Author Archives: M2 The Agency

Know the Facts: 0% Financing on Auto Loans

Posted on by
1

The Truth Behind 0%

When it comes to getting an auto loan, take the time to carefully look at all your options. What you initially think is a great offer, may end up costing you more money in the long run.

Take a look at the chart below to see some common myths…

mythsabout0%

Research Your Options

As a credit union member you are already aware of the many benefits First Financial offers, including low interest auto loans and great service tailored to your needs. By researching your auto financing options before you visit a dealership, you may find that when using First Financial’s low percentage rate you are still allowed to use any rebates offered by the manufacturer. This could be your best deal! Refer to our auto loans page for information and details about the loan, preferred dealers, links to apply online and our most recent rates and promotions. If you have any additional questions about our auto loans or refinancing options, contact us at 732.312.1500, e-mail us at info@firstffcu.com, or stop into any one of our branches.

Don’t forget to use our FREE online car buying and research tool, AutoSMART! This tool allows you to look up new and pre-owned cars based on model, make, year, mileage, color and so much more. Buying and selling a car has never been easier, be sure to download the AutoSMART app for your Android or iPhone today!

*Click here to view the article source.

 

How Much is Your Habit Costing You?

Posted on by
Reply

bad-habits-resized-600We all have little habits that tend to drain our finances. Perhaps it’s soda, online games, cigarettes, magazine subscriptions, gambling, wine, or movies. No matter what your poison, if it costs you time or money, it should be examined closely.

Health and moral concerns aside, the wise consumer will examine his or her habits to determine if the benefits outweigh the costs, or if cutbacks are necessary to restore a healthy balance in one’s budget. One of the first steps in this process is to determine what you get (the benefits) out of your habits, and try to place a monetary value on those benefits.

For example, if you like to get a weekly massage, you can list several potential benefits from this activity, like so:

  • Health benefits: Many medical professionals recommend massage to reduce stress, increase circulation, and improve lymph drainage. If your health is compromised, or if you experience a lot of stress in your personal or work life, the monetary health benefits can be extraordinary. Let’s say four massages a week replaces a prescription muscle relaxer. In this case, we could say your monthly massages are worth $80 a month in health benefits.
  • Productivity benefits: In our example, we could imagine weekly massages increase your work performance by reducing stress, allowing you to complete two extra projects a month. The productivity benefits could total $400 a month.
  • Happiness benefits: If your massages bring you immense joy, you are less likely to spend money on other pursuits of happiness, and you can also place a monetary value on how your habit makes you feel. What’s your habit worth to you? How much would you pay to continue it? For our massage example, we could say our happiness value for this habit is about as pleasant as mowing the lawn is unpleasant. If we pay a lawn service $30 an hour, our massages would be worth $30 an hour in happiness, or $120 a month.

That’s a total estimated monetary benefit of $600 a month.

The next step is to calculate what your habit costs you. Not only will you have to determine your out-of-pocket expense (in this case, the cost we pay for the massages), but also such things as the cost of managing negative health impacts, transportation and maintenance costs, and the effect your habit has on your relationships.

  • Out-of-Pocket Expenses: For our massage example, let’s say the cost of a weekly massage is $65 plus tip, equaling $308 a month.
  • Transportation: If we travel 20 miles round-trip to the spa, we’ll estimate it costs you $0.74 per mile to maintain and operate your vehicle, equaling $59.20 per month in travel costs to our support our massage habit.
  • Time: The time you invest in your habit is also considered a deduction. Our massage habit takes up four hours a week, plus two hours of travel time each month. If your time is worth $40 an hour, you’re losing $240 worth of time every month.

For our massage habit example, our total cost is $607.20.

Our conclusion is a weekly massage habit costs us $7.20 a month. Is it worth it? That’s where you need to decide if cutbacks are necessary. If you don’t want to drop your habit, try finding ways to reduce the impact of the overall cost to make your habit a wise choice.

Do you have questions about any of your financial habits or would you like to make an appointment with a financial representative to discuss your financial plans?

Contact a Financial Representative

Article Source: http://moneyning.com/life-style/how-much-is-your-habit-costing-you/

* First Financial is not responsible for the content listed on any external websites.

13 Money Tips for the New Year

Posted on by
Reply

1. Track your expenses. Almost every financial plan starts with this most dreaded task. Unfortunately, without understanding where your money goes, it’s nearly impossible to make different choices about how to spend. The good news is that there are plenty of software programs to help you out, or you can use a plain old spreadsheet. You can also attend First Financial’s annual budgeting seminar and take home a customizable budget worksheet to reuse over and over again!

2. Establish adequate emergency reserve funds. Perhaps the single best way to protect yourself from unforeseen circumstances is to hold 6 to 12 months of living expenses in cash or cash equivalent accounts. For those in retirement, consider carrying 12 to 24 months of expenses. Don’t forget to replenish cash reserves for any bills that are coming up over the next year.

3. Earn more on your safe money. Sure, interest  and dividend rates are low, but with a little work you can squeeze out some extra money. Shop around at a credit union like First Financial for a savings certificate*, and consider “I-bonds,” a kind of savings bond issued by the U.S. government, from treasurydirect.gov.

4. Get a handle on your risk tolerance. Before you make big changes to your investment accounts, take a risk assessment questionnaire, from our financial advisor. The results should help you re-balance your portfolio in a manner that is consistent with your needs and takes into account your emotions.

5. Determine whether you should manage your money or hire someone to do it. Do you have the time, energy, acumen and temperament necessary to successfully manage all of the components of your financial life? If not, it could be time to interview a financial professional and you’re in luck! Here at First Financial we have our own financial advisor who is here to help you! If you would like to set up a no-cost consultation with the Investment & Retirement Center** to discuss your savings goals, contact them at 732.312.1500.

6. Stop trying to beat the market. “Most investors are not beating the market; the market is beating them,” says Charles D. Ellis, a consultant to large institutional investors. Ellis conducted research that found that only one in five mutual fund managers beats the index over the long run. With those odds, investors would be wise to replace actively individual stocks and managed mutual funds with index or exchange-traded funds.

7. Calculate your retirement number. Many people say they are worried about retirement, but most of them haven’t done any planning to help themselves. Any conversation about retirement must start with an easy step — calculating how much in savings people need to ensure a financially secure retirement. The Employee Benefit Research Institute’s “Choose to Save Ballpark E$timate” tool is easy to use, or check out your retirement plan/401(k) website for more retirement tools.

8. Maximize retirement contributions. The federal government is helping on this front by increasing the limit for employees who participate in 401(k), 403(b), most 457 plans and the government’s Thrift Savings Plan to $17,500 from $17,000. The catch-up contribution limit for employees aged 50 and over remains unchanged, at $5,500. The limit on annual contributions to traditional and Roth IRAs will rise by $500 to $5,500.

9. Consider buying a home. The real estate market is recovering, which means that those who have been sitting on the sidelines may want to take the plunge on a new home. Still, make sure you weigh whether you are better off renting or buying with this NY Times calculator and click here to use our home calculator on our webpage to help you find out how much home you can afford.

10. Refinance your mortgage. Mortgage rates are at historically low rates and appraisals are starting to rise, so even if you haven’t been able to refinance in the past couple of years, try again. Use this re-fi calculator to determine how much you may be able to save or how many years you could potentially shave off the term of your mortgage.

First Financial has a 10 Year Fixed Rate Mortgage as part of our mortgage options! If you thought you could never afford to pay your mortgage off in 10 years – think again! Shortening the term of your mortgage makes the single largest difference in the interest that you pay – even more than a lower rate. The 10 Year Fixed Rate Mortgage from First Financial gives you the best of both worlds with a historically low rate and a short term that most lenders won’t offer. We’re even limiting the closing costs so that our members get the most savings possible. For more information on our 10 year mortgage and other mortgage options, click here.***

11. Assess your property insurance, Superstorm Sandy was a painful lesson in the limits of homeowners insurance. The best time to review your policy is before an event occurs, not after. The three biggest mistakes people make with homeowners insurance are: 1) under-insuring; 2) shopping by price only and not comparing apples to apples; and 3) not reading policy details before a loss occurs.

12. Review life, disability and long-term care insurance coverage. This is the part of your financial life where an error can cause huge damage to your family. For life insurance, make sure you have enough with this online calculator. Nine times out of 10, term life insurance is the best bet. For disability insurance, enroll in your company’s plan, if offered. If you are self-employed, shop around and buy at least some coverage. If you’re over 50, time to shop around for long-term care insurance.

13. Create/review/update estate documents: Hire a lawyer to prepare a will, power of attorney and health care proxy/living will documents. If you prefer doing it yourself, you can use software like Quicken WillMaker. As part of the process, create a go-to list of documents, which can include key information about investment accounts, insurance policies, auto titles, income tax returns. Estate records and final instructions also should be stored in a safe place — don’t forget to provide copies to your executor or trustee.

Click here to view the article source.

First Financial is not responsible for the content listed on external websites.

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Accounts for children age 13 and under are excluded from this program.

**Non-deposit investment and insurance products are not federally insured, involve investement risk, may lose value, and are not obligations of or guaranteed by the Credit Union.

***First Financial FCU is an Equal Housing Lender. 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. 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, are subject to change without notice and may be adjusted based on several factors including, but not limited to, property location, loan amount, loan type, occupancy, property type, loan to value, debt to income ratios, FICO credit scores, refinance with cash out and other variables. 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.

 

5 Splurges You Can & Should Allow Yourself

Posted on by
Reply

iStock_000017972218XSmallYou work really hard to save money and get out of debt. Every year, when making your New Year’s Resolutions, you vow that this will be the year you finally succeed and never look back.

You set your budget before December, you’ve planned how much you will put on each card, and you plan to say “no” to everything.

  • No more lattes from the Starbucks drive-thru.
  • No more eating out with friends.
  • No more weekly manicures.

At first, you’re so proud of yourself for doing well, but by January 27th, you’re starting to regret and resent your plans.

Your coworkers are going out to dinner tonight and you really, really want to go. You wrestle with your conscience and your goals and off you go to eat with the gang.

You’re not thinking about the goals you established only a few weeks back; you’re thinking about how your debts aren’t going anywhere, no matter what you do. If you can’t change your future, then why not enjoy your present?

Your plans fly out the window before you’ve even given them a fair chance to work.

The unrelenting pressure of your iron-fisted budget is coming down on you hard, and you can’t stand the thought of never spending another dime on yourself. Your inner rebel is screaming to get out. So you surrender, and let the rebel win. This year can be different. No, really, it can be.

Let Go

Allowing yourself a few guilty pleasures that won’t break your budget or wreck your route to success will give you a budget that’s livable and easier to swallow. No one wants to live life feeling deprived.

1. A gym membership

Yes, there goes your excuse to not join the gym. Sorry! The fact is, the gym is a great place to be inspired to stay fit. With the low cost of many fitness centers, it’s easy to justify $19 a month to better your health. Though the biggest win is the excellent health habits you’ll develop, the relaxation that comes after a great workout is a massive bonus. This is one expenditure you should allow yourself — and feel good about!

2. A healthy diet

Buying whole fruits, veggies, and meats eliminates many middle men from the food preparation process. This means you’re getting nutrient-rich foods that will fill and fuel your body better than frozen, prepackaged, or processed foods. They may cost a little more, but YOU are well worth the investment.

3. A retirement fund

Allocate an amount that can be set aside each pay period for your retirement. Even if you already contribute to a 401K, you can increase the amount. The more you invest now, the closer you are to sitting on the front porch of life, rocking away and watching the sun set.

If you would like to set up a no-cost consultation with the Investment & Retirement Center* located at First Financial Federal Credit Union to discuss your savings and retirement goals, contact them at 732.312.1500.

4. A weekend away

(Only do this if you can pay for it outright — no credit cards for this one!) Once in a while, you deserve a break. And though it may cost a bit more, a weekend away can really recharge your batteries, giving you a reason to continue on your journey of savings. Make sure to fully relax in your environment, so that when you return, you’re ready to work hard and roar towards your financial goals.

5. A special reward

Maybe you’ve had your eye on a gorgeous new suit, but you have a hard time justifying the purchase with your looming debt. You longingly stare every time you pass it by. Tuck away a little each week, so that you can get those dapper duds without breaking your budget. After all, you’ve been good and stuck to your goals, right?

By giving yourself permission to enjoy your money (within reason), you’ll be far more likely to stick with your budget and reach your goals.

What splurges do you allow yourself? Tell us! We’d love to hear it – comment below…

Click here to view the article source.

First Financial is not responsible for any content listed on external websites. *Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. 

7 Steps to Creating Lasting Financial Resolutions

Posted on by
Reply

New-Years-Resolution-for-Finances-300x221We all have more than a few well-intentioned New Year’s Resolutions that never make it to February. We mean well, and we try hard to stick to our life-changing plans, but it seems inevitable that we’ll fail.

If you want to make lasting financial resolutions, you have to include a certain level of detail in your goals.

Try these 7 steps to help you create financial tips that will stick:

1. Make your goals specific.

In order to make realistic financial goals, you have to be very specific about what you want to attain. “I will save more money this year,” gives you lots of wiggle room to shirk your new goals. A more specific goal like, “I will save 7% of my income each month,” is very specific and helps keep you on target.

2. Make your goals measurable.

In order to determine if you’re meeting your goals or if you need to step up your efforts, you have to create a goal that includes measurable outcomes. If you set a goal to spend your grocery money more wisely this month, you have to include examples of what smart grocery shopping looks like. Are you buying items in bulk? Do you only buy groceries when they’re on sale? Are you shopping at discount food stores? Are you spending less on higher-priced processed and ready-to-eat foods?

3. Set a time limit.

Who says New Year’s resolutions have to be set in stone as of January 1st? Make a goal for the first thirty days and include a reminder to set another goal for the next month. Can’t make it through thirty days consistently? No problem. Set your goals for smaller periods of time.

4. Reward yourself.

One of the best ways to create a lasting habit is to make the experience pleasurable. Forget the guilt trip over not keeping your resolutions; just give yourself a break and start anew as soon as you realize you’re failing. Reward yourself often for meeting even the smallest aspects of your financial resolutions.

5. Be realistic.

While we’d all love to become millionaires overnight, setting a goal to become “rich” in a short period of time isn’t very realistic.Don’t set yourself up for failure by including unrealistic details in your financial goals. It’s completely acceptable (and encouraged!) to dream, but not to set goals that are impossible to achieve.

6. Get help.

When setting financial goals for the new year, don’t forget to include an accountability partner to help keep you on track. This person can be a trusted friend, family member, or professional that will check in periodically to see how you’re doing with your goals. When you have to answer to someone else, you’re more likely to curb your undesirable behavior.

If you would like to set up a no-cost consultation with the Investment & Retirement Center* located at First Financial Federal Credit Union to discuss your savings and retirement goals, contact them at 732.312.1500.

7. Change your attitude.

One way to reinforce your desire to make lasting changes is to change the way you perceive your finances. Set a goal to read one book a month about finances, take a financial management class, or spend time with people who have a solid grip on their finances. Talk to people who are where you want to be at the end of the year. Surround yourself with information and encouragement to help make this year’s financial resolutions a success.

Click here to view the article source.

First Financial is not responsible for any content listed on external websites. *Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. 

 

Tips for Recognizing and Avoiding Fake Check Scams

Posted on by
Reply

fraudFake check scams are clever ploys to steal your money and First Financial wants to make sure you know the ways you can avoid becoming a victim by simply recognizing how the scam process works. It is important that you understand that you are responsible for the checks you deposit to your account, even if they are fraudulent.

So, if someone you don’t know wants to pay you by check but wants you to wire some of the money back, beware! It’s a scam that could cost YOU thousands of dollars.

  • There are many variations of the fake check scam. It could start with someone offering to buy something you advertised, pay you to do work at home, give you an “advance” on a sweepstakes you’ve supposedly won, or pay the first installment on the millions that you’ll receive for agreeing to have money in a foreign country transferred to your bank account for safekeeping. Whatever the pitch, the person may sound quite believable.
  • Fake check scammers hunt for victims. They scan newspaper and online advertisements for people listing items for sale, and check postings on online job sites from people seeking employment. Scammers place their own ads with phone numbers or email addresses for people to contact them and they call, send emails, or faxes to people randomly knowing that some will take the bait.
  • They often claim to be in another country. The scammers say it’s too difficult and complicated to send you the money (i.e. they claim to be in the military or vacationing overseas) directly from their country, so they’ll arrange for someone in the U.S. to send you a check.
  • They tell you to wire money to them after you’ve deposited the check. If you’re selling something, they say they’ll pay you by having someone in the U.S. who owes them money send you a check. It will be for more than the sale price; you deposit the check, keep what you’re owed, and wire the rest to them. If it’s part of a work-at-home scheme, they may claim that you’ll be processing checks from their “clients.” You deposit the checks and then wire them the money minus your “pay.” Or they may send you a check for more than your pay “by mistake” and ask you to wire them the excess. In the sweepstakes and foreign money offer variations of the scam, they tell you to wire them money for taxes, customs, bonding, processing, legal fees, or other expenses that must be paid before you can get the rest of the money.
  • The checks are fake but they look real. In fact, they look so real that even bank tellers may be fooled. Some are phony cashier’s checks, others look like they’re from legitimate business accounts. The companies whose names appear may be real, but someone has dummied up the checks without their knowledge.
  • You don’t have to wait long to use the money, but that doesn’t mean the check is good. Under federal law, banks and financial institutions have to make the funds you deposit available quickly – usually within one to five days, depending on the type of check. But just because you can withdraw the money doesn’t mean the check is good, even if it’s a cashier’s check. It can take weeks for the forgery to be discovered and the check to bounce.That means it might be a month or more before they take the money out of your account.
  • You are responsible for the checks you deposit. That’s because you’re in the best position to determine the risk – you’re the one dealing directly with the person who is arranging for the check to be sent to you. When a check bounces, the bank or credit union deducts the amount that was originally credited to your account. If there isn’t enough to cover it, the bank or credit union may be able to take money from other accounts you have at that institution, or sue you to recover the funds. In some cases, law enforcement authorities could bring charges against the victims because it may look like they were involved in the scam and knew the check was counterfeit.
  • There is no legitimate reason for someone who is giving you money to ask you to wire money back. If a stranger wants to pay you for something, insist on a cashier’s check for the exact amount, preferably from a local financial institution or a financial insitution that has a branch in your area.
  • Don’t deposit it – report it! Report fake check scams immediately to NCL’s Fraud Center, at www.fraud.org. That information will be transmitted to the appropriate law enforcement agencies.

Think this doesn’t happen close to home or at First Financial? Think again!

Here is an example of an incident that occurred in one of our branches: We received an HSBC check from a member who stated that he received the check in the mail from a person claiming to need a personal assistant located near Russia. After further investigating the check, one of our tellers realized that the routing number did not have the required 9 digits – it had 10, and the check number on the bottom of the check did not match the check number in the top right corner. The teller went on to the HSBC website and discovered that there is not a financial institution located at the address printed on the check. The teller then contacted HSBC’s fraud department and spoke with a representative to confirm that the check was indeed fake. We then contacted the member to explain the situation and what was to follow.

For video examples, visit FakeChecks.org a public education TV campaign and website that exposes six common cashier’s check scams: online seductions, over payments, renter schemes, fake lotteries, work-at-home scams, and foreign business partnerships. The site includes funny “Candid Camera” style videos of an actor getting members of the public to fall for fake check scams, and videos of real victims sharing their stories.

If you suspect you’ve received a fraudulent check, please contact us at 732.312.1500 or stop into any one of our branches and have a representative look at the check to try to help you confirm its validity. We also encourage you to visit our Online Fraud Help & Internet Crime Prevention page on our website in order to protect yourself and/or your business from crime.

Article Sources: www.fraud.org | www.redtape.nbcnews.com

**First Financial is not responsible for content listed on external websites.