Category: Savings

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New Year, New Financial Goals

If you haven’t decided on a New Year’s resolution, we have some ideas for you! Whether you’re saving up for a big purchase or have a pile of debt to work on, make 2021 the year you focus on your funds. Below are some ideas of financial goals you can set. 

Short-Term Goals 

When you set a short-term goal, you normally aim to accomplish it within 1-12 months. The following examples are goals you should aim to attain by next New Year’s Eve: 

  • Build an emergency fund 
  • Save for next year’s Christmas gifts 
  • Create a new budget 
  • Pick three bills to cut down on (cable, cell phone, etc.) 
  • Open an IRA 

Mid-Term Goals 

Mid-term financial goals can range in the time period in which you accomplish them, but typically they take about five years to achieve.  

  • Save for a down payment 
  • Build on your emergency fund 
  • Pay off credit card debt 
  • Save up for a vacation 
  • Improving your credit score 
  • Increasing your income 

Long-Term Goals 

Setting a long-term goal usually means you plan on accomplishing it withing 5-10 years. How many years you decide to give yourself depends on how much debt you have, how many kids you plan on and other factors unique to your situation. However long it may take you, here are some examples of long-term financial goals: 

  • Save up for retirement 
  • Start your own business 
  • Pay off your student loan debt 
  • Save for your child’s college, wedding, etc. 
  • Becoming debt-free 
  • Pay off your mortgage 
  • Establish financial security 

Now that you have some ideas, pick your favorite short-term, mid-term and long-term goals to accomplish and make it happen! After a long and unexpected 2020, let’s make 2021 the best financial year yet. Contact us to learn how we can help you take hold of your finances this year.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Why is Having an Emergency Fund a Necessity?

With the recent events taking place causing widely experienced job loss, it’s been a clear reminder of how important an emergency fund is. When layoff or other unexpected circumstances take place, having a fund to use for the time being will be what keeps the rest of your financial life going in a positive direction. 

What’s an emergency fund? 

An emergency fund is money you’ve set aside for unexpected expenses. This stash of money allows you to be prepared for the circumstances life throws at you rather than hoping nothing happens. The average recommended amount to save is 3-6 months’ worth of your normal living expenses, but the more, the better. 

What circumstances would I need one? 

You might be wondering what kind of situations an emergency fund would come in handy. While the possibilities are endless and always unforeseen, here are some examples: 

  • Job loss 
  • Medical emergency 
  • Car issues or accident 
  • Major home repair 

What’s not considered an emergency? 

Don’t go through the process of saving for months just to spend it on non-emergent things. Here are a few examples of things you should budget for rather than spend your emergency fund on: 

  • Vacations 
  • Elective medical expenses (e.g. plastic surgery) 
  • Non-essential home upgrades 

How can I start building one? 

The first step to building an emergency fund is figuring out your goal amount. After finding out what your monthly expenses are, it’s time to develop a plan for your saving. Put your fund into a safe place, like a savings account, and stick to your plan, going beyond your goal once you reach it. 

The year is coming to an end and 2021 will be here before we know it. This year, make it a priority to be prepared for the unexpected with an emergency fund. To get started, open a savings account with us today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Money Mistakes to Avoid Around the Holidays

The holidays are right around the corner which means it’s time to start crossing items off the gift list. Whether you’ve fallen victim to these mistakes before or are trying to avoid them this year, this list will tell you exactly what not to do when holiday shopping. 

Not saving in advance 

The holiday season has a way of sneaking up on customers, leading to lots of last minute shopping. We all are aware of when these gifts need to be bought, so why not set money aside to prepare? You can start this a few months in advance, or even better yet, save small amounts all year. Simply add a portion of your income to a savings account each month or set up automatic transfer so the funds are ready to go when it’s time to shop. 

Being enticed by all of the deals 

It’s no question that items on sale are automatically more appealing, even if the item is unnecessary. Making a list and knowing exactly what you need before you visit the store can help avoid the tempting discounted items. This is also tricky while online shopping since holiday ads pop up just about everywhere. Steer clear of the enticing deals and stick to what you really need. 

Avoiding a budget 

Having and sticking to a budget is simple with today’s technology. By downloading a budgeting app, you can figure out exactly how much you want to spend and keep track of your spending while you shop. Not setting a budget before holiday shopping often leads to overspending, buying unnecessary items and letting your finances get out of hand. 

Dipping into your savings account 

Whatever you do, do not rely on your emergency fund or any other type of savings besides what you’ve saved specifically for holiday shopping. This is another reason why saving separately for Christmas gifts is so beneficial – you won’t be as tempted to access your savings for the future if you already have money set aside. 

Procrastinating 

By the time the holidays come around, items have been picked through, the sales are over and what you need is out of stock. Getting your shopping done early will help you avoid those issues and save money while you’re at it. It may sound crazy, but the best deals are usually happening between Christmas and New Year’s, which means you can get a head start on next year while maximizing your savings! 

This is the year to have control over your finances and not let the holidays take a toll on your bank account. Rather than dreading the financial burden that often comes with holiday shopping, plan ahead and save yourself the stress. Enjoy this holiday season and avoid making these mistakes at all costs! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Special, Yet Inexpensive Christmas Gift Ideas

As joyful and exciting as the holiday season is, getting memorable gifts for your loved ones can bring about some financial stress. It’s always good to remind yourself that the price doesn’t always determine the quality of the gift you give. Rather than spending a fortune on big gifts that your loved ones might not even use, try one of these special gifts which are cheap and meaningful at the same time. 

Memory Book 

Whether you decide to make a homemade scrap book or simply buy a photo album at the store, you can’t go wrong with a trip down memory lane. The holidays are the perfect time to reminisce on the past, and creating a book of old pictures, letters, collectables and other meaningful things will definitely warm the heart of any loved one. 

Meaningful CD or Playlist 

One great way to tell someone how much they mean to you is by telling them through music. Put music that reminds you of them or memorable songs you’ve listened to together on a CD or into a playlist. For an additional, heart-felt touch, you can write a letter to go with the CD explaining the meaning behind each song you chose. 

Flowers and Plants 

Giving your loved one flowers is a clear way to make them feel special and cherished. Purchase a few succulents, flowers or other plants along with a cute pot and some soil, pot the plants and you have yourself a special present that doesn’t break the bank! 

Pamper Package 

A fun gift idea for both the gift giver and the receiver is a care package filled with all of their favorite things. This can contain snacks, drinks, a movie, a book and other meaningful self-care items. 

Homemade Coupon Book 

This isn’t an average coupon book – this one contains acts of service you’ll do for your loved one when they decide to use their coupons. This one is especially great for someone to make for their significant other since you can add a romantic twist. Create cards that say if they redeem the coupon, they’ll receive things such as breakfast in bed, a surprise date night, a free back massage, etc. 

Nothing compares to gifts that are hand-made, meaningful and full of love. This holiday season, focus on giving memorable gifts that will leave your loved ones feeling special and will also keep your bank account in a good place. Happy holidays and happy gift-giving! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Don’t Make These Money Mistakes in Your 20s

Whether you’ve just entered your 20s or have been for a while, you’re probably aware of the many changes about to take place during this decade of your life. This is known to be the prime time to try new things, travel the world and live life to the fullest. But, it’s also the time where many individuals make huge money mistakes, fall quickly into debt and struggle getting out. Continue reading to make sure you don’t end up making these dangerous money mistakes in your 20s.

Procrastinating on Retirement Savings

While retirement probably seems too far away to consider in your 20s, it’s one of the biggest and most common money mistakes made. The earlier you start saving, the more compound interest will help you out. Set up automatic savings and don’t touch that money – retirement will be here faster than you think!

Buying a Brand New, Pricey Car

One of the easiest traps to fall into is buying a car that costs much more than is necessary. As a new full-time employee, it’s easy to be fooled by a paycheck that’s larger than what your college self was used to, but now is the time to be saving rather than spending. It’s normal to purchase a new car post-graduation, but stick to a used car or one that won’t leave you with an enormous car payment each month.

Living Beyond Your Means

The temptation to buy unnecessary items is everywhere, especially while you’re young. You might not have kids yet, which can make it even easier to spend money on yourself carelessly. Keep your spending in check and avoid going out to eat often, buying all of the new “in” clothing, getting drinks with friends, etc. There’s nothing wrong with treating yourself every so often, but being smart about how often and what you’re buying is what’s important.

Falling Into Credit Card Debt

This mistake is one that can lead to lifelong and life-changing consequences. Always pay your credit card bill on time and in full to avoid the daunting idea of being in serious debt down the line. Using your credit card wisely is important for building a good credit score, too!

Forgetting the Budget

Planning a budget and sticking to it might seem like a lot of work. In reality, there are lots of great money management applications available that make budgeting a breeze! Budgeting is the best way to have control over your money and make well thought-out financial decisions. Don’t worry – not all budgets are restrictive and difficult to follow. As long as you have some sort of plan set in place, you’re on the right path.

When it comes to your future with money, your 20s will either make it or break it. We’re happy to be here to provide you with the services to make your financial future a success. Contact Peoples Bank & Trust to open a savings account or to learn more about how we can help!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Ways to Rack in Some Extra Money in Time for Christmas

The holidays often sneak up faster than expected along with the many Christmas gift purchases. This year, go easy on your wallet by making extra income to set aside just for gifts. Life is always busy, but with some hard work and dedication there’s always time to make a little extra cash. Continue reading for some money-making ideas!

De-clutter and Sell

Odds are, there are countless items in your house that either don’t get used enough or aren’t necessary. Now’s a great time to go through your belongings, organize and make a pile of things you can get rid of. Rather than throwing them out, sell your belongings on eBay, Facebook Marketplace or other online platforms. Many secondhand businesses will buy your items to re-sell in their store, or you could even have your own garage sale. This is the perfect way to deep clean and de-clutter your house, all while making some extra money!

Start a Side Gig

Today’s technology allows people anywhere to find side gigs in the click of a button. Whether you enjoy cleaning, are good at lawncare, like pet sitting or more, there’s a person out there who would hire you. This is also great because temporary jobs like this can be done over the weekends to avoid interfering with your full-time position. Plus, you can make this a one month or yearlong deal depending on your preference, so your schedule is completely in your hands.

Find a Seasonal Job

The holiday season is primetime for finding a temporary, simple part-time job. As stores get busier, you can often find a job in retail if that’s what you’re interested in. Other seasonal jobs include working at a pumpkin patch, haunted house or Christmas tree shop!

Save All Year

Rather than waiting until the last minute to save some extra cash, make a lifestyle change and save throughout the year from now on. Peoples Bank & Trust offers a Christmas Club account, which is specifically designed to do exactly this! This account allows you to set aside money each week, even if it’s a small amount. Then in October, you are sent a check for the balance of the account plus interest! Once the holiday shopping rolls around, you’ll be thankful for the amount you set aside and you won’t have to worry about dipping into savings for the future.

While part-time jobs and reorganizing your belongings is time-consuming, the extra money made for Christmas shopping will be well worth the work. We hope this holiday season is full of joy, friends, family and lots of savings. Contact Peoples Bank & Trust to learn more about our services or to open a Christmas Club or other savings account today!!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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5 Major Life Purchases to Plan For

Once you enter adulthood, your finances become your own and the major life purchases quickly approach. While not all of these purchases take place at the same time nor is everyone guaranteed to make them all, it’s common for the average person to make most if not all of these purchases at some point in time. Continue reading to be prepared for your financial journey in the future!

1. New Car

That car you got when you turned 16 won’t last forever, and soon enough you’ll be ready for a new vehicle. Whether this purchase takes place once you graduate college or when you need a size upgrade to fit your growing family, a new car is a big financial investment. It’s important to look into smart loan options available to you before you make the big decision. Another important factor to mention is that your credit score will have a big impact on the loan options available to you, so keep that in mind as you prepare for a new car.

2. The Wedding

As of 2019, the average cost of a wedding in the United States is over $33,000. While the bride’s family traditionally holds the responsibility of paying for the wedding, that’s not always set in stone in all families. Finding out where the wedding money is coming from is something important to find out by talking to your partner, your family and your partner’s family. Marriage is also another thing to plan for financially as you and your new spouse learn to handle expenses together rather than separately now. Also, even if you don’t have to pay for your wedding, if you choose to have kids the day will come when your daughter gets married, so the wedding finances could be on your shoulders down the line.

3. Starting a Family

The cost of having children is seemingly never-ending. From the hospital bill when they’re born until they head to college, you’re paying for the many expenses that come with having children. Keep in mind childcare, prom, clothes, college, sports and more which can add up quickly. Don’t let the many purchases that come with having kids push you away, though, as starting a family is truly priceless!

4. Buying a House

One of the most obvious and major purchases you’ll make in your lifetime will be your first house. With lots of research, thinking and searching, you’ll finally find the house of your dreams. This is something to plan for and keep in mind as early as possible, as many young adults push this off and procrastinate on saving. Set up a savings account to get a head start on this future purchase!

5. Making Your House a Home

A major financial investment that’s often overlooked when it comes to planning is furnishing your new home, getting appliances, landscape work, renovations and more. To make your house a home, lots of improvements and additions have to be made. Furniture and appliances can get pricey, especially the high-quality pieces that will last you awhile. Factor all of these home improvement payments into your budget before taking the step of buying a house.

As you enter this exciting stage of your life and the major purchases get closer, it’s always a good idea to set a budget and maximize your savings as much as possible. One great way to make the most of your savings is to open a savings account with us, set up automatic transfer and watch your savings grow! Contact us with any of your finance questions and we’d be happy to help.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Find Out How to Pay Off Your Debt While Still in School

Just because your student loan payments don’t start right after you graduate, the sooner you start making payments, the better. Paying for the college student life is tricky enough, so paying off debt at the same time might seem impossible, but it’s doable with a few lifestyle adjustments. Continue reading to find out the best ways to make payments before you even graduate.

Make it Automatic

One of the best ways to be dedicated to setting money aside is to set up automatic payments. By making it automatic, you won’t even have to think about the payments since the money will be going straight towards your student debt. Along with that, these payments become a habit and force you to make smart financial decisions.

Increase Your Income

It might seem obvious – if you want to make payments but can’t afford much to begin with, now’s a great time to pick up a side gig. The college life is busy as is, but there are ways to make time for some extra income. You can find remote work to do on your own time, get a weekend-only job or even get a paid internship. A paid internship would benefit your education, your resume and your finances all at once!

Try a Budgeting App

There are countless money management apps out there that make budgeting a breeze. Download an app such as Mint or PocketGuard to help you better manage your expenses. Visually seeing what you spend your money on puts your spending habits into perspective, allowing you to cut some unnecessary expenses and put that money towards your student debt.

Don’t Overborrow

It’s common for lenders to offer more money than you really need, but don’t be fooled by overborrowing and having to pay more interest. Only borrowing what you need will save you money down the road, which you can use towards more student loan payments.

Tackle the High Interest Rate First

Focus on the loan with the highest interest rate first, paying that one down to avoid more and more accruing interest. This is called the “debt avalanche method” and it’s great for paying off debt as quick as possible.

By starting your student loan payments as early as possible, you can save a substantial amount over time. Interest racks up, time flies by and before you know it you’re graduating and making monthly payments. Relieve yourself of future stress by getting a head start! Contact Peoples Bank & Trust to open a savings account and learn more about the services we offer.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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A Beginner’s Guide to Saving Money

While saving money isn’t the easiest task, the first step is often the hardest part. If you’re new to the finance scene and are hoping to learn about some basic, money-saving tips, you’re in the right place! Setting realistic and doable goals is the key and we’re here to help give the push you need to get going.  

Track Your Spending 

The first step to knowing how to save is figuring out what your spending habits look like. Spend a few weeks tracking everything you spend, from each coffee run to the cash you tip the waiter. There are many money-tracking apps out there to make the process easier, otherwise the old-fashioned pen-and-paper method works great. 

Analyze What You Tracked 

Now that you figured out exactly what you spend, it’s time to break it up into categories and get a closer look. Organize the data into sections like food, rent/mortgage, gas, clothes, etc. Putting this into a chart is a great way to understand your habits visually. Most of the money-tracking apps will automatically show you organized categories of what you’ve spent for your convenience. 

Make Spending Adjustments 

Now is where the budget comes into play. Looking at the data you tracked, what did you spend the most on? What amounts surprised you? Pick out some things that weren’t necessary to spend money on and adjust your spending. Now that you know how much you spend, you can limit that amount and create a budget. 

Set Up Automatic Transfer 

This step is crucial! If you haven’t already set up automatic transfer to your savings account, now’s the time. You get to choose exactly how much along with when the money will be transferred, making saving money a breeze. This also limits the temptation of reaching for the extra cash you set aside since it’s in an account instead. 

Create Realistic Goals 

We’re not done yet! It’s time to set both short-term and long-term goals to make the most of your savings. Whether you’re saving for a car, hoping to buy a house, building an emergency fund or more, having goals to work for gives you the motivation to keep going. Figure out some short-term goals of how much you want to save along the way, leading to your long-term goals. 

Now that you know the steps towards smart saving, you’re ready to start! Saving your money leads to a great reward and allows you to practice patience and persistence. If you have any questions or are looking to open a savings account, contact Peoples Bank & Trust. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How Do I Trim My Grocery Bill for Good?

Did you know it’s possible to cut your grocery bill in half by making some simple changes? Many consumers are spending much more on food than is necessary and those grocery bills can add up faster than expected. Before you take your next trip to the store, read these five helpful tips. 

Always plan ahead and stick to the plan. 

The grocery store is the prime place for impulse purchases to rack up. Rather than figuring out what you need once you get there, plan your meals for the week and stick to the plan. Avoid the tempting aisles that you don’t need to visit and only get the food that’s on your list. 

Keep an eye out for deals. 

There’s a good chance you can find what you need either in bulk or on sale. Buying something in bulk will last you much longer and often ends up being a much better deal than the smaller portions. When things you use frequently go on sale, like spices, canned goods or packaged snacks, you might as well stock up so you’re saving money down the road and getting the best deal.  

Limit the grocery trips. 

The more often you go to the store, the easier it becomes to make purchases you don’t really need. Going once a week or once every two weeks is doable rather than making shorter and more frequent visits. 

Generic is the way to go. 

The biggest difference between name-brand and generic brands is the packaging. Save yourself some money by sticking with the off-brand products – they’re practically the same thing except much cheaper. 

Check the prices at checkout.  

Pricing errors are more common than you think. Keep an eye on the register as your items are being scanned, so you know the price it was advertised as is what you’re paying. Prices are constantly changing at grocery stores, so you might catch a pricing error and get an additional discount if you’re lucky. 

If you’re looking for some lifestyle changes to make that will have a positive impact on your bank account, your grocery bill is a great place to start. Become an expert grocery shopper and say goodbye to spending most of your income on food! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender