Author Archives: PBTC Blogger

How to Create a Family Budget

As your family grows, so will your budget – but where do you even begin when trying to make one? With all the demands of taking care of your family, it may be hard to find time to make a budget…and stick to it. However, you’ll be ecstatic once you start seeing your hard work pay off. Take a look at how you can begin creating your family budget with these starting points.

Put Everything On The Table

You’ll want to list your income and expenses – don’t leave anything out (even that latte you buy three times a week). Make sure your income is reliable, so if you do get money from side job you do every once in a while, don’t list it, as you never know when you’ll have that cash. Some of your monthly expenses are fixed—mortgage/rent and property taxes—while others may vary, such as electricity, water and groceries. List all the fixed expenses and the amount of the expense. For your variable expenses, write the maximum amount you plan to spend in that category or the amount you expect your bill to be.

See Where The Money Disappears To

When you’re making your budget, where does all of this money go? Can you find ways to cut your expenses, such as buying groceries at a different store or carpooling to cut down on gas? Put all of your money into categories, such as utilities and discretionary spending. Your discretionary spending will account for more than you think. Movie tickets, dining out and that coffee every morning add up fast!

Pick A Goal

Know why you’re making this budget, and don’t just say, “to save more.” By having an actual, detailed goal, you’ll be more motivated to stick to the budget. Maybe you want to pay off your student loans or credit card debt, or your goal is to take a trip! No matter what, having a set goal will make the budgeting process a success.

Track Your Spending

As you begin to start working on your budget, sticking to it and adjusting as you go, it’s important to take detailed notes of your spending. It’s very easy to miss little expenses here and there, especially when you’re so busy running around after your children. By tracking your spending and getting in the habit of doing it every day, you’ll be able to narrow down your budget and make it become more realistic. There are plenty of apps out there to help you easily track your spending, instead of doing it by hand.

Become a frugal family with these top tips! They are a great way to start a simple budget and inch your way towards creating a helpful document that will aid you in saving. Place that savings into an account with us, so you can keep building up your finances!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Meet Your Retirement Saving Goals

No matter your age, everyday you work is a step closer to retirement. When you think of driving off into the golden years, where are you headed? You likely have a picture in mind whether it be having a house in your dream location or an RV to explore the National Parks. Whatever that goal is, the steps to get there are going to be similar. Here’s some great money moves you can make in order to reach your retirement savings goals.

Start Where You Are

Many are under the impression that they should wait to save for retirement until they make a significant salary. You may be surprised at how much can be saved with a quality savings account on a small income. Even if you are only able to put $25 away each month, it is a great start. Most importantly, it gets you into the habit of saving. Once this habit is established, it will be easier for you to continue this as your salary and contribution increases.

Make Use of Every Employee Plan

If your employer offers matching contributions to your 401(k), take advantage of this. With most employers, the process is automated to come out of each paycheck. It takes the decision making out of the equation and can add up over the course of your career. If your employer does not offer this, consider contributing to an IRA on your own. It can either be a traditional or Roth.

You Must Stash

No, we aren’t talking about your mustache. What we mean is that you must stash away any extra income that you have. If you get extra income from a bonus or selling a valuable personal item, put that money into a savings account. It may not seem as glamorous as buying a new car or getting a new wardrobe, but your future self will thank you.

Let Your Kids Hear “No”

Many people try to give their kids every opportunity available. While this is great, it should not come at the expense of your retirement savings. Extracurricular activities can get very costly, especially if your children are in elite clubs. One way to cut down on these expenses while keeping them active is to limit them to one activity per season. They will learn to take advantage of every opportunity given to them as well as learn how to get involved in free activities like volunteering or after school clubs.

Saving for retirement can be tricky, so allow us to help your money grow with a CD or IRA from Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

8 Surprising Ways to Save on Baby Stuff

Oh baby! Although they are small, babies can take up a significant amount of your budget. Many first time parents experience sticker shock with the numbers they see as they walk through the baby section at their favorite stores. Thankfully, there are ways to make these expenses easier to manage so you can focus on the excitement of the little one without the pain associated with the rising costs.

1. Sell What You Don’t Need

Because babies cost so much, it goes without saying that they often require a lot of things. This translates to your home being turned into an obstacle course with baby things now dominating your space. Stay ahead of the chaos by selling items you don’t need. You can use this money to buy things you know you will. This will give you extra space and some purchasing power.

2. Snip or Save Those Coupons

You might be surprised to find out not only how much coupons can save you on necessary items like diapers, but the amount of them available for babies is never-ending. Before going to stock up on baby basics, take a look to see how much you can save! Some stores may even price match brick and mortar or online deals.

3. Don’t Overindulge in Clothes

It might be one of the most fun things to buy, but you do not need as many clothes as you think you do! Consider what you think you need now. Split that amount in half. The first few months of their lives, something as simple as white onesies will suffice. Have a few favorites for them to wear when you leave the house. Additionally, babies grow incredibly quick, so often it’s best to wait to see what you will need before buying too many things in advance.

4. Question the “Necessary”

We want to get our children everything they could possibly need. Thankfully, babies actually need very little. So what about that wipe or bottle warmer you just added to the registry? Take it off, as things like these are in reality rarely used and take up wasted space. The wipe warmer will dry out your expensive wipes and bottles can be warmed with running hot water!

5. Consider the Green

When considering your money, think about going green. It may be unconventional in some ways, but some of the biggest expenses you may have are diapers and wipes. There are some start up costs to cloth diapers, but once you have the basics you are all set! To put it in perspective, diapers can cost about 1k a year, as opposed to the average $150 for cloth diapers. While your pockets become filled with green, so has the environment.

6. The Nursery: Keep It Simple

Getting the nursery decorated and set up like the influencers on social media can be a lofty and tiresome goal for any parent. We are here to tell you that it does not need to be that extravagant! It’s often safest for the little one, too.

7. Phone Your Insurance Company

Unfortunately, many are unfamiliar with what their policy will and will not cover. Don’t be afraid to give them a call to verify your coverage. Many companies offer additional services for first time parents such as weekly nurse check-ins, lactation consultants and free breast pumps.

8. Plan Ahead

The best thing you can do for your budget is to prepare for every expense this new baby will bring. For example, if you will be receiving maternity or paternity leave, you will want to calculate how much you need to save in order to be unpaid for that time (if your work does not offer paid leave). You’ll also want to factor in the additional health insurance costs that will be accrued. It is never too early to begin planning!

Save for your kiddo by using these nifty tips – then store the savings in an account with us!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

A Six Step Small Business Cybersecurity Plan

You have ventured out to achieve your dream of owning your own business. Unfortunately, there are criminals who aim to take what you have worked so hard for. These criminals aren’t what they used to be, they aren’t standing at your door, but likely anonymous and entering your business from a remote location. It can happen to anyone and this is why it’s important you have a cybersecurity plan for your business. If you are new to the cybersecurity realm, start with this simplified plan in order to protect your business.

1. Analyze Your Risks

It’s hard to know where you’re going if you don’t know where you are. You have a business to run and a hundred decisions that need to be made everyday. Either partner with a cybersecurity expert to analyze risks you currently have or educate yourself on the potential security pitfalls many business owners fall victim to.

2. Establish Security Protocols

Once you know where you are vulnerable, you have a better idea of what needs to change. Just as you have a list of protocols for the daily running of your business, so should you have a list of the best security practices your business will implement.

3. Limit Physical Access

The more hardware you have exposed, the more at risk you are for theft, employee misuse and hacking. This will help you to protect private business information and client data. Keep the hardware you have to the minimum and put physical locks on any vulnerable devices.

4. Train Employees

Your cybersecurity is only as strong as your employees. Unfortunately, they are often unintentionally the cause of security breaches. It could be from clicking on suspicious links or opening an email from an unknown source. It can happen quickly and to anyone, especially if they are not educated on cyber protection.

5. Backup Data

Some criminals may hold your data hostage unless you pay them. This is called ransomware and is one of the many reasons why it’s important to backup your data. The average cost of a cybersecurity breach for a small business is $34,000. Preemptively avoid this in order to avoid being included in this number.

6. Build a Wall of Protection

Cyber criminals will do anything they can to breach your business. Some options would be to invest in anti-virus, firewall, anti-malware and encryption software. Keeping these protection systems up to date will do wonders in keeping your business protected.

Utilize this cybersecurity plan to keep your small business safe. Did you know we offer tons of secure banking products for your business? Visit our site for more info!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Budgeting Checklist for Buying Your First Home

Buying your first home can be an exciting, but overwhelming experience. With the right bank and agent, most of the hassle should be taken off your shoulders. So now, it’s time to make sure you’re checking these items off your list to allow for a smooth house buying journey – without breaking the bank.

Check Your Credit Score

This is always one of the top points on anyone’s list. Making sure your credit score is high and on the rise will allow you the opportunity for better rates! Look for any issues with your report and contact the credit bureau to get them fixed.

Gather Your Documentation

You’ll need to get your documents in order when coming to the bank to discuss a pre-approval letter and loan. To help you get started, you should plan to have the following documents when applying – but contact us to find out if there’s anything else you’ll need in advance:

Income verification/employment – Last two years’ tax returns, W-2s, 1099s and your last few pay stubs
Credit/ID – Drivers’ license, Social Security card or acceptable alternatives
Financial condition – Bank and brokerage account statements including retirement accounts, proof of funds to close or a gift letter (if your down payment is coming from a gift)

Secure Pre-approval

Having a pre-approval letter shows a buyer you are serious and have the funds to afford the home. This also lets you know how much home you can afford, so you don’t start hunting for houses that are out of your budget.

Decide On Your Max

Even if you can afford a certain amount, not spending it all may be wise. Scale back a little and decide on the price you’re willing to spend and hold yourself accountable to not pass that limit.

Think Of Additional Expenses

Repairs, maintenance, monthly bills, moving costs and closing costs will all factor into your budget. Know how much income you are making each month and subtract all of these costs, as well as other items like gas, groceries, loans and so forth. This will show you how much you’ll actually have left over to put towards your mortgage payments. Deciding on your max budget will only help you – instead of spending the full amount you may actually be able to afford.

We hope this checklist reminds you of the items you need to complete and think of to help you stay within your budget. If you’re looking for a great place to get your mortgage, we’re here for you! Contact us or stop on in to allow us to help you on the path to buying your dream home!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

Online Safety Tips for Kids

Technology is everywhere and used on a daily basis nowadays, so how do we protect our children when online? Now more than ever is the most important time to sit down with your kiddos and really explain the importance of being safe while online. That’s why Peoples Bank & Trust wanted to offer some main points to touch on with your kids when discussing online safety.

Family Rules:

I won’t tell my address, name, phone number or other special information to anyone online or post it online.
I will tell mom or dad right away if something does not seem right when I’m on the computer or my phone.
I’ll never meet anyone I speak to online, unless my parents say it’s okay and come with me.
I’ll talk to my parents about posting certain things online if I’m unsure, such as pictures.
I won’t give anyone my passwords, even my best friends.
I won’t download any games until checking with mom or dad.
I will not say mean things to anyone online and tell my parents if I do see something like that, or if it happens to me.
I will have mom or dad help install privacy settings on any online platforms I’m using.

Tips for Mom and Dad:

Have your child on their phone or computer in open areas, like a living room or kitchen. Don’t allow them to be alone and on technology if they are young.
If you’re comfortable with it, you can limit what your child does or keep an eye on their actions with certain tools and settings. One tool to use is YouTube Parental Controls. Click here to learn more about this.
Educate yourself on social media, so you know what your child is getting exposed to.
Continuously talk to your young children about being safe and make sure they understand and keep the promises above.
For your older children, give them more space and freedom with their technology. However, continue to have open conversations about what is new in the online world and if they are experiencing any issues such as cyberbullying or came across something that made them uncomfortable.
If your child has an older sibling and feels more comfortable talking to them, encourage them to have discussions about what they’ve seen online so they can talk about ways to stay safe, as well as what’s right and wrong.

We hope these tips allow you to keep your children safe while online. Technology is an important part of society now, but it’s always vital to keep discussions open and honest about the online world, so there is a good flow of trust and communication within your family.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

8 Surprising Costs of Buying a Home You Need to Budget For

Buying your first home is so exciting. It can also be a little nerve wracking the first time around if you don’t have any guidance. Here’s what you should know about the home buying process before, so you aren’t shocked by the expenses that come along.

The Appraisal

An appraisal is when you have a home expert come and determine the value of a home. They have no stake in the outcome of their conclusion, so you can expect an honest answer. You will want to be sure to have an appraisal completed to ensure that you are not paying more for the home than what it is worth. This can cost upwards of $600 and should be factored into your budget.

Home Inspections

Some get appraisals and home inspections confused. They are both important, but the home inspections are more tailored to your needs and may help to answer some of your questions about the conditions of the home. By getting an inspection, you are able to have a better understanding of the home’s condition. This can cost an average of $300.

Closing Costs

Sometimes, you may be able to convince the seller to pay the closing costs. Yet this isn’t something that should be relied on. Closing costs cost an average of 2-5% of the value of the home’s purchase price. It includes costs such as loan fees, taxes and title searches.

Homeowner’s Insurance

If you’ve rented prior to this, you may be new to fire insurance or more commonly known as homeowner’s insurance. It differs from rental insurance, as that covers your liability and personal items, while homeowner’s insurance also covers the physical structure of a home. The average cost for this is $1,500 a year.

Home Maintenance

The nice part of renting is that you aren’t responsible for home maintenance. Surprisingly, many are unprepared for the maintenance that comes with home ownership and how this can create additional expenses. You are going to need to buy basic items like a lawnmower, snow blower and a leaf blower.

Cleaning

If the prior owners hadn’t cleaned, you may have an additional expense of getting the carpets cleaned before you move in. Carpets should be professionally cleaned once a year, so if they haven’t been cleaned immediately prior to your move in, you may want to schedule a cleaning. This can cost $300 for a 1,500 square foot space.

Homeowners Association Fees

A homeowner’s association is a part of an organization that enforces rules and regulations for your property. They charge a fee for the upkeep of the property in addition to shared services among the community. These are typically due at closing, but you should be aware that the average HOA fees increase by 5% each year.

The Big Move

Often forgotten or not factored, is the move itself. Moving is an expensive business, especially if it’s across state lines. You will need to figure in the costs of movers, moving materials and transportation. These usually cost an average of $3,000.

Budgeting for these costs will allow you to have a correct price in mind when house hunting. Our team offers great insight into our mortgage products. Discover more today!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

Savings Hacks for College Students

While college remains one of the best ways you can invest in yourself and your future, it doesn’t change the fact that the costs of attending college only continues to grow. Focusing on your education should be your top priority while you’re in school. However, developing strong saving habits can not only cut costs while you’re attending college, but those habits can also help you be more responsible with your money once you’ve graduated.

Set a Budget

While this may seem simple and obvious, creating a budget is the first step in any successful savings strategy. Outline what your monthly expenses are, including things like going out with friends on weekends, and figure out how much money you have. If you’re working while in school, your goal should be to have your income be more than your expenses. If you’re living off money you made during the summer, figure out how much you can afford to spend so that it lasts you throughout the entire year.

Saving on Supplies

While your school’s bookstore may have the latest and greatest when it comes to logoed swag, shopping there won’t help you when it comes to saving money for your school supplies. When it comes to notebooks, pens, pencils and backpacks, you’re much better off going to a local big box store.

Additionally, buying new course textbooks from the campus is usually more expensive than exploring other options. Whether it’s purchasing a used copy of the book, using an older version of the text book or exploring book rental programs online, finding alternative textbook solutions can save you hundreds.

Getting a Part-Time Job

Even if you’re considered a full-time student, you probably have some free time outside of attending classes, doing your homework and studying for exams. If you find yourself with extra time, getting a part-time job is a great way to earn extra money and start saving. If you can find a job on campus, you can save money and find a job that will work with your class schedule. But, don’t be afraid to look for a job off-campus. Just be clear with any potential bosses about what your class schedule is and set realistic time expectations for yourself.

Develop a Strategy that Works for You

There are countless ways to responsibly save while you’re in college. All you need to do is develop a strategy that works for you, and stick to it. We hope these tips will give you a good starting point that can help you develop strong savings habits that will serve you well throughout your life. Place your new savings into an account with us – we’d be happy to help your money grow!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Best Retirement Strategies for Your 20s

If you’re in your twenties and thinking about retirement, you are light-years away from your peers who wait until it’s too late. You’ll be so glad you started to take serious steps towards your golden years with these straightforward strategies.

1. Negotiate More

Your first job isn’t typically known to be a real money maker. You’ve been told to “pay your dues” and take the work for little pay. However, it is especially important for college graduates to negotiate for a higher salary. Whatever number you are thinking, add $5,000 to that salary. This is important because whatever salary you start with will follow you and be the basis for much of your career. You will of course get raises, but often, each new position you take is related to the salary you had prior. Start off high so you can begin investing greater now.

2. Automate Savings

It’s never easy to save and can be incredibly challenging if it’s saving for something that’s thirty years away. One way to take the struggle out of this is to have your savings automated. You can set a specific percentage to come directly out of each paycheck and into your savings account. It’s a painless way to force yourself to make wise decisions with your money.

3. Establish an Emergency Fund

While you’re saving for the golden years ahead, your plans can be easily derailed with a major financial emergency like a flooded basement or an unexpected medical procedure. Having an emergency fund in place will help to provide some cushion so you aren’t going into debt to cover these losses.

4. Start a Retirement Fund

Having a straightforward savings account for retirement is not the best way to make the most out of your money. You are going to want to invest in a retirement fund that’s built for growing your wealth over time. Most employers offer a matching 401(k) compensation plan as a part of the benefits. However, if yours does not, you can and should invest in your own Roth IRA.

5. Pay Off Debt

Debt of all kinds is crippling to millions of Americans at all ages. Those in their twenties average $20,000-$35,000 in debt. Debt should be paid off as soon as possible so you can begin investing in the things that matter most to you. You shouldn’t have to be constantly playing catch up, but instead, planting financial seeds for your future.

Continue to build your retirement funds with a CD or IRA from Peoples Bank & Trust!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Save for Your Baby’s Future

Blankets, gliders and toys galore – the list of items you need for your baby’s arrival seem like a mile long. The good news is that while some items like diapers and wipes are essential, baby can get along just fine without the matching crib and dresser set. What’s more important is planning for the days ahead. From braces to college, you can give your child a head start in life by saving for their future now. Here are some ways to start bulking up the savings!

Get Insured

Insurance can help to give you some peace of mind in case the unexpected were to occur. Having a policy on yourself is a certain way to ensure your children are taken care of should something happen. Even if the policy doesn’t get utilized before they leave the house, if it’s a permanent policy, it will last until they are adults to help pay for end-of-life expenses.

Another savings plan option is to take a policy out on your child. A permanent policy grows in cash value over their lifetime. They are able to deduct the cash value of the policy tax free to use however they wish when your child reaches adulthood.

Make a Budget

If there was ever a time to stick to a budget, it’s now. If you’re reading this blog, you’ve probably already decided that an important goal is to save for your child’s future. Now take a look at your other goals and calculate what percentage you want to put towards each goal and expense every month. Sticking to this will also set a great example of money management for your child as they grow.

Ask for Contributions

It’s easy to accumulate too many toys and items that your child simply does not need. While the baby is young, for each birthday party or celebration, ask for cash to go towards their financial future instead of a present.

Start a Savings Account

There are many different options for saving for your child’s future. There are some that are solely to be used for a child’s college tuition, like a 529 plan, and there are other basic savings plans. Meet with one of our financial specialists to determine which plan is right for your growing family.

Open a savings account with us today, so you can make sure your baby’s future is bright!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407727

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