6 Tips for Making Fiscal Fitness Goals Stick

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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

How to Pay Off Your Student Loans Faster

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No matter the circumstances, student loans really are not a fun part of adult life. Here are some pointers for getting rid of them faster:

Get motivated to pay them off sooner.

In reality, paying off student loans ahead of schedule will really just put you in a better financial state in the future. You’ll pay less interest over time and you won’t actually be stuck with the same student loan for 20 years like your term says you will. Find a really good reason that’s personal to you that drives you to pay them off faster. Imagine your life without student loans. Think of anything that will keep you strong in the student loan pay off game.

Pay more than the monthly minimum payment.

Whether it’s $20, $200 or any random amount in between, making a higher payment than required is the best way to pay off your student loans faster. If you have more than one loan payment, and can only afford to pay more on one loan, choose the one that has the highest interest rate.

Your student loan should already be included in your budget. You can budget for higher than your minimum payment, or you could use any money you have leftover at the end of the month as an extra loan payment. You can even implement both methods. Either way, paying more than required is a great way to pay student loans off faster.

Tip: Be aware of how extra payments are applied to your account. You want to make sure that the additional amount you are paying is applied to the principal amount rather than to interest.

Decrease your expenses.

Any extra money that can be put toward student loans will help you pay them off faster. “But, what if I don’t have extra money?” you ask. Take a look at your expenses and see if there is anything you can do to slash some. Ask your cable company about a cheaper package, cancel your monthly subscriptions to Netflix, Spotify, Amazon Prime, etc. Get a quote from other insurance companies or change your habits and eat out less often and make coffee at home.

Put birthday money, tax return funds, raises and any other extra cash toward your student loans.

If you receive money in addition to your normal paycheck, avoid spending it – no matter how much you want that new computer, those new shoes, or to go to that concert. It will be worth it as you get closer to paying off your student loans. Your future self will thank you!

Enroll in auto-pay.

When you enroll in auto-pay, your student loan payment is automatically taken from your account on the due date. Most lenders offer an interest rate decrease for people enrolled in this service. Not only does this eliminate the hassle of having to remember to manually make your payment, but it decreases the amount of interest you pay over time, allowing you to pay off your loans faster. Visit your lender’s website for information or contact them directly.

Avoid repayment programs and other repayment plans.

Although these programs come with a lower monthly payment, which always sounds amazing, they also come with longer terms, which means more interest paid over time. If you are really, really struggling to make those monthly payments on time and in full, these options might work for you. But, if you can make the payments, still pay your other bills and have money left over to enjoy yourself, don’t be fooled by the thought of a low payment.

Refinance or consolidate your loans.

Putting extra money toward your student loans is a sure way to pay them off early, but if you want to make an even more drastic change, look into your refinancing and consolidation options. You can possibly refinance your loans to get a lower interest rate and term length. If you have multiple student loans, you can consolidate them so they combine together, giving you only one loan payment.

Get a side job.

If your schedule allows it, a second job can help you reach your goals in paying off your student loans early. All money made with your second job can be put toward your student loans. While this may be easier said than done, it’s definitely helpful.

The sooner you get rid of that student loan payment, you’ll have more room in your monthly budget and more freedom with your finances – so get started as quickly as possible!

Article Source: Amanda Bridge for The Money Mill

 

What To Do When Your Debit Card is Compromised

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Have you ever gotten a letter in the mail from your bank saying that your account may have been compromised? If you’ve ever had this happen before, it elicits all sorts of questions. Was there fraudulent activity on my account? Who ‘may have’ compromised my card, and when? Am I liable financially?

First of all, getting a letter like this doesn’t necessarily mean there was a fraudulent transaction. Your bank is simply following a standard precaution. What it does mean is there was suspicious activity associated with your debit card. Your card number and name might have been obtained by an unauthorized source, usually at a retail location with a card processing system targeted by hackers.

Secondly, your bank may not even know where and when the card was potentially compromised. Mastercard, Visa and other card companies don’t usually release this information to the bank unless there’s a massive breach. Card companies simply notify the bank of suspicious activity, and your bank follows its standard policy – which is usually to cancel the card number and issue a new one.

Thirdly, even though you don’t know if, when, and where the compromise might have occurred, it’s important to do your own research. Besides credit card companies, banks also monitor account activity. This offers another level of assurance, but you can never be too cautious. We should always keep a close eye on our bank accounts, especially since small, ordinary transactions can be easily overlooked. Hackers often test a stolen card number this way before making major purchases or withdrawals (like dipping a toe in the water to test the temperature before plunging in). So if you do receive a letter like this in the mail, immediately check your account activity. If there are any unauthorized transactions, call the bank and report them.

Lastly, examine your habits for anything that is leaving your card number vulnerable. Have you been using your debit card more than usual? If you make frequent electronic purchases, use a credit card – which at least won’t risk your personal checking and savings accounts getting wiped out.

Along with this, consider the following precautions:

  • When making online purchases, always look for the secure “lock” icon.
  • Listen to your instincts if anything looks fishy about a website you’re entering personal information into.
  • Clear your web browser history frequently. Don’t let your computer save passwords, and delete cookies.
  • Don’t respond to emails requesting verification of personal information. Because of the risks, your bank will never ask you to do this.
  • Be skeptical of application downloads and updates, even if they look legitimate. Scammers are great at creating imitations that install spyware on your computer.
  • Use a quality anti-virus and anti-malware program and make sure it’s enabled to run routine scans.

If you have a First Financial Debit Card – Enroll it in Visa Purchase Alerts today! You’ll get an email each time your Debit Card is used over an amount you set, when your card is used outside the county, or when your card is used to make a purchase online or over the phone.

 Article Source: Jessica Sommerfield for MoneyNing.com

4 Simple Strategies for Coming Up with a Mortgage Down Payment

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Buying a home is often seen as an important rite of passage and a major part of the American dream. Depending on your situation and where you live, it can also be cheaper than renting. But, unless you have a large chunk of money just sitting around, the down payment it requires is a big obstacle. As higher costs of living continue to shrink our net income, it can be a real struggle to save that recommended 20%, especially if you’re a first-time homebuyer with few assets. Thankfully, there are plenty of assistance and low-down-payment options out there if you really need them, but there’s also a unique sense of accomplishment if you can do it on your own! Here are some simple strategies for saving up for a mortgage down payment.

1. Open a Dedicated Savings or Investment Account and Automate It

Separating your down payment fund from your other savings accounts will make it easier to calculate its progress. You can simply create a new savings account with your current bank for ease of transfer, but it’s also a good opportunity to open up a high-yield savings account that offers higher interest rates. Money market accounts and funds are also low-risk ways to earn more for your dollar. If you have a year or more to save, CDs offer even higher interest rates.

Next, set up your direct deposit or bank account to automatically transfer a certain amount from each paycheck (ideally based on your projected savings goal and timeframe). Even if you can’t afford to set aside much, consistency leads to accumulation.

2. Get Ruthless with Your Net Income

After savings and retirement contributions are deducted, your bills are paid, and your consumables are purchased, what’s left? What are you spending your money on? Can you live without any of those things for awhile? Being ruthless as you slash your discretionary spending is hard, but it’s also one of the easiest ways to ‘find’ money to apply to your down payment.

If you’re a two-income household, see if you can tighten up your finances enough to live off of one income for awhile and bank the second. It’s not easy, but it’s also much more possible than many people think.

3. Throw Every Windfall and Spare Dime at It

Tax refunds, monetary gifts, bonuses, cash-back rewards cards, even that annual raise – every time you find yourself with “extra” money, put it toward your down payment.

If it’s too hard to save larger chunks of money, save your “change.” Although there’s no shame in raiding the couch cushions or the console of your car, you can still apply the concept of “spare change” to your automated finances. Enroll in bank programs and apps that automatically round up debit transactions to the nearest whole dollar, transferring the difference into your designated savings account. You could also adopt the popular $5 rule – every time you get this (or another chosen amount) in change, it goes toward your down payment fund.

4. Liquidate, But Don’t Rob Yourself

Carefully consider liquidating stocks, bonds, CDs or other non-cash assets if you own them. However, this does not include retirement accounts. As tempting (and allowable) as it is, borrowing from your future security could turn into robbing from yourself, not to mention taking these funds out early often will lead to having to pay penalties and taxes on it. Definitely not worth it!

There’s no way around it: saving money for a down payment takes planning, sacrifice, and time, but the reward will be worth the effort.

Stop into any First Financial branch and we can help you with your home buying journey. We provide great low rates and offer a variety of Mortgage options – to speak with First Financial’s lending department, call us at 732.312.1500 option 4.* 

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

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

3 Tips for Saving Money While Traveling Abroad

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The Doge's Palace and Cathedral of San Marco, Venice, Italy

Here are three tips on how to manage your money when traveling overseas, while still having an unforgettable journey.

Set a daily budget while planning your itinerary.

When traveling abroad it’s important to make the most out of your trip, especially if you are not there for much time. Everyone knows the value of having a game plan for things you want to do and see, but alongside that, it’s a good idea to set a daily budget. Consider how much you will spend on each meal, activity and attraction. If you do your research, you can find out ahead of time how much certain sites will cost you. This way, you’ll see what you can afford to do in advance.

Shop wisely for food and gifts.

Make a list before traveling of the items you want to purchase when on your trip. If you want to buy gifts for others, set an amount you are willing to spend on each person. Additionally, if you plan to buy drinks or snacks to keep with you or in your room, avoid purchasing them at busier sites such as train stations or near tourist attractions. Look for local markets or shopping marts, so you can buy things at a lower price and shop at stores where locals typically get their essentials.

Explore different means of transportation.

Sure, it may be quicker to hail a cab and be on your way, but first consider the cost. If you are in a city, check out their different forms of public transportation and compare the cost of each. Additionally, when going from city to city, you may find that if you take trains that make frequent stops, rather than a direct trip, it brings the cost down significantly. Therefore, although the cheaper way to travel may not always be the fastest, if you plan for the extra time, you’ll have more money in your pocket, and every little bit helps, especially when traveling abroad.

Planning to travel outside of the United States? First Financial offers Foreign Currency Exchange! Foreign currency exchange allows you to exchange our currency for another country’s currency when planning to travel abroad.* Give us a call at 732.312.1500, email info@firstffcu.com , or stop into any branch to learn more about foreign currency exchange today.

*You may purchase Currency Price Protection (CPP) for an additional $10.00 in order to protect the purchase rate of transaction. The protected dollar amount may vary based on selection of currency. There is also a purchase/shipping cost for $14.50 per transaction.

Article Source: Wendy Bignon for CUInsight.com