Whether you’ve just entered your 20s or have been for a while, you’re probably aware of the many changes about to take place during this decade of your life. This is known to be the prime time to try new things, travel the world and live life to the fullest. But, it’s also the time where many individuals make huge money mistakes, fall quickly into debt and struggle getting out. Continue reading to make sure you don’t end up making these dangerous money mistakes in your 20s.

Procrastinating on Retirement Savings

While retirement probably seems too far away to consider in your 20s, it’s one of the biggest and most common money mistakes made. The earlier you start saving, the more compound interest will help you out. Set up automatic savings and don’t touch that money – retirement will be here faster than you think!

Buying a Brand New, Pricey Car

One of the easiest traps to fall into is buying a car that costs much more than is necessary. As a new full-time employee, it’s easy to be fooled by a paycheck that’s larger than what your college self was used to, but now is the time to be saving rather than spending. It’s normal to purchase a new car post-graduation, but stick to a used car or one that won’t leave you with an enormous car payment each month.

Living Beyond Your Means

The temptation to buy unnecessary items is everywhere, especially while you’re young. You might not have kids yet, which can make it even easier to spend money on yourself carelessly. Keep your spending in check and avoid going out to eat often, buying all of the new “in” clothing, getting drinks with friends, etc. There’s nothing wrong with treating yourself every so often, but being smart about how often and what you’re buying is what’s important.

Falling Into Credit Card Debt

This mistake is one that can lead to lifelong and life-changing consequences. Always pay your credit card bill on time and in full to avoid the daunting idea of being in serious debt down the line. Using your credit card wisely is important for building a good credit score, too!

Forgetting the Budget

Planning a budget and sticking to it might seem like a lot of work. In reality, there are lots of great money management applications available that make budgeting a breeze! Budgeting is the best way to have control over your money and make well thought-out financial decisions. Don’t worry – not all budgets are restrictive and difficult to follow. As long as you have some sort of plan set in place, you’re on the right path.

When it comes to your future with money, your 20s will either make it or break it. We’re happy to be here to provide you with the services to make your financial future a success. Contact Peoples Bank & Trust to open a savings account or to learn more about how we can help!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The holidays often sneak up faster than expected along with the many Christmas gift purchases. This year, go easy on your wallet by making extra income to set aside just for gifts. Life is always busy, but with some hard work and dedication there’s always time to make a little extra cash. Continue reading for some money-making ideas!

De-clutter and Sell

Odds are, there are countless items in your house that either don’t get used enough or aren’t necessary. Now’s a great time to go through your belongings, organize and make a pile of things you can get rid of. Rather than throwing them out, sell your belongings on eBay, Facebook Marketplace or other online platforms. Many secondhand businesses will buy your items to re-sell in their store, or you could even have your own garage sale. This is the perfect way to deep clean and de-clutter your house, all while making some extra money!

Start a Side Gig

Today’s technology allows people anywhere to find side gigs in the click of a button. Whether you enjoy cleaning, are good at lawncare, like pet sitting or more, there’s a person out there who would hire you. This is also great because temporary jobs like this can be done over the weekends to avoid interfering with your full-time position. Plus, you can make this a one month or yearlong deal depending on your preference, so your schedule is completely in your hands.

Find a Seasonal Job

The holiday season is primetime for finding a temporary, simple part-time job. As stores get busier, you can often find a job in retail if that’s what you’re interested in. Other seasonal jobs include working at a pumpkin patch, haunted house or Christmas tree shop!

Save All Year

Rather than waiting until the last minute to save some extra cash, make a lifestyle change and save throughout the year from now on. Peoples Bank & Trust offers a Christmas Club account, which is specifically designed to do exactly this! This account allows you to set aside money each week, even if it’s a small amount. Then in October, you are sent a check for the balance of the account plus interest! Once the holiday shopping rolls around, you’ll be thankful for the amount you set aside and you won’t have to worry about dipping into savings for the future.

While part-time jobs and reorganizing your belongings is time-consuming, the extra money made for Christmas shopping will be well worth the work. We hope this holiday season is full of joy, friends, family and lots of savings. Contact Peoples Bank & Trust to learn more about our services or to open a Christmas Club or other savings account today!!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Once you enter adulthood, your finances become your own and the major life purchases quickly approach. While not all of these purchases take place at the same time nor is everyone guaranteed to make them all, it’s common for the average person to make most if not all of these purchases at some point in time. Continue reading to be prepared for your financial journey in the future!

1. New Car

That car you got when you turned 16 won’t last forever, and soon enough you’ll be ready for a new vehicle. Whether this purchase takes place once you graduate college or when you need a size upgrade to fit your growing family, a new car is a big financial investment. It’s important to look into smart loan options available to you before you make the big decision. Another important factor to mention is that your credit score will have a big impact on the loan options available to you, so keep that in mind as you prepare for a new car.

2. The Wedding

As of 2019, the average cost of a wedding in the United States is over $33,000. While the bride’s family traditionally holds the responsibility of paying for the wedding, that’s not always set in stone in all families. Finding out where the wedding money is coming from is something important to find out by talking to your partner, your family and your partner’s family. Marriage is also another thing to plan for financially as you and your new spouse learn to handle expenses together rather than separately now. Also, even if you don’t have to pay for your wedding, if you choose to have kids the day will come when your daughter gets married, so the wedding finances could be on your shoulders down the line.

3. Starting a Family

The cost of having children is seemingly never-ending. From the hospital bill when they’re born until they head to college, you’re paying for the many expenses that come with having children. Keep in mind childcare, prom, clothes, college, sports and more which can add up quickly. Don’t let the many purchases that come with having kids push you away, though, as starting a family is truly priceless!

4. Buying a House

One of the most obvious and major purchases you’ll make in your lifetime will be your first house. With lots of research, thinking and searching, you’ll finally find the house of your dreams. This is something to plan for and keep in mind as early as possible, as many young adults push this off and procrastinate on saving. Set up a savings account to get a head start on this future purchase!

5. Making Your House a Home

A major financial investment that’s often overlooked when it comes to planning is furnishing your new home, getting appliances, landscape work, renovations and more. To make your house a home, lots of improvements and additions have to be made. Furniture and appliances can get pricey, especially the high-quality pieces that will last you awhile. Factor all of these home improvement payments into your budget before taking the step of buying a house.

As you enter this exciting stage of your life and the major purchases get closer, it’s always a good idea to set a budget and maximize your savings as much as possible. One great way to make the most of your savings is to open a savings account with us, set up automatic transfer and watch your savings grow! Contact us with any of your finance questions and we’d be happy to help.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Just because your student loan payments don’t start right after you graduate, the sooner you start making payments, the better. Paying for the college student life is tricky enough, so paying off debt at the same time might seem impossible, but it’s doable with a few lifestyle adjustments. Continue reading to find out the best ways to make payments before you even graduate.

Make it Automatic

One of the best ways to be dedicated to setting money aside is to set up automatic payments. By making it automatic, you won’t even have to think about the payments since the money will be going straight towards your student debt. Along with that, these payments become a habit and force you to make smart financial decisions.

Increase Your Income

It might seem obvious – if you want to make payments but can’t afford much to begin with, now’s a great time to pick up a side gig. The college life is busy as is, but there are ways to make time for some extra income. You can find remote work to do on your own time, get a weekend-only job or even get a paid internship. A paid internship would benefit your education, your resume and your finances all at once!

Try a Budgeting App

There are countless money management apps out there that make budgeting a breeze. Download an app such as Mint or PocketGuard to help you better manage your expenses. Visually seeing what you spend your money on puts your spending habits into perspective, allowing you to cut some unnecessary expenses and put that money towards your student debt.

Don’t Overborrow

It’s common for lenders to offer more money than you really need, but don’t be fooled by overborrowing and having to pay more interest. Only borrowing what you need will save you money down the road, which you can use towards more student loan payments.

Tackle the High Interest Rate First

Focus on the loan with the highest interest rate first, paying that one down to avoid more and more accruing interest. This is called the “debt avalanche method” and it’s great for paying off debt as quick as possible.

By starting your student loan payments as early as possible, you can save a substantial amount over time. Interest racks up, time flies by and before you know it you’re graduating and making monthly payments. Relieve yourself of future stress by getting a head start! Contact Peoples Bank & Trust to open a savings account and learn more about the services we offer.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender