Category: Savings

FAQs about IRAs

ira

An IRA is an individual retirement account that is used as a tool for people to earn and earmark funds for retirement savings. Retirement may seem far away, but the earlier you start the save, the better off you’ll be! These accounts can hold more money than any other type of retirement account. You have flexibility when choosing investments and minimizing taxes, which means an IRA can play a huge role in how prepared you are for retirement. With that said, many people don’t fully understand how IRAs work; they can be confusing. As a result, there are many questions that arise when talking about IRAs.

Here are a few:

  1. What does an IRA earn? – In simple terms an IRA is just a trust that is established with certain tax rules. More specifically, it’s a security blanket for your money. At Peoples Bank & Trust, CD accounts can be IRAs.
  2. Who can open an IRA? – Anyone under the age of 70 who earns a taxable income can contribute to a traditional IRA. Roth IRAs, however, have additional income restrictions.
  3. How do I open an IRA? – You can choose where to open an IRA, if you don’t already have an employer-sponsored retirement plan. Often you can go to banks, credit unions, brokerage firms and mutual fund companies. It never hurts to do more research and ask questions!
  4. Am I able to contribute to someone else’s IRA? – Yes, but only if it is your spouse and if you file a joint tax return.

IRAs can be a tricky subject, but hopefully with the answers to these frequently asked questions we were able to help you with some beginner’s knowledge. If you have more questions or are wanting to set up an IRA, Peoples Bank & Trust would be happy to help. Contacts us today!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Effective Old School Savings Tips

savings

It’s not surprising to hear that your grandparents and parents were frugal when it comes to money. However, that leads us to ask, “How did they get so good at saving?” We’ve gone and found some of the best old school savings methods that are still guaranteed to help you with your funds. Enjoy!

Patience Is Your Pal

Nowadays, it seems like everyone spends money right away on things they may not need. Taking a few days to think about what you want to buy is a great way to build your patience and cut down on impulse buying. Impulse buying can add up to $5,400 a year by just making a couple unplanned purchases each week. They may seem small, but if you don’t stick to your list, those purchases can add up quickly!

Limit Credit Cards

Yes, 25% off on your purchase makes for a great shopping day, but that store credit card only adds to your amount of bills to pay in the future. Work on limiting your credit cards and focusing on paying off your debt and bills for the ones you have left. This will help you begin to be the savvy saver you know you are. A couple credit cards are good to have, as they help you with needed purchases and building credit – just be sure to not go overboard!

Get a Money Saving Hobby

In the good ol’ days, there weren’t cell phones and video games to entertain us. Your grandparents had to find other ways to entertain themselves. These involved hobbies to help pass time. A good hobby to get into is one where it doesn’t cost you money, or will save you money down the road. Try canning food, as this will give you food for the winter when the price of fruit goes up or certain items are no longer on the shelves. You can also learn to sew – that way, your clothes are still functional and you don’t have to buy new ones every time there is a tear.

Cook At Home

Dining out takes a hefty amount from your account. Cooking from scratch is a great way to prepare multiple meals for a family while on a budget. Make a casserole or utilize that crock pot. Not only will dinner be ready, but you’ll have lots of leftovers to bring to work for lunch the next day or two. According to CNBC’s Jonathan Blumberg, if you go out to eat every workday and spend, on average, $10 per meal, it comes out to $2,500 a year. This is why utilizing your cooking skills can help you go a long way financially.

These old ways of saving are a few of the best to stay on track financially. If you’re looking to find better ways to save and take care of your funds, we are happy to help! Give us a call or stop in today, so we can help you succeed financially.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Creative Ways to Save While on a Budget

budget

We’ve all heard the tips about not eating out, cutting cable and canceling that gym membership you never use. However, that leaves us wondering what other crafty ways can we think of to save? Peoples Bank & Trust offers a few creative ideas on how you can keep money in your wallet while on a budget.

Switch Up Beauty Brands

Small expenses can add up in a hurry. Luckily, there are simple fixes for that problem. Try switching from your beloved expensive shampoo to a more generic brand. Instead of buying that department store dollar eye shadow pallet, try out a drugstore option. By moving to more cost-friendly options with your beauty products, your bank account will thank you – and, you’ll still get the same end result after using your generic products.

Thrift It

Many people only think of online shopping and name brand stores when looking for a new outfit. However, there are plenty of options out there for your next stylish endeavor that won’t cost you an arm and a leg. Going to thrift stores is a great way to find pieces that aren’t going to be a part of everyone else’s wardrobe and you’ll save a large amount of money!

Host a Potluck

Being on a budget shouldn’t mean you don’t get to socialize anymore; in fact, you may have friends who are trying to save, too. Help yourselves out by hosting a potluck party. By having everyone come over to one of your homes and bring their own dish, you won’t have to worry about spending money on an entire spread.

Skip Bottled Water

Invest in a water bottle and fill up! Spending money at vending machines, gas stations and grocery stores on something you’re already paying for at home is not the best financial move. Look at other items that may be in the same category and cut those expenses out of your life too such as buying coffee every morning instead of making your own.

Make a Meal Plan

Mapping out what your meal will be for a week or two can take a little time, but it will be well worth it financially. Going into the store with a set plan of what you will buy will help you avoid adding extra items to your cart while walking through the aisles. This will decrease the amount of unplanned expenses you have each month! You will also get the chance when meal planning to find healthier options for your days and make lunches, not just supper. Being able to pack lunch each day for you and your family gives you the chance to cut down on what you spend every day for lunch.

We LOVE these ideas and hope you do too! Try out a few of these unique ways to save and your bank account will thank you. Stop on in or feel free to give us a call if you’re looking for more ways to save!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Save for Retirement

retirement

Bankrate estimates that half of the American population won’t be able to maintain their standard of living once they stop working. While your current bills and loans seem like a top priority, we also don’t want you to forget about what the future holds. It’s important to keep paying off your debt, however, Peoples Bank & Trust wants to offer you a few helpful tips on how to save for retirement.

Direct Deposit

Having money directly put into an IRA or savings account is a smart way to save. This will help you get used to living at a certain income level. When the money from your paycheck is taken out right away, you never have the option to spend it – this means you were never used to having an extra amount of cash. As time goes on and you begin to pay off your debts, you have the option to enlarge the amount that you directly deposit into your retirement fund!

CD & Savings

Putting money into different CDs or a special savings account can help increase your quality of life when retirement comes. Having a place with extra funds will create a greater cushion if expenses rise. Having an accessible place where you can get liquid cash is always a safe idea. These accounts will never lose money and usually don’t come with penalties if you decide to withdraw your money early.

IRA

You can defer paying income tax on up to $5,500 that you contribute to an IRA. Couples can contribute to IRAs in each other’s’ names and can shop around for accounts and funds that charge especially low fees. An IRA is easy to open and gives you the option on how you want to invest your money.

Tax Refund

Every time you get money back from your taxes, put that into a savings account or CD. That extra money can add up over the years, so you’ll be happy to see how much your retirement funds have grown when you look. IRS Form 8888 allows you to directly deposit your tax refund into up to three different saving or investment accounts, including an IRA.

Small Business Investment

Finding a business to invest in and make a return on is an option for saving. Use your time before retirement to find different ways to make money for it. You don’t have to become a business owner – just a silent investor if you’d like. Small business profits are not capped and the potential return on investment is therefore higher than other alternatives, but remember that the risk can be higher too.

Stay focused on your retirement savings goal so you can be prepared as you get closer to that age. The above items are all safe and simple ways to save for your future. Utilize one of a few of these options today by stopping by our bank! We’d be happy to talk you through what we have to offer!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Expert Saver’s Financial Bucket List

bucket

Savvy savers are full of great ideas and qualities, so those who aren’t the best at keeping our finances in check are always left wondering how they do it. Thankfully, Peoples Bank & Trust Co. offers a bucket list with some of the expert saver’s top priorities you can strive to meet!

Pay off your credit card debt.

As the average American has $16,000 worth of credit card debt, focusing on paying off yours can be a big financial undertaking. There are different methods you can utilize such as The Snowball Method, which includes making minimum payments on all your accounts and putting what you have left towards the account with the smallest balance. The Avalanche Method involves paying off the largest amount of debt first and continuing on until everything has been paid.

Say goodbye to student loans.

Student loans can be one of the longest standing debts in many households. With the average outstanding loan balance being at $37,000, starting a routine to pay off these loans should be a top priority. By committing to a certain amount each month to pay, you’ll see your loans decrease quickly. Be sure to put extra cash towards the loans with the highest interest rates or try to refinance to a lower interest rate.

Buy a home.

Being a homeowner is a big step to take in life but well worth it. In some areas, buying a home and paying your mortgage each month can be cheaper than paying rent. Figuring out how much home you can afford and getting pre-approved are your first steps to financial success. A rule of thumb can be to take your monthly after-tax income, subtract all current debt payments and then multiply that number by 25%. This is a good indicator of how large your monthly payment can be.

Set up an emergency fund.

It’s sad to say, but bad things are bound to happen. Instead of being caught off guard when a pipe bursts or you need an emergency surgery, build an emergency fund. Having money put aside for the unexpected will help life be much more enjoyable when problems arise. Depending on your income, monthly costs and lifestyle, try to have between three and nine months’ worth of expenses saved in your emergency fund. See about setting up a savings account with us for items just like this!

Get a raise.

Negotiating for a raise can be tricky, but you won’t be able to move forward financially if you don’t push for what you deserve. Focus on all of the benefits you have brought to the company and changes you’ve made for the better. However, don’t expect more than a 4-5% bump, as asking for too much can be viewed as greedy.

This bucket list is what all expert savers strive for as an end goal. Put into action a few of these tips to allow yourself the monetary success you deserve! Feel free to give us a call or stop in to discuss our different savings options!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Brief Beginner’s Guide to Boosting Your Car’s Value

car

Your car is your baby, but have you really been treating it as well as you should? If you’re in the market for a new vehicle or just looking to make your automobile look its best, then you’ve come to the right place! Peoples Bank & Trust Co. offers wonderful ways to boost your car’s value on the inside and out.

Shine Bright

Dull headlights seem to be a recurring problem with cars. Luckily, there are many cheap products you can purchase to make those lights shine bright again. By giving your car a little love, it’ll look years newer. This means you can ask more for your fresh vehicle if you’re looking to sell.

Fancy Floors

Buying new floor mats or paying to have them cleaned can make all the difference in the world. You can also invest in the heavy duty rubber mats, so stains will be a thing of the past. Freshening up your interior will make your ride feel new and improved.

Quick Fixes

Any little issues that can be improved will help heighten your car’s value. Replace a burned out taillight, change the oil, make sure no warning lights are flashing and so on. If you’re looking to sell, this will be a big attraction to the next guy who will feel like no work will have to be done after buying. People are willing to spend more in order to start fresh with no troubles ahead.

New Shoes

Replace your car’s tires to give it the update it needs. Buyers will be willing to pay more if they know they won’t have to be buying new tires right off the bat. The buyer will often expect a significant discount ($300-$700), depending on the model, if the tires are old and worn.

Scratches and Dents

Don’t think fixing a dent or scratch won’t do you any good. Paying a little now to buff out that scratch and pop out the dent will make your car much more valuable. Just one or two dents/scratches can mean the difference of a fair payout or big bucks. A paintless dent repair specialist can usually buff out the issue for a small price, leaving your potential buyer willing to pay more since you’re saving them the headache of going to a body shop.

If you’re looking to make your current car last longer or sell it for top-dollar, use these simple strategies. Giving your baby the attention and love it deserves will help stretch its value higher. If you’re looking to buy, give us a call – we offer great auto loans to help you buy the vehicle you want!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Keep It Cool – How to Survive the Heat and Stay on Budget

cool

How will we ever survive the continuing heat, and still not break the bank on energy costs? Luckily, we’ve got all the best tips and tricks to keep your home cool on a budget.

Invest in Thermal Curtains

Getting blackout or thermal curtains will save you money over these warm months. By keeping the heat out, your air conditioning won’t have to work as hard every day to keep the house cool. This means big bucks will be saved! Keeping your blinds closed or curtains pulled together can save you up to 7 percent on bills and lower your indoor temperatures by up to 20 degrees.

Turn Down the Hot Water

A cold shower will feel good when you come in from the heat. Look at your hot water tank and turn down the maximum temperature. This means much less energy will be used to heat your shower, washer and sinks. You don’t need the water to be scorching hot, so this will help you to not burn through your money as quickly.

Install Fans

Installing ceiling fans will help warm air rise instead of just circulating it through the house like box fans do. Set your fans to run counter-clockwise in the summer at a higher speed. This helps to create a breeze effect throughout the room, keeping you cooler.

Lights Off

If you don’t feel like investing in energy efficient bulbs, simply turn the lights off. These bright sunny days will help light your house, saving on your electricity bill. If you are willing to spend money to make money, get rid of incandescent bulbs and switch to compact fluorescent lamps. Incandescent bulbs waste about 90 percent of their energy in the heat they emit, so getting rid of them means a cooler home for you.

Grill It Up

Try to enjoy the heat with friends and family by grilling outside. This will help keep your home cool, as you aren’t having to heat the oven to 400 degrees for an hour. Your home already feels warm, so having a stove or oven on will only make it worse.

We hope you can beat the heat with these simple tips! If you’re looking to save a little more this month, contact Peoples Bank & Trust Co. about opening a savings account. We’d love to help you fuel your financial success.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Back to School Savings Tips

school

Back to school shopping can be dreadful. Trying to buy new school supplies for your kids or yourself can be crazy expensive. Luckily, these 5 saving tips might just be the key to school supply shopping success.

Do a Closet and Supply Sweep

Don’t be alarmed, but there may be school supplies lying around your house! Before rushing to the store to buy brand new school supplies, you may want to check in between your couch cushions and in desk drawers. By doing this, you may find school supplies that were bought years prior that have not been used. Finding previous school supplies that are on that list will help you save money by not having to buy brand new products. You may have most supplies already!

To avoid forgetting that you may have school supplies lying somewhere around the house, start collecting the items that you already have and put them in a central location. This will allow you to keep track of what you already have, so you don’t end up wasting time or money!

Hit up the Dollar/Thrift Store

You don’t have to buy everything here, but for items such as: loose leaf paper, staplers, erasers, pencils, rulers and clothes, you sure could get a deal. Buying such items at the Dollar Store or Thrift Store will help save you money before going straight to the major department stores. Shop at these places first for basic supplies and then go to the main stores to find the rest of what you need! This may take some planning ahead, but you can score some amazing bargains.

Use Coupons

When school starts approaching, you may want to look at your Sunday paper or online for coupons! Sites like RetailMeNot have a special section on their site for school supplies. Also, keep in mind that stores, like Walmart, offer price matching. Check ads every week, and keep an eye out for sales! Doing these things should help maximize your savings.

Start Early!

You can start early, but not too early. As soon as you see school supplies go on sale, begin shopping. If you wait too long, you might miss out on those bargain deals or the opportunity to have the best notebook and pencils! Getting a jump-start gives you time to shop around and compare deals. With shopping early, you have the option to buy in bulk. That way during the school year, you’ll have back-ups at home when it’s time to re-stock.

Hold off on buying the ‘popular’ gear

The only good thing about going back to school might be the new clothes, gear and school supplies, but that does not mean you have to spend hundreds every year. Most of the time the ‘popular items’ will be very expensive and then become not so ‘popular’ after the first month of school, so hold off on buying those and try to invest in the quality of items. You want to be able to get the best bang for your buck!

We hope these 5 tips will grant you success when shopping for school supplies! We wish you and your family the best for this school year!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

5 Things to Teach Your Teens About Financial Literacy

finances

With your babies growing up, it’s never too soon to start teaching them the art of being fiscally responsible – but where do you start? According to the Council for Economic Education, only 17 U.S. states require high school students to take a personal finance class in order to graduate. Peoples Bank & Trust offers some great ideas on how you can begin teaching your child about financial literacy.

How does credit work?

A lot of kids don’t know what credit actually means. It’s important to teach your child that credit means to borrow, but at a cost. You will need to explain the importance of a credit card and how keeping balances low are a good plan of action. You can also begin to discuss interest rates, annual fees and how they can check their credit report.

Everyone has to pay taxes.

Starting a lawn mowing business or babysitting will not be the same pay as when your child gets an actual job. If your daughter gets paid $12 an hour to babysit, she gets to take all of that home. Emphasize that she will have to pay taxes and talk about how some of that would be taken out to fix roads. This will prepare them for the future, so they can budget responsibly when waiting on that first paycheck. Since 2016, no state has added a personal finance course to their K – 12 grades. It is up to you to advocate for your child and make sure they understand all things financial.

What is a want vs. a need?

We all want the next cute pair of shoes or cool car, but we need to be realistic with our spending. Start making your child pay for gas, a portion of groceries and other little expenses. This will help show them what types of things they need money for, what portion should be put into savings and what is left can be spent on what they want – after their needs are secured.

You must budget to buy.

Start by having your child put aside 30% of their money for short-term savings and 30% for long-term. Another 30% can be cash they spend on whatever they need, and 10% could be put towards charity or another good cause to teach them giving back. Explaining to your kid what to do with money once it’s earned is commonly a missed step, so this will help you implement good habits.

How do I plan for college?

Begin going over different loan options such as federal and private loans. Explain how they can have an auto-pay set up to pay their bills on time. Seeking out scholarships is also an important point to place in their head. The average student loan balance is $34,144 as of 2017, so they can save a lot of money by getting a scholarship.

Preparing your child for the future is quite the undertaking – especially when it deals with covering topics such as finance. However, your child will thank you when they have fantastic budgeting and savings skills down the road! If your child is interested in opening a savings or checking account, give us a call! We’d love to help teach them other financial literacy topics.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How Much You Can Save by Camping on Your Vacation

camp

You deserve a little vacation with your hunny and children, but what can you do that won’t break the bank? Camping is the perfect solution for families looking for frugal fun! We’re here to share a few of the different ways camping saves you cash and packs in the entertainment.

Cost Per Night

Camping costs zero to $30 a night based on if you have to pay a fee to stay at a camping ground. That number looks tiny compared to the hundreds of dollars hotels cost per night. You may have to invest in some camping gear such as a tent, but your investment will be well worth it, as these items last years. Do some research on the best places to stay, and you’ll be a happy camper.

Meal Budget

Cooking s’mores and hot dogs over the fire for meals beats the hefty prices of restaurant food – especially when you travel as a family. Overall, Americans spend an average of $33 per day on food when on a vacation within the U.S. In aggregate, more than 80% of that amount is spent in restaurants. You have the opportunity to control how much money you spend on eating and find fun ways to cook over a fire!

Free Excursions

Instead of paying a few hundred dollars for the family to enjoy zip lining and other excursions, camping brings the nature to you! If you decide to camp at a national park, there are many attractions within that you can see. Wallet-friendly options to family activities include hiking, biking, stargazing and more! As a bonus, you are even able to bring your pets along for the trip.

No Size Limit

No matter how big or small your family or group of friends is, you won’t have to worry about extra large quantities of money being spent. If you had more than four people, you’d need another hotel room – camping doesn’t make you spend hundreds more when another person is added to the group!

Pay With Cash

When you’re on your trip, pay with cash. This helps you spend less and stay more conscious of your spending habits. It’s a lot harder to keep up with how much you’re spending when you don’t see the money leaving your hands. Grabbing grocery items for the fire can sometimes end in getting more than you need, so using cash will help limit your spending and stay on top of your budget.

Vacations are great ways to bond with friends and family, however, you don’t want to lose your savings to have fun. Camping allows you to maintain your frugal lifestyle while still enjoying life to the fullest. If you’re looking to create a budget and start saving for your next camping trip, give us a call or stop in today!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender