Category Archives: Financial Advice

6 Tips for Making Fiscal Fitness Goals Stick

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A sporting equipment - two red dumbbells. Isolated over white.

If you often struggle with setting financial goals and making them stick throughout the year, try these six tips.

1. Use the SMART principle.

The acronym SMART is a good way to remember an effective strategy for setting your fiscal finance goals. Make them specific, measurable, attainable, relevant, and time-specific. In other words, instead of deluding yourself that you’ll completely overhaul years of poor money management, start to tackle it in bite-size portions. Keeping goals specific also makes them seem more real and tangible than the undefined “improving my financial fitness.”

2. Incorporate the new practice into your routine.

Science shows we are creatures of habit. Once something is part of our routine, even if it’s an unpleasant task, we don’t seem to mind it as much. Getting to that point requires making a deliberate effort to incorporate new financial habits into your routine. To make this step easier, set up reminders on your smartphone calendar for specific times and dates you’ll set aside to address various aspects of your finances, whether it’s daily, weekly, or monthly.

3. Keep doing it – repetition leads to habit.

The more frequently you perform a new financial task as part of your routine, the sooner it becomes a habit – something that doesn’t require any willpower. That’s the trick.

4. Don’t judge yourself for failures – expect them.

Half the battle of following through with new goals of any kind is how you handle failure. If we were to ask the people who succeed at sticking to their goals what their secret was, you can almost guarantee it involves expecting and accounting for failure. Instead of hoping you won’t fail, plan to fail. That may seem pessimistic, but it’s more realistic than thinking you’ll be perfect! After all, we’re just human. It’s what you do after you fall that makes the difference between permanent failure at financial goals and long-term success.

5. Give yourself some wiggle room to account for slacking off.

You should create some wiggle room into your fiscal fitness improvement plans. Round up or down, schedule a “slack” day or two, and don’t make plans that are too rigid or that depend too heavily on your own consistency. This will take some of the pressure off and allow you to move forward even if you are taking a step back every once in a while.

6. Hold yourself accountable.

Even as you expect to fail and leave yourself some room to slack off, don’t go to the opposite extreme of approaching your fiscal fitness goals without purposefulness. One of the best ways to hold yourself accountable is to make your intentions public and ask others to support you. There’s power in numbers. Just as it’s easier to commit to a 5 a.m. workout if you have someone by your side, it’s easier to change the numbers that determine your financial fitness when you use the buddy system.

Instead of refusing to make financial goals because you’ll inevitably fail, use the expectation of failure, along with these tips, to move beyond that cycle this year. Gradually and deliberately improve your financial well-being and turn that ship around toward financial success.

Article Source: Jessica Sommerfield for MoneyNing.com

3 Strategies for Helping You Change Your Financial Habits

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goals-and-accomplishmentsAre you hoping to change your financial habits? There isn’t any one-size-fits-all magic approach, but there are different strategies you can try out until you hit on something that works well for you.

Here are three strategies that can help you change your financial habits. Figure out which is likely to work best for you:

1. Try a Spending Detox

If spending is one of your big problems, you can actually break the habit by going on a spending detox. Try to go a month without spending on anything that isn’t absolutely necessary. You can retrain yourself to dislike spending and prefer keeping your money.

This approach can even work with your long-term and short-term savings goals. Make sure you automatically contribute to retirement savings or to your travel fund during this time, but avoid spending money on unnecessary household goods, gadgets, or other items that do little more than clutter things up.

You might be surprised at how quickly you adjust to the new normal and develop new habits that are less about spending money.

2. Make Small Changes

Taking a drastic step doesn’t work as well for some people. If this describes you, then consider making incremental changes instead of doing something dramatic. This reduces the pain involved, and can help you make forward progress.

It’s a slower approach, but it can help you ease into your new habits. Savings habits are ideal for making small changes. If you want to get to the point where you are setting aside $350 a month toward retirement, you aren’t likely to be able to sustain that change all at once.

Instead, you can start with a smaller amount. Can you set aside $10 a week? This adds up to $40 a month. Look to take that first small step. Once you free up that money and become comfortable, start looking for ways to free up another $10 a week. It takes a little time, but you will eventually reach your goal.

From freeing up money to pay down debt to putting money toward a family vacation, the start-small approach can work well and help you change the way you manage your money.

3. Plan Ahead

One of the best ways to prepare your finances and change your habits is to plan ahead. Get in the habit of checking in with your finances once a week. Set aside time to look ahead to the bills you will need to pay and other financial realities.

When you plan ahead, you will track your spending better, create budgets, and naturally start to change some of your financial habits in a way that can benefit you in the long term. You’ll also end up saving yourself a ton of time and headache in the long run because you won’t need to deal with putting out all the fires either.

Article Source: Miranda Marquit for MoneyNing.com

5 Ways to Be on Top of Your Budget

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Be realistic. Keep going over budget on certain things? Maybe you didn’t allot enough money in those areas. If this is the case, try and find a happy medium that is more realistic so you can still cut back a little bit.

Be automatic. Are you having trouble saving? Do you have direct deposit at work? If so, figure out how much you want to put aside every month, and have that money automatically put into your savings account. This way, you can set it and forget it.

Be thorough. When you’re setting up your budget you may tell yourself, “I’m going to go out to eat twice a week.” Well That sounds great in theory, but what happens when you want to celebrate your friend’s new promotion? Where’s that money coming from? Make sure your budget includes some flexible money that you can use in different areas when needed.

Be patient. Don’t spend your entire monthly budget of any one area at the beginning of the month. Sure, that awesome new movie is coming out at the first of the month, but slow down. There’s probably some other things you’re going to want to do before the end of the month, so keep that in mind and spread your money out.

Be nice. You’re an awesome person who should be rewarded for staying on budget each month. Give yourself a little cash to splurge each month, even if it’s no more than an ice cream cone. Ice cream is awesome and so are you!

Article Source: John Pettit for CUInsight.com

3 Easy Ways to Make Money on the Side

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Woman Taking Dog For Walk On City Street

Who doesn’t love some extra cash in their pocket, especially after the expensive holiday season? When you’re focused on your full-time job, it can be hard to find the time to search for additional sources of income.

Here are some easy examples:

Tutor. Do you have expertise in a certain subject matter that you may or may not use in your current line of work? Whether you’re looking to help out younger students or adults continuing their education, you can put your knowledge to good use. Look into working with an established company like Kaplan for SAT preparation, or get certified through the National Tutoring Association or the American Tutoring Association. Obtaining a certification may be an extra step, but in the end if you are able to show you are legitimately trained, you will stand out as a professional and generate more business and more dollars.

Drive. Even if you haven’t used Uber, you have undoubtedly heard of the transportation network company. Offering consumers a safe and convenient way to get around town, Uber is an excellent way to bring in extra money in your spare time. According to the company, depending on your location and how often you work, drivers could net on average about $25.00 an hour. Another advantage of becoming a driver is the ability to set your own schedule. Many drivers have a full-time job and drive at their discretion.

Dog sit. Do you love dogs but don’t want to commit to owning one? Becoming a dog sitter is a great way to spend time with “man’s best friend” without the long-term responsibilities that come with adding a pooch to your family. Check out Rover.com, a resource that connects pet owners with people who provide safe and loving pet care. Like Uber, Rover allows you the freedom to make money on your own schedule. According to Rover.com, depending on how often you take in an animal and for how long, you could make upwards of $1,000 a month.

Article Source: Wendy Bignon for CUInsight.com

6 Ways to Tweak Your Budget This Year

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Pencil on the statement of payroll details

Just because February is here doesn’t mean you should already be neglecting to improve your finances. In fact, no matter your resolutions (or if you’ve already abandoned them), it’s always a good idea to work on your finances.

If you’re looking for ways to tweak your budget to better effect this year, then here are some strategies you can follow to spend less and save more:

1. Factor in Infrequent Expenses

One of the biggest pitfalls of budgeting is forgetting about infrequent expenses. Some expenses may only be paid quarterly, or perhaps even once a year. It’s easy to forget to include them in the budget, especially if you create your budget during a month when you’re not making the payment. The fix is easy though.

As you tweak your budget this year, spend the extra bit of time to look ahead for infrequent expenses and include them. Break them down into monthly costs so that they are accounted for. Also ensure that the money is already there when they are withdrawn from your account.

2. Don’t Count on Irregular Income

Many of us like to look ahead and estimate our income. Unfortunately, we often over-estimate what is coming in. We rely on our estimates too heavily whether it’s a bonus at work, a tax refund or some other windfall. Instead of factoring future income into your budget, consider pretending it doesn’t exist. That way, when you do get a windfall, you can bank that instead of spending it. This way, you don’t end up in trouble if the extra money doesn’t appear like you thought it would.

3. Boost Your Savings

You can also use more no matter how much you’re setting aside, so look for ways to boost your savings. Even an extra $15 a week can help in the long run. Consider changing how much is taken from your paycheck and contribute it to your retirement account. You can also put more in your emergency fund. Just make a small tweak to the amount to make a difference down the road.

4. Check into Your Subscriptions

When was the last time you reviewed your subscriptions? Look at where your money is going on a monthly basis. If you aren’t using subscriptions, change things up so you aren’t spending on what you no longer use.

5. Review Your Insurance

Every six months or before renewal, do a quick comparison of your insurance policies. Could you be saving more elsewhere? If it looks like you can get a better quote someplace else, let your insurer know and ask for a match. If you haven’t changed your insurance for a few years, you might be surprised at what’s available and how much a quick search can save you.

6. Sign Up for Cash Back Sites

If you aren’t using a cash back site, now’s a good time to do so. Sign up for Ebates and Swagbucks to get some of your purchase-price back. Between these sites, plus use of a rewards or cash back credit card to pay, you could end up with serious savings overall. Yes, you want to spend less, but you also want to get a little back for the spending you do.

First Financial’s Visa Credit Cards come fully loaded with higher credit lines, lower APRs, no annual fees, a 10-day grace period+, rewards, and so much more!* Click here to learn about our cards and apply online today.

*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.

Article Source: Miranda Marquit for MoneyNing.com

5 Financial Reviews for the New Year

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2017 year on the sea shore. Element of design.

Happy New Year! 

How did you do financially last year? Did you meet all your goals? Now is the perfect time to take a look at what went your way financially last year so you can repeat it for the new year, and what may not have gone the way you wanted it to – so you can adjust in 2017.

1. Your Spending

What did you spend money on? Did it match your priorities? Did you overspend more than you should have? Were most of your purchases planned, or did you make a lot of impulse purchases?

If you want to get your finances under control, it’s essential to know where your money is going. Personal finance software is a great way to keep track. All you have to do is run a report to see which categories got the most attention from your pocketbook.

2. Your Saving

Did you save enough money in 2016? Review your savings habits. Did you put money toward retirement and do you have an investment portfolio? Do you have an emergency fund? Do you save up for large purchases?

Consider your long-term and short-term savings goals. Make sure you are on track with them. In some cases, it can make sense to cut back on the extra spending in order to divert some of that money toward your savings.

This is also a good place to review your debt load. Pay down your debt as quickly as possible to reduce the amount of interest you pay others.

3. Your Giving

One of the best ways to ensure a well-rounded financial life is to give to others. It seems counter intuitive, but it actually works. Look at how you use your resources to help others. Research charities to make sure your money is going where it should.

4. Your Taxes

Let’s not forget about a review of your tax situation. What deductions and credits are you eligible for? Review your spending and see if you can reduce your tax liability with a couple of well-placed contributions.

Don’t forget to review your pay stub as well. Are you withholding too much from your paycheck? A big tax return is an indication that you are withholding too much and giving the government an interest-free loan. Consider adjusting your withholding to improve your monthly cash flow — and put that money to better use.

5. Your Asset Protection

Are you covered in case of an emergency? Asset protection is a big part of your finances so make sure you are covered. You need to check your health care coverage, as well as your auto and home coverage. Tweak your coverage if necessary to balance cash flow with protection. You don’t want to overpay above what’s necessary.

Once you finish the financial review, you will have a better idea of what you did well in for 2016, and how you can improve for the new year.

Have you done a financial review with First Financial recently? If not, a brand new year is the perfect time to start! Stop into your nearest branch or call 732.312.1500 to get started today.

Article Source: Miranda Marquit for Moneyning.com