Monthly Archives: July 2019

baby

How to Save for Your Baby’s Future

Blankets, gliders and toys galore – the list of items you need for your baby’s arrival seem like a mile long. The good news is that while some items like diapers and wipes are essential, baby can get along just fine without the matching crib and dresser set. What’s more important is planning for the days ahead. From braces to college, you can give your child a head start in life by saving for their future now. Here are some ways to start bulking up the savings!

Get Insured

Insurance can help to give you some peace of mind in case the unexpected were to occur. Having a policy on yourself is a certain way to ensure your children are taken care of should something happen. Even if the policy doesn’t get utilized before they leave the house, if it’s a permanent policy, it will last until they are adults to help pay for end-of-life expenses.

Another savings plan option is to take a policy out on your child. A permanent policy grows in cash value over their lifetime. They are able to deduct the cash value of the policy tax free to use however they wish when your child reaches adulthood.

Make a Budget

If there was ever a time to stick to a budget, it’s now. If you’re reading this blog, you’ve probably already decided that an important goal is to save for your child’s future. Now take a look at your other goals and calculate what percentage you want to put towards each goal and expense every month. Sticking to this will also set a great example of money management for your child as they grow.

Ask for Contributions

It’s easy to accumulate too many toys and items that your child simply does not need. While the baby is young, for each birthday party or celebration, ask for cash to go towards their financial future instead of a present.

Start a Savings Account

There are many different options for saving for your child’s future. There are some that are solely to be used for a child’s college tuition, like a 529 plan, and there are other basic savings plans. Meet with one of our financial specialists to determine which plan is right for your growing family.

Open a savings account with us today, so you can make sure your baby’s future is bright!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407727

car

How to Buy a Car – and Actually Save Money

Is your current car on the fritz or have you been eyeing that shiny new Jeep you see parked at a dealership on your way to work every morning? If you’ve been hesitant to buy a new vehicle because you’re worried about it costing too much, here are some ways that you can get the car you’ve had your eye on while still saving money.

Get Pre-Approved

Before starting your search, you should get pre-approved for a loan. It’s important to know what limit you can qualify for and match that up with your monthly budget. It has been estimated that your total auto expenses should not exceed more than 10 percent of your yearly income. This includes the loan, insurance, maintenance and interest. When you know your limit, you can stop yourself from gazing at cars out of your price range that you may have otherwise talked yourself into buying.

Sell Your Current Car

Many times the dealerships will ask for you to trade in your vehicle in order to get a “better” deal on the new car. However, you can typically get more for the auto if you sell it privately. This may cost you some additional time to fix anything major with the car, as well as listing it in the local classifieds. The dealership will turn around and sell the car for a profit anyways – shouldn’t that extra money be yours to put towards your new wheels?

Shop Around

You are your best advocate when it comes to finding and buying your new car. Don’t make any decisions right away. A smart way to start looking is searching at the average value of the car you are wanting. Look at reputable sellers online to see what the cars are typically going for, so you don’t find yourself getting swindled by a dealership transaction.

New to You Is Often More Valuable

The minute a car is driven off of the lot, it loses a significant amount of value. Often, the newer cars aren’t necessarily any different than ones a from few years prior in terms of features. Consider buying Certified Pre-Owned vehicles to save yourself hundreds or thousands of dollars.

Be Wary of Extended Warranties

Many dealerships will push heavily for you to have an extended warranty because this is how they make a large portion of their money. It is of course your choice on whether or not it is worth the risk of not accepting the warranty. However, many times these extended warranties are mute in comparison with the manufacturer warranty. They are usually very expensive and do not make it worth your dollar in the long run.

Allow us to help you with a big purchase like this – we’d be happy to speak with you about our options.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407727

cybersecurity

Cybersecurity for Beginners

Let’s get back to the basics! Cybersecurity is important for everyone, no matter if you use the internet every hour or every week. If you’ve never considered the best security tactics for the cyber world, hold on tight and pay close attention as we run through the biggest pillars of cybersecurity.

What is cybersecurity?

Cybersecurity is the act or process of protecting devices, networks and programs from theft or damage. Everyone has something to lose, whether it be their identity, money or hardware. Cybercrime can happen to anyone and it’s important to be aware and prepared.

Start With the Physical

Just because we are talking about cyberspace, doesn’t mean this doesn’t include protecting your physical space. Keep all of your devices secured with password protection, so that in the case your device is taken, they will not be able to crack into your sensitive documents. This also goes for being cautious on what flash drives or hard drives you plug into your computer. Unknown ones may be infected with malware seeking to steal your information. This also means your devices should never be left without your supervision.

Create a Tight Password

The first line of defense against a cyber criminal is your password. It’s tempting for many to choose something that is short and easy to remember. However, your password should be complicated enough to keep a hacker out. It’s suggested to use a sentence for a password. For example, instead of choosing your pet’s name as a password, create a sentence about your animal. It could be something like, ”Mydogspotlikestonap.” Get creative!

Avoid Public Wi-Fi

While we believe it’s fantastic to make use of our public libraries and coffee shops, using public Wi-Fi can put you at risk. However, there are two types of public Wi-Fi. One is safer than the other. Unsecured networks often don’t require a password or any login information. A secured network will require that you create an account in order to access the service. This is a safer option. However, if you still want to use an unsecured network, you should be sure to not access any personal information, as the line can be easily hacked.

Be Social Conscious

Social media is a great tool to stay connected with friends and family. However, be sure that you are not posting sensitive information about your identity such as your birth date and current location. It’s also important to keep your settings private so only your close friends have access to the account.

Welcome Updates

Updates may seem tedious, but they keep your device secure by patching any areas that are prone to hacking. Having a software will tell you when you need certain updates and your computer will ask you to restart when it has updates as well.

Be Suspicious

Whether it’s an unsolicited advertisement or an email from an unknown source, always be suspicious of anyone asking for your personal information or money online. It’s often a best course of action to not interact with any unknown sources.

Stay safe and secure by utilizing these cybersecurity tips! You can also open an Online and Mobile Banking account with us – so you can securely check your finances.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407727

home

4 Ways to Stay Within Your Budget When Buying a Home

The weather is beautiful and homes are popping up for sale everywhere! If you’re on the hunt for your next house, it’s important not to bust your budget. Luckily, we’ve compiled some great ways that can help you stay within your budget when buying a home.

Have 20% Saved for the Down Payment

While you don’t need 20% saved in order to actually buy a home, there are plenty of benefits that come along with it. In total, you’ll pay less for your home since you’re avoiding interest being applied to a higher cost. You’ll also potentially get a lower mortgage loan interest rate because making a higher down payment is a sign that you’re stable financially, and thus are a good credit risk. Finally, this can help you avoid paying private mortgage insurance.

In 2016, the average home down payment was 11% according to the National Association of Realtors. Younger home buyers ages 35 and under, who usually have lower incomes than people in their 40’s and 50’s, put down 8% on average for home down payments in the same time period. If you can’t afford 20%, it’s okay – but try to work your way towards that goal!

Raise Your Credit Score

The balance on your credit cards vs the credit limit is called your credit utilization ratio. This ratio accounts for 30% of your overall FICO score. By paying off your cards, your credit score will raise and allow for a better loan. It’s also important to know that new accounts and hard inquiries make up 10% of your credit score. When you open a new account, your credit score will drop for a couple months. When you know you’re going to be applying for a mortgage in the near future, it’s best to hold off on buying that new car or applying for a different credit card.

Earn More Money

There are plenty of ways to earn more cash! If you want to stay within your budget, finding ways to add more savings to the pile can help with that goal. You can take money from your IRA without the 10% early withdrawal penalty when you use the money for a home. There are also other solutions that won’t take from your retirement savings, such as getting a second job or hunting for a new job that will pay more. If none of those options work for you, try hosting a garage sale or selling some lightly used items you don’t need online. You could also find ways to use your talents on the weekends or after work, like being a photographer for weddings and senior photos on the side!

Utilize First-Time Buyer Programs

Exploring local and national first-time home buyer assistance programs is an important step in the journey to homeownership. See what’s available to you to know what your options are.

We believe these top tips will advance your home buying skills and help your budget. If you’re looking for a place to put your savings for your new home, we’re here to help. We also have all the home loan options you’ve been searching for and are happy to talk to you about the next steps!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407727