Monthly Archives: September 2020

money

7 Daily Habits That Will Save You Money

Saving money doesn’t have to be complicated – there are habits to incorporate into your daily routine that will save you money in the long run. These tips are simple and easy to start but also very effective. It’s time to take control of your finances and make some healthy changes! 

1. Pay with cash 

Using a credit card for everyday purchases can be tempting and often lead to impulse buying. A good way to stick to your budget is to have a certain amount of cash for the week and use only that cash. This is also great because you can’t spend money that you don’t have. 

2. Do more things at home 

Too often we rely on other places to do tasks that can easily be done at home. For example, many people spend lots of money going out to eat, getting their car washed, stopping for coffee, getting their hair trimmed and more. These are all things that can be done for a much lower cost in the comfort of your own home! 

3. Check the secondhand shop first 

You never know what secondhand gems you can find until you try! Before making a purchase, check garage sales, thrift stores, the Facebook Marketplace or more to see what deals you can find. 

4. Schedule when to track your spending 

To hold yourself accountable for what you’re spending, it’s a good idea to track your spending. Plan a day you’ll do this each week, so it becomes a habit. It’s a great way to reflect on what purchases were necessary and which ones weren’t. There are lots of apps you can download to help with this. 

5. Be careful with your utilities 

Even though utilities are a recurring cost, there are still many ways to reduce how much you must pay. Try cutting costs by keeping lights off, taking shorter showers, opening your windows rather than cranking the AC, etc. These costs can add up so this is a great habit to start! 

6. Reevaluate memberships and subscriptions 

Go through all the subscriptions and memberships you pay for. Which ones are necessary and which ones aren’t? Save yourself some unneeded costs by getting rid of some monthly payments. 

7. Take time to think before you buy 

Before making a non-essential purchase, give yourself a few days to think about it. Only follow through with the purchase if after those days you still really want it to help reduce impulse buying. 

We hope these tips will make a difference in the way you handle finances in your everyday life. Turning these seven things into habits will certainly pay off in the long run, so give them a shot! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

credit-card

How to be Responsible with Your Credit Card

Credit cards have their benefits – building your credit score, earning rewards, convenience and more. They can also be dangerous if not used correctly. Since people often tend to spend more using credit cards rather than cash, it’s easy to get in over your head without realizing it. Keep reading to find out some great ways to be responsible when using your credit card. 

Don’t Spend What You Can’t Afford 

Just because credit cards allow you to buy things without having the money doesn’t mean it’s a good idea. Trouble, debt and stress all start building up when you realize you can’t pay for what you spent. The easiest way to stay out of credit card trouble is to simply never make purchases you can’t afford at that moment.  

Pay on Time 

Building good credit comes down to paying your credit card bills on time so lenders can see you are reliable. Do this by always paying your bill before it’s due so you’re not scrambling to pay at the last minute, as well as avoiding late fees. 

Go for Low-Interest and Low-Fee  

Before even getting a credit card, make sure you read the cardholder agreement to see what you’re signing up for. Look for a credit card with a low interest rate as well as a low annual fee so you can make the most of the credit card you use. 

Don’t Go Over Your Limit 

Over limit fees can sneak up on you if you’re not careful. Going over your limit can lead to charges and can hurt your credit rating as well. Make sure you know your limit and are staying well under it, so you are prepared for emergencies. 

Get Fraud Protection 

Credit cards can be hacked, but the good news is that credit card fraud protection is available. This way, if your card is hacked, you don’t have to pay for those charges. 

Ask for Help Right Away 

If you’re struggling with credit card debt, reach out and get help before it gets worse. There are many people you can talk to such as finance professionals, credit counselors or your bank. These people can guide you in the right direction so you can take steps towards avoiding, getting out of and staying out of credit card debt. 

While using credit cards irresponsibly can lead to scary consequences, taking these smart steps will help you make the most of your credit card. Having good credit is extremely beneficial for your future, so don’t be afraid to use your credit card wisely. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

older-person

Retirement: What You Should Know

While retirement might sound lifetimes away, it sneaks up faster than you think. Many people wonder when to start saving for retirement, how to start, how much money they’ll need and more. We’ll answer those common retirement questions in this blog, so keep reading to find out. 

When to Start 

The time is now! If you are earning paychecks, start saving for retirement as soon as you can. The sooner the better, and the main reason for this is because your money will have more time to grow. Compounding makes a huge difference, and those 5 or 10 years of extra saving can turn into tens of thousands of dollars more than you would’ve had before. 

How to Start 

Don’t be intimidated – you can start small and work your way up to saving more. Something is better than nothing, so even putting a couple of hundred dollars into your retirement savings is a good start. The next step is to be consistent. Keep adding to the pile periodically and don’t tap into that money unless necessary.  

How Much to Save 

One general rule-of-thumb is save 10-15% of your income starting in your 20s. The amount you save depends on what you plan on doing once you’re retired. If you plan on traveling the world or buying a new sports car, your retirement fund will look different. It’s smart to have an idea of your retirement plans so you can adjust how much you save accordingly. 

When to Retire 

The answer to this is different for every person, too, depending on your retirement plans and how much you’ve already saved. The average retirement age is 62, but many people retire earlier or later in life. Some people also enjoy working and staying busy, so working doesn’t really come with an age limit. Knowing what age to retire comes with lots of planning and financial analysis, so be sure to talk to an advisor to know if you’re on track.  

What if You’re Falling Short? 

If you’re saving like crazy but still won’t meet your retirement goals, it’s time to consider some alternatives. The most effective change to make is delaying your retirement by just a few years. Not only will this add to your fund, but it takes off a few years you would’ve had to pay for to make it through retirement. 

As time goes on, retirement gets closer even when it seems far off. If you haven’t started saving already, it’s time to start!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

baby-hand

Smart Money Choices for First-Time Parents

Entering parenthood can be one of the most exciting yet scary times in life. The financial aspect of raising children is just one small piece to the parenting puzzle, but it’s an important piece. We’re here to help you make smart money choices you might not have thought to make. 

1. Re-think Your Budget 

Budgeting for two is completely different than budgeting for a family of three. The list of supplies needed for a baby is long and continues to grow as the baby gets older. Spend time sitting down with your partner to map out a new and improved budget for when the baby arrives. 

2. Get Rid of Debt 

It’s easier said than done, but if you’re in debt, getting rid of it before your baby arrives will be extremely beneficial. Not only will the debt still be lingering until you pay it off, but on top of that, you now have a baby’s expenses to pay for. Don’t let the baby purchases add to the pile of debt you’re in – instead, try to remove your debt before the baby even arrives. 

3. Start a College Fund 

Although it may sound like you’re getting ahead of yourself by saving for your newborn’s college tuition already, your future self will be thankful. 18 years goes by faster than you think and the cost of college continues to grow as time goes on. The sooner you start saving, the less stressful paying for tuition will be down the road.  

4. Don’t Forget About Retirement Planning 

Just because a new member is entering the family doesn’t mean you should put your future on the back burner. Remember to make your retirement fund a priority, too. Not only will this be of benefit to you, but it will take the financial stress off of the entire family’s shoulders in the future. Grow your money with compound interest by starting sooner rather than later! 

5. Increase Your Emergency Fund 

Just as your budget changes when you have a child, so should your emergency fund. With another person in the house comes more possibilities for an emergency to happen, so you’ll want to be prepared. Increase the emergency fund you currently have to have greater peace of mind when disaster strikes. 

Exciting times are ahead and with a new baby comes great joy. Becoming a parent can be scary, but with some planning, you’ll feel well prepared and excited. We hope this financial advice will benefit you and your growing family in the years ahead.  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender