Financial Questions Everyone Should Be Asking

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Here are some important questions that will help you get to know your finances a little better, and plan ahead for your financial future.

1. Are you regularly surprised by running out of money?

It’s one thing for money to be tight, but if you are repeatedly coming up short on being able to pay your bills or by overdrafting your checking account, it is a sign that you are not in control of your budget. Step one is formulating a budget that lets you live within your means, and step two is putting controls in place to make sure you follow that budget.

2. Do you save up for big purchases or rely mostly on credit?

Borrowing may be necessary for major purchases like a house or a car. But if you find yourself making routine purchases on a credit card, you are making those items way more expensive than they need to be by adding interest to the cost. The more you can wait and save up to buy things, the more you will be able to afford.

3. Have you formulated a retirement savings plan?

People tend to assume that buying a house is the biggest financial decision they will ever make, but chances are you will need even more money to retire on than it costs to buy a house. It takes years of effort to build up enough of a nest egg, and that effort starts with figuring out how you are going to save that money.

Need help with retirement planning or investments? To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1500, email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com, or stop in to see us!*

4. Is your retirement savings on track?

It may be hard to feel a sense of urgency about something that may be 20 or 30 years in the future, but if you wait until retirement saving becomes urgent, you will have left it too late. Start holding yourself accountable now, so you won’t have to try playing catch up in the last few years of your career.

5. If you have investments, how well are they performing?

People tend to focus on the big winners and losers in their portfolios, but what matters more is how everything has performed in aggregate. Performance measurement should focus not just on how well you have done, but whether your investments have behaved appropriately for the prevailing market conditions.

6. What is your credit score?

Banks, insurance companies and even prospective employers are going to know this about you, so you should probably know your credit score yourself. Check your credit report for free annually by visiting annualcreditreport.com.

7. What could you do to improve your credit score?

If your credit score is less than perfect, it could cost you in the form of higher interest rates, or even limit your ability to get credit. Identify what you need to do to address any problems so your score will improve over time.

8. What would happen to your finances if you were out of work for 6 months?

It may seem tough to build up that big of a cushion, but the median duration of unemployment peaked at nearly 26 weeks in the aftermath of the Great Recession. Knowing how close to the edge a period of joblessness would put you, is a good test of your financial wellness.

Some of these are questions that people just neglect to ask. Others are questions they are afraid to ask, because they might not like the answers. However, it’s better to ask these questions when you have the time and opportunity to deal with them constructively and create a financial game plan for your future.

*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 The Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using The 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 The Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency Not Credit Union Guaranteed Not Credit Union Deposits or Obligations May Lose Value

First Financial Hosts 1st LIFE Fairs at MCVSD and Neptune High Schools

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Press Release

(Pictured above: Neptune High School Business Department members along with First Financial staff and Jackson Academy of Business advisory board members work together to introduce the LIFE Fair Program to the Neptune School District).

Freehold, N.J. – On May 29th and June 5th, First Financial Federal Credit Union held two high schools’ first LIFE™ (Learning Independent Financial Education) financial reality fair events at the Monmouth County Vocational School in Freehold Borough and another at Neptune High School.

While the credit union has hosted financial reality fairs in the past, these were the first to be held at both schools. At Neptune High School, a group of financial literacy and entrepreneurship students successfully helped to facilitate the fair to the participating students from business classes. At MCVSD – career ready cosmetology, HVAC, and plumbing/pipefitting high school seniors all participated in the fair in two different sessions. Approximately 200 students between both schools shared in this hands-on version of the “game of life,” during which they were required to make several on-the-spot financial decisions.

The LIFE™ Fair consists of a full day hands-on experience where students, after identifying their career choice and starting salaries, are provided a budget sheet requiring them to live within their monthly salary while paying for basics such as housing, utilities, transportation, clothing, and food. Once the students visit all the fair booths, they balance their budget and sit down with a financial counselor to review their expenses and get a “financial reality check.” First Financial staff members work at the financial review tables with each of the participating students to provide insight into their budget and point out lifestyle choices they may need to change.

(Pictured above: Neptune High School students experiencing their first LIFE Fair).

In regard to the school’s experience with their first ever LIFE™ Fair, Tara Stephenson, Neptune School District’s Business Department Chair stated, “The Neptune Township School District was beyond fortunate to partner with First Financial Credit Union to host the LIFE Fair on June 5th at Neptune High School.  This event was an invaluable experience for our students and opened their eyes to the real financial world that awaits them after high school.  Students were provided supportive guidance and assistance on many levels from the First Financial staff.  We are thrilled to begin planning another event for the upcoming school year and to have the opportunity to work with such an amazing team from First Financial!”

Niurka Coy-Bush, MCVSD CTE-Math teacher stated, “The LIFE Fair was immensely educational and very realistic. It was a huge success! The students were completely engaged in the process as they visited the different stations. The entire simulation was very well thought out and planned, and at an appropriate level for our students.”

(Pictured above: The wheel of LIFE and a few stations at the MCVSD plumbing and pipefitting classroom).

While the LIFE™ Fair was certainly full of temptations, the students had to spend their money wisely in addition to being able to save and budget themselves for the future – while also enjoying everything life has to offer.  First Financial President and CEO, Issa Stephan, concluded, “Our mission for our LIFE™ Fair events is to help students understand the value of money and how to manage their money, so as they grow as an adult they’ll become more financially responsible. These fairs are able to show our local high school students in a hands-on way, about the financial realities of the real world. Our credit union puts a high priority on financial education, after all – that’s how First Financial began 83 years ago, with a group of schoolteachers in Asbury Park.”

Additional photos from the events can be seen on First Financial’s Facebook page. To inquire about or set-up a LIFE™ Fair for a Monmouth or Ocean County, NJ school or business – please contact First Financial’s Business Development Department at  business@firstffcu.com.

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How to Enjoy Summer Without Going Broke

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Summer has arrived! Here are some less expensive alternatives to enjoying the season without breaking the bank.

Have a Picnic in the Park

Summer is a great time to be outside enjoying the warm weather. Gather your family, friends, or even just have a quiet day by yourself outdoors. Bring fruit, cheese, crackers, a blanket and a book. This is a great way to soak up the sun and relax. If you’re inviting a larger crowd – make it a potluck picnic, where everyone brings something to eat. Music, board games, and a Frisbee or ball to throw around also make great additions. A simple day at the park can be a lot of fun (and not too expensive either)!

Get Creative in the Kitchen

It’s nice to partake in buying yourself an iced coffee everyday, happy hour after work and trying new restaurants. But doing so several times a week can really add up. If you’re slightly strapped for cash this summer, think about getting creative in your kitchen at home. Make your own iced tea, iced coffee, and infused water. You can even add fruit and herbs to your ice cube tray, and freeze them to add refreshing flavor to your summer beverages. By working in your own kitchen instead of spending money out, you’ll save some cash and feel accomplished at the same time.

Enjoy Free Community Activities

In nearly every community, there are usually lots of activities in the summer ranging from free movies and concerts in the park, bike rides, festivals, craft shows, and more. Check out the various activities by looking at your community calendar, a local newspaper, as well as online. A little bit of research can result in a ton of free or low-cost activities that are fun for the whole family. If you’re in Monmouth or Ocean Counties in New Jersey – check out our monthly Things to Do on a Budget blog posts!

Go on a Summer Purge

If you didn’t partake in a major spring cleaning, now is a great time to go through all your clothing, paperwork, and items around the house.  If you haven’t used it in six months, it’s probably a good idea to either throw it out, recycle it, donate it, or sell it. Having a purge in the summer is a wonderful time to have a garage sale and declutter. You can make some extra cash and learn to live with only what you need.

Write Letters to Family and Friends

Have you ever noticed that nearly all of your mail is typically either a bill or junk? The only time our mailboxes really get any love is during the holiday season. If you aren’t traveling for the summer to see friends or family, write them a letter and maybe include some photos. It will be an unexpected surprise for the receiver and also boost your mood!

Explore Your Neighborhood

You may think you know your neighborhood inside and out, but there may be certain hidden corners and areas that are undiscovered. Be a tourist in your own city. Go for a walk and get lost. Enjoy a bike ride on a different path. Make a wrong turn. Appreciate the little things and actively look for things you’ve never seen before. Having a new perspective can show you things you may have been missing out on, right in your own backyard.

Host a Themed Party

As fun as traveling is, it can definitely be pricey. If you can’t get away this summer to your desired destination, do the next best thing and host a themed party instead. If you are dreaming of going to Japan, have a sushi night and invite some friends and family over. If you are wishing for island beaches, make some Caribbean food, put on some island music, and print out some tropical photos. Having a themed event can be fun and inspire you to save, so you can make your dream trip happen in the future.

Summer is a great time to explore, get together with friends and family, and enjoy the outdoors. There are plenty of ways you can do it for less, so you can still have some summer fun without breaking the bank.

Article Source:  Melanie Lockert for Moneyning.com

How to Manage Financial Stress

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Are you financially stressed? Here are a few tips to help you maintain your cool and get back on track to achieving your financial goals.

Focus on the positive.

If you’re in debt, it’s a lot easier to focus on the negative. However, staying positive can help you remain calm and clear your head. List out the positive aspects of your money management skills, so that you can clearly recognize your financial strengths. You may be able to expand on those strengths to provide yourself with a solution.

