Author Archives: VP of Marketing and Business Development Jessica

Could Your Budget Handle a Decrease in Income?

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One of the most difficult situations to deal with is a decrease in income, especially if you are like many Americans of late – living paycheck to paycheck. Many of us base our lifestyle around and live right up to the limit of what our income can afford us to purchase. Living this way can really hinder your budget no matter how much you bring in.

However, spending above our means and not sticking to a budget can really be a problem – because what happens if life throws out a curveball? This unfortunate instance happened to many Americans this year during the COVID-19 pandemic. Here are a few ways to make sure you are financially prepared should you ever experience an unexpected income drop.

The Importance of a Variety of Income Sources

One of the best ways to handle a potential loss of income is to build up income from various sources, if possible. This can be important so that you aren’t relying on one source of income for everything.

If you don’t make as much as you’d like in your daily 9 to 5, starting a side business or part-time job in order to be able to fall back on additional income can be a help. Try to consistently save some of your extra income when times are good so that you are prepared the next time a crisis happens.

What Can You Cut from Your Budget?

It’s important to know which items you would cut in a pinch from your budget if you had to. It’s also good practice to plan ahead of time and figure out where you could cut back if you ever needed to.

Look at your spending patterns, and figure out what is most important. Items such as groceries and bills are necessities, and will need to be managed even if you are making less. However, dining out and added services such as cable can always be temporarily cut from your budget if you needed to.

Review what you spend money on currently and start to get prepared. You could even think about cutting back on some of that spending now, and put it aside in your emergency savings fund to be ready for a rainy day.

Do You Have an Emergency Fund?

This is one of the most important savings accounts to ever have. An emergency fund’s purpose is to be a safety net in the event that your income takes a cut, and you no longer have enough money to meet your current financial obligations. When you have somewhat of a buffer saved in the bank, you’ll feel better prepared and less stressed should you experience any sort of financial emergency. Continue to save what you can and keep putting it away into your emergency savings account – every little bit helps!

Article Source: Moneyning.com

Should You Take Out a Personal Loan or Line of Credit?

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When it comes to Personal Loans and Personal Lines of Credit, the options for how to use the funds are endless. While both offer flexibility in the different ways you can use them, there are certain instances where choosing a Personal Loan might be a better fit than a Personal Line of Credit and vice versa. Let’s explore these options and help determine which is the best choice for you and your budget.

Consider the Nature of the Expense

Personal Loans are distributed in one lump sum and are typically best for large, one-time expenses. Popular uses include back-to-school costs, paying off high-interest debt, and higher education expenses. In contrast, Personal Lines of Credit are revolving and operate similarly to a credit card – where you only pay on the amount you use for a specified term. This credit line is consistently available – once you pay off the money you have borrowed, the funds open up again.

A Personal Line of Credit can be optimal if you aren’t sure how much money you will need to borrow or for how long. Common examples of ways to use a Personal Line of Credit are supplementing irregular income, making home improvements, and having a backup for when unexpected expenses arise.

Evaluate the Terms and Your Budget

One way to remember the difference between a Personal Loan and a Personal Line of Credit is that a Personal Loan is fixed and a Line of Credit can change over the term. If you’re looking for a way to budget a certain amount each month, a Personal Loan ensures that you’ll pay a set amount each month for the life of the loan. With a Personal Line of Credit, the term will typically be longer and you’ll only pay on what you use. For example, if you are approved for a $10,000 credit line and only use $2,000 of the money, you will only need to make payments on the amount you’ve used. Alternatively, if you have a Personal Loan – you’ll make payments on the total amount of money borrowed, whether you’ve used the funds or not.

Qualifying for a Personal Loan vs. a Personal Line of Credit

Typically, receiving approval for a Personal Line of Credit is more challenging to obtain than a Personal Loan. Why?  Due to the flexible nature of a Personal Line of Credit, having a good credit score is a significant factor in the decision to approve funding. On the other hand, a Personal Loan with its fixed term and amount borrowed – usually allows for easier approval.

Making the Decision

Why is it important to know the differences beyond the interest rate when it comes down to Personal Loans and Personal Lines of Credit? While often confused, these loan types have distinct differences that – if not chosen wisely, you could end up paying more. Factor in the end result of what you will be using the loan or line of credit for, how soon you’ll be able to pay it back, and take a close look at what your monthly budget is before you apply.

If you’re looking to fund the next step in your life, First Financial can help you achieve your financial goals. Talk to us today about your options and how to choose the right solution for you. Learn more about our Personal Loan and Line of Credit options here, and apply online 24/7!

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. A First Financial Federal Credit Union 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. Federally insured by NCUA.

 

What to Do When Your Vehicle Lease Ends

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My car lease is almost up, now what?

This is a common question when nearing the end of an auto lease. In most cases, you have three options:

1. Walk away from the lease.

Walking away from a lease may cost you in disposition or termination fees, mileage charges, and additional costs for wear and tear.

2. Trade the vehicle in.

Most times, you don’t have to trade the vehicle in to the dealership that leased you the vehicle. This may help you avoid those end-of-lease fees that may be associated with walking away from the lease.

3. Purchase the vehicle.

This will also help you sidestep the disposition and other end-of-lease fees. You’ll have the first option to purchase the vehicle. If you don’t purchase it, the dealership gets the next opportunity and the leasing company after that.

First Steps as You Near the End of Your Lease

Before you make a decision, look up the residual value and true value of your vehicle. The residual value is the amount you can purchase the vehicle for at the end of your lease. This number is essentially set in stone.

The next number is the true value. This is what a dealership would intend to pay for your currently leased vehicle. You can choose to research this number through online websites like Kelly Blue Book or NADA, however these platforms will only provide estimates. The official true value can only be found by inquiring what a dealership would pay for your vehicle today.

Should I Buy?

The steps above will indicate two things: What you would have to pay to purchase your vehicle, and what equity your vehicle still has. Once you know these numbers, you can consider whether purchasing the car is right for you.

Purchasing your leased vehicle is a good idea if:

  • Your car has excessive wear and tear. This means when you go to trade in the vehicle or walk away from the lease, you’ll be charged additional fees for fixing any damages. If you purchase the vehicle, you can choose to pay to fix those items when it’s convenient for you and your budget.
  • You’re way over—or under, on mileage. If you’re way over, you’ll owe a hefty charge for trading your car in. If you’re under your allotted miles, you’ll likely have equity in your vehicle’s value versus what you would purchase it for.
  • You love your car! Yes, sometimes the numbers don’t have to match perfectly. You may be exactly at your mileage allotment, and you still want to keep the car you’ve had for the past few years. This might be a great option too, and we’re happy to help you do so (and potentially save some money on monthly car payments) with our Lease Buyout Program.*

Need help deciding which option is best for you? Our Loan Department is happy to talk through your decision with you, and help you get the best possible deal. Get started by calling 732.312.1500, Option 4 or apply for our lease buyout loan online or fill out our quick online inquiry form and a representative will contact you.

For more information, check out our previous blog post: Reasons Buying Out Your Lease Makes Good Financial Sense

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial auto loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. Federally insured by NCUA.

 

How Much Do Your Financial Vices REALLY Cost?

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What is one thing you just can’t live without? That little indulgence that helps you make it through the day. For some of us, it’s a jolt of caffeine. For others, Netflix and Hulu offer a sweet escape from the hustle and bustle of everyday life. What we sometimes fail to think about, is these little escapes can be a drain on our wallets. Here are some ways you can cut those costs.

Coffee/Energy Drinks

The mid-morning slump, the mid-afternoon slump, and the post-mid-afternoon slump. The idea is that sometimes the day seems to drag on for way longer than seemingly possible. Some people reach for the nearest Starbucks to replenish their energy reserves, while some crack open an energy drink in the hopes of pushing through the rest of the day. What neither often considers, is that these sources of liquid energy can really add up. The average price of a cup of regular (non-latte) coffee from Starbucks is $1.89, and that’s only the average – some areas will be much higher. That may not seem like much, but consider this: an American who drinks coffee at home will save approximately $427 per year over those who regularly visit coffee shops. When we look at energy drinks, on average they cost anywhere between $2-$4. They can be almost double the cost of coffee. A cheaper alternative – green tea! If saving money is high on your priority list, put your at-home barista skills to work.

Subscription Services

From snacks to pet toys, a new wardrobe, and everything in between, there is a subscription service for it all these days. Many in fact, sometimes forget what they have subscribed to, leading to a big bill each month. Arguably the most common subscription is Netflix, which will cost you around $12.99 a month (if you only want the standard package). Add in Hulu ($5.99), BarkBox ($22), and StitchFix ($20), and you now have a monthly subscription bill of slightly over $60. See how fast that adds up? Not to mention the ever-popular meal subscription services can run you about $200 a month. While these modern conveniences are well…convenient, they are also pricey. Most of us don’t want to give up our Netflix, and that’s fine. Take a hard look at all your subscriptions. Are you getting your money’s worth? Do you eat all the meals from the meal kit? Do you keep enough from StitchFix that the $20 a month fee is worth it? Odds are, you’ll find one or two subscriptions you can live without. Your quality of life will stay the same, and you’ll save money too.

Take Out

Do you look at a recipe and instantly get woozy? Cooking isn’t for everyone, and take out can taste great and you barely have to lift a finger to get it nowadays. Before you pull up DoorDash or GrubHub, consider that the average household spends $3,000 a year dining out. That’s no small amount. On closer look, a prepared meal at a restaurant costs on average, $13. Compare that to the average cost of groceries per person for an at-home meal…$4. Yes, that is a $9 savings just from eating at home. The good news is that anyone can cook. All it takes is a little preparation. Plan your meals, choose easy recipes, and don’t expect every meal you prepare to be a Michelin-star experience. Casseroles are an easy meal that is also inexpensive and tasty. If you are completely opposed to cooking, be responsible with your take out. Choose locally-owned businesses and restaurants so that your money is stimulating the local economy. When you use a delivery service, you aren’t just paying for the food. Your total also includes a service fee, tax, a delivery fee, and a tip. Many times your order total will be double. A recent study showed that your meal will cost you 32.8% more when you order food from DoorDash vs ordering directly from a restaurant.

Online Shopping

“Add to Cart.” The temptation is always just a click away. Surfing the net can bring some expensive side effects as you see a constant flood of targeted ads. It’s like they know exactly what you’re looking for. When an online retailer meets your wants and needs (and at such a deal), it becomes hard to pass it up. And free shipping? It can more than likely be a trap to get you to continue to spend. Sure, you are getting good deals on your online purchases, but this can also make you feel like you can buy just one more thing. Soon, your whole budget has been blown on online shopping. There are many ways you can curb this habit. For starters, make sure to delete your payment information from auto-populating in services like PayPal and Amazon. Secondly, set strict limits for yourself. In your budget, set aside some funds for online shopping. If you know this is the only money you have to splurge, you might think twice before clicking “complete purchase.”

If you do any of the things above, the first thing to remember is not to get discouraged. A cup of coffee or a new shirt never hurt anyone. With most things in life, our financial vices are all about moderation. We wouldn’t expect you never to visit a Starbucks or get take out ever again. Set realistic goals for yourself and hold yourself accountable, you’ll be amazed at the savings. At First Financial, we are here to help you reach your goals and attain financial stability. To get started, check out our handy budgeting guide.

Money Saving Ideas for Your End of Summer Staycation

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If you’re trying to make the best of the last few weeks of summer while vacationing at home and saving money – keep reading. With a bit of creativity and an open mind, spending your time off at home can still be just as fun and just as rewarding. Plus, you won’t have airfare or hotel bills to pay!

Turn Your House into a Hotel

You can enjoy the experience of staying in a hotel right at home. Indulge in hot chocolate at night with a fresh baked cookie, create a mini bar in your bedroom, and leave a folded luxurious robe and new pair of slippers out for yourself and enjoy a bubble bath. To add to the vacation resort feel, turn on the spa station on Pandora or find a relaxing music station on TV and keep it playing in the background. You can also buy tropical beach or spa scented candles or essential oils to increase the resort getaway feel, without ever leaving your house.

Around the World Theme Night Dinners

Convert your kitchen into a foreign destination with a themed dinner – a different one for every night of the week, if you so choose. Research the cuisine of each country you pick, play cultural music in the background, and serve drinks, appetizers, dinner and dessert all from the nationality of the day. To add to this idea, you might choose to get a bit competitive with other family members. Have each person make a certain dish, set a time limit, and vote on the best one!

Backyard Camping

Put up a tent in your backyard, and have a family camping experience equipped with sleeping bags, flashlights, cook on the grill, tell ghost stories, and make s’mores. You can also still have just as much fun with a living room camping experience with sleeping bags and flashlights too!

Hold a Yoga Retreat

This can also take place in your living room or outside in the backyard with yoga mats, infused water, and relaxing music. Search on YouTube or Google for simple poses and how-to videos to help guide you.

Watch a Broadway Show – Virtually

Did you know that https://www.broadwayhd.com/ includes a free 7 day trial? There are also monthly and annual subscription service options if you want to watch them all!

Hold a Movie Marathon

Rent movies or create a line-up of ones you’ve wanted to see but haven’t had the time for. Stock up on popcorn and other movie theater style snacks. If the weather is nice, you could even hold an outdoor marathon using a projector and screen and watch from the backyard.

Get Creative

Reconnect with your inner child (or your actual children), and hold a drawing or painting class. You will probably need to order some supplies in advance (paint, canvas, drawing pencils). The most important thing to remember is to be creative. If the weather is nice, paint or draw outside! If your creations turn out better than you hoped – you’ll even have new artwork to display inside.

Go Outside

Visit a local park, beach, go for a bike ride – just get outdoors. If you plan to spend the day outside, bring supplies like sunscreen, snacks, water, and other necessities.

Learn a Skill

Was there ever something you have always wanted to learn but just never found the time? Maybe you’ve always wanted to focus more on baking or cake decorating, grow a garden, etc. See if you can find a local class during your staycation and make your dream a reality.

Assist a Charity

There are many charities and non-profit organizations who can use your help no matter the season. Seek out one that’s local to you and spend the day volunteering. You’ll feel internally rewarded!

Travel Virtually

You might not be able to get on a plane and tour world landmarks or go on an island getaway right now, but you can travel virtually. If you’re a museum enthusiast, many museums around the globe also are featuring virtual online tours. Zoos, aquariums, and even theme parks have virtual experiences too – get out your laptop or tablet and start searching for the spots that interest you the most.

Article Source: TowerFCU.org

NJ Day Trip Ideas for a Local Staycation in Summer 2020

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As summer starts to come to an end, are you realizing you won’t get to vacation like usual this year but still want to experience something out of the ordinary and save money at the same time? Check out the following New Jersey day trip landmark ideas for a day of summer family fun (during a pandemic).

Asbury Park Boardwalk

Asbury Park’s boardwalk includes a variety of shops, places to eat, and historic spots (such as Convention Hall). Don’t miss the iconic Asbury Park pedal boats on Wesley Lake either! Just past the pedal boats, head into Ocean Grove – a charming little beachfront town right next to Asbury Park.

Battleship New Jersey

Located in Camden, if you’ve never seen the 887-foot-long battleship in person – you might want to consider taking a drive. The ship is over 11 stories high and is one of the longest battleships ever built, as well as the most decorated in the country. The ship was closed during the pandemic but is now open everyday through Labor Day. Be sure to check it out!

Cape May Lighthouse

This lighthouse is 161 years old, and once you climb 199 steps – you’ll get amazing views of the Atlantic Ocean, Delaware Bay, and Cape May-Lewes Ferry Terminal. This is a sight located within Lower Township’s Cape May Point State Park that you won’t want to miss!

The Delaware River

If it’s a nice day and you’re looking to take a scenic drive – think about driving along the Delaware River in Hunterdon County through Lambertville, Frenchtown, Milford and Stockton. Don’t miss the New Hope-Lambertville Bridge for a gorgeous view, and outdoor dining in Lambertville and New Hope.

The Great Falls of the Passaic River

Why drive all the way to Niagara Falls when the Great Falls of the Passaic is practically right in your own backyard in Paterson? The Great Falls of the Passaic are part of the National Historic Landmark District. Park grounds are currently open, however the welcome center is still temporarily closed. Learn more here.

Lucy the Elephant

Located in Margate City on Atlantic Avenue – you can’t miss the 6 story, 90-ton elephant that boasts a 140 year old history. Perfect for keeping your social distance, Lucy the Elephant is one of the oldest roadside attractions in the country! Guided tours are also currently taking place, with proper protocols like face masks while inside or in the gift shop.

Palisades Parkway

Located in Alpine – you can take a scenic 42-mile drive along the Hudson River from the George Washington Bridge to the Bear Mountain Bridge. You’ll get to see the New York City skyline, and there are three different lookout areas to stop and get out to appreciate the gorgeous views. Find out more here.

Pinelands National Reserve

Located in South Jersey and touching 7 counties, you’re bound to hit a section of one million acres of berry farms, historic villages, forests and wetlands – plus fresh air. Find out more at https://www.nps.gov/pine/index.htm

Red Mill Museum

Located in Clinton in Hunterdon County, the Red Mill is a NJ icon which sits on the Raritan River and was built in 1810. While some of the grounds might be temporarily closed, the Red Mill is featuring live outdoor concerts and car shows on various dates. Learn more here. In town you’ll also find shops, eateries, and tree lined streets.

With great day trip ideas like these – you can hit them all during your end of summer New Jersey staycation!

Article Source: Mycentraljersey.com