Tag Archives: Financial Advice

How to Stop Thinking Your Paycheck isn’t Enough

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Do you ever feel like your paycheck just isn’t enough to do everything you’d like to do? Maybe in some cases it may not be or you may have to find other ways to supplement your income, however most of the time – this feeling is a mindset that you can make positive changes to.

Here are five ways to change your thinking:

1. Stop comparing yourself to others. Social media is very good at allowing us to compare ourselves to other people. You see your friends posting a brand new car, going on lavish vacations, buying expensive shoes or clothes, and the list goes on. If you want what others have, you will always be disappointed. You also don’t know another person’s financial situation – maybe they put all those vacations on a credit card and will spend the next five years trying to pay it off. The bottom line is, stop looking at what others have and focus on all the good things in your life that you are grateful for.

2. Pushing your lifestyle ahead of schedule. What you can afford is different if you earn $20k a year, $100k a year, or $1 million a year – and for everything in between. If you make $50k a year but are trying to live a lifestyle of someone who makes $100k or more – your paycheck will never be enough and you will probably be in a great deal of debt. Change your mindset and live and spend within the means of your annual salary and your annual salary alone.

3. Take note of what you have, not what you’re lacking. If you make an espresso in a regular large coffee mug, it won’t look like a lot of coffee – right? The answer here is that it’s not about volume, but about contents. Don’t look at the glass as half empty, but instead half full. What are you thankful for? Try to appreciate what you do have rather than what you think you’re missing.

4. Cut off your spending on occasion. This idea is in relation to things that are not necessities. For example, think about any subscription services you pay for (cable, Netflix, gym, Amazon Prime, etc.) or extras that you might buy (coffee each morning on the way to work, snacks from the office vending machine everyday, and so forth). Do you “really” need these to survive? If you take a break from them do you miss them, or can you find other ways to satisfy these habits? This exercise will make you realize what are truly necessities and where you can scale back on your spending and save the money for something else more important.

5. Look for alternatives. There is probably a cheaper option out there for pretty much anything you want to do or purchase, you just have to do a little research. For example – do you really need brand name food? Opt for the store brand instead, you are guaranteed to save money and most times it is the exact same product. If you’re looking to cut your cable bill you might try using just Internet service and connecting through an online subscription like Hulu to save some money. The possibilities are endless, you just have to experiment and find what works for you.

The moral of the story here is that if you think your paycheck is never enough, it never will be. The goal is to change your mindset, save as much as you can, and research cheaper alternatives to getting what you want. You can do it!

Article Source: David Ning for Moneyning.com

The Rising Cost of Healthcare

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It’s open enrollment season, and most of us are thinking about the best healthcare option for us going into the new year. Only one thing is certain when it comes to healthcare: the cost for us to stay healthy is constantly increasing. When it comes time to choose a plan, there are multiple factors to consider so you can budget wisely.

Choose your plans based on more than the premium. 

People often select their healthcare plan based on the monthly fee they will pay for coverage. However, when you choose a plan based solely on this component, you could end up paying more in the long run. There are several other factors to consider when choosing a healthcare plan that will fit your health as well as your financial needs. Factors include:

  • Co-payment (the flat dollar amount you pay when you need care)
  • Deductible (the amount you must pay before the insurance begins to pay)
  • Co-insurance (the percentage of permitted charges for covered services that you’re required to pay)
  • Maximum out-of-pocket costs (the maximum amount you will pay for healthcare services).

Take your previous health history into account. 

You can’t predict the exact amount of insurance you or your family will need. However, you can take your past medical history and family medical history into account when you’re selecting a plan.
By taking these factors into account, you should be able to get a ballpark idea of the amount of coverage you’ll need, barring no serious medical emergencies.

Choose wisely. 

When you’ve signed on for healthcare coverage and the open enrollment period passes, you aren’t able to change your plan during the year unless you experience a big life event. Healthcare.gov describes a big life event as marriage, having a baby, or losing your other healthcare coverage. If you experience one of those situations, you can typically amend your plan outside of open enrollment. Because of this, it’s important to choose a plan that works best for your health as well as your budget.

Plan ahead.

While healthcare coverage can be good to have when it comes to covering medical expenses, it never hurts to have extra funds. Before an unexpected medical expense arises, plan ahead and set aside some money every month in a savings account. Anything you can stow away for a rainy day will be helpful when the time comes to use those extra funds.

First Financial is here to help. Talk to one of our Member Service Representatives today about setting up a special savings account and be prepared for the unexpected.**
Like most things in life, there’s no one-size-fits-all health insurance plan. You have to choose the best one for you and your budget.

*This blog was written for financial purposes only, and not written by a healthcare professional. This article should not be taken as medical advice.

**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. 

How to Make Your Money Work for You

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Every day you hustle. You’re working hard for your money, but have you ever stopped to think about how your money can work for you?

Making your money work for you goes beyond an emergency fund or simply being debt free – although, both concepts are a necessity in this instance. It’s about taking the money you’re already making and making it generate returns for you.

But, how? There’s no simple answer or even a single way to do it, but these tips can help you get started.

Get out of debt.

First things first, if you have debt – get rid of it. After all, you can’t invest in your future if you’re giving your money to other people or lenders. The first step to a debt-free life is figuring out exactly how much you owe. Most people don’t even know how much debt they’re in, according to a study from The Federal Reserve. Once you know how much debt you have, decide how you’re going to pay your debt off.

Budget.

The most important way to change the way you handle your money is to budget. By creating a budget, you are telling your money what you want it to do. When you assign each dollar into a category, you’re controlling where your money goes and what it does. It’s a great first step in reaching your financial goals. Think about it this way: your budget is like a fitness tracker in that it helps you monitor your money. When you monitor your money and know where it is and what it’s doing, it’s easier to make it do what you want it to do.

 Utilize retirement accounts.

Don’t sleep on opportunities to invest in a 401(k) or Roth IRA. A 401(k) allows you to contribute pre-tax money into your account, and you may even be able to get free money from your employer in the process too. Think about it like this: You earn $100,000 a year and your company offers a 3% match on your 401(k). If you invest $3,000 (3% percent of $100,000), and your company matches that – $6,000 will go into your 401(k). A Roth IRA works just a little differently. Unlike the 401(k), a Roth IRA leverages after-tax income. However, when you begin to withdraw the money at retirement, you won’t pay taxes on your withdrawals.

Start a side hustle.

Uber, GrubHub, Instagram – all of these companies began with an idea that blossomed into billion dollar companies. What’s your passion and can you turn that into a billion dollar idea? Consider starting a side hustle and find ways to make some extra money. It could be a traditional second job, a work-from-home job, or turning your ideas into ways that add to your savings. If you can structure your budget and expenses around your primary source of income, any money you make from your side hustle ideally would go straight into your savings.

 Create passive income streams.

Passive income is money you earn with little to no effort involved. Once it’s set up, passive income will earn you money while you sleep. For example, a rental property is a source of passive income. Creative passive income does require some type of investment upfront, whether that’s time, money or both – but it’s an investment that can lead to a bigger payoff later.

Building your future is important, and it takes a lot of hard work. At First Financial, we’re just as interested in your future as you are. We want to help you take the necessary steps to make your financial dreams come true. Maybe you need to consolidate your debt or look at options to pay off some debt. Maybe you’re looking to refinance your car in order to lower your payments and save a little money each month. Whatever it is, we’re here to help you. Stop by and see us or give us a call to get started!

3 Things You Should Do With Extra Money ASAP

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According to a recent report by CareerBuilder, 78% of Americans who work full-time live paycheck to paycheck. Thinking about the long term is hard, especially when it comes to finances, but life does get easier the earlier you start laying the foundation for good financial habits. Whether you have $100 or $1000 to spare every month, investing extra funds wisely can have a significant impact on your financial future.

1. Pay Off Your Debt

First and foremost, consider putting part or all of your extra income every month toward paying off your debt. Being in any kind of debt can definitely loom heavily over your life and finances. Instead of spending any extra cash, it’s smart to chip away at that mountain to become debt-free. You should start with your highest interest debt first and work your way down, though some people find more motivation to tackle their debt by focusing on paying the smaller debts first.

2. Put it in Your Emergency Fund

Having an emergency fund is not just a smart idea, it’s a necessity. Life is unexpected and you never know what can happen. Having an emergency fund can help you in life’s hardest situations, such as a car accident or the loss of a job. Begin putting money toward an emergency fund, any little bit helps. It’s ideal to have six months of expenses saved up just in case.

3. Invest in Your Retirement

After you’ve paid off your debt and put money in your emergency fund, it’s now time to think about the future – which means retirement. While it’s still years or maybe decades away, saving for retirement as early as possible means you reap more rewards later. And that can start with a 401k. Surprisingly, many full-time workers are unaware that their employers may match up to a percentage of your contribution to the company’s 401k plan. Find out what your company’s policy is and get started with contributing to your retirement as soon as possible.

A Roth IRA is another popular retirement savings account that allows your money to grow tax-free. When you’re ready to withdraw at retirement, you do not pay taxes on these funds. If you’re under the age of 50, the most you can contribute to a Roth IRA is $5,500 yearly. This basically means that those who have earned income, can put in just over $458 monthly to reap the most benefits in their retirement future.

If you have extra income at the end of every month, start with these three steps. It will set up a healthy financial foundation for you and your family. Going forward if you still have money leftover after that, you might want to start looking into investments or perhaps spending a bit on yourself.

Need help with retirement planning? To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, email Mary.Laferriere@cunamutual.com or stop in to see us!*

*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. Non-deposit 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.

Article Source: Connie Mei for moneyning.com

 

Can You Afford a Pet?

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Before envisioning long walks and fur-baby snuggles, make sure you are financially prepared for what’s ahead. The ASPCA estimates the first year costs of owning a pet is at least $1,000 – and that’s not factoring in unexpected emergencies.

Here is the breakdown of the average annual costs for a medium dog (not including the adoption fee which can range from $45-$300).

One-time costs

Spaying/Neuter: $200
Initial Medical Exam: $70
Collar and leash: $30-$45
Crate: $95+
Travel Crate: $60+
Training: $110

Recurring costs

Food: $319
Annual Exams: $235
Toys/Treats: $55+
License: $15
Grooming: $264+
Pet Insurance: $225

First Year Average TOTAL: $1,723

If you have a large dog, that average total jumps to $2,008. Cats are a bit friendlier on your wallet at $1,174.

Here are a few tips to help keep costs down:

Schedule regular check-ups.
Don’t be afraid to shop around for the right vet and compare preventative care fees. Ask family or friends who have pets who they go to and if they are happy with the veterinary services.

Brush your pet’s teeth.
Just don’t use toothpaste made for people, since the fluoride may irritate your pet’s stomach. But good dental health is important for pets – believe it or not, dental disease can lead to heart and kidney problems.

Groom your pet at home.
Some grooming salons offer a fully stocked self-service room complete with a tub, blow dryer, apron, and gloves at a fraction of the cost. Bonus? You take your fresh smelling dog home without doing any post-bath clean-up. Also invest in a good brush. Setting aside daily brushing time is good for your pet and will reduce the amount of hair floating around your home.

Article Source: Myriam DiGiovanni for Financialfeed.com

More Bad Money Habits You Need to Let Go Of

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Habits happen. When it comes to money, it’s a good idea to recognize the bad ones and kick them to the curb as soon as possible. Here are a few less-than-stellar money habits that you need to let go of right away.

Not setting goals: If you don’t have savings goals, you’ll never have the savings you need. You should be packing away money for retirement and at least have an emergency fund for those unexpected bills. If you don’t know how much you need to retire, checkout a retirement calculator like this one.

Picking up every check: It’s great to buy dinner sometimes, especially when you’re out with friends and family, but don’t feel you have to pay the check every time. Even if the bill is only $40-50 bucks, if it’s a regular thing, it can really add up. Having separate checks is the best plan, and feel free to pick up the check every now and again.

I’ll have what he or she is having: If you see your friend pick up a new 60” flat screen, it can make you very envious. Remember just because your friend has some new, cool toys doesn’t mean they haven’t put themselves in debt to get it.

Paying ATM fees: When you are going somewhere and you need cash, make sure you plan ahead. You may feel like stopping at a random ATM is no big deal, but those little service fees will rob you blind over time. If you’re going somewhere that doesn’t take plastic, plan to stop at your local branch and use the free ATM that’s provided for you.

Article Source: John Pettit for CUInsight.com