Look back at your budget.

Go over your bills and expenditures with a fine tooth comb. There are always things that you can cut back on, so try to reduce any expenses and put that money to better use. Setting up an emergency fund, paying off debt, and putting money toward retirement are all good options.

Stop comparing yourself to others.

Its human nature to feel jealousy when you feel like you’re missing out. Avoid the fear of losing out by not comparing yourself to those around you. You don’t know their financial status – they may have material wealth, but could still be in worse shape.

Meet with a professional.

In most cases, stress comes from the unknown. If you don’t understand your finances – it can be stressful, but it will only get worse if you don’t ask for help. Before things get worse, seek someone who deals with similar situations every day.  If you are a First Financial member, we offer complimentary annual financial reviews. Stop into your nearest branch or contact us today to schedule an appointment.

Embrace the concern.

You shouldn’t be worrying about money all the time, but a little bit of worry can help you stay aware, keep your spending in line, and your savings on track.

Article source: Tyler Atwell for CUInsight.com

5 Ways to Get a New Car for Less

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Premium styling. Flawless paint. Glistening tires. That unmistakable new car smell. Everything about a new vehicle practically begs you to buy it. When you close your eyes and think about driving your brand new set of wheels off the lot, it quickens your pulse a little, doesn’t it? Shopping for your next vehicle is a uniquely exciting experience. Usually until you look at the price tag, that is.

If you haven’t priced cars recently, you may be surprised by the figures you find. According to a recent report by Edmunds, the average loan amount for a new car jumped to more than $32,000, and the average monthly payment rose to $558. Sure, the latest models may be nice, but facts are facts—that’s a lot of money to pay for a car.

Now, before we go any further, if you’ve been saving up for your dream car and figured out how to buy it without demolishing your budget, then by all means – go for it! But if you find yourself in the market for a new vehicle and you want to avoid overspending, we’ve got five tips to help you hang onto more of your hard earned money.

5 Ways to Save Money When Buying a Car

Do your research.

The last thing you want to do is show up to a car lot with no idea what you’re looking for. Lack of preparation puts you at the mercy of the salesperson. And while they may be genuinely nice people, sales professionals make their living by getting you to buy a product at the highest price possible. So, before you head to a dealership, narrow down your choices by doing your research. Thanks to the Internet, companies like NADA, Car and Driver, and CarsDirect can help you sort thousands of options by everything from location to price to trim packages.

Get preapproved. ​​

Once you’ve determined which vehicle fits your preferences and meets your needs, it’s smart to get preapproved for financing. There’s a good chance you’ll find better financing rates through your local credit union than through another lender. Once you’re preapproved, you’ll know how much you can afford, what interest rate you’ll pay, and what your monthly payments will be. This information gives you the upper hand in price negotiations and keeps you from getting distracted by dealer tactics that focus strictly on monthly payments. Preapproval lets you negotiate based on the most important aspect—price.

Shop for incentives.

When sales are lower than expected, automakers will often extend money saving incentives to encourage buyers to purchase their vehicles. This is an instance where the manufacturer’s loss can be your gain. If you’re not already loyal to a particular make or model, you may be able to take advantage of dealer incentives such as discounts, rebates, and lower APR on financing. If you are loyal to a specific type of car, that can work in your favor as well, as some car companies will offer customer loyalty incentives to encourage you to keep driving their cars.

Ask for a lower rate. 

There are plenty of books, websites, and podcasts that offer tips and tricks on negotiating more effectively. While most of their ideas have merit, there’s one suggestion that may seem a little too simple and straightforward—ask for a better deal. In most cases, a dealer or salesperson will start negotiations with an offer that benefits them the most. Asking them to do better is part of the game. To give yourself the best chance of success, be polite and be prepared to walk away. Some dealers will play hardball, but when they have an interested buyer (especially one with preapproved financing), most would rather sell a car for a little less than let it sit on the lot and hope another buyer comes along.

Choose a used car instead.

Maybe this tip isn’t exactly a way to “get a new car for less,” but it is an excellent way to save money on your next vehicle purchase. Since most new cars depreciate an average of 20% in the first year and nearly 50% after five years, buying a preowned vehicle is a smart way to steer clear of that depreciation. It’s also worth mentioning that in addition to their lower upfront prices, used cars usually cost less to insure. Save now. Save later. That’s a pretty convincing sales pitch, isn’t it?

When you’re ready to start shopping for your next car, we’re confident that you can handle the research portion. But when it comes to the financing and preapproval, do yourself a favor and contact us here at First Financial. We may be able to offer you a lower rate and more flexible terms than a traditional bank or lender.* Give us a call today. You’ve got nothing to lose — except months of unnecessary interest payments!

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties.