Category: Personal Finances

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

10 Things Financially Successful People Do

Personal Finances

Ever wonder how Mark Zuckerberg or Richard Branson got where they are today? Success doesn’t come easy, but it grows where it is watered. At Peoples Bank & Trust, we want to help you climb into financial success with these simple tactics! Learn how to begin your money management journey with these 10 key actions:

1. Wake up early. The early bird gets the worm! Take care of morning tasks at the start of the day to start crossing items off your to-do list before you leave the house. Paying your bills in the morning can be a great way to avoid stressing out about it later, plus then you’ll know where you stand before the day’s purchases!

2. Say no. No is a powerful word. When waiting in the grocery line, saying “no thanks” to those tempting impulse buys can mean the difference between saving each month and spending over your budget.

3. Create a routine. Pay your bills on time, at the same time each and every month. By establishing a regular bill pay schedule you can ensure that each month you allocate the appropriate funds before the designated day.

4. Treat failure as a lesson. Miss a payment? Over withdraw from your account? No worries, it happens. Instead of getting upset about this simple mistake, take a it as a learning experience. Commit to not making that error again, and determine what steps you can do to stay on track.

5. Organize everything. Between your income statements, taxes, payment schedule and more, ensure that all your financial documents have a designated home. Investing in sound organizational tools will pay off in the long run by eliminating errors and boosting your managing capabilities.

6. Think Long-Term. Do you know where you want your finances to be six months from now? How about six years from now? By thinking beyond your immediate financial needs, you can create a well-rounded plan to help you avoid future financial troubles!

7. Live Frugally. Stretching those hard earned dollars doesn’t always come easy. Cooking instead of eating out, or buying used instead of new are some common ways to save throughout the year. By spending less you can increase your available funds to pay down debt and build your savings.

8. Automate Payments. Between tucking funds away for your 401(k) and paying your cell phone bill, there is a wide variety of ways to automate your money management. For monthly expenses and incomes, automation is a great tool to use. The old saying, “out of sight out of mind,” is tried and true. By automatically debiting your 401(k) each month, you’ll learn to budget your available funds without your subtracted savings.

9. Eliminate Balances. Credit Card and other debt balances pull your credit score down. Boost your numbers up and up by paring down your debt!

10. Grow Your Goals. Setting goals help you and your family determine what it is that you’re working towards. By increasing your goals as you begin to reach more and more of your commitments you can continue building your financial knowledge and capabilities.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

 

What to do if You’ve Shopped at a Breached Store

Identity Theft

If you shop at national companies such as Home Depot, Target, or Ebay, you may have been the victim of a data breach in the past several years. With an increasing risk of customer data infiltration, many consumers have had to navigate the tricky route to re-establishing their finances. At Peoples Bank & Trust, we want show you the simple steps to help get you back on track once your personal information has been in jeopardy.

  1. Check the affected account.

Asses the damages, if any, to your credit or debit card. If any transactions aren’t in line with your spending, alert your bank or financial institution immediately to counteract any false usage. The sooner you communicate any false usage, the easier it is to get it removed.

 

  1. Cancel the card and request a replacement.

 Once a financial institution is made aware of a store breach they will typically alert any affected customers. However, to err on the side of safety, always call your bank or credit lender to ensure that you will be receiving a new card.

  1. Pull your credit report.

Once you have put out any fires on your affected credit or debit card, you can pull your full credit report to determine if any additional financial information was affected. Your credit report will reveal how many inquiries have been made, in addition to any outstanding payments that may be affecting your score. If something is not accurate with your report, contact each three credit bureau’s to report the fraud. Then file a police report, and call the designated creditors to alert them as well.

  1. Update recurring payments with new information.

Between utility bills, cell phone plans, and online subscriptions, there are plenty of accounts that will need your new card information. Once you receive your new credit or debit card be sure to update any recurring expenses.

accounts that will need your new card information. Once you receive your new credit or debit card be sure to update any recurring expenses.

  1. Continually monitor your accounts.

Keep tabs on your affected and non-affected accounts to be certain nothing else was tampered with during the breach. If you see something out of place, alert your bank or financial institution immediately.

No matter your financial state, Peoples Bank & Trust is here to help you succeed. If you want to learn how you can personally protect your personal finances, check out our blog!

Generational Financial Habits: Baby Boomers, Gen X, Millennials, and Gen Z.

Spending Money

When it comes to your spending habits, your age may influence your decisions more than you think! Depending on your generation, there may be some key patterns that differentiate you from your older and younger counterparts. Discover your key financial traits with this helpful guide courtesy of Peoples Trust & Bank.

 

Baby Boomers

Typically classified as the savers of the modern age, many of those age 51-70 are known for tucking away funds as quickly as they can accumulate them. Many baby boomers were affected by both the Kennedy and Martin Luther King Jr. assassinations and hold strong sense of mistrust of the system. There are many in this generation who choose savings options outside of financial institutions. This large generation of approximately 70 million people, is currently in the process leaving the workforce and entering retirement. The most important item on their financial agenda is to save and secure funds for the decades of life they will enjoy outside nine to five.

 

Generation X

Often overshadowed by the large baby boomers ahead of them, generation X’ers tend to be strong willed and decisive, fighting for their share of the financial pie. Having been one of the first generations to experience divorce as a normal occurrence, many of those adults age 40-50 continue to look out for their individual financial wellbeing through strictly defensive tactics. Boasting on the highest education rates, this group makes strategic savings plans, constantly preparing for the ball to drop. They are best known for their cautious optimism and lofty financial goals.

 

Millennials

The current generation of twenty and thirtysomethings, were shaped by a highly digital world. Growing up in the age of computers and terrorism, these young adults believe that the typical American dream, may be slightly skewed. In many areas, home and car ownership is on the decline as more and more millennials strive to gain experiences over material possessions. Influenced by their parental counterparts, it is common to see this generation shying away from long term debt after seeing their parents succumb to missed payments and foreclosures during the 2008 economic crash. Couple that cautious initiative with crippling student loans and added inflation, where now today many college graduates are working multiple jobs to simply make ends meet.

 

Generation Z

The up-and-coming generation of the century, this group is the first age demographic to grow up completely immersed in digital technology. The days of cell phones and computers encompassed their childhood, and many of those age 0-20 have never known life without the digital realm. Still relatively young, these Gen Z’s take diversification to the next level, not trusting too much in any one entity. With advancing diagnostic systems this generation takes time and consideration into account before making any major life decision. As this generation ages, more experiences and choices will continue to shape their financial style.

 

No matter what generation you are a part of, there are a variety of ways you can improve your financial habits. Speak with one of our experienced personal bankers today, and we’ll show you how to get started!

Different Ways to Save

Savings

After the bills are paid, the groceries purchased, and the kids taken care of, it’s time to decide what to do with your monthly surplus. One of the most financially responsible choices you can make is to save those additional dollars! By tucking away even a small amount of money each month you can prepare your finances to withstand any unforeseen expenses. Check out these important savings options available at Peoples Bank & Trust, and get started towards your next financial goal.

IRA: These Individual Retirement Accounts are typically divided into two categories, the Roth IRA and the Traditional IRA. It’s best to speak with your financial advisor or tax representative to determine which option best suits your personal finances. These accounts allow you to contribute funds pre or post taxes and after years of accumulation and compounding enable you to withdraw them upon your retirement.

CD: When you have funds that you intentionally don’t want to touch for a set period of time, a CD or Certificate of Deposit, can be a great resource! By depositing your money within a CD you are guaranteed interest on your account, often higher than the standard savings account. You must leave these funds untouched for the agreed period, typically a minimum of six months, ranging upwards to nearly five years.

Savings Account: Your typical savings account can help you manage personal funds without the hassle of navigating around any red tape. With constant access to withdraw and deposit post-tax funds you can set up multiple savings accounts for various needs. These accounts can help you save for emergencies, vacation, retirement, or other important purchases while gaining a small amount of interest.

For all of your savings needs, Peoples Bank & Trust is here to help! Our new account representatives will help you find the ideal savings option for you and your family. Get started and stop by today!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

How to Balance Your Check Book

Personal Finances

Staying on top of your check book is more important than you think! With daily transactions, online shopping, and cash donations, it’s hard to have a current and accurate history of your current personal finances. Peoples Bank & Trust is here to help with our specialized guide to balancing your checkbook. We’ll show you not only how to get the most accurate numbers, but how it protects your finances too!

  1. Once you have your transaction log from your check book or other personal notebook, find your current checking account balance online or from an ATM.
  2. Write down all recent incoming and outgoing transactions. It helps to reference receipts to make sure you don’t miss anything. Be sure to keep ATM receipts as well to have record of when and how much you withdraw or deposit.
  3. When recording your transactions, label each with the vendor which originated it, in addition to a brief indicator of what the expense or income was for.
  4. Balance the incoming funds with the outgoing funds to determine your current balance. Be sure to include any interest the bank has deposited to your account or fees they have charged.
  5. Double check your math and make sure your personal record keeping is accurate. Adjust any errors that need to be fixed, and compare this log with your online transaction history. Notify the bank immediately if you see a charge you did not make.
  6. Review your checks to confirm if they have been cashed or are still outstanding. Mark all check transactions once they have been cashed to keep an accurate and timely record.
  7. Once your checkbook is officially balanced make two double lines to indicate when you last went through your transactions.

Checking your balance on a regular basis not only helps you better manage your personal finances, but also enables you to catch any fraudulent charges before it’s too late! Let our experienced new account representatives at Peoples Bank & Trust get you started with the ideal checking account for your needs!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

Building Your Financial Reputation

Personal Finances

Your financial reputation starts the day you are born with a social security number. Over years of saving and spending you build that reputation to showcase your fiscal responsibility to lenders. This is presented to potential creditors in a numerical form which showcases your financial risk and repayment capabilities. This number is a fluid piece of your personal information, adjusting with your incoming and outgoing financial endeavors.

There are five pinnacle pieces to your financial reputation, and at Peoples Bank & Trust we want to help you make the most of them!

35% – Payment History: This is the primary part of your financial reputation, which lays out your repayment patterns on various past and current debts. This can be anything from paying off your credit card each month, to keeping current on your mortgage payments. Companies that score your risk and liability potential take this into account first when determining your lending potential.

30% – Amounts Owed: This portion of your reputation is comprised of how much you owe on things such as your mortgage, credit cards, car payments, etc. There are certain areas of debt that are considered good, such as up kept loan payments, and other bad debt such as high credit card balances. By decreasing your bad debt and continuing to pay down your good debt, you can improve this important factor.

15% – Length of Credit History: This factor is simply how long you have been an established creditor. The longer your credit history, the more long-term habits can be observed. While this benefits those who have a well-rounded history, it makes it impossible for a new users to have a perfect financial reputation.

10% – Credit Diversity: This smaller portion of your financial reputation indicates the capacity you have for handling multiple types of repayment. If you pay down credit cards while staying current on your car loan installments and mortgage this shows that you are capable of managing more than one type of debt.

10% – New Credit: This final portion showcases your continuous use of credit through your personal finances. Occasionally having a new source of debt can be a positive thing to show that you haven’t paused your use of credit. However, applying to multiple credit cards within a short time period can raise a flag, potentially indicating financial trouble.

If you’re looking to improve your financial reputation there are three important things you can do!

  1. The best way to get started is to check your FICO score, and check it often. The best offense is a good defense, and knowing what obstacles are in front of you will help you prepare your best plan of action.
  2. Once you have this information in front of you, you can see where you still owe various debts. To help remind yourself when different bills are due, set alarms on your calendar to notify payment dates to assist you in staying current!
  3. The last and most effective thing you can do is to reduce the amount you owe. If you have a large amount of outstanding debt on various credit cards, paying them down can significantly affect how potential creditors see your lending potential.

If you have questions on how to get started, or what your next steps might be, drop us a line! We’re excited to help you get on the path to a successful financial reputation.

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

How to Create your Emergency Fund and When to Use It

savings

Creating a structured savings plan is one thing that can set apart the financial dreamers from the financial doers! By setting strict guidelines to your goal, and ensuring the correct follow through with a backed up savings plan, you can be certain of your success in accomplishing your future achievement! One of the biggest obstacles in these plans is the unforeseen, and there is a way to manage even that. Using a well-rounded emergency fund can ensure that you don’t dip into saved funds for unexpected costs such as auto repairs, or medical emergencies. Want to get started setting up your emergency fund today? Follow these simple steps and you’ll be on your way to financial success!

  1. Open a dedicated savings account.
  2. Deposit Funds each month without withdrawing anything.
  3. Start by saving $1000.

– Next save 3 months’ worth of income and expenses.

– Finally maintain 6 months’ worth of income and expenses.

The reason you have this fund is simple, to prepare for the unpreparable. Whether it’s an unanticipated job loss, a costly home repair, or other unplanned expenses, your emergency fund can help you stay afloat when the waters get rough.

The main objective of this account is to have it work for you and your needs! By specifically determining what you define as an emergency (job loss, vet bills, auto repairs) and what doesn’t (last minute birthday gift, broken TV, new clothes) you can generate a structured list to know when you feel safe using those funds, and when perhaps its best to leave them untouched. The idea of the emergency fund is to have it when you need it. By gaining access easily via checkbook or debit card, you can use the account more quickly when the unexpected strikes.

By generating your own emergency fund you can continue to save for milestones and pay bills, without worrying about the what if’s that lie along the road to the future. Get started with your emergency account today at Peoples Bank & Trust, we’ll help you get to your next savings goal!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

 

Budgeting 101: Personal Finances for Young Adults

personal finances

You’ve taken all the tests, memorized all the vocabulary, and made your way across the stage. But what comes next? After graduation there are many questions that come with your diploma. Things like, how am I going to pay for rent? Or, how much should I budget each month for food? Not everything in life is as simple as A, B, C, or D. That’s why Peoples Bank & Trust is excited to help young adults with the complex questions of budgeting and personal finance. Find the answers to your financial curiosities with our handy Budgeting 101 study guide!

  1. Identify money coming in. Look past the salary or hourly rate on your contract and focus on take-home pay. How much will you bring in after taxes? When do you see this pay-off – weekly, biweekly, or monthly? Factor in other sources of cash flow too, like earned interest or paychecks from a part-time job. Understanding what you own dictates how you spend.
  2. Establish money going out. Divide monthly expenses into three major categories: fixed costs, savings, and discretionary. Rent, utilities, food, gas, and debt comprise the fixed costs and determine funds for the remaining categories. Savings should include an emergency fund as well as allocation for retirement or down payments on vehicles or homes. Discretionary – the Fun Fund – is the most flexible and can ebb and flow with changes in income and expenses.
  3. Balance steps 1 & 2. The purpose of budgeting is to provide control over your financials. That means ensuring that money going out doesn’t exceed money coming in to keep your head above the debt line. If you find your listed expenses exceed your income, pick one of two options: seek ways to boost income or scale back expenses.
  4. Pick a management system. Armed with a financial plan, equip yourself with tools to help you stick to it. Traditional but trusted, the envelope method helps you keep funds in physically separated expense categories. Once money runs out from that month’s envelope, it’s gone unless funds can shift from other envelopes. A number of free or low-priced mobile apps can give you even tighter control of your budgeting, providing real-time updates of spending and handy visuals of your progress.
  5. Track progress. A long-term financial plan is simply a series of short-term goals. Monthly check-ups help you gauge success from the month, making sure you stayed on target. You can adjust funds as income or expenses fluctuate and spot ways to economize your budget.

Want to take your budgeting up a notch? Meet with one of our new account representative to determine which type of bank account can help you optimize your budgeting and saving plans.

 

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC