Monthly Archives: September 2021

piggy bank

How much should you save every month?

With bills, insurance, monthly expenses, retirement and more, how is there anything left to save? And if there is any money left, what do you save for and how much should you be putting away? We’re here to help answer these questions! Here is how much you should save every month. 

50/30/20 Rule 

You may see a lot of recommendations for saving 20% of your income every month. According to the popular 50/30/20 rule, you should reserve 50% of your budget for essentials like food and rent, 30% for discretionary spending and at least 20% for savings. But it’s not always that simple sometimes. If you earn more money, then 20% makes sense for you. But if after calculating your budget and 20% just isn’t within reach, don’t get discouraged. Saving something is better than nothing – so try for 10-15% if possible. 

Automate your savings so you don’t have the choice to use that money if it goes straight to a checking account. If you get a bonus or raise, put that straight towards one of the below items. You were okay without that money and getting by so put it towards savings instead of into your pocket to spend. 

Retirement 

Saving for retirement should be started as soon as possible and is a lifetime goal. Saving younger means you’ll have less to save each month than if you start later. A general rule of thumb is to have one times your income saved by age 30, twice your income by 35, three times by 40, and so on. Try to save 10-15% of your salary for retirement. Increase by 1% in savings each year until you can get to a number close to that. 

Emergency Fund 

You may think you are okay and don’t have to worry about a large emergency. But if your furnace and a/c go out, you are out $10,000 in supplies and labor right there. You may not have that big of a cushion to fall on if you thought your emergency will only cost $1,000. Your emergency fund should be 3-6 months’ worth of expenses which includes your monthly expenses and salary so you would be covered if you were to lose your job. We know that seems like a lot but slowly work towards that over the years. 

Family 

Think about what you want to save for regarding family. Do you need a new car to fit your growing family, will you be helping your child pay for college, are you going to take a family vacation, or do you just need to save for the overall cost of having a child? Thinking about your future and the costs that you will incur regarding family should be added into a savings plan. 

These are some of the top things you will want to save for and how much you need to save for each! If you need to place your savings in a savings account, CD/IRA or checking account – we have you covered. 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

holding hands

A Married Couple’s Guide to Finances

Congratulations on your engagement and wedding! Whether you are recently engaged or have already tied the knot, talking about finances is extremely important in order to set you both up for success. Peoples Bank & Trust wants to offer a married couple’s guide to finances, so you can live happily ever after. 

How will bills be split? 

There are many day-to-day and monthly expenses that arise. You’ll want to talk about how these will be shared so both parties feel that a fair outcome has been decided. Talk about groceries, rent/mortgage, property taxes, property insurance, utilities, health insurance, life insurance, car payments, student loans, any repairs/renovations and so on. This can all add up so it’s important to go over your salaries after taxes and retirement savings so you can know who will pay what. 

Whose insurance will you use? 

You both potentially work at different companies with different insurance. Compare the prices, benefits and what’s included in both so you can come to the conclusion on which health insurance is best for you. 

Do you plan on having or already have children?  

Children throw even more costs into the mix. This will change your health insurance costs, add more monthly costs and more. You will also want to talk about saving for your child’s college, helping pay for a car and other big expenses. Sit down and discuss your goals financially for your children – then you can start them out on the right path financially!  

Will you have separate and/or joint accounts? 

It is completely okay to have separate accounts, but it may also be nice to have a joint checking account for bills or to save for child expenses. One partner may pay all of the bills each month so it’s easy to have a joint account where both of you have stashed cash so they can pull money from there. 

Have you updated your beneficiaries and created a will? 

Now that you are married, be sure to update your beneficiary information on your retirement plans, life insurance and any other areas that require you to do so. You will also want to think about creating a will if you haven’t done so already. This is especially important once children come into the mix. 

Has your insurance coverage been reviewed and updated yet? 

Be sure to update your insurance. You can also get deals when you combine your mortgage, car and life insurance together all on one plan. Look into that to see if that helps you save any money. While doing that, you’ll also want to look into life insurance. You are both responsible for your mortgage and if you plan on having kids, that’s another place you’ll need part of your partner’s income if something were to happen to one of you. You want to make sure you’re set up for success if the worst did come. 

We hope this guide gives you a good start to become financially sound in your marriage. The professionals here are happy to answer any other questions you may have regarding your finances as a newly married couple – just contact us! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

calculator

Take Control with A Budget

If you can’t seem to get a handle on your finances, it may be time to reevaluate your spending and learn to budget. Budgeting is essential for those looking to be financially successful. You need to know where your money is going and make sure that it makes sense. Here are our tips on how to take control of your finances with a budget. 

Look at your overall monthly expenses. 

You will want to review what you are spending money on each month. Add up your grocery bills, daycare, utilities, cell phone bill, mortgage/rent, insurance and so on. This will give you a good basis of what you must have money for each month. And it will help you find places to cut – if you realize you’re paying for five different tv subscriptions, you can probably cut 2-3 of those and come out saving some extra cash. 

Track your odds and ends expenses. 

Now you need to make a list of everything you buy throughout the month – this includes going through the drive-thru for lunch, grabbing a coffee, getting gas, any extra groceries and more. Over a few months, you’ll have a solid average for extra items you need to budget for. Doing this will also help you notice what you are spending your money on and if you can cut that down to save more. 

Decide on your financial goals. 

What do you want your goals to be financially? Are you saving for retirement, college for kids, a car, down payment or trip? All this needs to be figured into your monthly budget so you can allot the correct amount of money towards your financial goals. Open a savings account to store this money safely as you begin to build your funds. 

Become debt-free. 

You will want to budget for your debt payments once the above has all been calculated into the budget. Becoming debt-free is crucial to your financial success. See how much you owe and work on a plan to pay off each debt. You can pay the highest interest debt off first, do the debt snowball method or look up other debt payment strategies that would fit you best. Budgeting paying off more than the minimum each month will help you succeed. 

Stick with it and reward yourself. 

We know it may be hard to stick with tracking all your expenditures and saving for different financial goals, but don’t give up! Reward yourself when you hit milestones because it’s important to stay excited and motivated about budgeting. Take control of your debt by continuing this each month so you can solidify your financial success! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

house for sale

How To Sell My Home Fast

The housing market is ideal for both buyers and sellers at this time of year. Things are moving quickly so in order to sell your home fast; you need to be ready to move and groove! We’ve created this blog with tips and helpful advice on how you can sell your home fast. 

Choose FSBO or Realtor 

Choose if you will be selling the home yourself (for sale by owner) or if you will be using a realtor. The realtor knows the process and can get things rolling – they may also have connections for potential buyers. But if you are selling on your own, that can save you some money. Just make sure you have things lined up in case you get an offer, such as a purchase agreement and seller disclosure. You can contact your local lawyer/law firm for help with this. 

Declutter 

The most important thing is to declutter and clean your home so it looks larger than it may actually be. People want to look at pictures or in person and feel like the home is clean and move-in ready! They don’t want to see a lot of work they will need to do right away when moving in. Lots of boxes and extra furniture in rooms can make a buyer feel overwhelmed as they won’t be able to imagine their things within your home. 

Post Everywhere 

Don’t just use Zillow and Realtor.com – post on Facebook Marketplace, your social media platforms and so on. Everyone is utilizing social media as a platform to find and buy things which means posting your home there can get widespread views once family and friends start sharing the post.  

Price Fairly 

Don’t go top dollar but don’t go too low either. Whether you are selling on your own or have a realtor, it’s important to look at comparable homes in your area to see what they are priced at and recently sold for. This will give you a good idea on what to list your home for so it’s not too high. Doing so will also set you up for the conversation on how much you are willing to go down if a price reduction is needed or a buyer wants to feel like they got a deal. 

Be Ready to Show 

When it works for someone to come see the home, make it work for you – even if you need to move things around. It’s important to make the buyer feel like seeing your home is easy so they don’t get a bad feeling about having to reschedule a showing a few times due to your schedule or issues with access to the home. The quicker you can get people in, the quicker you can get the home sold! 

We hope you find success in selling your home fast! When you find your next home, we’re ready to help with the mortgage process so you have the funding needed. 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender