of Americans admit they keep no emergency savings and only 22% are prepared with at least six months in reserve, according to a survey by Bankrate. However, a few simple steps could help you avoid severe financial risk.

According to CBS News business analyst Jill Schlesinger, a reserve should total six to 12 months of one’s living expenses for those with jobs.

For retirees, Schlesinger said the equivalent of 12 to 24 months of living expenses in reserve is ideal to avoid dipping into savings.

A reserve should be liquid cash because “it has to be safe,” Schlesinger says.

While some Americans struggle living paycheck to paycheck, Schlesinger recommends starting early and small.

“There was a great survey out recently about retirement savings. And it’s had the same result, which is a lot of people are unprepared. It also asked: ‘Do you think, even though you have no money saved today, that you could save $25 a week?’ And a majority of people said ‘Yes, I could,’ ” Schlesinger said.

The least painful way to do this is by automating your savings.

Acorns for one, rounds up the price of purchases, takes the spare change, and invests it in exchange traded funds (ETF).

Spending habits also change with age.

“When you’re young, you’ve got student debt and you’ve graduated, you really have to address paying down that debt, saving for your emergency reserves, and then starting to invest long term,” Schlesinger said. “As you get older and you’ve gone through all these responsibilities – raised your kids, put money away for their college – then you really start to accelerate.”

Establishing your habits early will make it easier to save as you grow older.

With First Financial’s Online Banking, you have the ease of managing your finances right from home (even in your pajamas and slippers if you’d like)! You have the ability to check your accounts, sign up for eStatements, enroll in Bill Pay, transfer funds, set up email and account alerts, schedule future transfers (a great tool to use to help you save), order checks, and more. We even provide you with useful documents to help you get set-up with Online Banking.
Even when you’re on-the-go, you can take First Financial along with our mobile app. As a convenient tool, you’ll have 24/7 instant access to your accounts, plus Bill Pay, make transfers easily, check balances, branch & ATM locations, account alerts, and 1 Click remote deposit capture.* Click here to learn how to download the app to your iPhone or Android/Samsung smartphone.
*You must have an account at First Financial Federal Credit Union (serving Monmouth and Ocean Counties in NJ), and be enrolled in online banking, to use Online Banking or First Financial’s Mobile App. Members must meet certain criteria to be eligible for Remote Deposit Capture. Standard data rates and charges may apply.

Article Source: Courtesy of CBS News

10 Simple Money Saving Tips

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bigstock-Saving-money-jarSome of the more frequently talked about personal finance tips can come across as unreasonable, too difficult, too time consuming, or irrelevant. Yet, the search continues across all income brackets for how to comfortably spend less and save more.

Below are 10 simple money saving tips that you may not have thought about – each with some serious financial benefits. Saving money does not have to be a chore, it’s an accumulation of habits and adjusted perspectives, none of which are detrimental to your daily routine.

The goal of these 10 tips is to not overhaul your life, but to make manageable, tiny tweaks that carry a big bang at the end of the year.

1. Use Cash. After setting a budget, take out cash for your entertainment spending pocket. It’ll ensure that you do not spend above the designated amount. Since a coffee here and burger there, really adds up and quickly – making sure that those erroneous expenses are always paid in cash will help you stay on top of that expense area (an area frequently a victim of the swipe and forget plague).

2. Adjust That Thermostat. Turn your heat down ten degrees and the a/c up two degrees. Utility companies have reported that even just a consistent two degree shift can save you money without leaving you miserable. The same principle can apply for pre-setting programmable thermostats to change throughout the day, adjusting for when you are away from home or asleep; with a more drastic change while you are away (10 to 15 degrees for eight hours). Your savings could be as great as 15 percent a year, says Energy.gov.

3. Help Santa Save. Consider early prep for holiday shopping. Either look throughout the year and really benefit from sales, or consider the benefits of buying a gift card monthly and setting it aside for yourself. Come December, with just $25 gift cards each month, you will have set aside $275 specifically for holiday spending.

4. Drink More Water. By replacing just one soda, coffee or beer each day, you not only invest in your health, but you could save some serious change. If you eliminate one $5 coffee just three days a week, that’s an additional $780 dollars at the end of a year’s time. Or, if you have that fancy coffee addiction, consider getting a coffee machine and buy your favorite grounds in bulk. Bulk buying can save money as well.

5. Eat In. Avoid the frequent trap of not wanting to cook and resorting to dragging the whole family out to eat despite your pantries being full. If inspiration is the missing link, try setting a weekly menu for the household, alternate cooking responsibilities or even involve the whole family in meal prep every night. And, instead of letting the “I have to cook or we will end up eating out” mentality get you in trouble, keep a few home cooked meals prepped and frozen for those moments of dinner despair.

6. Shop Smarter For Groceries. Clipping coupons isn’t for everyone. It can be time consuming and require more organization to truly be effective than some people’s attention spans and patience can handle. Shop smarter, even if you don’t use on coupons. Look for sale items and weekly promotional deals. Shop what’s in season for your fresh produce. Try store brands; many canned products and dried products have the same ingredients as name brand products.

7. Find A Penny, Pick It Up. Save loose change. If you were to save an average of fifty cents a day, you would have almost $200 set aside at the end of the year. Keep an old water jug set up so that you can watch it fill up throughout the year.

8. Stop Before You Swipe. Sometimes it’s all about perspective. When looking at a frivolous purchase, consider the cost against your income. If you earn $15 an hour and are holding up a $300 suit, ask yourself if you are willing to work 20 hours with only the suit to show for your labor at the end. The same can be done for smaller purchases as well. Is that 32 ounce, blended chai tea latte with soy worth the first thirty minutes of your workday? This method is not a way to talk yourself out of making purchases, but simply to put the expense in a framework.

9. Keep The Car In Check. Stay on top of regular, necessary car maintenance. Doing so can save a pretty penny in gas costs alone, not to mention the costs you can avoid from a side of the road breakdown or preventable tire blow out.

10. Use Your Phone. Sometimes it’s as simple as knowing what is going in with your finances. Awareness brings control; so go ahead and download a personal finance app. There are plenty available that have been professionally reviewed and approved. Additionally, many of the highest rated are free. Remember though, the key is to not only have the app, but to use it. The icon or widget is only as useful as you make it.

Article source courtesy of Joe Young of NASDAQ.