Author Archives: PBTC Blogger

10 Financial Resolutions for 2017

Money Management

A new year brings exciting opportunities along with the promise of a fresh slate. Start 2017 off on the right foot with these 10 tips from Peoples Bank & Trust Co.:

  1. $1,000 Emergency Fund. Did you know most Americans do not have the savings needed to cover unexpected expenses or bills? By accumulating a decent emergency fund you have the potential to continue saving instead of withdrawing money from your monthly budget for each unplanned expense. Experts say to start with $1,000 and slowly work your way up to a three to six months’ salary of savings.
  2. Maximize Your 401(k). Employers who offer a 401(k) benefit often supplement it by matching a percentage of contributions. To take advantage of their FREE matching, start by contributing at least three percent of your income. Over time, increase it to the maximum amount. These funds will continue to grow over the coming decades and help you to build a well-rounded retirement plan.
  3. Start Saving in an IRA. Similar to the 401(k), an IRA is a great way to help you save money for your retirement. These accounts are not typically provided by your employer, but can be started through a bank or financial adviser. There are two options to choose from: A Traditional IRA  or a Roth IRA. A Traditional IRA will allow you to contribute pre-tax dollars and pay taxes upon receiving distributions at age 60. A Roth IRA will let you contribute post-tax dollars, but you don’t have to pay taxes when you receive distributions after age 60. Both options have a limit to how much you can contribute each year, so start with an affordable amount, and slowly work your way up to the maximum.
  4. File Your Taxes Early. Before the end of the year, every employee should receive their tax forms from their employers. With this information in hand, you can make an appointment with your local tax professional to determine your maximum refund. These funds can then be allocated towards paying down debt, contributing to your IRA, or deposited in your growing savings account.
  5. Save for Your Child’s Education. Children learn a great deal from their parents. Show them how to save, and get them involved with saving for their own education. By making automated transfers each month, you can ensure that you will have a designated amount to invest in their future. By incorporating this into an account like a Coverdell or 529 Plan, you can help these funds grow tax free. They can then be used for educational expenses like tuition, books, or computer equipment.
  6. Pay Off Your Credit Cards. Credit cards are notorious for having sky high interest rates. By paying off your debt quickly, you can save money. To help, our convenient calculator can determine how much you need to allocate each month for a debt-free 2017.
  7. Switch to a Community Bank. Community banks like Peoples Bank & Trust offer impeccable service without the hassle of unwanted fees. Staffed with experienced financial professionals, we have the tools to help you achieve your next financial goal.
  8. Save 10 Percent. Between your retirement, your child’s education, and your emergency fund, you should be covered for most of life’s unexpected expenses. While it’s great to save for the unexpected, having a fun goal to aim for makes the process more exciting by giving you a tangible experience to look forward to.
  9. Monitor Your Credit Score. One of the easiest ways to let your credit score dip is to forget about it! Comprised of payment history, number of accounts, and several other factors, one loose bill has the potential to compromise your entire score. The one federally authorized FREE credit reporting site, annualcreditreport.com, allows every American to have one copy of their credit report from all three reporting bureaus. This is a great tool to use annually; however, each month it is a good idea to check and see if there have been any changes. Many credit cards are now offering a service for this to help their consumers keep on top of their score.
  10. Create a Monthly Budget. Hands down the one change you can make with the biggest impact on your personal finances is to create a monthly budget. By allocating every dollar you earn to a role each month, you can ensure no money is wasted. This will also help you gain better insight into where you’re spending your funds giving you additional opportunities to find savings.

By accomplishing each of these goals in the New Year, you will complete the basic steps to attaining better personal finances. With the help of our dedicated team, you can begin today. Stop by one of our locations and see what your first step could be!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

4 Ways to Keep Your Information Safe While Using Apps

Cybersecurity

Did you know that people check their phones over 150 times each day? Unsurprisingly users spend the majority of their time in apps. Although it’s addicting, it can cause potential problems. To help you stay safe on your mobile device, Peoples Bank & Trust Co. offers these four tips to keep your information secure:

Don’t use personal information in your username. This common mistake can be a red flag for hackers looking to access your information. Usernames with this type of format often lead online predators to accessing your account and spamming your contacts. Avoid this dilemma by creating a monotonous username that doesn’t include your name, location, family, or pets.

When starting a new app, don’t allow it connect to Facebook. In the unfortunate event of your Facebook account becoming compromised, you then also have every app attached to it compromised. To combat this risk, make an individual account for each app.

Never share your personal information with other users. Often times, apps offer their own in-house messaging service for users to communicate with each other. If you’re talking with another user, or booking a service, never give your personal information such as a credit card or social security number. If the app is authentic, they should have a separate portal for any transactions that does not need to be facilitated through a messenger.

Sign-out and close the app after use. Once you’re finished with the app you’re using, be sure to close it entirely. While many users simply switch to other screen views, completely closing out of it eliminates the risk of background tasks going on while you’re unaware. Although this is not a common occurrence, it does offer an additional safety measure to continually safeguard your information.

Enjoy the latest apps and innovations your smartphone has to offer while keeping your information secure. If you’d like to learn more about cyber security, be sure to check our blog for monthly security articles!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Revamping These Holiday Traditions Could Save You Money

Seasonal

‘Tis the season of giving and, sometimes, that can mean the season of spending. This year make the holidays a fun and enjoyable event without all those last minute expenses. Our experts at Peoples Bank & Trust Co. recommend adjusting these common holiday traditions to help you and your family save money this season.

Adjust Your Menu

Instead of serving prime rib or rack of lamb, go with a more affordable cut of meat like spiral ham or roast turkey. These options still offer enough food for the whole family, and can cut your food costs by a good margin. In addition to choosing your proteins carefully, scanning local grocery ads can help you plan your meals while maximizing your savings.

Limit Your Gift Exchange

While the holiday festivities are a joy to be enjoyed by all, the annual family gift exchange can get expensive when presents are expected for each relative. This year make an agreement with your family to restrict individual presents to just the children. The adults can enjoy a secret Santa or white elephant exchange to reduce costs.

Set Realistic Expectations

While Santa may want to give every boy and girl all of the items on their wish list, there is only so much room in his sleigh! Sit down with your child before the big day, and speak with them about what is in store. It is important to let them know that not everything on their wish list may be under the tree, but you and your family will be there with them to enjoy it.

With these three tactics in mind, you and your family can work to save some additional money this holiday season. These funds can then be allocated to building emergency funds, contributing to your child’s education, or paying down credit card debt. No matter how you spend the season, Peoples Bank & Trust wishes you a happy one!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

How to Have a Debt Free Holiday

Personal Finance

The holidays are filled with their own special traditions. From decorations, to gifts, feasts, and more, yule tidings never had so many ways to celebrate! While these gatherings are memorable to say the least, they often come with unwanted debt while working to achieve that perfect celebration. Throughout this time of year, many Americans turn to credit cards to help ease the burden of cost. There are some ways to maintain your ideal holiday, without the labor of debt. At Peoples Bank & Trust Co., we recommend the following steps:

  • Start Saving Early: While hindsight is always 20/20, this is a valuable tool when planning for next year’s events. If you set aside $100 a month, starting in January, your holiday savings will accumulate $1200 for this wonderful time of year! Alternatively, if you find yourself receiving a bonus, or bountiful tax refund, allocate those funds early on into your holiday savings, and put your $100 a month towards other savings goals. To help you save, Peoples Bank & Trust Co offers a Christmas Club account. This is a special, temporary account that is opened in November and comes with a coupon book prompting you to make small deposits all year long. Interest is paid on the account balance on the last day of the activity period and a check for the entire balance of the account is mailed to you the 3rd week of October, just in time for the holidays.
  • Create a Holiday Budget: Completely separate from your current monthly budget, this holiday budget will help you plan for the funds you have saved. Just as your household needs to allocate money for food, home supplies, and bills, so does your holiday spending. Consider segmenting your budget into categories such as presents, food, and other supplies. Continuing to separate your budget for presents can be especially helpful. To track your spending best, write down each person you plan to buy for, and how much you would like to spend.
  • Save Money Where You Can. Throughout the coming months there are an array of opportunities for savvy shoppers to save. Whether it’s shopping during the famous Black Friday or Cyber Monday, or simply scanning the week’s grocery deals, each opportunity for savings is well worth the effort. With many Americans now shopping online, there are added ways to save through Amazon Prime, free shipping, and online apps to help get you the best deal. Don’t forget about those credit card rewards too – those are great points to put towards holiday travel or additional gifts for others.

This season, savor the memories more than the gifts! No matter what your budget is this season, at Peoples Bank & Trust we believe anyone can have a wonderful holiday. If you’d like to learn how to further organize your holiday budget, stop in today and speak with one of our customer service representatives. We’ll help you create the best holiday plan for you and your family.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How You Could Lose Money When You Move

Mortgage

Moving across town or across the country takes a lot of time and careful planning: from packing up beforehand to scheduling the closing on your past and future homes, and everything in between. Before you begin your next big move, be sure to look out for these common extra expenses and how you DO or DON’T want to handle them.

DO: Box up your belongings and have professional movers pack them into the moving truck.

DON’T: Rent a do-it-yourself to save money.

In this scenario, you run a much higher potential risk of damaged furniture and other valuables when items are packaged and shipped incorrectly. However, if you box them yourself and hire a professional moving crew, they will typically insure your goods up to a specific dollar amount to be sure your home goods are safe and secure.

DO: Ask your local grocery store or discount store for unwanted boxes.

DON’T: Pay for cardboard boxes.

The only thing more expensive than moving, is preparing to move. Instead of using your valuable funds for room specified boxes, reach out to local businesses and offer to take their surplus boxes away for free!

DO: Pack one room at a time.

DON’T: Procrastinate packing.

Denying the increasing deadline of the move will only make packing that much worse when you realize it must be done. Instead of taking two weekends of 24-hour packing, designate a timeline of which rooms you want packed. This way you can stay on track without having to tackle the entire home at once.

DO: Research the costs associated with your new potential city.

DON’T: Move for a career where you will make more, but your expenses may skyrocket.

Many expenses, such as housing or groceries, here in the Midwest are relatively affordable compared to other areas of the country. If you and your family are planning to move across the nation, or just across the state, make sure to check the average expenses for the area. Although a new job may offer additional pay or benefits, the expenses of the area may be more than your current household budget in the Midwest. Always take this into account before fully committing to a move.

Wherever your next home takes you, Peoples Bank & Trust is here to help! Speak with one of our experienced mortgage lenders to see what your home value could mean in other areas!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS#407724

10 Ways to Save Money in College

Savings

With delicacies such as ramen, easy mac, and PB&J, college doesn’t always seem as glamorous as it is in the movies. Learn how to build up your bank account this year with these helpful savings tips courtesy of Peoples Bank & Trust! We’ll show you how to make the most of your dining dollars, classroom supplies, and other on campus opportunities!

  1. Books. Instead of purchasing those $300+ textbooks, utilize your university’s library and study using the same materials without any of the cost!
  2. Coffee. Get the best bang for your buck when you go for your next caffeine fix. Many coffee shops offer free Wi-Fi for studying in addition to free refills on basic coffee and teas. Simply purchase the size of your choosing, and stick around for a proper study session complete with all the coffee you need!
  3. Meal Plans. Dining dollars aren’t just for dinner. Utilize those additional funds to purchase other necessities such as toiletries to ensure you never leave any allocated dollars unused.
  4. Student Activities. Keep tabs on school events. With many university sponsored events offering free food or drinks, students tend to jump at the opportunity, so it’s best to arrive early!
  5. Scholarships. You never know until you try, or in this case submit, but in many cases writing a simple essay and answering some questions is all you need to do to be considered for a $500+ scholarship.
  6. Student Discounts. They’re everywhere; whether you’re on campus, or out and about, always be sure to carry your student ID to save a little extra money at various retailers.
  7. Loan Interest. Start paying off your student loans ASAP. Compounding interest especially can rack up additional expenses quickly, so be sure to begin paying down your debt as soon as you can.
  8. Cars. Ride your bike around campus instead of paying for costly gas, auto maintenance, and parking passes. During the winter months, you can skip waiting in the cold for the parking lot shuttle, and warm up as you cycle home!
  9. Recycle. Those pop cans and soda bottles can be valuable. It may not seem like a lot of money at first, but over time you’ll find yourself saving more and more.
  10. Work. Get a part-time job during the school year that offers great benefits like free gym membership, discounted meals, or free drinks!

Whether you’re a first year, or a PhD student, there are countless ways to save some green throughout your college years. Let us help you tuck away some of those valuable dollars with a structured savings account at Peoples Bank & Trust!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

National Cyber Security Awareness Month

Security

Did you know unsecure Wi-Fi and passwords could leave your personal information vulnerable? This October be sure to double check your online security with these helpful tips courtesy of Peoples Bank & Trust!

  • Keep your personal and business computers safe by installing and monitoring an active malware and spyware program.
  • If your family all uses shared devices or Wi-Fi, set ground rules for appropriate online behavior. Show your children how to steer clear of weary links, and set-up parental locks to help keep them safe from known predatory sites.
  • For those accounts containing your most valuable information, be sure to change your password every month, using 13 or more characters, uppercase letters, lowercase letters, numbers, and symbols. Phrases work great for this! Instead of using I love puppies – you could try iL0vEPupp!Es as the password.
  • Monitor your Online Banking and credit card statements. If something seems out of the ordinary, chances are it probably is. If you see something that doesn’t look right, contact your financial representative as soon as possible.
  • Keep all your important documents off the grid. Items such as birth certificates, social security cards, or home deeds need to be kept where no one but you can access them. You can store them at home in a fireproof vault, or keep them within one of our secure safety deposit boxes.

The annual cost of Cybercrime in the United States is rising. Currently over $100 Billion dollars, this an epidemic that creates issues for millions of Americans each and every year. Protect your family’s finances by taking a proactive approach to your cyber security today!

Our trusted team at Peoples Bank & Trust is here to help secure your personal information. If you’d like to learn more about how to can safeguard your identity and finances, head to our website!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How a $1,403 Cup of Coffee is a Bargain

Retirement

What do you dream of doing when you retire? Relaxing at home, traveling the world, or maybe a mix of both. Wherever your retirement takes you, you’ll want to be sure your savings can support your future lifestyle. Keep your dreams on track and follow this simple guide courtesy of Peoples Bank & Trust.

When you decide to retire, you start to receive the benefit of those hard-earned savings you’ve tucked away. Interest earned from these savings, along with any assistance you may receive, will soon become your primary source of income. This means that in order to have a successful retirement, you need to have a successful savings.

As of today, the estimated cost of future income is $16.75. This means that if you want to accrue $1 in earned income each year, you need to keep a savings of $16.75 in the bank. Now, let’s say for example, one of your retirement goals is to go down to the local diner each weekend and meet with friends for a cup of coffee. This cup of coffee costs $1.61, and for the sake of simplicity we won’t factor in inflation.

$1.61 x 52 weeks = $83.72 for your yearly coffee.

At $83.72 for the year, that would calculate to be $837.20 over the course of a decade, and $2511.60 over the next 30 years. However, once we calculate the current dollar of future income:

$83.72 x $16.76 = $1403.15 to cover your coffee for 30 years.

By this measure, you can pay for $2511.60 of weekend coffee, over the course of 30 years, by utilizing the $87.72 yearly interest on a total sum of $1403.15.

Concepts like this help showcase the incredible potential your retirement can hold! If you’re curious on how to maximize your savings, stop in today to speak with one of our knowledgeable customer service representatives.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Start Saving for the Holidays in 7 Easy Steps

saveforholidays

The holidays are just over a hundred days away! In three short months, the days will be filled with wrapping paper, holiday cheer, and ringing registers. Instead of waiting until December to begin financing your family traditions, get started early this year, and make it easier on both you and your budget!

  1. Start a Separate Account for Holiday Savings

At Peoples Bank & Trust, we want to help you achieve your savings goal. You can open a Christmas Club Savings Account with a deposit as low as $5. This account accrues interest daily, and a check is sent to you for the balance during the third week of October.

  1. Create an ACH Deposit with Your Employer

Speak with your employer to see if you can set up an additional account for your payday ACH deposit. By doing this, you will start saving a designated amount each month, before you’re tempted to spend it!

  1. Set Aside Your Budget Surplus

If you’re sticking to your monthly zero-based budget, you could end up with some extra funds if you don’t spend as much on entertainment or food as you’ve budgeted for. Add those extra dollars to your savings account to help it grow even faster!

  1. Earn Extra Income to Contribute

Bolster your bank account with a little extra revenue. Whether its raking leaves for a neighbor, babysitting for a friend, or selling unused items online, there are a variety of ways to add some additional earnings to your holiday savings.

  1. Create a Personal Shopping List

Just like going grocery shopping when you’re hungry, purchasing gifts without a list may leave you with more than you budgeted for. Before you begin perusing the stores for the perfect items, sit down and determine the people you will be giving to this season. Once you have the names, you can then decide how much to spend on each, and if there are any specific things you plan to purchase for each individual. This gives you a great game plan, and helps to prevent overspending.

  1. Shop for Deals Early

Who says you have to start buying gifts, or food for that matter, in December! If you see a deal that could save you and your family money on something you already planned on purchasing, act on it! This could be discounted wrapping supplies, a sale on items you have on your personal shopping list, or even large food items that can be properly frozen or stored until December.

  1. Load Up on PTO and Vacation Days Too

The best part of the holiday season isn’t the gifts, or the budget you’ve stuck to so well, its spending time with your family and friends! Before the end of September, map out all of your scheduled time off leading up to December. If you haven’t already, start saving your available time to use during the holiday season. Between multiple family gatherings, Thanksgiving, Christmas, AND New Year’s Eve, you’ll want make sure you’re not left at the office while the family is out having fun.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

4 Ways New Homeowners Can Save on Their Taxes

Home owners

Becoming a homeowner is an exciting and trying time in your life. Once all the papers are signed, and the keys turned over, it all seems worth it. That is until a pipe bursts, lightning knocks out the tree, and your dog decides to burst through the screen door. Not all hope is lost however. In return for your endless work, and commitment to a never ending to-do list, the U.S. Government has provided four tax-based ways to reward you for home ownership. See how to take advantage of these four tax breaks, and make the most of your new home purchase:

  • Early IRA Withdrawal: For many new homeowners, securing the initial down payment can be the first hurdle in their real estate journey. If you’re a first-time home buyer and have an IRA, or Roth IRA, the IRS will allow you to withdraw up to $10,000, penalty-free, to aide in the cost of your new dwelling!
  • Valuable Deductions: Between your mortgage interest, mortgage insurance, and real estate taxes, your home deductions could make a big dent in your taxable income. When preparing your taxes as a new homeowner, be sure to bring any mortgage documents, and escrow account information, to your tax professional to gain the full benefit of the deductions.
  • Renewable-Energy Tax Credit: Did you upgrade your home appliances to more efficient and environmentally-friendly options? Did you install a geothermal system in your home? If so, this helpful tax credit may be able to take a portion of that improvement cost out of your deductible income!
  • Tax-Free Profit on Sale: When you go to sell your home, the IRS allows you to avoid the capital gains tax on the profits you generate from the sale. This means that if your home’s value goes up $35,000 in the two or more years you live there, you are then able to retain the additional $35,000 your home is sold for without having to pay any taxes on those funds. One other major stipulation of this benefit is that in order to avoid the capital gains tax, you must purchase a new home as your primary residence within the next two years.

With these key homeowner tax breaks, the next thing to put on your to-do list is to make a plan for those tax refunds! If you have questions on how to best budget for your new home, don’t hesitate to stop in. We’d love to talk taxes, financing, or other improvement ideas you have for your home!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender