5 Steps to Protect Yourself from Identity Theft

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According to a survey done by Bankrate.com, 41 million Americans have been victims of identity theft. Most Americans aren’t taking the necessary steps to protect themselves until it’s too late. For those unfortunate enough to have had firsthand experience, it’s a scary experience that can take years to fix. And in the process, your finances can get destroyed. Before this happens to you, it’s important to take the steps to safeguard yourself from identity theft. Here’s what you should do:

Closely Monitor Your Bank Statements

Most people hardly ever check their credit card or bank statements. If your account information is compromised, you might not even know about it until it’s too late. Be proactive – it’s best to check your statement monthly. You should also make it a habit to log into your accounts at least once a week to review the transactions and see if anything looks off. The earlier you catch any unauthorized transactions, the easier it will be for you to dispute the discrepancies with your financial institution.

Check Your Credit Report Yearly

You are legally entitled to a free credit report every year from each of the three major credit bureaus, TransUnion, Experian, and Equifax. Take advantage of this. Your credit report can change often so it’s important you know what’s going on, especially if you plan on making a large purchase or taking out a significant loan in the near future. AnnualCreditReport.com is a good place to get started. There are many other websites that offer free credit reports, but they may charge you fees after a period of time so be sure to always read the fine print.

Strengthen Your Passwords

We share so much on the internet. Most of us are on at least one social network, if not more. We also depend on the internet to do much of our shopping and banking. While it’s a great convenience, it’s also dangerous as well. Many hackers prey on unsuspecting internet users and shoppers. Before you post something on a social profile, be careful what you share – especially if it contains any personal information. Also, use strong passwords containing a mix of capital and lowercase letters, numbers and symbols. You should also periodically change your passwords as well, especially for sensitive accounts such as your email and bank account.

Secure Sensitive Documents

Paper trails can be just as dangerous as digital ones. Keep your sensitive documents in a safe place in your home, ideally in a locked cabinet or safe. If you need to get rid of any documents with sensitive information on it, be sure to shred them beforehand to prevent them from getting into the wrong hands.

Don’t Give Out Personal Information

If something sounds fishy or phishy, it probably is. Don’t fall victim to a phishing scam. If you receive any requests for personal information such as your social security number, don’t give it out – even if it comes from a company you recognize. Scammers disguise themselves as something or someone else all the time. Call the company and speak to a representative first before you give out any information.

The most important thing to remember is to be proactive and vigilant. Identity theft is a real concern but with the right steps, you can prevent it from happening to you.

Article Source: Connie Mei for moneyning.com

10 Simple Steps to Get Out of Debt Without Going into Bankruptcy

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So you’re up to your neck in a massive pile of debt. There are many circumstances that could have led you here, but responsible financial planning is the one that will get you out. Most debt situations can be corrected with careful planning and intense effort over a period of one to three years.

You’ll need to be honest about the requirement for focused debt reduction efforts. You can do it if you follow these steps to achieve pay off all outstanding debt without filing for bankruptcy protection:

1. Save $500.

Figure out how to save $500 in an emergency fund that will be accessed in the event of an unexpected expense during the debt pay off period. Eliminate every discretionary expense possible and accumulate enough funds to meet the $500 goal.

2. Organize your debt.

Make a chart of every outstanding debt in order from smallest to largest without any concern for interest rates. Immediate feedback will be realized when smaller debt is paid off early in the process.

3. Stop all credit card use.

Cut up the credit cards and spend cash even at the grocery store. Take absolute control of your monthly expenditures by starting and sticking to a budget. Write checks to pay bills (or transfer directly from your checking account in online banking), and allocate cash for all other budget categories.

4. Trim the budget.

Make some difficult decisions and eliminate any expense that is not directly related to necessities for living (rent, mortgage, food, utilities). Consider disconnecting cable service until all your debt is repaid. Reduce the land line phone bill by removing unnecessary features, or do you even need a land line anymore? If not, it’s another unnecessary bill you can get rid of.  See if you can cut back on features or data usage within your cell phone plan to see if that bill can be reduced also.

5. Do not go shopping.

Avoid shopping for anything except for groceries. When shopping for groceries, buy items on sale and learn to cook from what is present in the kitchen. Reduce or eliminate eating at restaurants until all your debt is repaid.

6. Pay the minimum on all but the smallest credit card bill.

Every debt must be maintained in good standing to eliminate unnecessary fees. Pay the minimum payment amounts on all debt with the exception of the smallest on the list. Apply as much money as feasible within the budget to the smallest bill. Be realistic when setting this amount to prevent shortfalls in other budget areas. The idea here is to pay off the smallest bill first by continually hitting it with larger payment amounts, then moving onto the next smallest, and so on until all the credit cards are paid off.

7. Reward yourself.

When a debt is paid off completely, reward yourself. Order a pizza, purchase that Starbucks latte you’ve been missing out on for weeks, or purchase a new game for family game night. Celebrate your success (without going overboard of course).

8. Apply funds to the next debt.

Take the amount that was used to pay off the first debt and add it to the minimum payment that has been paid on the next debt on the list. This method will accelerate the amounts paid on the larger debts. The accumulation effect will cause faster progress in the later months of the process. Every time a debt is paid off all of the money is rolled into paying off the next debt.

9. Delay unnecessary purchases.

Throughout this process, the expense level must be reduced within your household. Spending cannot continue as usual if real progress is to be made on the debt repayment plan. Don’t go booking any vacations, or on any shopping sprees. The idea is to take back control of your debt instead of continually racking up more. And as you pay off debt, don’t tell yourself it’s okay to make additional purchases with what you’ve paid off already. This will just delay the debt repayment process even further (and is probably how you got into this situation in the first place).

10. Celebrate success!

When all of your debt has been repaid, immediately start a savings plan that will prevent the situation from repeating itself. Attempt to save half of the amount that has been applied to the debt from the previous months and years. Decide on a (realistic, financially responsible) reward for your achievement.

Financial spending habits must change to prevent a recurrence of debt overload. Live according to a budget and ensure that all your bills can be paid within the month they are incurred.

Evaluate the period of the debt repayment plan and determine what works for you and your family. Financial discipline is possible and you can do this!

If you need help with a debt repayment plan, make an appointment at your local First Financial branch or check our online event calendar at firstffcu.com for upcoming free seminars. Also, be sure to check out our credit management and debt reduction guide.

Article Source: David Ning for Moneyning.com 

5 Bad Money Habits to Break Today

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When it comes to money, we all have some bad habits from time to time. Sometimes they’re learned early in life, and sometimes they’re picked up along the way. Here are 5 habits that you should kick ASAP.

1. Buying snacks at work

Getting hungry in the afternoon is totally normal. But if you find yourself feeding quarters into a vending machine or swiping your card at the convenience store every afternoon, you may have an issue. Just spending a couple dollars a day can really add up over the course of the year. You can probably buy the same snacks at the grocery store for a fraction of the price, and in larger quantity. And that’s without coupons. So next time you get that 2:30pm hunger pain, jot down a note to hit up your favorite grocer on the way home.

2. Making impulse buys

Whenever some people see something they like, they just have to have it. By taking time to think it over, you may eventually decide it wasn’t a wise purchase. Sometimes, all you need is a few minutes to let it simmer in your brain to realize it’s not worth it. Try out a “waiting period” next time you get the impulse to buy something, and see what happens.

3. Not saving money

We probably all started saving later than we should have – whether it’s for retirement, an emergency fund, or just a fun rainy day fund. If you save money first, and then budget the rest when you get a paycheck, you probably won’t even miss that money.

4. Carrying credit card balances

If you have a credit card you’ve probably heard about the evils of using it. While it can get out of control for some people, it can also be a valuable tool for others. If you regularly use your credit card, you’ve most likely carried a balance on occasion. Anyone who’s ever done this realizes how bad credit card interest can really be. Paying off credit card debt can take decades for some people. Don’t get trapped.

5. Paying big bucks for cable

There are plenty of other alternatives out there for entertainment. Cable can become very costly and sometimes that’s not your top priority in terms of bills. Netflix and Hulu provide hundreds of movies and TV shows at much lower rates. Do a price comparison and decide what’s best for your budget.

Article source: John Pettit for CUInsight

How to Get Married Financially

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Getting married can be a whirlwind experience. Between venue searching, trying on dresses, renting tuxes, assembling the bridal party, booking a DJ, and cake tasting – it can be easy to forget all that getting married means. Underneath the ring exchange and sharing of vows, there is a potentially life-long financial contract which you should also be prepared for.

Before you marry the love of your life, you need to get financially engaged with one another. Right now, disagreements over money are a top reason for separation and divorce. You have already popped the big question, and now it is time to ask a few more.

Here is a list of financial questions you should ask before tying the knot:

  1. What does the ideal marriage look like and how does it fit into our career goals?
  2. What is our savings plan going to look like? Our budget?
  3. Should we keep our finances separate, or join them together?
  4. Who will be responsible for making sure which bills get paid?
  5. What types of insurance will we need and how will we pay it?
  6. Do you have any loans or debt that needs to be paid off?
  7. Do you want a family, and if so – how big do you want our family to be? When should we start saving for college?
  8. What does our ideal retirement look like and how do we get there?

There are many keys to a successful marriage, but together you can make sure you leave out the poorer in “for richer or poorer.” Openly discussing your finances can keep you happy, healthy, and wealthy in your marriage.

Article Source: Tyler Atwell for CUInsight.com

Changing Jobs? Check Your Finances First

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Are you considering a job change? If so, it is important to approach your job change with careful consideration.

Not only will a new role involve learning new skills, working with new people, and establishing a new routine, it will also require significant financial planning — at least in the transition period.

So, how can you set yourself up for success while transitioning to a new endeavor? By making sure your finances are in order.

 

5 Financial Tips to Remember When Considering a Job Change

Check your savings. If you already have another job lined up, your savings may only need to tie you over until your new paychecks start coming in. This might sound like a minor concern, but depending on the payroll schedule for your former company and your new employer, it’s entirely possible you could go a month or more between paychecks. If you’re leaving your job without another already lined up, you’ll need enough savings to cover expenses until you accept your next job offer. If you have the luxury of transitioning on your own time frame, aim to have several months’ worth of expenses in a savings account.

Trim your expenses. Admittedly, cutting expenses is never a fun topic of conversation. However, operating on a leaner budget (at least for a little while), can make your career transition far less stressful. So, before accepting a new job offer, take time to review your monthly budget and see if there are any belt-tightening adjustments you can make. Cut back on morning lattes, meal prep at home instead of buying lunch at a restaurant every day, or binge a Netflix series instead of going to a movie at the theater. You’ll be surprised how quickly little savings add up — and those savings can help you bridge the financial gap between jobs.

Review the compensation package. It’s natural to look at a job’s salary when trying to determine whether it’s a better opportunity. This is a good place to start, but there’s more to it than that. Does the prospective employer pay an hourly wage, salary, or combination of base plus commission? Do they cover a portion of employee insurance costs? Is the new employer’s paid time off plan equivalent to the one you’d be giving up? What about holidays? Be sure to compare the entire compensation package instead of just comparing the annual salary.

Account for relocation costs. If your new job will require you to relocate, it’s always a smart idea to look at the cost of living in your new location. A $10,000 per year raise is nice, but if you’re going to spend an additional $15,000 in housing expenses each year, the new job could cause you to fall behind financially. If you need help comparing living expenses, cost of living calculators can be extremely helpful. State income tax rates can be another location-dependent variable worth considering.

Don’t leave money behind. If your current employer offers a 401K or other retirement savings accounts, be sure to make arrangements to take those funds with you. This might seem like a no-brainer, but the fact that orphaned 401K accounts total an estimated $1 trillion – indicates it’s easier to overlook than you might think. When it comes to these employer-sponsored retirement plans, employees have three options when changing jobs: 1. Roll over funds to a 401K plan with the new employer, 2. Roll over the funds into an Individual Retirement Account (IRA), or 3. Withdraw the funds. It’s worth noting, however, that withdrawing the money usually incurs a steep penalty. To determine the best approach for your money, it’s always best to consult with a financial advisor. If you need a good place to start, check out the Investment and Retirement Center at First Financial.*

If you’re currently contemplating a job offer or thinking about what it would take for you to make a change, spend a little time crunching numbers. You can also contact your local credit union, and if you live, work, worship, attend school or volunteer in Monmouth or Ocean Counties in NJ – one of the financial representatives at First Financial FCU would be happy to help you make a financial plan. We can help you analyze your current finances, identify the best retirement rollover plans, and find ways to maximize your money in order to make your job change as smooth as possible.

*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: