Category: Budgeting

piggy bank

How much should you save every month?

With bills, insurance, monthly expenses, retirement and more, how is there anything left to save? And if there is any money left, what do you save for and how much should you be putting away? We’re here to help answer these questions! Here is how much you should save every month. 

50/30/20 Rule 

You may see a lot of recommendations for saving 20% of your income every month. According to the popular 50/30/20 rule, you should reserve 50% of your budget for essentials like food and rent, 30% for discretionary spending and at least 20% for savings. But it’s not always that simple sometimes. If you earn more money, then 20% makes sense for you. But if after calculating your budget and 20% just isn’t within reach, don’t get discouraged. Saving something is better than nothing – so try for 10-15% if possible. 

Automate your savings so you don’t have the choice to use that money if it goes straight to a checking account. If you get a bonus or raise, put that straight towards one of the below items. You were okay without that money and getting by so put it towards savings instead of into your pocket to spend. 

Retirement 

Saving for retirement should be started as soon as possible and is a lifetime goal. Saving younger means you’ll have less to save each month than if you start later. A general rule of thumb is to have one times your income saved by age 30, twice your income by 35, three times by 40, and so on. Try to save 10-15% of your salary for retirement. Increase by 1% in savings each year until you can get to a number close to that. 

Emergency Fund 

You may think you are okay and don’t have to worry about a large emergency. But if your furnace and a/c go out, you are out $10,000 in supplies and labor right there. You may not have that big of a cushion to fall on if you thought your emergency will only cost $1,000. Your emergency fund should be 3-6 months’ worth of expenses which includes your monthly expenses and salary so you would be covered if you were to lose your job. We know that seems like a lot but slowly work towards that over the years. 

Family 

Think about what you want to save for regarding family. Do you need a new car to fit your growing family, will you be helping your child pay for college, are you going to take a family vacation, or do you just need to save for the overall cost of having a child? Thinking about your future and the costs that you will incur regarding family should be added into a savings plan. 

These are some of the top things you will want to save for and how much you need to save for each! If you need to place your savings in a savings account, CD/IRA or checking account – we have you covered. 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

holding hands

A Married Couple’s Guide to Finances

Congratulations on your engagement and wedding! Whether you are recently engaged or have already tied the knot, talking about finances is extremely important in order to set you both up for success. Peoples Bank & Trust wants to offer a married couple’s guide to finances, so you can live happily ever after. 

How will bills be split? 

There are many day-to-day and monthly expenses that arise. You’ll want to talk about how these will be shared so both parties feel that a fair outcome has been decided. Talk about groceries, rent/mortgage, property taxes, property insurance, utilities, health insurance, life insurance, car payments, student loans, any repairs/renovations and so on. This can all add up so it’s important to go over your salaries after taxes and retirement savings so you can know who will pay what. 

Whose insurance will you use? 

You both potentially work at different companies with different insurance. Compare the prices, benefits and what’s included in both so you can come to the conclusion on which health insurance is best for you. 

Do you plan on having or already have children?  

Children throw even more costs into the mix. This will change your health insurance costs, add more monthly costs and more. You will also want to talk about saving for your child’s college, helping pay for a car and other big expenses. Sit down and discuss your goals financially for your children – then you can start them out on the right path financially!  

Will you have separate and/or joint accounts? 

It is completely okay to have separate accounts, but it may also be nice to have a joint checking account for bills or to save for child expenses. One partner may pay all of the bills each month so it’s easy to have a joint account where both of you have stashed cash so they can pull money from there. 

Have you updated your beneficiaries and created a will? 

Now that you are married, be sure to update your beneficiary information on your retirement plans, life insurance and any other areas that require you to do so. You will also want to think about creating a will if you haven’t done so already. This is especially important once children come into the mix. 

Has your insurance coverage been reviewed and updated yet? 

Be sure to update your insurance. You can also get deals when you combine your mortgage, car and life insurance together all on one plan. Look into that to see if that helps you save any money. While doing that, you’ll also want to look into life insurance. You are both responsible for your mortgage and if you plan on having kids, that’s another place you’ll need part of your partner’s income if something were to happen to one of you. You want to make sure you’re set up for success if the worst did come. 

We hope this guide gives you a good start to become financially sound in your marriage. The professionals here are happy to answer any other questions you may have regarding your finances as a newly married couple – just contact us! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

calculator

Take Control with A Budget

If you can’t seem to get a handle on your finances, it may be time to reevaluate your spending and learn to budget. Budgeting is essential for those looking to be financially successful. You need to know where your money is going and make sure that it makes sense. Here are our tips on how to take control of your finances with a budget. 

Look at your overall monthly expenses. 

You will want to review what you are spending money on each month. Add up your grocery bills, daycare, utilities, cell phone bill, mortgage/rent, insurance and so on. This will give you a good basis of what you must have money for each month. And it will help you find places to cut – if you realize you’re paying for five different tv subscriptions, you can probably cut 2-3 of those and come out saving some extra cash. 

Track your odds and ends expenses. 

Now you need to make a list of everything you buy throughout the month – this includes going through the drive-thru for lunch, grabbing a coffee, getting gas, any extra groceries and more. Over a few months, you’ll have a solid average for extra items you need to budget for. Doing this will also help you notice what you are spending your money on and if you can cut that down to save more. 

Decide on your financial goals. 

What do you want your goals to be financially? Are you saving for retirement, college for kids, a car, down payment or trip? All this needs to be figured into your monthly budget so you can allot the correct amount of money towards your financial goals. Open a savings account to store this money safely as you begin to build your funds. 

Become debt-free. 

You will want to budget for your debt payments once the above has all been calculated into the budget. Becoming debt-free is crucial to your financial success. See how much you owe and work on a plan to pay off each debt. You can pay the highest interest debt off first, do the debt snowball method or look up other debt payment strategies that would fit you best. Budgeting paying off more than the minimum each month will help you succeed. 

Stick with it and reward yourself. 

We know it may be hard to stick with tracking all your expenditures and saving for different financial goals, but don’t give up! Reward yourself when you hit milestones because it’s important to stay excited and motivated about budgeting. Take control of your debt by continuing this each month so you can solidify your financial success! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

car

6 Ways to Prepare for Big Purchases

Whether you’re planning your dream vacation or buying a new car, a big purchase needs a big budget, and you need to make sure you’re prepared for it! To help you achieve your goals, we’ve compiled a list of 6 ways to prepare for big purchases. Good luck!

1. Research Your Options

Research affordable options for the big purchase you have in mind. You can do this by keeping an eye out for discounts, holiday sales, comparing prices between retailors and considering buying used instead of new (used car, later model of computer, etc.).

2. Calculate Your Cost

This part is simple, add up how much this item or event will cost you and divide it by the number of months before you’ll need the money. That’s how you’ll know how much to save each month. Be sure to account for taxes and additional fees that might go along with it. For example, if you’re buying a car, you need to add up the price of the vehicle, license, registration and taxes as well.

3. Determine a Timeline

Once you’ve set your goal, you need to determine when you need to accomplish it by. Setting a specific date or time will motivate you to continue savings and provide you with a sense of urgency. Aim for a realistic timeline and remember to always save a little more than what you’re expecting this purchase to cost, in order to account for unexpected fees or changes.

4. Create a Separate Savings Account

Out of sight, out of mind. It’s so tempting to dip into untouched funds in your savings account when you need to buy something or want to treat yourself but keeping this separate from your regular checking and savings will help you resist the temptation.

Open a high-yield savings account with a bank such as ourselves and label the account with the name of your goal – for example, “Dream Vacation.” This will remind you why you’re saving the money and keep you from spending it on clothes or dinners. You can also set up automatic transfers from your checking into your savings account to make sure you stay on track.

5. Contribute Unexpected Funds

Whenever you collect money that you weren’t expecting, transfer it into your savings account. This could mean bonuses, overtime money, garage sale earnings, raises, monetary gifts, a tax refund or something else. Rather than spending it on a new gadget or dinner, put it into your savings and you’ll be thanking yourself later when you make your big purchase sooner than you expected.

6. Apply for a Loan

If you’re looking to purchase a home or a car, you may want to consider getting pre-approved for a loan so while you’re searching for the home or car of your dreams, you have an idea of what you can afford. To apply for a loan, work with a mortgage lender that can help you select the best home loan with an interest rate and other terms suited to your needs.

Whether you need to open a savings account for your big purchase or would like to get pre-approved for a home or auto loan, our team is here to help! Apply for a loan online or set up an appointment to discuss your options with us. We can help you get one step closer to achieving your big purchase!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

calculator

How to Pay Off Debt Faster

Debt can seem intimidating at first, especially when you’re looking at all the different balances across various accounts and credit cards. Paying off your debt will allow you to increase your income and have a little extra room in your budget for other things. By following a few simple strategies, you can pay off your debt faster than you think.

Follow the tips we’ve provide below to pay off your debt faster.

  1. Review the Amount of Debt You Owe – Find out exactly how much debt you owe. Being able to visualize the total amount of debt will help you create a realistic repayment plan.
  2. Create a Repayment Plan – Track the total amount of debt you owe with an Excel spreadsheet or free smartphone app. Make sure to include the minimum payment amount, interest rate and how much you owe total. List everything from credit cards and personal loans to student loans and your mortgage. Now, determine how much the monthly payment would be.
  3. Pay the Most Expensive Debt Off First – Sort your debt by highest to lowest interest rate and tackle the credit card or loan with the highest rate first. By paying it off first, you’re reducing the overall amount of interest you pay and decreasing your overall debt. Continue paying down debts with the next highest interest rates to save on overall cost.
  4. Pay More Than the Minimum Balance – When you have extra room in your budget, pay more than the minimum balance so you can pay the debt off faster.
  5. Stay On Top of Bill Payments – Use bill reminders and online bill pay to pay your payments on time – this helps you avoid late fees.
  6. Reduce Your Spending – Review your current spending and consider areas where you can reduce it. For example, skipping your daily latte or canceling your subscription to yet another streaming service.
  7. Change Your Habits – Consider your daily habits and routines and if there are adjustments you can make to save money without sacrificing your lifestyle too much. For example, bringing your lunch to work instead of buying it several times per week.
  8. Sell Unwanted Gifts or Household Items – If you have any unused items laying around, such as electronics, books, appliances, clothes, etc., consider selling them off or hosting a garage sale to earn some extra cash.
  9. Consider Debt Consolidation – This option allows borrowers to repay their debt by combining several high-interest rate loans or credit card balances into one new loan with a lower interest rate.
  10. Celebrate – Reward yourself once you reach your goals to maintain your newfound mindset. It can be easy to shift back to old habits, so it’s important to treat yourself occasionally to keep the momentum going.

Interested in debt consolidation or using online bill pay to simplify your payments? We can help! Visit our website to learn more about those options or contact a financial professional for assistance. We’re here to help you create a more financially stable future.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

home

How to Increase Your Home’s Value

Buying a home is a major achievement—and investment! Mortgage payments help build up equity in your home over time, but there are changes and upgrades you can make to your home in order to increase its value, resulting in a bigger return on your investment.

Homeowners should look for simple, cost-effective ways to increase their home’s value, especially if they plan to sell in the future. Take a look at these 5 ways to increase your home’s value and get a stronger return on your investment.

1. Spice Up the Landscaping

Whether you heard it from a real estate agent or on HGTV, curb appeal matters! You want your home’s landscaping to leave a good first impression—on future homebuyers and neighbors alike. Ways to improve your home’s landscaping include:

  • A well-maintained lawn – this is one of the first things people see and is a well-rewarded investment.
  • Neat and tidy garden – keeping your garden tidy leaves buyers thinking it’s easy to maintain, which is always a plus.
  • Clean and lighted pathway – having a clean pathway that’s lined with pretty plants or LED lights leaves a great impression. Repair cracks and pressure wash it to remove built up dirt or grime.

2. Paint, paint, paint!

One of the most cost-effective and easiest upgrades to do to your home is to simply paint it! Adding a fresh coat of paint to each room of your house gives it a newer, refreshed look and ensures that there is no discoloration behind long-standing furniture or stains left by tiny hands. Peeling or outdated paint can be a turn-off and repainting saves the prospective buyer from having to do it themselves. Focus on painting areas like the bathroom and kitchen as those tend to have more wear. Painting the interior can result in a 107% return on investment (ROI).

3. Upgrade Your Bathroom

When searching for a home, buyers consider bathrooms as some of the most important rooms in the house. Bathroom upgrades are some of the most cost effective to upgrade and ensure you get a return on your investment. Some ways you can upgrade your bathroom include:

  • Repainting walls in a neutral, modern coat of paint or removing old wallpaper
  • Painting or refinishing cabinets (or replacing them if you have more room in your budget)
  • Installing matching modern hardware on drawers, cabinets and closets
  • Upgrading lighting, faucets, showerheads, or installing a new toilet
  • Cleaning everything – rid the bathroom of rust stains, scrub all the surfaces and re-caulk areas around the shower, bathtub and tile

Keep the design neutral and light so you can appeal to as many buyers as possible, colors like light blue or gray work well. If you’re looking to save money by doing the bathroom upgrades yourself, plan for a few days of work. For every $1 spent on bathroom renovations, you can make back $1.71 in home value.

4. Upgrade Your Kitchen

Many consider the kitchen to be the heart of the home. Upgrading a kitchen can make a big difference for some buyers. Depending on your budget, you will have to choose between minor or major kitchen upgrades. Below, we’ve listed some ways you can do both:

Minor Kitchen Upgrades

  • Replacing cabinet doors and hardware (but leaving the box of the cabinet)
  • Upgrading to quartz or granite countertops
  • Installing a set of new matching appliances
  • Repainting and adding backsplash throughout
  • Putting in new flooring if existing is outdated, damaged or worn

Major Kitchen Upgrades

  • Adding an island to the kitchen
  • Installing fully new or custom cabinetry throughout
  • Upgrading to more high-end, energy-efficient appliances
  • Replacing flooring with higher quality options and adding or upgrading trim
  • Adding undercabinet LED lighting

If you’re leaning toward making major improvements to your kitchen, we can help! Give us a call or contact us via our website to discuss your financing options for upgrading your home.

5. Make Your Home More Energy Efficient

Upgrading your home’s efficiency can be more affordable than you think. Some of the most popular environmentally friendly ways to increase your home’s value include improving heating and cooling costs, adding energy-efficient lighting and appliances, upgrading windows, doors and siding. Even adding a smart thermostat makes it easier for a homeowner to control the home’s climate from anywhere and allow them to manage their energy costs more easily. Home tech investments can provide a strong selling point for your home and increase its overall comfort, convenience and functionality.

Some upgrades, such as installing solar panels, are more of an investment and you may need to consider financing options to make this upgrade happen.

How Do I Pay for Improvements?

There are several routes you can take when upgrading your home. For upgrades that need to be done professionally, or those you cannot pay for in cash, there are several financing options available.

  • Credit Card – This option may work for you if you are able to pay off the home improvements in a short amount of time.
  • Personal Loan – A personal loan is a great option if you don’t have enough equity built up for a home equity loan or HELOC. These loans don’t require you to put your home or other property up as collateral to get approved. The interest rate for a personal loan will be higher than a home equity loan, but lower than a credit card in many cases.
  • Home Equity Loan or HELOC – A home equity loan is similar to a personal loan in that you receive a lump sum of cash with a fixed interest rate and monthly payment. A home equity line of credit (HELOC) works like a credit card and comes with variable rates and a line of credit that you can borrow against.

If you’re ready to spruce up your home and increase its value, give us a call, apply for a loan or credit card on our website or schedule an appointment with our team to further discuss your options.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

coins

Looking Ahead: Retirement Savings

Even though it may seem far off into the future, it is never too early to start saving for retirement. If you have an idea of what you want your retirement to look like, it makes it much easier to plan for it and set goals in order to reach that vision. Here are some tips on how you can look ahead toward retirement savings.

Set Your Goals

After all your years of hard work, you’re looking forward to some rest and relaxation—but how will you finance it after you retire? Are you looking forward to traveling the world or just don’t want to worry about finances while you’re hitting the links? Envisioning what you want your lifestyle to look like and when you want to retire will help you determine how much you should put away for retirement.

Find Out How Much Money You Need

Use a retirement planner tool to determine how much income you may need in retirement. You’ll need to enter in your current annual income, how often you’re paid, pre-tax contribution to your retirement account, current retirement savings, estimated Social Security benefit, current age and desired retirement age. You can also adjust your contribution to see how the numbers change.

Save and Invest

Most experts say 10-15% of your income should go toward retirement. If you aren’t comfortable doing that right now, save what you can and increase it 1% every year until you can reach that goal. There are a variety of retirement plans you can enroll in; we’ve listed some of the most common options below.

  • Company sponsored plans such as 401(k), 403(b)
  • Individual Retirement Accounts (IRAs)
  • Roth IRA
  • Various investments such as mutual funds, stocks, bonds

Make Up the Difference

If there is a difference in what you’re saving now and what you may need for the future, there are many options for you to make up the difference.

  • Increase your deferral into your 401(k) retirement plan. Figure out how much it costs per week to increase the deferral by 1%. Then, continue to bump that number up as needed. A great time to do this is when you get a promotion or raise.
  • Make annual contributions to an IRA. This is similar to a 401(k) as it allows you to invest for the long-term and pay taxes on earnings later.
  • Contribute to your 401(k) to catch up to where you need to be.
  • Manage your debt now so you can have more money later, as long-term savings are crucial for your retirement!
  • Boost your savings by delaying retirement. By waiting just an extra year or two, you could help increase your savings and increase your overall retirement budget.
  • Work for a significant promotion or raise and save some of the additional earnings.

Review Your 401(k) or Roth IRA Yearly

Once or twice a year, set aside time to review your 401(k) or Roth IRA. Firstly, review your asset allocation—your retirement accounts should match your goals. Check your progress to see if you’re saving more than anticipated or if you’re not quite there yet and need to make some changes. If you’re not saving as much as you wanted, consider increasing your deferral, adding more money to your IRA or making an extra contribution to catch up to where you want to be. Also, update the beneficiaries on your accounts and make sure your contact information is current.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

money

6 Things You Can Cut to Save Money

Our main goal is to provide you tips to help you achieve financial success. Finding ways to save more and cut costs can be difficult when many things feel essential. Peoples Bank & Trust is here to offer our advice on certain things you can cut to save money! 

Limit Subscriptions 

If you have Hulu, Netflix, HBO and Amazon Prime – you probably don’t need all of them and aren’t utilizing them enough to make it worth the money. All the monthly fees add up so look at your subscriptions and see which ones you can cut. If you’re being mailed vitamins monthly, for example, go to the store and find the same vitamins. You’ll save money in shipping and get 2-4x the number of vitamins for the price of what you were paying for the subscription. 

Review Your Bills 

Are you paying for a router or phone line within your internet bill that you weren’t aware of? That could be costing you $50+ a month if you don’t catch little additions like that. Be sure to look at each of your bills to make sure you understand the costs and weed out any unnecessary add-ons. 

Switch Providers 

If your internet or cell phone bills are too high, shop around for rates to see if you can save yourself an extra $50 or $100 a month. It’s important to look out for you so that you are finding the best services for the best price. 

Reduce Utility Use 

Electricity costs account for about 12% of the average household budget. Does the air conditioning need to be running or can you open windows to get enough of a cool breeze? Hang laundry outside to dry instead of using the dryer, turn down the thermostat so it’s not heating or cooling too much, switch to energy-efficient lightbulbs, lower your water heater temperature and so on. 

Don’t Eat Out 

This means you will bring your own lunch to work and try not to buy coffee – make it instead. Costs can add up quite a bit in just one month without you realizing it! Do the math in your head of what making a meal at home costs vs buying something like that in a restaurant to encourage less eating out. 

Look At Insurance 

There are so many options when it comes to insurance. Be sure you are getting the best price. If you are married, try to bundle your home, auto and life insurance – this normally can get you a deal! 

We hope you take a look at this list and choose to cut most of these items out or change them, so you are getting a better deal. Store that new savings in a savings account with us so we can keep your funds safe but accessible. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

credit-card

Building a Good Credit Score from Scratch

The elusive credit score… you know it’s important, but what actually is it and how does it affect you? We’re here to explain how you can build a good credit score from scratch! 

Become an Authorized User 

Before you open your own credit card, becoming an authorized user on a family member’s card is a great place to start! As an authorized user, your name is attached to their credit card and their payment history is added to your credit files. Be sure to choose someone who has a good track record of paying their bills on time, so their on-time payments help improve your score. You don’t need to use or even have the credit card!  

Ask the primary cardholder to find out whether the card issuer reports authorized user activity to the credit bureaus. That activity generally is reported, but you’ll want to make sure — otherwise, your credit-building efforts may be wasted. 

You should come to an agreement on whether and how you’ll use the card before you’re added as an authorized user. If you would like to use their credit card, we recommend you’re prepared to help pay off what you charge to the card. It’s the kind thing to do for your family members and it also teaches you financial responsibility! 

Start with a Secured Credit Card 

If you’re building your credit score from scratch, you’ll likely need to start with a secured credit card. A secured card is backed by a cash deposit you make upfront; the deposit amount is usually the same as your credit limit. Secured credit cards aren’t meant to be used forever. The purpose of a secured card is to build your credit enough to qualify for an unsecured card — a card without a deposit and with better benefits. Choose a secured card with a low annual fee and make sure it reports payment data to all three credit bureaus: Equifax, Experian and TransUnion. 

  • Keep Your Credit Cards Open – Unless your annual fees are through the roof, it’s a good idea to keep your credit card open. Credit bureaus will count a closed credit card against you, so you can pay off the card and leave it open, but don’t close it. 
  • Limit Credit Card Applications – Opening multiple credits cards in a short time period will also be flagged by the major credit bureaus. While not always the case, they see this as a sign that someone is unable to maintain an income to keep up with expenses and pay off debt, so your credit score will go down. It’s recommended to wait at least six months in between credit card applications. 
  • Set Up Automatic Payments – Paying your loans and credit cards regularly and on time is one of the best ways to build a positive credit. Making these timely payments shows the credit bureaus that you can maintain enough income to pay off debts and are capable of paying them on time which improves your score. 

Take Out a Starter Loan 

Ask us about credit builder loans, aka starter loans! Typically, the money you borrow is held by the lender in an account and not released to you until the loan is repaid. It’s a forced savings program of sorts, and your payments are reported to credit bureaus.  

Another option: If you have money deposited in a bank or credit union, ask them about a secured loan for credit-building. With these, the collateral is money in your account or certificate of deposit. The interest rate is typically a bit higher than the interest you’re earning on the account, but it may be significantly lower than your other options. 

Are you ready to start building your credit score? Talk to our lenders today to apply for a loan! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

plane

Planning a Summer Vacation on a Budget

There is no doubt that we could all use a vacation after this year! But that doesn’t mean we’re ready to blow the entire bank account on a trip. You just need to know how you can get savvy about saving on your vacay. Check out these tips for planning a summer vacation on a budget! 

Set a Budget Before You Plan 

Just like we suggest not searching for houses or wedding dresses before you set a budget, you’ll save yourself some heartbreak if you set a budget before planning. This gives you a great foundation to start the rest of your planning. 

To make it even easier on yourself, you can establish the maximum price you’re willing to spend on travel for: 

  • Airfare or gas 
  • Hotel or rental stay 
  • Food 
  • Local attractions 

Time Your Trip Wisely 

Planning a budget-friendly summer vacation is easier if you can travel when other people can’t because travel prices—for hotels, flights and car rentals—are virtually always calculated using a surge pricing model that’s based on supply and demand. Your travel costs are always going to be more expensive if you plan your trip during busy seasons of the year. For example, airfare typically goes up in price during holidays when many people are expected to travel, like Memorial Day, July 4th, Labor Day, Thanksgiving and Christmas. And warm beach vacation spots are pricier during the prime summer season when kids are out of school. 

Try to travel when the local kids at your travel destination are still in school. If your kids don’t start school until September but the local kids from your vacation spot go back to school in August, you’ve hit the jackpot! 

Book Flights in Advance 

According to CheapAir’s “When to Buy Flights” guide, the best time to purchase tickets on most domestic flights is between 21 days and six months in advance, and the lowest price-range occurs between 52 days and three months before you plan to travel. You can sometimes find some last-minute deals and specials on airfare, but it’s better not to risk a high-priced ticket when trying to budget for your vacation. 

Book Plane Tickets One at a Time 

Passengers on the same flight often pay different prices for seats in the same section of the plane for a variety of reasons, but one reason is that many airlines group seats into price buckets. Unfortunately, if you book tickets in a bundle, it will only place you within these individual buckets unless you’re forced to separate. If you’re okay sitting apart from your spouse, book your tickets separately! If your kids aren’t old enough to sit by themselves, you can book two tickets at a time for you and your spouse to each sit with a kid or two but on separate parts of the plane. 

Pack Your Own Snacks 

It’s no secret that airport food is expensive! If you can manage to pack snacks for the airport and plane ride(s), you’ve already managed to shave a few dollars off your expenses! The safest way to ensure that airplane snacks aren’t confiscated by TSA is to bring pre-packaged items in your carry-on. TSA also allows parents or guardians traveling with children to pack extra fluid and liquid that exceeds the 3.4 oz limit. Check out a full list of items children are allowed to bring onto a plane here. Even if you’re traveling by car, it’s much more cost and time-effective to pack items for making sandwiches than it is to stop and buy food for every meal. 

For more ways to save, simply reach out to our team! The bankers at Peoples Bank & Trust are always happy to help you accomplish your financial goals, especially when they’re as fun as a summer vacation! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender