Category Archives: Financial Advice

Accounts You Should Check Daily

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A big part of budgeting, preventing fraud and making sure your finances are on track – is monitoring your accounts. It’s always a good idea to do this regularly. Keep reading to find out what accounts you should be checking on a daily basis.

Your Main Checking Account

If nothing else, your main checking account is one you really need to be reviewing daily. If you use your debit card to make frequent purchases from your checking account, you will want to check your account balance and review each transaction everyday to make sure all purchases made are legitimate and that you have enough money in your account for future purchases or bills. If you get paid via direct deposit and it comes into your main checking account, you’ll want to review that as well. You’ll want to make sure you have enough of a balance in this primary checking account, to avoid overdrafts and fees. By checking this account each day, you can track all your expenses and weed out unnecessary purchases.

Credit Card Accounts

If you have a credit card or cards you use frequently, you should try to remember to login online and check these accounts each day. Better yet, if your credit card company offers purchase alerts, payment due alerts or payment received alerts – sign up for them. These types of alerts will then be sent to your phone as a text or to your email, to help you monitor your account and charging activity. If you are carrying a credit card balance, we recommend logging into your account each day to ensure accuracy and to be sure any pending charges or posted purchases are yours. Even if you have credit card transaction alerts set-up, it’s still a good idea to check your online account everyday and review all activity to prevent or quickly notice any fraudulent charges.

Your Savings Account

While you probably don’t use your savings account very often, it’s important to review your balance and make sure you have enough saved for a rainy day, to meet any financial goals or big ticket items you’re saving up for, and that withdrawals and activity in this account are minimal. Regularly checking up on your savings will hold you accountable for reaching your monetary goals.

Business Accounts

If you’re the owner of a small business, it’s important to be up to speed on all your business accounts. You truly need to know what money is going where on a daily basis when you own a business. Checking your business accounts daily will ensure what you’re spending isn’t exceeding what you’re bringing in. You’ll also want to make sure your business invoices are paid on time, and that you have the funds to purchase any supplies or equipment your business needs each week.

The team at First Financial can help you better manage your money and reach your financial goals. Call us at 732.312.1500 or stop by any of our local branches if you have any questions about personal finance.

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*A First Financial membership 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 to establish membership prior to opening any other account/loan.

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.

Financial Preparation Tips for Hurricane Season

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As hurricane season is underway (June 1st to November 30th), it’s essential to prioritize not only your physical safety but also your financial well-being. Natural disasters like hurricanes and tropical storms can have a devastating impact on your financial stability if you’re unprepared. However, with careful planning and the right strategies, you can mitigate potential risks and protect your financial future. Don’t wait until it’s too late – start preparing today to weather the storm with confidence.

Review Your Insurance Policies

Before a storm strikes, take the time to review your insurance policies. Check if your home, health, or other insurance coverage provides financial assistance for temporary shelter, replacement of belongings, or other essentials in case of extreme weather. Our partners at TruStage Insurance offer a comprehensive range of insurance products, including accidental death & dismemberment insurance, auto, life, and property coverage.** These products can help cover the cost of property or injury in the event of a natural disaster. Having a clear understanding of your coverage will give you peace of mind and help you make informed decisions during challenging times.

Conduct a Household Inventory

Creating a comprehensive household inventory is crucial for assessing potential losses and expediting insurance claims. Make a detailed list of your physical possessions, accompanied by photographs or videos. Include important information such as serial numbers, purchase receipts, and appraisals. Additionally, gather vital documents like Social Security and health insurance cards, prescription lists, and copies of essential financial and family records (deeds, titles, wills, birth and marriage certificates).

Keep Your Documents Safe and Accessible

Organizing and safeguarding your important documents is key to ensuring quick and easy access when needed. Invest in a lockable fireproof file box to store your documents securely. Keep it in a readily accessible place within your home, allowing you to grab it quickly in case of an evacuation or emergency. Remember to include some cash, as ATMs and banks may be inaccessible during emergencies and power outages. To find a First Financial or Co-Op surcharge free ATM location near you, click here. Store an extra set of house and car keys, as well as the key to any safe deposit box you may have.

Leverage Technology

Harness the power of technology to enhance your financial preparedness. At First Financial, we offer a user-friendly mobile app and online banking, which both allow you to access and reference your financial documents from anywhere.* By digitizing your important files and uploading them to a secure platform, you can ensure that even if physical copies are lost or damaged, you can still retrieve them quickly and efficiently.

Stay Informed and Aware

Knowledge is a vital asset when facing the aftermath of a hurricane. Bookmark helpful resources such as your local weather or the FTC, which provides valuable advice on recovery, your rights, and how to identify, avoid, and report scams in times of natural disaster. Staying informed will empower you to make smart decisions and protect yourself and your finances from potential fraud or exploitation.

Preparing for hurricane season goes beyond securing physical safety. Taking steps to ensure your financial readiness is equally crucial. By following these tips, you’ll be well-equipped to face hurricane season with confidence, knowing that your financial future is protected. Stay safe, stay prepared, and remember that we are here to support you every step of the way. For more financial advice, read our First Scoop blog!

*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 our mobile application. Standard data rates and charges may apply. 

 **TruStage insurance products and programs are made available through TruStage Insurance Agency, LLC. Life insurance and AD&D insurance are issued by CMFG Life Insurance Company. Auto and home insurance are issued by leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold, or guaranteed by your credit union.

Debunking Common Financial Myths

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In the world of personal finance, there are myths and misconceptions that can hinder our ability to make informed decisions and achieve our financial goals. By debunking these myths, we can gain clarity and navigate the complexities of personal finance more effectively. Keep reading as we explore common financial myths and the truth behind them!

Myth 1: Credit unions are just like banks.

Reality: Credit unions are member-owned, not-for-profit financial institutions. Credit unions prioritize the best interests of their members rather than generating profits for shareholders. At First Financial, for example – you can benefit from lower loan rates, personalized customer service, and access to a wide range of financial products tailored to meet your unique needs.*

Myth 2: Paying the minimum on your credit card statement is fine.

Reality: Paying the minimum balance on your statement actually costs you more in the long run. You’ll end up having to spend more on interest this way, which could double the cost of the items you purchased. Paying your credit card statement on time and in full every month can help improve your credit score and save money on interest too. See our handy guide on credit card mistakes to avoid to learn more.

Myth 3: Saving money is solely about setting cash aside.

Reality: While saving money is essential, there are various strategies to make your savings work harder for you. Exploring different savings products, such as high-yield savings accounts, certificates of deposit (CDs), or individual retirement accounts (IRAs) – can help you grow your savings over time and work towards your financial goals.

Myth 4: Loans are only for emergencies or significant purchases.

Reality: Loans can serve multiple purposes beyond emergencies or large purchases. They can be valuable tools to seize opportunities, consolidate debt, or invest in personal or business ventures. Understanding the different loan options available and their terms, can help you make informed decisions that align with your financial objectives.

Myth 5: Retirement planning is only for the wealthy.

Reality: Retirement planning is crucial for individuals at all income levels. Regardless of your current financial situation, developing a retirement strategy early on can help you secure a comfortable future. Here at our credit union, we offer the First Financial Investment & Retirement Center to help support your future through investments and insurance.**

By debunking these common financial myths, you can gain a better understanding of personal finance and make more informed decisions to achieve your financial goals. Whether it’s exploring savings and loan options, or planning for retirement – taking a proactive approach to your financial well-being is key.

Remember, knowledge is power – and First Financial is here to provide you with all the tools for your financial success. For more insights and tips on personal finance, check out 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. 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. Some restrictions apply, contact the Credit Union for more information.

 **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:

When to Use Cash, Credit, or Debit

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Not every payment method is the same. At First Financial, we believe that understanding the tools you have at your disposal – including cash, credit, and debit – is vital to achieving financial wellness. By using the right payment method for the right situation, you can enhance your financial security, budget more effectively, and make your money work for you.

Cash: The Tangible Transaction

Even in this digital age, there are certain situations where cash remains king. These include:

  1. Small, Everyday Purchases: For small, incidental expenses like a cup of coffee or a quick snack, cash is a handy option. It helps keep track of your spending in a tangible way that digital forms of payment often can’t match.
  2. Budgeting Tool: Cash can be a powerful visual aid in budgeting. Physically dividing your cash into envelopes or jars for different expense categories can give a clearer picture of where your money is going. Plus, when it’s gone – it’s gone.
  3. In Case of Emergencies: Having some cash on hand for emergencies, such as power outages where digital payment systems may not work, can be a lifesaver.

Remember, while cash offers a direct, tangible way to control spending, it doesn’t provide any kind of record of your transactions or protection against theft.

Debit: A Bridge Between Cash and Credit

A debit card offers the convenience of a credit card, but works like cash because the funds are directly withdrawn from your checking account. It’s a useful tool when:

  1. Avoiding Debt: If you are concerned about overspending or accumulating debt, using a debit card can keep you within your means – because you can only spend what you have in your account.
  2. Digital Convenience: Debit cards offer the same ease and convenience as credit cards for online shopping and bill payments.
  3. ATM Withdrawals: Need cash in a hurry? Your debit card lets you access your money at ATMs.

While debit cards provide more record-keeping than cash and less risk of overspending than credit cards, they may not offer the same level of protection against fraudulent transactions as credit cards do. That’s why it’s essential to have both. At First Financial, you’ll be instantly issued a debit card when opening a checking account.* Our debit card offers great features like no annual fees and more!

Credit: The Power of Borrowing

Credit cards allow you to borrow money up to a certain limit in order to purchase items. They can be a powerful tool in your financial toolkit when used responsibly:

  1. Building Credit: Regular and responsible use of a credit card can help you build a positive credit history, potentially leading to lower loan interest rates and better terms in the future.
  2. Rewards and Perks: Many credit cards offer rewards such as cash back, travel points, or other perks based on your spending.
  3. Protection: Credit cards generally offer more robust protection against fraudulent transactions compared to debit cards.

The convenience of credit cards, however, can often lead to overspending and other common mistakes to avoid. It’s crucial to pay off your balance in full each month to avoid interest charges and potential debt accumulation.

Once you learn the tips and tricks to using a credit card, you’ll get to enjoy the benefits of having one. Whether you’re looking for a card with extra perks or are working on building your credit, we offer four different credit card options that will suit your needs. With our Visa® Cash Plus Credit Card, you can earn cash back on eligible purchases.**

Navigating Your Payment Options

Every payment method comes with its own strengths and weaknesses, and the best choice often depends on the situation. At First Financial, we’re here to help you navigate these decisions and make the most of your financial resources. Whether you’re choosing between cash, debit, or credit – our team is ready to support you with expert advice tailored to your individual financial circumstances and goals. Visit a local branch or call 732.312.1500 to get started.

As always, we encourage our members to spend wisely, budget regularly, and make informed decisions about their financial health. Stay tuned for more insights and tips on personal finance from us by subscribing to our First Scoop Blog!

*Debit Card must be linked to a First Financial Checking Account. Debit Cards are available for First Financial members with Checking Accounts only. A First Financial membership is open to anyone who lives, works, worships, 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. 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.

 **Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter. APR varies up to 18%, when you open your account based on your credit worthiness. This APR is for purchases and 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 Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; 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, volunteers, or attends school in Monmouth or Ocean Counties.

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.