Author Archives: PBTC Blogger

emergency fund

6 Easy Ways to Jump-Start Your Emergency Fund

Are you struggling to get an emergency fund in action? It can be hard to understand the depth of what to start with, monthly contributions and how to build it up. An emergency fund is essential for unforeseen circumstances, a drop in income and all the chaos life can throw at us at any point. Most financial advisors suggest having enough in your emergency fund for 3-6 months’ worth of expenses based on your personal situation. The more you can build your emergency fund, the better!   

1. Start NOW

If you haven’t heard it already, the best time to start your emergency fund is NOW! Especially in the last few years, we can all agree to expect the unexpected. You can never plan for an unforeseen event perfectly but setting aside money to back you if there were ever a time when there is a huge expense or a change in your income will help you not be completely empty-handed. Do not be overwhelmed by what is suggested for a total amount when you are getting started. An emergency fund can vary from person to person based on their individual situation and family life. How can you start now? Contact Peoples Bank & Trust to open a savings account for your emergency fund today.  

2. Do NOT Touch It

Now that you’ve started your emergency fund, DO NOT TOUCH IT. Your emergency fund should only be used for emergencies. So, when in a position to potentially use your emergency fund, ask yourself a few of these questions:   

  • Is this purchase necessary?  
  • Is there another way to pay for this expense?   
  • How unexpected is this expense?   
  • How will this expense adjust your emergency fund?  

It is very important to consider the process for building and rebuilding your emergency fund. Once you set aside your rainy-day fund, it is very important you create or continue to follow a budget and LIVE BY IT!  

3. Separate Your Savings From Your Spending Money

When setting aside savings for your emergency fund, be sure to define the difference between your emergency fund, savings and your spending money. You can even label your accounts if you need to! This tip becomes much easier to incorporate and follow when you have indulged in the world of budgeting. The more you can cut out unnecessary spending and allocate a percentage of your earned income to your emergency fund, the sooner and faster it will grow to where you need it to be. 

4. Start a Side Hustle for Savings

Once your budget is finely detailed and your emergency fund begins to grow, add a side hustle to grow your emergency fund quicker. Whether your side hustle is solely for growing your emergency savings or only a percentage, do what you personally need to at that stage of life you are in. If you are certain there are potential life changes that could result in an unforeseen emergency expense, start saving quickly with a side hustle.  

Check out some side hustle recommendations this summer:   

  • Cater a holiday party with your favorite recipes or sweet treats  
  • Offer some spring cleaning  
  • Become a house or pet sitter for people traveling this summer   
  • Garden or assist with laying rock or mulch  

5. Sell Some Things You Aren’t Using

Jumpstart your emergency fund by doing some personal spring cleaning. There are many great options online for selling your things fast. You can always organize a garage sale. As you do your spring cleaning this year, ask yourself what you haven’t been using and what can go. You will be amazed how selling a few things can add a fantastic chunk to your emergency fund and clean out your closets.  

6. Contribute Each Month

Contributing to your emergency fund each month will become a habit when you get into the swing of doing it. Until you get your emergency fund to where it needs to be, do not slack on a monthly payment to that account. You never know how or when you will need these funds. Get prepared for a financial setback today, they do happen. Reach out to Peoples Bank & Trust to discuss how to start your emergency fund account!   

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

summer vacation

How to Save When Booking Summer Vacation

Summer may be a few months away but planning to save now will ensure an awesome and affordable experience. The best tip for booking a vacation is to plan well in advance – start your planning process here by reading up on a few suggestions to make your summer vacation seamless and inexpensive!   

Book Flight Tickets in Advance

Planning in advance is the most important tip for a successful and budgeted vacation. Nail down where you are going and when. Purchasing airline tickets for travel well in advance can get you a better discount and a more desirable flight. Check flights regularly – specifically midweek throughout the day to catch a deal on airfare costs. Consider being flexible with departure and return dates, potentially even a connecting or redeye flight. 

Set a Budget and Detaled Itinerary

A big tip to saving on booking vacation relates back to the budget and itinerary you set for yourself. It is easy to spend extra here and there when you leave your days open to whatever they may bring. Once you’ve nailed down where you are vacationing to, start playing around with options to see what best will fill up your day and not your budget! Saving money when booking excursions or attractions will allow for extra spending money when you do schedule some downtime. It is also very important to know where you are staying and options for meals that may or may not be included. Schedule out your plans for mealtimes and consider buying some groceries once you get there to reduce eating out for every meal. Food is most definitely a huge part of the vacation experience, so be sure to give yourself some wiggle room to fully indulge at times.  

Road Trip to Savings

1. Take the Scenic Route

If flying is not the best option for you, consider taking the scenic route. Turn your sprint into a jog with a planned-out road trip. Road trips can save you a lot if you have a detailed travel plan to get to your destination. The best part about road trips is that you can enjoy your vacation sooner amongst the hidden gems along the way. Road trips have been said to allow you to live in the moment and be open to opportunities. You could very well plan out your stops in advance or pursue unique options as you go.   

2. Map Out a Plan

When mapping out your travel route, factor in the number of miles, number of stops and duration of stops. Doing this can give you an approximate time frame, as well as the cost of meals and potentially hotels/Airbnb’s along the way.   

Ideas to Consider:   

  • Consider utilizing a camper or RV to additionally cut back on sleeping costs.  
  • If you plan to make multiple stops, factor in the cost for the unforeseen attractions or extra meals you may indulge in.   
  • Driving yourself allows you the option to pack your own snacks for travel in comparison to utilizing an airline with the option of overpriced airport food.   

With many factors to consider when making your vacation a road trip, utilize this online calculator to play around with options to either fly or drive: https://www.befrugal.com/tools/fly-or-drive-calculator/   

Summer Vacation to Staycation

As nice as it is to travel quickly by plane, or enjoy the long drive on a road trip, sometimes you can have the most fun close to home. If your primary reasoning for a vacation is to get some well-deserved rest and relaxation, consider lessening your anxiety and rejuvenating at home. Minimize the pressure for preparation and say hello to peace and quiet! Consider the stresses a true vacation may bring to see if maybe it’s best to skip the trip this time.   

Here are some staycation day and night options to consider booking:  

  • Spa – facial, massage, manicure, pedicure options  
  • Farmers Market   
  • Museum   
  • Local Resort   
  • Winery or Brewery  
  • Golfing  
  • Movie Theatre   
  • Try a new restaurant   
  • Comedy Club  
  • Concert  
  • Sports and Games Club   

Save the money and the stress this year with these helpful tips for your next vacation. Ultimately deciding the details and what is worth the cost well in advance will ensure happiness for you emotionally and financially this season!   

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

  

finance; savings goals

Tips to Reach Your Savings Goal

Do you have a savings goal you’ve been itching to reach? Here are some savings tips to speed up your process.   

1. Save Don’t Spend   

  • Spending Freeze  

Though it may sound easy to save and not spend, push yourself a little harder and try out a spending freeze. During a spending freeze, you set the duration of time where you do not spend on any outside purchases unless an emergency comes up. Make plans to stay in, cook at home and use what you have. It can be a hard thing to do, especially as things come up. Limiting spending for a couple of days or weeks can result in a good chunk of cash to add to your savings.  

  • Envelope Method  

The envelope method is a way to truly see what you are spending. The envelope method requires you to set aside money-filled envelopes for each category and use solely the cash to pay. When you take money out, you can see how much you have left to spend and when you are out. This trains you to see how much you are reaching for your money envelopes.   

2. Spring Clean Your Home   

  • Sell Some Belongings  

Sometimes selling a few things you are no longer using can add that extra amount you need to boost your savings. Maybe it’s time to sell some clothes, shoes, décor, appliances, electronics, etc. You can make it easy and post online or sell to your circle.   

  • Save On Utilities and Rent   

A roof over our heads can be a huge chunk of our spending. Consider living with a roommate if that works for you at the stage of life you are at. Cut your rent in half and bring in a roommate. If a roommate isn’t the best option for you, consider reducing your utility bill by using less energy.   

Some ideas to use less energy:  

  • Turn off fans when not in the room  
  • Run less laundry and dish loads  
  • Use less water – try out a dry shampoo instead of showering each day   
  • Schedule your thermostat to not run all the time  
  • Use natural lighting during the day  
  • Unplug items from outlets when you’re through using  

3. Do It Yourself Projects   

DIY projects are very budget friendly. To add some extra cash to your savings, consider doing DIY projects rather than buying things new. You also could find a DIY project you are good at and sell it for additional cash.   

4. Incorporate A Side Hustle   

Like the DIY projects to sell, that leads to incorporating a side hustle. A side hustle could be as much or as little as you make it. Here are some short-term side hustle ideas:  

  • Sell DIY projects  
  • Garden help  
  • Babysit  
  • Housesit   
  • Lawn maintenance  
  • Monetize your Amazon storefront  
  • Monetize your socials (ex. LIKETOKNOWIT)  
  • Promote products you love  
  • Edit for a freelancer   
  • Dog sit   
  • Bartend   
  • School pick up  
  • Farmhand   
  • Monetize a YouTube Channel, Instagram, Tik-Tok or Podcast   

5. Adjust Your Budget   

Finally, consider adjusting or reworking your budget and assess your finances. Do your research for ideas of how much you should be spending and how much you truly should be saving. Make sure that you have a deadline in place, so you know how frequently you need to cut spending here and there to meet goals.   

Do you have a savings goal you need to meet? The best answer is to make a change to your spending and start now. Contact Peoples Bank & Trust  to open a savings account today!  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

NMLS# 407724 

savings; savings in your 20s

Savings Hacks for Your 20s

How you start saving in your 20s is crucial, so do your future self a favor and start now. Here are some hacks to get smart about finances to share with someone you know in their twenties.  

What You Need to Know About Spending  

Your twenties are such a fun stage of life but can be very expensive if you are overspending. It is important to track how much you are spending on needs, expenses and fun. It is important to nail down how much you are spending on eating out, coffees and possibly even alcohol. Should you enjoy all those things, yes absolutely, but you need to account for the extras you are spending your money on, including social spending. 

Hacks to keep in mind to cut unnecessary spending:  

  • Make a grocery list 
  • Meal plan 
  • Eat before going out  
  • Set a certain amount for eating out, coffees, alcohol per month 
  • Budget for home accessories  
  • Budget for money spent on clothing 
  • Schedule plans with friends in advance 

What You Need to Know About Building Credit  

Do not let your twenties ruin your credit score. It is important to build your credit score young so you have a good score when you are looking to make a big purchase later on that maybe you’d need a loan for. Here are some ways to build a good credit score: 

  • Pay your bills on time  
  • Get a credit card for beginners 
  • Minimize how often you use your credit card 
  • Pay off your student loan debt  
  • Check your credit score  
  • Pay your credit card bill on time or possibly early if it’s in your best interest 

What You Need to Know About Student Loans  

College can cost a bit and eat away at your savings in your twenties. When you choose to take out a student loan, have a plan on how you will be paying that back. Here are some hacks to consider if you have a student loan to pay off:  

  • Pick up a part-time job throughout the school to save up to pay them off 
  • Consider asking your part- or full-time employer what they offer for student loan paybacks 
  • Live at home a little longer to add additional funds to your savings 
  • Apply for grants and scholarships throughout college 

What You Need to Know About Savings Goals  

The biggest hack in your 20s to building up savings is to make a budget and challenge yourself to follow it. Your twenties can be a rapidly changing period of your life, so the more frugal and budgeted you can be, the better you’ll feel financially as you age. Stick to what works for you and be realistic. Do not stay in all the time to save – you are allowed to have some fun! 

Reach out to Peoples Bank & Trust today to discuss how you can financially save in your twenties for your future self.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

new home; best kept secrets

Best Kept Secrets for Purchasing a Home

Buying a home is a big deal. Here are a few of the best-kept secrets you need to know before buying a house.  

Secret #1 

The first secret for purchasing a home is to scope out the neighborhood you are thinking of buying in and do it a lot. The reason you should do this is to see if it is an enjoyable place to be and that it is a neighborhood you could envision yourself and your family being a part of.  

Driving by at different parts of the day is important to notice any commonalities. Stalking the neighborhood in advance is very important, just think if you moved in and noticed after the fact something in the neighborhood really bugs you. If you have the opportunity, ask those who live in the neighborhood what their thoughts are. Maybe you’ll even get the 411 that another house is for sale soon. All the time you spend driving over to check out the neighborhood will give you a good idea of the drive time when you move to the frequent places you are going to such as work, church or the grocery store.  

Secret #2 

The second secret is to a deep dive into checking into the nitty-gritty of the home. To start, bring along a close friend or family member who is handy and can help give another opinion of what they see or notice that maybe you did not. Sometimes when buying a home, we are blind to small things because we want to love it, so a second or third point of view is always a great idea.  

Consider hiring a house inspector to give you an unbiased report of what is truly under the hood of your potential new home. If there is something that either you, the inspector or your friend notice, that is a good bargaining chip to negotiate on the price.  

Secret #3 

The third secret is to not try and predict the housing market. Waiting on buying with hopes for a better housing market could cost you the house of your dreams. You truly cannot wait if you are ready to purchase and it is one you can afford.  

Secret #4 

The fourth secret is to get approval for a home loan before you do anything. If you are planning on financing your home with a loan, consider getting pre-qualified well in advance. When you are actively ready to start looking and buy, be sure to get pre-approved for a home loan so you can be on the ball if the perfect home comes on the market.  

Secret #5  

The fifth secret is to be incredibly wise well in advance with your money. When preparing to become a homebuyer, it is important to refrain from any large purchases for up to 6 months before buying to show lenders your financial stability. You do not want a larger purchase to affect your credit score when you are close to purchasing a house. This also allows you to save up for when you are ready to buy – maybe you’ve saved up enough to up your bid a bit or purchase some additional furniture or upgrades once you do buy.  

Now that you’ve read about these best-kept secrets, you know you cannot be rushing around for a home loan. There is a ton of time and resources that go into getting approved. Are you looking to buy and need to get pre-qualified or pre-approved? Reach out to Peoples Bank & Trust now to set up an appointment with a mortgage lender.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

NMLS# 407724 

money; spring savings

Creative Ways to Save Money this Spring

Conduct A Closet Cleanout  

Spring is a time for cleaning, so why not address your closet? As the warmer weather comes, we are reaching for the sweaters less and less. It’s a great idea to do a deep dive into what you have in your closet so you can get rid of items you’ve not worn in ages as well as find some items you forgot you had. Decrease your urge to purchase new by organizing what you have in a way you can easily see all your options to pick from. You most definitely will come across old favorites you’ll be excited to wear, as well as maybe some items you forgot you purchased and still have the tag on. 

Once you decide what you’ll be keeping and what you’ll be getting rid of, sell some of your clothes. Spring is a great time to either have a garage sale or even sell online with Facebook Marketplace, Postmark, etc. Those old clothes can turn into some extra cash this spring.  

Gain A Green Thumb  

Fresh produce seems to taste the best in the warmer months, but the cost can really add up. Consider planting your own garden this spring to save a little extra. Not only is growing your own produce better for your wallet, but it is great for your health. Gardening can be a fun hobby for you and the kids. If you can devote some time to maintaining a garden, your stomach and budget will thank you.  

Having a garden gives you the freedom to plan your meals around what you have as well as incorporating fresh fruits and veggies into a majority of your meals. As your thumb gets greener, you could consider selling some produce locally as a side hustle. The cost of having your own garden can be very budget-friendly, but it also is a free hobby to enjoy and unwind with after a hard day of work.  

Better Your Budget  

If you want to save a little extra this spring, look through your budget and see what you can cut. Maybe you save a little extra and cancel the TV subscriptions as you will be spending more time outside or cancel the gym membership and get your exercise for free outdoors. Be in control of what you are spending your money on, spring is a great time to cut unnecessary spending so as fun stuff comes up this summer, you have the spare cash.  

The best part about the spring and summer months is that you can do free activities outside rather than going out and spending money on activities all the time. Rather than eating out, consider grilling or cooking outside. This is such a fun activity to do with friends too when planning your next night out. You could try out a spending freeze where you don’t spend for x number of days to save extra to either save for or cover an upcoming expense.  

Enhance Your Energy Efficiency  

One of the biggest ways you can save this spring is to be energy efficient. Cut the cost of some of your bills by using the nice weather to your advantage. Spring is the time of year you can shut off the heat and open the windows. As the weather heats up, be frugal when you’re turning your AC on. 

Keep your house cool by adding window treatments to reduce the amount of heat that gets in. Another way to be more energy efficient is to run your large appliances less. For example, consider only running full loads of dishes or laundry. One tip that many people forget is to shut your fans off when they are not being used. A fan running is not cooling your house, so when you’re done cooling off, shut it off.  

Spring clean your savings with these creative tips. Spring and summer seem to be busy months with a lot of fun stuff to go and do. Start saving a little extra here and there to add an extra chunk to your savings. Save this spring to set yourself up for a financially successful year. The more frugal you can be to cut some costs, the bigger the payoff you will see. 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Spring Cleaning; Budgeting

Spring Clean Your Budget 

Spring is here and that means we’ve got some spring cleaning to do! This year, you’ll want to be sure to add ‘budget’ to your to-do list. Spend some time doing a deep dive into your finances and budget plan to boost determination for the rest of the year. Give yourself a budget refresh with these 4 tips.   

1. Review and Refresh  

Reviewing and refreshing your budget is something that should be done periodically. Life changes, there are new expenses, or in general, new goals that need adjusting. It is ok to change your budget if it accurately reflects where you currently are in life, and it aligns with your savings goal. Whether you have moved, made a big purchase or have room to allocate more to your savings, be sure your budget is refreshed to reflect new changes.  

2. Rebuild Your Savings  

There is always a time of rebuilding – whether it is after purchasing a new home or welcoming a new member into your family, think about what needs to be adjusted to rebuild your savings. Another thing to keep in mind is your emergency fund. As you rebuild your savings for new financial goals, be sure to plan for the unplanned. Delegate a percentage of your income or side hustle to build strong savings for the future and unforeseen circumstances.   

3. Track Your Spending   

Do you track your spending? Tracking your day-to-day spending is a great way to address any trends that may need to be reviewed in your budget plan. Tracking your purchases gives you the opportunity to see where you are at within your budget day-to-day or weekly to ensure you’re on track. Make it a point to schedule a monthly budget meeting with yourself. It is important to look ahead and try to forecast month-specific expenses coming up.   

4. Align Your Money Goals   

Lastly, be sure to give yourself credit for reaching weekly and monthly goals. It won’t always be perfect – overspending happens and life constantly changes, but you can always give yourself grace and have the self-awareness to address concerns. Be realistic with your lifestyle to align your progress in the right direction. Treating yourself occasionally is a great incentive to drive determination for long-term success.   

As you spring clean your budget to perfection, do not hesitate to reach out to Peoples Bank & Trust to set up a savings account or to discuss how we could assist you in reaching your financial goals today! In a world full of unknowns, you have the power to be self-aware of your budget and how you can adequately save for success.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Kids On Tablet; Cybersecurity

Cybersecurity Tips Every Parent Should Know 

Today’s generation of kids knows how to operate a device before they learn their ABCs. The internet has become inevitable. Parents, exercise the 3 P’s below to ensure online protection for your family.  

1. Practice Safe Online Habits  

When it comes to practicing safe habits online, it tends to be easier for parents if their children can understand why we implement online safety practices. Having these conversations can be hard, however more times than not, the child will understand why we utilize these essential cyber skills. Start with explaining basic rules such as posting photos – we truly do not know who is seeing what we are doing and where we are, that is why we only send photos to people we know directly.   

Another basic rule to practice as a parent is the idea of ‘clicking with caution.’ Phishing is very dangerous and only takes one click for malicious software to get on any device. Checking over spelling and links prior to clicking is a safe practice to hopefully diminish phishing. It is very important to keep a clean, updated and backed-up device to defend against potential viruses.   

2. Protect Your Identity  

Protect your family by utilizing privacy settings to secure personal information. The key to privacy is being very minimal with what you share online as well as cleaning up old profiles. Old and unused apps should be checked and deleted frequently. Apps that allow for messaging should be kept private to eliminate people they do not know adding or writing them.   

Safe online practices should be talked about and consistently monitored. Engaging in these conversations with your family on cybersecurity should be specific, so they can understand exactly why we practice safe online habits and so you can learn together. Kids today face more online risks that need parental guidance. Implementing age ratings and built-in controls can control and limit access to inappropriate content. Having these rules in place and under a watchful eye can help children stray away from bad practices.   

  • Incorporate a device docking station in a common space at night.  
  • Keep devices in common spaces for usage under supervision.   
  • Control their screen time and ability to log in.   

3. Password Persistence  

Teach and practice safe password protection for all mobile devices and online profiles. Strong passwords should never be shared or reused. You really should not even be reusing passwords amongst accounts – if a hacker can get into one, they can then get into all. When creating a strong password, the best tips are:  

  • Make it unique and not personal to you or your family.   
  • Do not use your name, family name, identifying number or birth date.  
  • The longer the password, the better. Utilize both uppercase and lowercase letters, as well as numbers and symbols.   
  • Do not reuse previous passwords or something too similar. You should be changing your passwords often.   
  • Pick a password you can remember and not have to write down/have on your phone.   

Parents, it is up to you to enforce safe online habits to ensure effective cybersecurity for your kids. Having those conversations on cybersecurity, as well as creating boundaries and rules will keep your kids much more aware. The more time you spend online, the more likely you are to deal with cybersecurity threats. The hackers and scammers target young children because they often lack experience and knowledge, but not yours. Educate your kids on cybersecurity training today!   

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Gardening; Home Improvements

Spring Improvements to Increase Your Home’s Resale Value  

Thinking of selling your home shortly? We’re here to share some easy springtime renovations to provide you with the greatest return on your investment. Spring cleaning is lots of fun, but a spring renovation, that’s what will give you the biggest bang for your buck!  

Replace the garage door.  

Replacing the garage door not only contributes to fantastic curb appeal, but the functionality will grab the attention of potential buyers when you upgrade to a more modern door with windows and smart control features.  

Install a kitchen backsplash.  

Kitchen remodels make a huge impact on the resale value of a home. Doing small weekend projects such as replacing or adding a backsplash can do absolute wonders and make a dramatic difference in your kitchen design! Make it as easy as laying tile one day and grouting the other for a quick home improvement.  

Update the popcorn ceilings.   

Yes, it is time to update those outdated popcorn ceilings. It is a fairly simple process you can do on your own with a few products from the supply store. This is such an easy and affordable way to spruce up your home with minimal cost and effort.   

Re-roof your house.   

The exterior of your home is the first thing a buyer will notice. Make the best first impression by addressing your current roof. You do not always have to completely re-roof your home and we understand this is more costly. There are options to replace shingles, partially replace or roof over. If you think your current roof will be a topic of discussion when listing your home, add this tip to the top of the list! If the roof is in bad shape, certain loans may require it to be replaced before the final sale could take place.  

Address the hardware and fixtures.   

What seems like a small, nitpicky detail can make the biggest impression on your buyers. Contemporize your outdated hardware and light fixtures to give a more stylish and fresh appearance.   

Stay neutral.  

Finally, when making home improvements – remember to stay neutral. Whether you change the color of your siding, cabinets or walls, you can appeal to a larger number of buyers by keeping simplicity throughout. Neutral tones make it easier for potential buyers to envision what they could do with the space and make it easy for them to paint over if need be.   

We believe these top tips will advance your home’s resale and help your budget. If you’re looking for a place to put your savings for your new home, we’re here to help. We also have all the home loan options you’ve been searching for and are happy to talk to you about the next steps.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

NMLS #407724 

Home Sweet Home

6 Reasons Why You’re Ready for Home Ownership 

Questioning if you are prepared to become a homeowner? Here are six helpful tips to break down buying a home and what you need to be prepared for. Purchasing a home can be a stressful process. Let these recommendations set you up financially and emotionally when you are ready to pull the trigger on buying.   

1. Be Mentally and Financially Ready  

Maybe you have reached your savings goal or have gotten out of debt. Knowing you are ready and what you want is probably one of the most important pieces of the house buying process. Buying a home is a big investment, so be sure you’re in a financial situation ready to pay for the house itself, property taxes, homeowners insurance, along with the furnishings and upkeep of your home.   

2. Check Your Credit  

Another big part of being ready for homeownership is making sure you have a good credit score. Your credit score will help determine the loan you can qualify for during this process. If you can qualify for a better interest rate, that will help lower what you are paying monthly towards your mortgage.   

3. Have a Steady Income  

Being sure you have a steady income is highly important when wanting to buy a home. Down payments can be a good chunk of money. You will want to be sure your income and savings will allow you to put down a very healthy payment. Mortgage lenders will check your income along with your credit score, as they both show your ability to repay. Purchasing a home is a very big financial and emotional decision, so being sure financially you’re in a good place can help give you peace of mind on the emotional side. It is important to think through your 5 or even 10-year personal and professional goals before buying. You’ll want to think about family, relocating for work and where you truly want to be at that stage of your life.   

4. Build Healthy Savings and an Emergency Fund  

There is a lot to think about when purchasing a home, but hopefully this helpful tip you have already been working on! It is especially important, regardless of whether you are buying a home, to be working towards healthy savings and an emergency fund. Why do you need strong savings and an emergency fund when buying a house? Along with the house itself, there can be many expenses and often unpredictable circumstances. Having some additional savings can ensure your comfort when moving as expenses arise. Setting aside money to build healthy savings will be great backing as you adjust your budget and incur monthly house payments.   

5. How Much House Can You Afford?   

How do you know what you can afford? There are several methods for calculating what you can afford, as well as several factors to address. You can utilize online down payment calculators to give you a better idea of what to expect.   

Down Payment Calculator: Calculate Your Down Payment https://bit.ly/3I0xCHM   

Refer to your budget to analyze your gross monthly income as well as annual. After you can nail down what you are bringing in, look at your set expenses. Another expense to account for is your state property taxes. Many lenders will utilize the 28/36 rule to determine their ability to afford a house. Money.com shares the 28/36 rule suggests your housing expenses should be no more than 28% of your total pre-tax income. Your total debt should not exceed 36% of your pre-tax income.  

6. Align with Your Personal and Home Goals   

Once you have learned about your home affordability, be sure making the move aligns with what you want. Buying a home is a big deal and can take up a good chunk of your budget. If it is more important to you to have the extras over a home, consider crunching the numbers to see what life would look like moving forward. In reality, when purchasing a home, you may have to push back that vehicle upgrade or vacation. Those are all good things to think about when aligning your personal goals with your home goals. It is critical to acknowledge the future and factor in your goals.   

The process of deciding to buy a home can be a lot to think about. Share these helpful tips with a friend, colleague or family member who is debating homeownership. Reach out to Peoples Bank & Trust today to discuss a mortgage on your new home! We would be happy to help you through this exciting process of becoming a homeowner.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

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