Monthly Archives: October 2022

Don't Overspend this Holiday Season - Steps to a Better Budget

Don’t Overspend This Holiday Season- Steps a Better Budget  

Summer has flown by and that means the holidays will be here before we know it. Setting a budget is crucial for not overspending during a very expensive time of year. Start saving and setting your budget now so that when the holidays arrive you aren’t scrounging to stay within your budget. Here are the top steps for creating a budget for the holidays, as well as some savings tips. 

Step 1: List Out Your Known Holiday Expenses 

Your best strategy to avoid overspending is to set and stick to a holiday budget. It is very important to list out early your known holiday expenses and remember the spending doesn’t stop with gifts. Plan for hosting, food, entertainment, holiday activities, decorations, travel, donations, cards, wrappings, stocking stuffers, work Christmas parties, or anything you typically spend money on during your holiday season. 

The process of creating your holiday budget is similar to your household budget – list all expenses and add them up. Seeing this total, you can evaluate if it is within reach or if you need to tighten up your budget. As you shop this is a list to refer to and decipher how much to spend on each item as you check off your list. 

Step 2: Set Your Spending Limit

The most important step is to identify how much you can afford to spend and set your spending limit. This amount should come out of cash or savings to avoid relying on debt. Look at your list of holiday expenses and remove items if at all possible, compare what you’ve totaled up to the money you have set aside for holiday spending. If your total is within reach, this is a time to be creative with how to save a little extra over the next few months to continuously set aside money for your holiday budget. Here are some ways to save extra:

  • Buy gifts early and on-sale
  • Shop Black Friday
  • Sell some things
  • Pick up a side hustle
  • Cut back on buying wants 
  • Reduce social spending
  • Tighten your budget up and send additional savings to your holiday fund
  • Take a holiday job

Step 3: Number Your Priorities

The holidays can be overwhelming if you don’t plan in advance, set your spending limits, and save, save, SAVE! To relieve some holiday anxiety, set your priorities and do not feel bad doing so. If your expense list seems to be long, it’s ok if you can’t afford every single item that’s where your priorities come in. Go through your list and assign each item a number based on its importance. Rework your list, putting your high-priority items at the top. Your high-priority items should be the first you save for and purchase. 

For example, suppose you decide that purchasing gifts is your top priority, while new holiday clothes for yourself are a low priority. As you work out your budget, you would allot more items to your gift fund than your clothing fund, possibly even waiting to purchase clothing until gifts are all purchased, and you have room in your budget. 

Step 4: Re-Work Your Budget; Allocate Funds

Allocating your funds is figuring out how much money to put towards each item on your list. Examine your list to roughly estimate how much each item costs and how much you plan to spend. Keeping this list realistic and projecting costs to be higher will keep you within your spending limit. If you have 20 gifts to buy, budget for each of these gifts at a doable cost. 

Step 5: Check in On Your Holiday Savings and Budget

When you have added up the amounts you’ve allotted for your items be sure this equals the total you set as your spending limit. If it doesn’t match up, this is the time to rework your savings plan or lower a budget for one of your priorities. Consider scaling back on activities or even how elaborate your holiday party may cost. This is where you can reference your numbered priorities list and see what can be rearranged to keep you within your budget. 

As you begin to shop and plans change, KEEP TRACK. Keep notes of expenses and receipts to know where you stand on purchases and stay within your desired spending limit. Don’t risk blowing through your budget by simply being unorganized or overspending. If it makes it easier, open an account specific to holiday spending to help you keep track of how much you’ve spent and to reference the cost of items as you shop. You also could create cash envelopes to keep priorities separate. 

There are several ways you can get ahead on holiday spending this year! The best thing you can do is start planning and saving now – you’ll thank yourself for a great financial start in the new year!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

What is FDIC Insurance?

What is FDIC Insurance?

Deposit insurance is one of the biggest pros of having an account at an FDIC-insured bank. An FDIC-insured bank protects your money in the event of an unlikely bank failure. Keep reading to learn the benefits of being covered by an FDIC-insured bank. 

What is FDIC Insurance? 

FDIC insurance is a significant benefit of putting your money in a bank that is FDIC insured. “The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.” Simply banking with an FDIC-insured bank takes away having to purchase deposit insurance, as you are automatically covered. FDIC insurance maximizes your protection. 

What Does FDIC Insurance Typically Cover? 

Just because a banking institution offers FDIC insurance, that does not necessarily mean all accounts, products, and investments are covered. 

FDIC insurance often covers:

  • Checking Accounts
  • Savings Accounts
  • Money Market Accounts
  • Certificates of Deposits
  • Cashier’s Checks or Money Orders
  • Negotiable Order of Withdrawal Accounts

The FDIC does not cover:

  • Stock Investments
  • Bond Investments
  • Mutual Funds
  • Annuities
  • Safe Deposit Boxes
  • Life Insurance Policies
  • U.S. Treasury Bills, Bonds, or Notes

Remember if your bank is an FDIC-insured institution coverage is automatic to you, there is no need to apply for FDIC insurance.

Are You Covered? 

To find out if your deposits are insured utilize the tools below to check if your bank is insured, which of your accounts are covered, and how much of your deposits are insured.

Is Your Bank Institution Insured? – Not all banks are FDIC insured. Be sure to check that your is!

Are Your Deposit Accounts Insured? – Not all accounts, products, and investments are covered by FDIC insurance. 

How Much of Your Deposits Are Insured?  Use EDIE or Electronic Deposit Insurance Estimator to determine how much are insured. 

Frequently Asked Questions About Deposit Insurance

If you are looking to learn more about FDIC insurance, we would be happy to help. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

How to Save Energy in the Fall

How to Save Energy in the Fall

The warm days are slowly fading away. After a hot summer, it’s exciting to welcome Fall and Winter weather. As the weather begins to transition, here are some tips to incorporate in your home to save energy and some money! If you aren’t careful higher energy consumption can creep into the cooler months as well. 

Use Natural Light to Your Advantage 

Use the sun’s energy and warmth to your advantage! During the day you can finally open those blinds up for natural lighting and to heat your home. South-facing windows will help warm your home without using any energy at all. This is a great hack as you phase out the air conditioner and are not quite ready to turn on the heat. 

Seal Up the Cracks, Leaks, and Drafts

This is a big tip year-round to save energy, but after a hot summer, be sure to check for any new cracks, leaks, or drafts. Early fall is a great time to check for these things as well as doors and windows for any gaps letting heat out or cold air in. Catch the drafts early before you’re in the thick of winter – it will save you significantly. Another commonly missed area to check would be cut-throughs for pipe access, recess lighting, and entries to unfinished spaces for gaps affecting the insulation. 

Don’t Forget to Reprogram Your Thermostat

Strategically programming your thermostat can reduce energy use and save you quite a bit on the energy bill. Before the weather gets too cold. Make sure your heating system is working properly for the size of your home. This is a great time to change your air filter if you have not done so – this should be done monthly. 

Programing your thermostat for the warmer and cooler months is a top tip that if not done at all or done correctly can easily bust your budget and energy efficiency. As fall and winter weather moves in, it is recommended to set your heat at 68 degrees. This is to help the heat run systematically and not be overworked if it falls below 68 degrees. Programming your thermostat to a temperature you can leave for days is the best place for it to be to avoid using too much power. If you are going to be gone during the cooler months, you can turn the heat a little lower – 65 or lower – to save on energy while you are gone and increase incrementally a few degrees as you return. 

Prepare the Inside of Your Home

Not only does sealing any cracks, leaks or drafts improve your energy efficiency. A few other things you can do to reduce energy consumption and get your home cozy for winter are reversing ceiling vans, sealing your fireplace correctly, and replacing your indoor air filter. 

Ceiling fans can be a tool to keep you warm if properly set clockwise during the cooler months. Doing this pushes warm air down and cold air to redistribute the air coming out of vents to all areas of your home. As for the fireplace, be sure you are not letting warm air escape. Properly seal the damper as tightly as possible you may also consider adding an energy-efficient grate. Lastly, don’t forget to replace your indoor AND outdoor air filters – this is so important for energy efficiency and your health.

Incorporate these tips to reduce energy consumption this fall and winter! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724