4 Ways You’re Wasting Your Hard-Earned Money

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There are lots of tips and tricks to save money. A lot of times we even know we’re wasting money, but we don’t do anything to change it. Sometimes we enjoy what we get in return for that money, sometimes it’s easier when we spend the money, and sometimes we’re in denial that we’re throwing money away. Whatever the case may be, here are a few ways you may be tossing your money away.

Paying for a gym membership:  A lot of people with gym memberships make good use of their membership cards. Some signed up as a new year’s resolution and have made good progress since that time. Then there’s those of us who haven’t been in the last month or two (or more), and are basically flushing money down the drain. If you truly aren’t using your gym membership, see if you can freeze it – or cancel it altogether.

Eating fast food: Yes, it’s delicious. You probably think it’s quick and easy, and while that may be true, you’re forgetting one thing. It also used to be cheap. That’s not the case these days. You’re much better off going to the grocery store. A meal that costs $12 at the drive-thru can probably be made by you at home for $4.

Grabbing a quick snack: You probably look at a quick stop at your local Wawa (or wherever your favorite snack spot is) as no big deal. It doesn’t even crack your budget. Spending 2-3 dollars isn’t a huge thing, but when you start doing it every day it can be a problem. Before you know it, you’re spending each week what you would spend on a couple of fast food trips without budgeting for it. Be careful your snacks don’t get out of control and break your budget.

Buying items on your smartphone: Making purchases on your smartphone is a super-easy process these days. You can search on your phone and buy something on Amazon in less than 20 seconds. You can buy cool apps and songs with the touch of your finger. Be mindful of these purchases however, because if you’re not careful, they’ll really add up.

Need help budgeting your money? Check out our budgeting guide!

Article Source: John Pettit for CUInsight.com

5 Reasons Buying Out Your Lease Makes Good Sense

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With the end of your auto lease just around the corner, you’ve got some decisions to make. But before you start stressing about your current mileage or scratches on the bumper, you may want to think about buying out your lease. Would it make more sense to keep your car instead of turning it back in like you originally planned? In many cases, yes.

There are numerous benefits to buying out your lease—but first, a word of caution: Traditionally, dealerships have taken a hands-off approach to the buyout process, allowing consumers to deal directly with the corporate finance department or the leasing company. However, optional insurance and warranty products have given dealers an opportunity to increase their profits by facilitating the buyout process and including add-ons. These extras can come with a steep markup, making the final price more expensive than it should be.

Before agreeing to any buyout terms, it’s important to remember a credit union can routinely offer lease buyouts with lower rates and convenient payment terms. It’s worth your time—and potentially a lot of money—to get details on the financing options available.

Still wondering whether a lease buyout is right for you? Here are five points to consider:

  • Ownership has its advantages.
    Let’s be honest—the peace of mind that comes from not worrying about mileage overages and wear-and-tear penalties is a big deal. When you own the car outright, you no longer have to feel that growing sense of dread commonly associated with the end of a lease term.
  • Car shopping is a hassle.
    You’ve already gone through the frustrating highs and lows of car shopping. Why do it again? You probably selected your car after a thorough process of weighing pros and cons. If it was the right car for you then, there’s a good chance it’s still the right car for you now.
  • Better the used car you know (than the used car you don’t).
    This may seem obvious, but you’re already familiar with your car. If you had to start shopping for a different used car, there would be questions about how the previous owner cared for it. If you buy out your lease, you ARE the car’s previous owner. There are no unanswered questions about the car’s maintenance history or other people’s driving habits.
  • No more guessing games.
    At their core, auto leases are all about variables. A car’s market value ebbs and flows based on supply and demand. Lease rates may be higher the next time you come to the end of a term. By opting for lease buyout loan, you can lock in a great interest rate and a convenient payment plan for the life of your loan.
  • You have more leverage than you realize.
    Have you ever thought about what happens when you turn your car back in at the end of your lease? The leasing company is left with a used car, and they’re not in the used car sales business. In many instances, they would rather negotiate a good buyout price with you than go through the trouble of selling the car at auction or to a dealer.

Ready to look into a lease buyout?

You can fill out an online application here, learn more on our website, or call the Loan Department at 732.312.1500, Option 4.

*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.

The New Year’s Here: Make Better Resolutions This Year

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From starting a workout plan to saving for retirement, roughly 80% of New Year’s resolution fail within the first month. Of the people who keep their commitments through February and beyond, only 8% ultimately reach their goal. Why is that? If you ask 100 people, you’re likely to get 100 different excuses reasons. Making a resolution is easy. Sticking to it? That’s a different story.

But instead of focusing on the failure, let’s look at some ways to increase your chances of success in the new year. Compiling an exhaustive list of what it takes to accomplish your goals would be…well, exhausting. So, to keep you from getting overwhelmed, we’ve narrowed it down to 5 simple suggestions that should help you start the new year strong.

Ways to Make Your New Year’s Resolution Stick

Be real.

If you want to get in better shape but haven’t exercised in years, walking for 20 minutes a day makes far more sense than running a marathon in March. If you want to have 3-6 months of living expenses in an emergency fund but haven’t saved a penny over the last year, start with setting aside $20 per paycheck. Realistic goals pave the way for quick wins and consistent progress.

Be specific.

When it comes to setting goals, it’s tempting to speak in generalizations. “I want to feel better.” “I want to be smarter with my money.” The danger of statements like these is that they can’t be measured. Being smart with money is tough to quantify. Paying an extra $50 toward credit card debt is much easier to track. Instead of playing it safe with general statements, dig into the details.

Be consistent.

If you’ve ever run a 5K or 10K, you’ve seen THAT person—you know the one. They’re toeing the starting line, psyching themselves up, trembling with anticipation. As soon as the starting gun fires, they launch from the gate at top speed. You probably passed them after a mile or two, right? As you make your resolutions for the new year, don’t be THAT person. Understand that lasting success isn’t a sprint. Identify your goal, break it down into smaller action steps, and take clear, consistent action toward accomplishing those steps every single day.

Be accountable.

If nobody else knows about them, our best intentions can be our worst enemy. It’s easy to say you want to save $100 each month. It’s also easy to rationalize why you missed a month or two. To keep from fooling yourself, ask a trusted friend, family member, or co-worker to check in and keep you accountable. If there’s one thing worse than missing a goal, it’s having to admit it to someone else.

Be cool.

While January 1st seems like a logical time to make a fresh start, let’s not forget that technically it’s just another day. In reality, every day offers the chance to correct mistakes and build on successes. When making your resolutions, allow for some flexibility. Overly restrictive deadlines and constraints can lead to crippling discouragement. The end goal is improvement, not perfection. So yes, set your goals. But don’t forget to leave yourself some room to enjoy the process of achieving them.

Happy New Year!

Unexpected Life Events That Could Ruin Your Finances

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Although it’s impossible to predict what will happen in life, there are certain actions you can take to better prepare yourself for what may come your way. Instead of worrying about things you often can’t control, consider these potential life events and what you can do now to avoid ruining your finances in the future.

Becoming a caregiver.

It’s difficult to think about our parents growing older and the possibility of becoming a caregiver to a loved one. If you’re not careful and prepared, taking on this responsibility can significantly impact your finances. The best thing you can do to prepare your family is to fully understand your loved one’s financial situation. Have they invested in long-term care? Are their finances in order and have they sought the advice of a financial planner? Try not to let any new expenses you may incur while helping out cause you unnecessary financial stress.

Getting a divorce.

No one expects to get divorced when they’re reciting their marriage vows in front of family and friends. The fact is, sometimes things don’t work out and you and your spouse may be better apart than together. The smart thing to do if you’re faced with this situation is to get informed now. Don’t let your soon-to-be ex control your finances. Don’t be afraid to get the help you need so you’re financially independent and stable. Experts also suggest that immediately after going through the divorce, wait before you make another serious decision. Let the dust settle, make sure your assets are in order and take things slowly. Rash decisions can cost you, so take your time during the transition.

Weathering a natural disaster.

We all know that Mother Nature has a mind of her own. But, there are a few things you can do to prepare your financial state in case of a weather disaster. First, start an emergency fund now. Saving a small amount initially is a wise plan, but ideally you’ll want to have around four to five months’ worth of living expenses on hand. Secondly, keep your financial documents organized and secure so if disaster strikes, you can easily access the information needed. Third, get up to speed on your insurance policies. Most homeowners insurance plans do not include flood damage – so in the off chance you live in an area prone to high flood waters, get coverage now as flood insurance usually cannot be purchased after the disaster strikes.

Article Source: Wendy Bignon for CUInsight.com

Tips for Saving Money While Dining Out

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Who doesn’t love grabbing a meal at a restaurant? Whether it’s a national chain or a local mom-and-pop, the dining out experience is about enjoying great food and taking in a fun restaurant atmosphere. Unfortunately in many cases, it also means spending cash and putting a dent in your budget. Here are some tips to consider before visiting a restaurant, that can help save you money so you can enjoy a good meal out without feeling guilty.

Hit up happy hour
Happy hour isn’t always just about deals on drinks. Many establishments also have special food menus during certain times. So, plan ahead of time and hit up happy hour for cheaper food and drink selections.

Plan ahead
If you can’t make happy hour, once you decide where you want to eat, check out the menu right away. Then, you can discuss what your budget will allow and plan accordingly. The key to this tip is sticking to your guns; if your plan was to get a less expensive dish but once you arrive at the restaurant the specials sound tempting, don’t give in. You can still enjoy yourself and have a great meal while abiding by the budget you’ve put in place.

Buy the bottle
This tip applies to occasions when a large group plans to order similar beverages. Discuss what everyone’s tastes are and find a common ground. Then, instead of each of you ordering a $9 glass of wine, opt for the bottle instead, then divvy up the cost.

Skip dessert
When the server comes around and asks if you’re ready for dessert, it can be incredibly hard to say no. That chocolate cake always sounds so delicious. But use your willpower and just say no, as chances are, dessert menu items are overpriced. Instead, opt for the ice cream parlor down the road. Or, stop at the grocery store on the way home and pick out something more budget-friendly from the bakery.

Article Source: Wendy Bignon for CUInsight.com

Don’t Give to a Charity Imposter this Holiday Season

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When you give to a charity, you’re giving because you care and want to help — and you want to be sure your money actually gets to those you’re trying to help. But scammers who are pretending to be a charity, will try to get to your wallet.

Typically people feel as though the holiday season is one of the most important times of the year to donate to a charity – which is a great thing, just be sure you are doing your research and know where your money is going first!

Consider these tips before you give:

  • Rule out anyone who asks you to send cash, pay with a gift card, or wire money.
  • Confirm the exact name of the charity and do some research, especially when donating for the first time. Search for the name of the charity online — plus the word “complaint” or “scam.” That’s one way to learn about a charity’s reputation.
  • Give to charities you know and trust, with a proven track record. Before you give to any charity, check them out with the Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Navigator, Charity Watch, or GuideStar.
  • Avoid charities that seem to pop up overnight in connection with a natural disaster or other tragedy.
  • Don’t assume that pleas for help on crowdfunding sites or social media are legitimate. Real victims’ pictures and stories can easily be misused to con you.
  • Before you text to donate, confirm the number on the charity’s website.
  • Be cautious of clicking on links or opening attachments in emails, even if they appear to be from a charity. You could unknowingly install malware on your computer or be taken to a look-alike website run by scammers.

For more information, visit ftc.gov/charity. If you think you’ve spotted a charity scam, report it to the FTC.