New year budget | blog.firstffcu.com

This is a good time to make sure your accounts are ready for whatever may come your way in these unprecedented times. Here are a few ways you can make sure your finances are in decent shape as we begin 2021.

Stop acting on impulse: Think about your spending habits. Do you make impulse buys whenever you want? No matter how big or small, impulse purchases can lead to trouble. If you have several entertainment subscriptions, do you know which ones you’d cut if your budget suddenly needed to be tightened? If last year taught us anything, it’s to expect the unexpected. Save as much money as you can, don’t overspend on unnecessary things, and try to keep a tight reign on your budget each month.

Know how to use a credit card: Enjoying the use of a credit card can be risky if not properly managed. Even if you find it easy to pay off your purchases each month and you love earning credit card rewards, what will you do if your financial situation takes an unexpected turn or you lose your job? Don’t spend above your means, and try to always pay your credit card bill off each month so you’re not racking up debt plus interest.

Look ahead to your future: Have you saved enough to enjoy retirement one day? Are you going to be able to leave something to your loved ones? There are often a lot of questions when it comes to your financial future and retirement. Even if you don’t have a child to be your beneficiary, most people are living longer than ever these days and you’ll want to make sure you don’t outlive your savings. If you haven’t checked in with your financial advisor lately, use the unpredictability of last year as an excuse to at least have a quick conversation with them.

Did you know First Financial has an Investment and Retirement Center which offers complimentary retirement consultations to our members?*

Contact one of our Financial Advisors today!

*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: CUInsight.com

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!

Article Source: John Pettit for CUInsight.com