Monthly Archives: February 2022

budget

The Dos and Don’ts of Budgeting

When it comes to budgeting, you might not even know where to start. The truth is, there are a million ways to budget and it’s not a one-size-fits-all process. You should try some different methods to decide what works best for your specific situation. Here are some general rules of thumb when it comes to knowing how to properly budget:  

DON’T stress yourself out about debt. DO take the first step in creating a budget. 

One of the biggest mistakes people make is over-stressing about the idea of a budget which prevents them from budgeting at all. Instead of stressing yourself out over creating the “perfect” budget, just start small. Over time you’ll learn what works and what doesn’t work for you individually. 

DON’T set an unrealistic budget. DO create a sustainable and effective budget. 

If you’re super motivated to save lots of money this year, you may get in over your head about how strict your budget should be. While budgeting should involve discipline, there are ways to create one that’s sustainable in the long run and that still allows you to enjoy life. It’s all about balance, so find a good mix between a budget that challenges you but is realistic. 

DON’T spend impulsively and carelessly. DO align your budget with your priorities. 

What are your main priorities in life? If you enjoy cooking extravagant meals, keeping your car in tip-top shape or going to classes at your gym every week, make room in your budget for that. On the other hand, the money you do have to spare should be used wisely, so always factor hobby spending into your budget so you don’t end up spending impulsively. 

DON’T give up after a few difficult weeks. DO follow through and trust the process. 

Just like most good things in life, saving money and budgeting properly takes time. You might become discouraged when you realize you can’t always go buy your morning coffee or you must limit the number of times you go out to eat. It’s not always an easy change but stay motivated. Over time you’ll look back and be thankful for the financial sacrifices you made. 

DON’T try to manage your finances by yourself. DO talk to a financial advisor or have an accountability partner. 

If you have a trusted friend or family member who is also wise with money, you can confide in them for advice as well as accountability. Having someone to keep you in check will be another source of motivation for you. You can also rely on a financial advisor for assistance if that sounds like the right step for you. 

Now that you know how to and how not to budget, you can feel confident going into the process. Take the first step and create a simple budget – we believe in you! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

old-couple

Common Retirement Mistakes to Avoid

Whether you’ve barely thought about retirement or are nearing the typical retirement age and want to know how to go through the transition properly, learning about the process is always a good idea. Learn from the mistakes of others and avoid these common mistakes: 

Putting Off Retirement Savings 

Don’t keep putting it off – the time to start saving for retirement is now. The earlier you start, the less stressed the retirement process will be. A CD or IRA is a good place to start!

Not Having a Plan 

There are so many things that factor into how much money you’ll need to save, including when and where you’re retiring. Plan these things out in advance, coming up with an amount you’ll need to retire comfortably, then take action steps towards saving that much. 

Not Taking Advantage of Your Company’s 401(k) Employer Match 

If your employer offers a 401(k), make sure you maximize the amount you contribute and utilize the employer match if that’s an option. This is extremely important and the money matched can really add up. 

Waiting to Pay Off Debt 

Don’t wait until the last minute to pay off your debt – get rid of that as soon as you can so you don’t have to save for retirement at the same time as you’re paying off your student loans. Experts often say you should focus on paying off debt before you worry about saving for anything, including a new vehicle, a house and even retirement. 

Looking Past Potential Health Costs 

You never know what the future holds, and you may end up in a situation where you must pay for unexpected medical bills. While we hope this isn’t the case, it’s always better to be safe than sorry when planning for retirement. 

Changing Jobs Frequently 

There are benefits to sticking around at a certain company for an extended period. For some companies, when you’re there for a set period (usually five years), you become fully vested which means ownership of the funds or stock that your employer “matches.” Consider this as you navigate the job world and consider hopping around from one to another. 

While this is just the tip of the retirement iceberg, these are all common mistakes that can be easily avoided. Make sure you are planning for retirement ahead of time so you can save yourself the trouble that comes with going into the process blind! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

credit score

Improving Your Credit Score 101

Just by glancing at a single number, lenders can determine how financially responsible you are and decide whether to lend you money or not. Your credit score determines other important things like interest rates as well, which is why it’s so important to make sure your score is good. If you don’t have the greatest credit score, here are some basic ways you can improve it.  

Check Your Credit Score Frequently 

Just like you should be checking your checking and savings account balances frequently to make sure you’re on track, you should also take a look at your credit score every so often. If your score goes down, you might be able to pinpoint the reason and make adjustments as needed. 

Always Pay on Time 

One of the biggest things that affects your credit score is whether you pay your credit card bill on time. Late payments can take a hit to your score, so do everything in your power to make sure that’s not an issue. There’s usually a way to schedule automatic payments so you don’t even have to worry about forgetting to do it yourself. 

Keep Those Old Accounts Open 

If you have credit accounts open that you don’t use, it may seem obvious that you’d close them. You’re actually more favorable to lenders if you have an older credit age. As always, everyone’s situation is different so speak to a financial advisor if you’re unsure what to do with open and unused accounts. 

Keep Your Credit Utilization Percentage Low 

The general rule of thumb is to aim for 30% credit utilization or less. One way to do this is to pay your balances in full every month or at least keep your outstanding balance at 30% or less of your limit. You could consider asking for a credit limit increase which would help your credit utilization as long as your balance doesn’t increase at the same time. 

Monitor Your Credit Using a Service 

Credit monitoring services are very helpful and lots of them are even free. These services monitor the changes in your credit report over time and can help you figure out what will improve it. One of the best parts about credit monitoring services is that they can help prevent fraud and identity theft by alerting you, for example, when a new account has been opened in your name. 

Now that you know the basics, it’s time to kickstart your journey towards improving your credit score. If you don’t have a credit card yet, we’re here to help with that. Contact Peoples Bank & Trust to get started! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

picnic

Date Night on a Budget

It’s easy to skip out on date nights as life gets busier, and especially when money becomes tight. Making intentional time to spend with your partner each week or month is so important, and date night doesn’t always have to be extravagant. There are lots of sweet date ideas that cost little to nothing, so try some of these ideas on your next free night! 

Cheap Babysitting 

If you have kids and don’t want to spend money on a babysitter, there are some ways to get around that cost. Having family members or close friends nearby who are willing to watch your little ones for free is always nice, but that’s not an option for everyone. Think of another couple with children who you could ask to do a “babysitter swap” with each month. They watch your kids for an evening and you watch their kids another time, that way both couples get to go on a date without worrying about the childcare cost. 

Explore Nature 

One of the best parts about nature is that exploring it is usually free! If it’s nice out, you could go for a hike or find a pretty trail in your area to check out.  

Coffee Date 

Some coffee shops are a bit pricey, but it’s not bad if you stick with something simple like black coffee. Whether you want to try a coffee shop you’ve never been to or have a favorite, go-to spot, this is always a great idea for any time of the year.  

Picnic 

When the weather warms up a bit, you can’t go wrong with a romantic picnic. Pack a simple lunch or dinner with the food you have at home and find a nice picnic spot in your area. If you have some money to spare, you could mix it up by ordering a pizza or picking up a sub sandwich. 

Just Dessert 

Going out to dinner is usually what makes date night expensive, so what if you made the main course at home and went out for just dessert instead? This can be as simple as a drive-through ice cream cone or as fancy as cheesecake from a nice restaurant.  

Go On a Long Drive 

There’s nothing quite as peaceful as playing good music and going on a long drive. To add to the experience, visit Zillow.com to find some expensive houses in your area to check out. 

Games and Movie Night 

It’s time to dig out those old board games like Uno or Monopoly and have a fun game night. End the cozy night at home with a movie and some popcorn. 

We hope these ideas have sparked your interest and will help you stick to your budget. Now’s the time to go mark your calendar for a date night so you can spend time with the person you love! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender