Budget Busting Rationalizations to Stop Doing Immediately

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Did you spend money you didn’t intend to this past holiday season? If you are regularly falling victim to money rationalization (talking yourself into a purchase you don’t really need or can’t afford), you are doing yourself and your budget no favors.

Have you told yourself any of the following lies recently? If so, make it your new year’s resolution to stop right now.

  1. It’s on sale! There’s a very good reason why retailers put things on sale, offer two for one deals and give discounts. By offering something on sale, it gives the consumer a sense of urgency about purchasing the item. You know that the sale or discount will not last forever, so you want to snatch up the item before you lose out on the great deal. The thing is, it doesn’t matter how good a bargain the price is if you don’t need that item, because it’s still too expensive. If you are tempted by an item that’s on sale, put it down and walk away. If you still want it the next day (or even the next week), go ahead and buy it. The sale will still be in effect, and you will know that this is a good purchase, and not just an exercise in retail psychology.
  2. Buy now and save later. Later is a great time to do things you don’t want to do, whether that’s budgeting or dieting. It’s very easy to promise yourself that you’ll pay for your splurge by saving money in the future. If you are trying to rationalize a purchase by thinking about what you can give up next week or next month to pay for it, then you simply can’t afford the purchase. If you haven’t learned how to budget (or diet, etc), you’re not going to magically wake up knowing how to do this in the future. Telling yourself no now will be the first step in being the savvy budgeter you hope to be tomorrow.
  3. I need a reward. After a stressful period at work or at the end of a major project, it can be easy to want to reward yourself with something nice. But looking at a new pair of shoes or an expensive car and thinking “I deserve this!” is not the right way to go about being financially secure. Giving in to impulse buys because of stress will not help you achieve your financial goals.
  4. I want to fit in. Sometimes the worst purchasing mistakes come from peer pressure. It’s much easier to spend money when everyone around you is doing the same. Even if your friends would never dream of putting pressure on you, just seeing them spend money can influence your decisions. If this is a problem for you, then shopping should no longer be an activity you do with friends. Find other ways to socialize with the people in your life. Your bank account will thank you.

The best weapon you have against spending rationalization is to know yourself. If you are aware of the things that deceive you into purchases, then it will be much easier to avoid them.

And if you haven’t created a budget for yourself – that might be part of the problem. Learn everything you need to know about budgeting with our quick budgeting guide.

Article Source: Emily Guy Birken for Moneyning.com

Do You Know What It Takes to Run a Successful Side Hustle?

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The process of finding financial security has gone through some dramatic changes over the last few decades. As recently as the 1980’s, conventional wisdom suggested following a career path that went something like this: Go to school. Get a good job. Work for one company for 20 years or more. Collect a pension. Retire in relative comfort.

If that approach sounds completely foreign to you, you’re not alone. On his personal finance blog, 20SomethingFinance, G.E. Miller observed, “Most twenty-somethings have never and (unfortunately) probably will never sniff the sweet security provided by a pension plan.” So, if there’s almost no hope of finding financial stability by following same path as previous generations, how can set yourself up for success? Two words: Side. Hustle.

What Does “Side Hustle” Really Mean?

With more and more people realizing that working a single job leaves them living paycheck to paycheck, side hustles are experiencing a considerable spike in popularity. Since we’ve already used the phrase twice in this article, you may be wondering exactly what constitutes a side hustle. Is it a second job? An online business?  In his new book (conveniently titled Side Hustle), Chris Guillebeau provides some much needed clarity. “A side hustle is not a part-time job. It is an asset that works for you.” This definition reveals a crucial distinction between trading hours for dollars, and building something that pays dividends for years to come.

Side Job vs. Side Hustle

Thanks to a surging economy and advances in technology, finding a side job is easier than ever. From Etsy to barista gigs and seasonal retail, potential work opportunities are plentiful. But if Guillebeau is right, the additional income you can earn from these jobs might not give you the long-term security you want. So, are they even worth pursuing? Do they offer any asset-building benefits? Absolutely. You just have to adjust your motivation for doing the work.

Rather than focusing on the job itself or the hourly wage it provides, entrepreneur Jeremiah Dew recommends looking a little deeper. “Find an endeavor that makes you become a better person—something that requires you to build a skill set that will help you in future ventures as well.” Sell crafts on Etsy in order to get better at e-commerce and digital marketing. Become an Airbnb host to upgrade your customer service skills. You get the point.

Success Requires a Different Perspective

When you’re trying to earn additional income, it can be tempting to jump at the first opportunity that offers real money. And while a traditional side job isn’t necessarily a bad thing, be careful not to confuse it with a legitimate side hustle. You may be able to earn extra money, but if your income is still tied to your ability to show up and perform a specific set of tasks, you’re not developing an asset. However, if you utilize those opportunities to gain experience and lessons that transcend a specific job or industry, you may be on your way to developing a successful, sustainable side hustle.

You Won’t Win Alone

Now, before you rush out and start a supplemental career, it’s important to remember the value of a good mentor. As the old saying goes, “A smart person learns from his mistakes. A wise person learns from the mistakes of others.” If you’re going to be wise about building your business, it pays to develop a relationship with someone who has experience running a business of their own, someone who made mistakes you can learn from. Whether you find them yourself or ask for suggestions from people you trust, the impact of a business mentor can be priceless.

From a financial standpoint, business ownership requires money management skills you won’t learn as an employee. Fortunately, your local credit union is an outstanding resource where you can find the knowledge, expertise, and programs to help you navigate the often-confusing early stages of your side hustle. By relying on their services and recommendations, you’ll be able to sidestep potential pitfalls and put yourself in a position to succeed. To learn more about the Business Services at First Financial, click here.

First Financial Foundation Awards Classroom Grant to Bradley Beach School

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Press Release

(Pictured above: Bradley Beach Elementary School Principal and Superintendent Dr. Wisniewski and Alison Zylinski).

FREEHOLD, N.J. – Bradley Beach Elementary School social worker and anti-bullying specialist, Alison Zylinski, was surprised by members of the First Financial Foundation with the final Erma Dorrer classroom grant for the 2018-2019 school year.

Zylinski submitted a grant application to purchase supplies to create vinyl inspirational messages to promote students’ actions of kindness, respect, empowerment, and positive self-esteem on a daily basis.

“It is my responsibility to improve school climate and culture,” said Zylinski. “This year, every class in our K-8 school will engage in a 20 minute morning meeting, where the focus is to develop a sense of connection among students, work on social-emotional skills, and improve each classroom’s overall culture and climate. Creating inspirational messages would be a fantastic environmental change for our school.”

(Pictured above: First Financial’s President/CEO, First Financial’s VP of Marketing & Business Development, Alison Zylinski, and First Financial’s AVP of Business Development).

Since First Financial began with a group of Asbury Park schoolteachers back in 1936, the credit union has not forgotten its educational roots. That is why its Foundation offered current Monmouth and Ocean County educators six (6) classroom grants to use at their schools for the 2018-2019 school year.

“Education has and always will be a pivotal piece of our organization, and we’re delighted to be able to help our local educators enhance their classroom experience,” noted First Financial President & CEO, Issa Stephan.

Stephan also noted that the Foundation committee had a tough job of choosing just six winning teachers out of the numerous applications received this year. “We received dozens of heart warming essays from educators hoping to use the grant money to implement or maintain a variety of creative programs in their schools such as flexible seating, virtual reality glasses, book stands and shelving, new classroom cabinets, and interactive books and games – to name a few,” said Stephan. “We wish we were able to reward each and every one of our participants, and after extremely careful consideration we selected the six classrooms in which we felt the grant money would have the largest impact.”

How to Recover from a Blown Budget

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Went a little crazy on holiday shopping and now your budget is completely off track? Get back on the path to financial freedom and kick off the new year with the following tips:

  1. Stop dwelling. Going over your budget isn’t fun, but it’s not the end of the world. Life happens and you can’t be perfect all the time. Acknowledge that you messed up, then move on. Obsessing about it isn’t going to bring your money back.
  2. Get back into your old routine. Play a little bit of catch up: pay your bills, balance your checkbook, and schedule transfers to pay off some debt if possible. Sometimes when you fall off track, it makes you want to stay off track. It takes more effort to jump back on the bandwagon than it does to remain on the same path. That’s why it’s important to get back into your old routine as soon as you have the chance. Get everything caught up, map out a plan for the remainder of the month, and immediately return to your former routine.
  3. Temporarily cut expenses. If you need to cut back, consider the following tactics:
  • Eat at home until you’ve cleaned your shelves/refrigerator/freezer out.
  • Have “no-spend” days, when you don’t spend a single penny.
  • Skip paid entertainment and opt for board game nights or movies at home.

If you’re still facing a budget discrepancy, you may have to look for extra ways to earn money for the month. Consider selling clothes, furniture, and appliances that are in good condition but that you no longer use. Or can you pick up extra hours at work, or get a part-time job?

If you’ve blown your budget, the important thing is to pick up where you left off and get back to your budget as soon as possible.

Need help creating an organized household budget? Check out our budgeting guide and budgeting fillable PDF worksheet.

Article Source: Alexa Mason for Moneyning.com

First Financial Foundation Awards Classroom Grant to Manalapan Englishtown Middle School

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Press Release

(Pictured above: First Financial’s Assistant VP of Business Development, Karryne MacLean, First Financial’s VP of Marketing & Business Development, and First Financial’s President/CEO).

FREEHOLD, N.J. – Manalapan Englishtown Middle School seventh grade social studies teacher, Karryne MacLean, was surprised by members of the First Financial Foundation with an Erma Dorrer classroom grant for the 2018-2019 school year.

MacLean submitted a grant application to purchase the My Classroom Economy program. The program is designed to teach students financial responsibility in an engaging and fun way. My Classroom Economy will help students take part in a simulation of a real-world economic activity, learn the value of a paycheck, learn how to budget spending, pay bills, and balance bank accounts, discover the importance of saving money, and find out about paying taxes to the federal and state government.

“My students are what many middle schoolers are – always asking, Why do I need to learn this?” said MacLean. “They want to learn something they can use, something that matters. They are very bright and passionate. With this program, students will learn about economics and will take these skills with them to become successful adults. They will come to appreciate the value of a dollar and see the impact of saving and spending money wisely.”

(Pictured above: Karryne MacLean with her principal and department supervisor).

Since First Financial began with a group of Asbury Park schoolteachers back in 1936, the credit union has not forgotten its educational roots. That is why its Foundation offered current Monmouth and Ocean County educators six (6) classroom grants to use at their schools for the 2018-2019 school year.

“Education has and always will be a pivotal piece of our organization, and we’re delighted to be able to help our local educators enhance their classroom experience,” noted First Financial President & CEO, Issa Stephan.

Stephan also noted that the Foundation committee had a tough job of choosing just six winning teachers out of the numerous applications received this year. “We received dozens of heart warming essays from educators hoping to use the grant money to implement or maintain a variety of creative programs in their schools such as flexible seating, virtual reality glasses, book stands and shelving, new classroom cabinets, and interactive books and games – to name a few,” said Stephan. “We wish we were able to reward each and every one of our participants, and after extremely careful consideration we selected the six classrooms in which we felt the grant money would have the largest impact.”

A Few Things You Can Cut From Your New Year’s Budget

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When it comes to finances, what would you like to do differently in the new year? When looking at your money and the way you spent it last year, what needs to change?

Here are a few things you should remove from your budget in the new year:

Unnecessary daily expenses: We all like coffee every day. But do you really need Starbucks every morning? It’s gets very expensive if you spend at least $5 a day buying coffee. That’s $25 each work week and $100 or more a month!  This will eventually add up to well over $1,000 at the end of the year. Instead, stock up coffee to brew at home and use the price difference to beef up your emergency fund.

Phone apps: The vast majority of phone apps are free, but for a lot of people – spending 99 cents on one here and there doesn’t seem like a big deal. If you’re one of those people who spends a lot of time on your smartphone throughout the day, then it might be time to think about which apps are costing you money (whether it’s up front or from in-app purchases).

Spending with coupons: You’re probably thinking, “this sounds like saving money!” While coupons can be helpful tools, they’re only helpful if the coupon is something you were already planning on buying. Don’t be swayed by a deal or discount if it’s not something you need. Buying things you want (and don’t need), is an easy way to throw money away. Make smart or necessary purchases, and use coupons to make those buys even better.

Kick the new year off right – think savings instead of spending!