Category: Savings

4 Steps to Buying a Home That Won’t Bust Your Budget

It’s that time of year when you’re likely to see ‘for sale’ signs on every block. Maybe you already have your eye on one and go out of your way to drive past it on your way home from work. Before you leap into purchasing a home, be sure to take these four steps before signing the bottom line.

1. Understand Your Monthly Expenses

Alarmingly, many Americans don’t have a true understanding about what money they have coming out each month. This can be a dangerous territory to get into, as it’s likely that there are a significant portion of the expenses that may be unnecessary. Take the time to have an understanding of what each of your monthly expenses are and if any can be cut or lessened. Maybe there’s a subscription you’ve forgotten about or haven’t realized how much money you are putting towards name-brand groceries each month.

2. Know What You Can Afford

Once you have your expenses broken down, you will have more of an idea of what you have coming out. Next, you should understand what you have coming in. Account for each person’s income contribution for the home. Subtract your monthly expenses from the after-tax amount and you will have an idea of what you can afford. You may want to consider meeting with a mortgage specialist to have a robust account of what homes could be in your price range.

3. Understand Home Buying Expenses

Being a homeowner comes with many responsibilities that sometimes can’t be accounted for. From broken pipes or a leak to a busted HVAC, the costs can be overwhelming at a moment’s notice. It’s important to understand the expenses that may come out of home ownership. Even if there isn’t something breaking, you have the responsibility of additional upkeep.

4. Set a Goal

Once you have a complete understanding of where you are and where you might be, you can set a goal. If the house you want is out of your price range, make it a goal to be able to afford a home like this. Take a look at what expenses can be cut in addition to how you can make additional income to get you to your goal within a reasonable time frame.

Don’t strap yourself into a payment that won’t fit your lifestyle. Allow us to help you purchase your dream home with a mortgage from Peoples Bank & Trust!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

Spring Into Cash With These Top Savings Tips

The grass is always greener on the other side of winter, but is your bank account? Make the most out of your spring by boosting your savings. All it takes is an idea and some creativity to make some green this spring!

Skip the Gym

Of course your health should take top priority in all seasons. However, it’s great to switch up your routine, not only for your health but potentially for your wallet! Now that the weather is warming up, you can look for some alternatives for working out. A gym membership has its perks, but you can find activities outside to get your heart rate up and keep your body strong – for free! These could be running outside, biking, hiking or even outdoor yoga!

Switch to Generic

More often than not, the generic version of most products are indistinguishable from the brand name. This goes for food, hygiene products and even medicine. You can cut your expenses by ⅓ by switching to generic everything when you have the choice!

Buy Used

Spring is typically the season when you see many garage or yard sales. People are anxious to clean out their homes for the spring while making a little extra cash! This is definitely something you can jump on board with, but if you don’t have the time, consider doing a little secondhand shopping for items you already need. It won’t save you any money to go secondhand shopping to only end up with many items you don’t truly need. However, if you are in the market for something like new clothing, shop around in your neighborhood before heading to the mall.

Make Savings Automatic

When we take the decision out of whether we will save and make it an automatic, I will save, it’s more likely to come to fruition. Set up an automatic savings account so that a percentage of each deposit will automatically go into your savings account. This is a great way you can see your savings grow and grow this spring!

Keep your cash safe by opening a savings account with us after utilizing these top savings tips!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Five Secret Ways to Raise Your Credit Score

Raising your credit score can seem like a daunting task, or you may not really care what your score is. However, a credit score affects more than you may realize, which is why we find it important to share our knowledge. Develop consistently strong credit habits with these secret keys of advice from Peoples Bank & Trust.

1. Show you can handle all types of debt.
Debt comes in all different forms, from car loans and mortgages to credit card bills. Instead of paying for an item in full, consider putting that purchase on your credit card and paying in increments. When it’s time to get that new car you’ve been eyeing, add those payments to your list of different types of debt. Each time you create a new loan and pay off your purchases, you’ll see a bump in your score. Be wary of getting too big of a loan or making multiple purchases on your card – be realistic on what payments you can make each month to avoid accumulating too much debt.

2. Make payments on time.
If you decide to open a new account to show your good money habits, be sure to create a schedule for yourself. Don’t forget a payment, even if it just happens here and there. Every time you don’t pay on time, you’re instantly hurting your credit score.

3. Utilize your credit cards to the fullest.
Keep in mind that some of your credit is based on how long you’ve had a credit card. If you finally pay off that debt on your oldest card and decide to close it so you don’t spend anymore, this could actually hurt your credit. Once you pay off your debt, keep your card activated – this will allow your credit to continue to grow! We offer credit and debit cards that can help you work on bettering your credit.

4. Pay off the lowest-balance card first.
If you’re dealing with a lot of debt and feel overwhelmed, come up with a system to help lessen the stress. Find out what card you owe the least on and work to pay off that first, while making your minimum payments on all other cards. While snowballing your money and paying off the highest amount of debt first has been recommended, it may be wise to flip that idea around. You’ll need the boost of energy you get from paying the lowest amount of debt off to keep on track. Knocking your debt out this way won’t hurt you, as long as you continue making your minimum payments.

5. Ask for a credit limit increase.
If you regularly make payments on your card by following rule number two, feel free to ask the credit card company for a credit limit increase. By getting an increased limit and not spending more than you usually do on your card each month, this translates into a better credit score.

We hope you put these simple tips to good use. As your credit score continues to climb over time, you’ll be able to apply for larger loans. Working on strengthening your credit score will lead to other good financial habits. If you’re looking for a credit card, search no more – we have what you’re looking for!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

5 Best-Kept Secrets for Buying a Home

Buying a home may be a common practice for the average American, but it is not a simple one. This is especially true if you are new to the game and have yet to learn the ins and outs of the process. No need to worry, we have plenty of experience from our years in the home buying business and are willing to share the best-kept secrets on the market!

1. Start Today

If buying a new home seems far into your future, that means you are in the perfect position to prepare. Often, many have dreams of a new home but don’t start planning practically for how to get there. Maybe you haven’t bought that new home yet because you’re not financially ready for the investment. However, that doesn’t mean you don’t have a way to prepare. With a home purchase, you will have closing costs and a down payment. Start saving for this now! Imagine how much quicker you can get not only to your goal of home ownership, but having the ability to purchase the home you want without the down payment and closing costs being an inhibition. Additionally, the more you’re able to put down up front, the less your monthly payment will be!

2. Don’t Go Big

The saying, “go big or go home,” doesn’t apply to the purchase of your home. The big, shiny house on the block may catch your eye, but may not be the house for you. Often, people see a big home and instinctively want it to be their own. Yet, this may not always be the best choice. Large homes can be difficult to resell, as the market for them is different. Not to mention, you’ll have additional utility and upkeep costs that come with increased square footage. You have a greater chance of profiting off of a smaller home when it comes time to sell than a large one.

3. Go Shopping

For the open houses that you see as you drive around town – go to them! Become familiar with a variety of homes and their details. What are they pricing homes at in the neighborhood? What is the structure like? Ask as many questions as you can, and expose yourself to a home you may have not considered before. You may be surprised by what you like!

4. The Secret Bid

Know your limits and stick to them. There are many that buy more house than they can truly afford. This is why it’s important to not fall in love with the home until everything is signed. Meet with an inspector and make a fair offer, but realize that this is likely not going to be accepted in round one. At the same time, it’s important to not automatically shoot too low, as it may offend the seller which can set a rigid precedent for any future bids. Do your research on the property and the neighborhood before deciding on the first bid.

5. Negotiate, Negotiate, Negotiate

This is where the communication gets tricky and scares the newbies. Haggling might not be a common practice in our culture, but this is the time to be bold. Don’t hesitate on going back and forth on an offer. This is a normal process and it makes you a smart buyer.

When looking to buy a home, Peoples Bank & Trust offers options suitable for your financial needs. Contact us today for more info.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

4 Ways to Spring Clean Your Finances

As you begin to write your to-do list of cleaning your home this spring, it’s time to add another section to your list: finances. You wouldn’t believe how helpful it is to do a deep cleaning of your finances every spring. It can contribute to increased feelings of determination and confidence in all areas of your life. Here are the 4 best cleaning moves to add to your list!

Review Your Debt

Unfortunately, too many people try to turn away from realizing their total amount of debt. If you have gotten into a bad habit of spending more money than you can you can truly afford, it’s time to come to terms with the reality of what you owe. Going through the numbers of credit card and student loan debt can be a shock. However, it’s important to know your numbers so that you know what you have to work with. You can’t conquer your debt if you never face it!

Dust Off Your Budget

It’s normal to drift away from your budget. This may mean your budget just wasn’t working for you. Review what your original budget contained and think about what worked and how you can improve upon it now. Can you do better with your savings? A great trick that can help is to automate your savings. Decide on a percentage and have that taken portion automatically transferred to your savings account.

Go Green

This one can hit two birds with one stone. Are you still saving your paper bank statements? Clean out your home by shredding these important documents and set up an online banking account. Another option would be to simply make copies of your papers and upload them to a cloud drive. You should save your tax documents for no more than seven years. Most everything you’ve received by paper you can get with an online banking account. This will keep your information secure and your house clean.

Spot Check Your Credit

Your credit score can be checked without penalty one time from each of the three credit reporting agencies for free. This is important to not only know what you owe but to go through the report with a fine-tooth comb. Mistakes can happen on your credit report and why let that hold you back financially when all it would take is a quick check?

With these simple cleaning tips, you can go into this spring feeling refreshed and responsible. Spring clean your finances by seeing what products we can offer to help!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

6 Money Themed Activities for Preschoolers

Is four years old too early to be learning money management? We don’t believe so! There are many American adults who still struggle with understanding their own finances and keeping a budget. By starting their education early on, you will build their confidence and familiarity with money in order to build a stable foundation for the future. The question is, how do you make it engaging for preschoolers? Here are our 6 favorite money themed activities for your youngsters!

1. Learning About Coins: Time to Sort

To begin teaching little ones about money management, it’s important for them to learn the money itself! A great place to start is to build their familiarity with coins. Grab a muffin tin and ten nickels, dimes, quarters and pennies. Challenge your preschooler to sort each of the coins and teach them the names. You could teach them how to make a pattern in each tin. For an additional challenge, you can label each muffin space with a value where the student can match to each coin’s value. Show them that ten pennies have the same value as a dime and so on.

2. Playing Store

Use the materials you already have around such as play food or simple toys. Label each item with a price tag of five, ten, fifteen or twenty-five cents. Play pretend by giving each student a certain amount of change and teaching them that items always have a value that is exchanged for money. This can help them with counting and remembering the worth of coins.

3. Clip Coupons

Sure, you might take the more tech-savvy approach when it comes to coupons, but the old-fashioned practice of clipping coupons is a fun hands-on way to teach youngsters the worth of items. Once you have the coupons of interest, take them to the store with you and make a game out of finding the items. This is a helpful way to teach them about the importance of saving money.

4. DIY Piggy Bank

Every child should have a piggy bank! Whether it’s a simply decorated jar or a paper mache pig, it is a smart way to teach them about saving early!

5. The Allowance Game

If you want to teach children that in order to get money, they need to work for it, there is no better time to start an allowance. For a preschooler, you can have them do simple tasks around the house. They can “purchase” items from your own DIY store in the home. You can purchase candy or small toys that the child can exchange their earnings for. Let them know the value of each item and clearly explain what they would need to do in order to earn this.

6. The Dollar Dance

To teach preschoolers about bills, grab some ones, fives, tens and twenties. Throw them in a hat and draw one at random. Whatever value you draw, have the child do something X many times. For example, if you drew a $5 bill, you could have them spin in a circle five times. This will help them to become familiar with the value of each bill and where it is located.

These are all good ways to start teaching today’s youth not only about money but how to manage it well. Starting young will give them the confidence they need to be successful with their purchase and investment decisions in the future. Open a savings account for your little one today to teach them more about money!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

5 To-Dos Before Buying a Home

Are you about to begin the hunt for your future home? We understand that the home buying process can become overwhelming, which is why we’d like to offer you a little insight. Start your home buying journey off right by completing this checklist!

Strengthen your credit.

A 620 FICO score means you can get a mortgage, but that doesn’t mean you’ll want to. According to recent data from myFICO.com, someone with the minimum credit score can expect to pay over $82,000 more in interest over the life of a $250,000, 30-year mortgage than a person with a 760-plus score. Working on making your credit higher, such as paying bills on time, will help lower your interest and save you some big bucks.

Get preapproved for a mortgage.

This is a very important step, and sadly, it’s missed frequently. Getting preapproved means you’ll have some advantage over other potential buyers. This letter shows Realtors and sellers that you’re serious about buying and provides evidence that you have the funds to pay for the home. Set up an appointment with us to get preapproved and utilize our handy-dandy mortgage calculators!

Figure out how much house you can afford.

You may get preapproved for a certain amount and have a good portion of money put away in savings, so why not spend it all on a home? Even though you have the funds, be sure to think ahead to future bills and emergency expenses that will have to be paid. You’ll also need to plan on spending in the range of 1-3% of the home’s price for closing costs. It’s important to downsize your budget a bit in order to make future costs and purchases feasible.

Get a real estate agent.

Hiring an agent does cost money, but they will help you through every step of the way. Real estate agents will make sure all of your closing documents are in order and give you recommendations on trusted inspectors, which will take a lot of stress off of you. They supply you with the knowledge of the buying process, so you don’t miss any steps.

Schedule an inspection.

Once you find your home sweet home, it’s important to cover your bases. Schedule an inspection to be sure a new HVAC system or roof isn’t in the near future. You’re going to be spending a large sum of cash, so spending a little more to have everything checked out is a good plan of action.

Congratulations! You’re now on the right track to becoming a homeowner. Peoples Bank & Trust offers mortgage options that fit your lifestyle. Stop in or give us a call to discuss your options today.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

Saving for Retirement: How Much Is Enough?

Over the years, we put away money for important events such as a baby, college tuition, a new car or house. Those tangible items make it worth the amount we set aside. However, retirement is a harder concept to grasp, as it is far off into the future. For this reason, we wanted to help shed some light on how much is actually enough when saving for retirement.

How much do I save at my age?
Trying to figure out how much to save at any age can be tough, especially when saving for other items. A good rule of thumb for your 20s is to save 10% of your pre-tax income. When you come to your 30s and begin saving, you’ll need to save 15-20%. If you start saving in your 40s, 30% will be the number to save. These numbers help show how saving young will help you in the long run. The longer you wait to save, the more you’ll have to put away which creates a tighter budget.

Why do I have to save that much?
Knowing how much you’ll need for retirement is tricky. There is no one answer to this question. Some people may need to save more if they live a more luxurious lifestyle. For those who are frugal, they may not need to save as much. Start by figuring out how many years you may be retired for. The average is anywhere from 20 to 30 years. Take your annual income and multiply it by 25. For example, take your $40,000 annual income, multiply it by 25 and you’ll get $1,000,000. This is what your retirement profile should look like to live a very comfortable life. However, not all people will reach this goal, but it’s important to know how much you can expect to have saved when retirement comes.

Where are you at financially?
It’s important to look at where you are at right now. What age are you and how much have you saved? Will you be getting a different job with a higher salary or will you plan on retiring early? Looking at your life and figuring out what your future holds will help you learn the amount you should be putting towards retirement. If you planned on retiring early, for example, you’ll have to save a lot more ahead of time.

Do you plan to invest?
Investing is a great way to make extra money on the side. Work with a trusted company or person, find what accounts you’d like to invest in and what way you’ll choose to invest. When you make the right investments, you’ll be able to save less for retirement.

Thinking this far into the future can be intimidating. While having all types of things to save for and bills due right now, it’s easy to forget about saving for retirement. Push yourself to start putting away the correct amount you need, so you’re not unprepared when the time for retirement comes near. We offer some amazing savings accounts and other options to grow your money. Contact us today to learn more about how our products can help you!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

6 Steps To Improve Your Finances

Staying on top of your finances can prove challenging, especially when bills, debt, daily expenses and saving come into play. Finding your way to financial freedom takes time which is why Peoples Bank & Trust has compiled a few steps you can take to improve your finances.

Coupon Like Crazy

Some people always pay full price for items. Nowadays, there should be no reason to empty your wallet to that extreme. You can go old school and buy extra newspapers when the coupons are good. We also recommend that you utilize the clearance rack and collect rewards cards. Technology also gives you the capability to search coupon sites and download coupon apps, which gives you a plethora of options to save!

Increase Your 401(k)

Even if it is just by 1%, increasing the amount of money you are putting into your 401(k) can change the end results dramatically. It’s always important to think about your future, as you’ll need those funds to support you and your family. Employers may also match your 401(k) to a certain amount, so be sure to know what your company offers and use that to its fullest.

Add To Your Emergency Fund

Now that you are a little more established, a few hundred to a thousand dollars won’t cut it anymore. Your house may need reroofing, you might have to buy a new car or your deductible won’t cover a certain emergency or procedure. These unexpected events will cost a pretty penny, so upping your emergency fund will protect you.

Make An Extra Payment Towards A Debt

If you were able to cut expenses this month, put that saved money towards a debt. Pay off a little extra of your car payment or student loans. The Snowball Method teaches you to start by paying off the smallest debts first while paying the minimum on larger debts. Then keep snowballing to the biggest one as time goes on. Always utilize this tip when extra money comes your way, as becoming debt free is the ultimate goal!

Create A Will

According to AARP, “78 percent of millennials (ages 18-36) and 64 percent of Generation Xers (ages 37-52) do not have a will.” This is a crucial step in your financial life to not have planned out. No matter what age, you have finances, dependents and property that will be left unattended if something were to happen to you. Be sure to get a will put into place, so your assets can be handled correctly.

Get on track with your finances and tame your budget with these simple tips! If you need any assistance with a savings account or future planning, give us a call or stop in. Aiding you through your financial journey is what we’re here for.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Money Management for College Students

If you’re fortunate, your parents may have taught you how to save your allowance or a certain percentage of each paycheck. However, if those skills weren’t taught to you or you just plain didn’t listen, we are here to help you at the beginning of your financial journey as an adult! Stay tuned for some simple tips you can start doing now to strengthen your current and future financial habits.

1. Create a Budget

Most adults who have been managing their money for years have yet to figure out how to stick to a budget. You now have the opportunity to stay ahead of the curve by building the right habits now. Most people are under the false assumption that they have to have a lot of money in order to budget. This is not true, as no matter how much money you do or don’t have, everyone should have a budget. This will help you to control your spending and saving.

You first need to decide what amount you want to put into savings every month. Next, determine how much money you need to spend on rent, food and other bills. You can make as many categories as you like. You especially need to have a category for fun. Use it as you please, but when it is gone, it’s gone. You are making a promise to yourself that your financial security is more important than a splurge.

2. Buy Used, Not New

Unfortunately, the cost of new textbooks is astronomical. As a college student, it is most often going to be wiser to buy used than new. With a used textbook, you will pay significantly less and may even be lucky to see the former owner’s notes. Think about what other purchases you need to make and if it would be better to buy them used. The answer will often be yes.

3. Be Smart With Your Credit

It is a great idea to start building up your credit history. However, if you aren’t paying off what is due at the end of every month, a credit card may not be the right choice for you. Deep credit card debt burdens many because they made purchases that they could simply not afford. Be sure to use the card for needed items and not sudden splurges.

4. Take Advantage of Free Entertainment

One great part of being a college student is all of the free activities that your campus has to offer! There’s no reason you need to spend money going to a big movie theater when most college campuses have their own movie showings free for students every weekend. Check out your campus Student Activities Board to see what free fun you can get in on!

5. Use Cash
This is a great rule for anyone, not only college students. However, we believe it is a helpful habit to start now. If you have a problem with impulse purchases, we recommend using the “fun money” portion of your budget as cash only.

If you go out to have fun with friends for the night, you know the exact amount of money you have to spend. No more, no less. For some reason, it is much harder to spend cash than it is to make a purchase on a card. This will help you to control your spending when you’re having fun.

We have plenty of savings options available for college students looking to grow their funds! Take a look to see what option suits your needs best.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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