Category: Savings

money

Our Top 5 Money Management Secrets

Figuring out how to properly manage your finances can be overwhelming when there are hundreds of dos and don’ts you may have heard. Following these five tips will make a huge difference in the way you handle your finances and can give you a clear slate of basic rules to follow. When it comes to starting good money habits, the sooner you begin, the better! 

1. Have and Follow Your Budget 

Setting a budget is one thing but sticking to it consistently isn’t simple. It’s easier now than ever to follow your budget with the various money management apps out there. Make a realistic, time-based budget and find an accountability partner if you need help sticking to it. 

2. Always Compare Before You Buy 

Before buying anything, even the small things, make sure you’re paying the best price. Is there a different grocery store nearby that has the same item? Can you find the same shoes on sale at another store? Is there a sale coming up you can wait for? Avoid making impulse purchases and look around at other cheaper options first. 

3. Automatic Transfer is the Answer 

If you haven’t already opened a savings account and set up automatic transfer, now is the time. Putting a certain amount away every month makes a massive difference over time, and it’s even easier when it’s automatic. This is a great way to help you or your children build healthy financial habits. 

4. Track Everything You Spend 

Keeping your receipts and writing everything down that you spend puts your money habits into perspective. Tracking what you spend also allows you to see exactly what you’re overspending on so you can make adjustments. One of the best things about today’s technology is how easy it is to manage your money. To better keep track of what you spend, download a budgeting or money management app. 

5. Practice Makes Perfect 

When you first start making money, it’s not always first nature to manage your finances wisely. Building good money habits takes time, life experiences, mistakes and lessons to learn from. Don’t let a couple mistakes throw you off course – a little financial bump won’t destroy your success. If finances are new to you, give yourself time to practice and adjust your spending habits overtime.  

There’s no better time than now to make sure you’re on the right road with your money. It all starts with creating a smart plan, sticking to it and watching your money grow. Your hard work and patience will pay off in the future! For more financial assistance and to learn about the services we offer, contact Peoples Bank & Trust.  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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7 Daily Habits That Will Save You Money

Saving money doesn’t have to be complicated – there are habits to incorporate into your daily routine that will save you money in the long run. These tips are simple and easy to start but also very effective. It’s time to take control of your finances and make some healthy changes! 

1. Pay with cash 

Using a credit card for everyday purchases can be tempting and often lead to impulse buying. A good way to stick to your budget is to have a certain amount of cash for the week and use only that cash. This is also great because you can’t spend money that you don’t have. 

2. Do more things at home 

Too often we rely on other places to do tasks that can easily be done at home. For example, many people spend lots of money going out to eat, getting their car washed, stopping for coffee, getting their hair trimmed and more. These are all things that can be done for a much lower cost in the comfort of your own home! 

3. Check the secondhand shop first 

You never know what secondhand gems you can find until you try! Before making a purchase, check garage sales, thrift stores, the Facebook Marketplace or more to see what deals you can find. 

4. Schedule when to track your spending 

To hold yourself accountable for what you’re spending, it’s a good idea to track your spending. Plan a day you’ll do this each week, so it becomes a habit. It’s a great way to reflect on what purchases were necessary and which ones weren’t. There are lots of apps you can download to help with this. 

5. Be careful with your utilities 

Even though utilities are a recurring cost, there are still many ways to reduce how much you must pay. Try cutting costs by keeping lights off, taking shorter showers, opening your windows rather than cranking the AC, etc. These costs can add up so this is a great habit to start! 

6. Reevaluate memberships and subscriptions 

Go through all the subscriptions and memberships you pay for. Which ones are necessary and which ones aren’t? Save yourself some unneeded costs by getting rid of some monthly payments. 

7. Take time to think before you buy 

Before making a non-essential purchase, give yourself a few days to think about it. Only follow through with the purchase if after those days you still really want it to help reduce impulse buying. 

We hope these tips will make a difference in the way you handle finances in your everyday life. Turning these seven things into habits will certainly pay off in the long run, so give them a shot! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How to be Responsible with Your Credit Card

Credit cards have their benefits – building your credit score, earning rewards, convenience and more. They can also be dangerous if not used correctly. Since people often tend to spend more using credit cards rather than cash, it’s easy to get in over your head without realizing it. Keep reading to find out some great ways to be responsible when using your credit card. 

Don’t Spend What You Can’t Afford 

Just because credit cards allow you to buy things without having the money doesn’t mean it’s a good idea. Trouble, debt and stress all start building up when you realize you can’t pay for what you spent. The easiest way to stay out of credit card trouble is to simply never make purchases you can’t afford at that moment.  

Pay on Time 

Building good credit comes down to paying your credit card bills on time so lenders can see you are reliable. Do this by always paying your bill before it’s due so you’re not scrambling to pay at the last minute, as well as avoiding late fees. 

Go for Low-Interest and Low-Fee  

Before even getting a credit card, make sure you read the cardholder agreement to see what you’re signing up for. Look for a credit card with a low interest rate as well as a low annual fee so you can make the most of the credit card you use. 

Don’t Go Over Your Limit 

Over limit fees can sneak up on you if you’re not careful. Going over your limit can lead to charges and can hurt your credit rating as well. Make sure you know your limit and are staying well under it, so you are prepared for emergencies. 

Get Fraud Protection 

Credit cards can be hacked, but the good news is that credit card fraud protection is available. This way, if your card is hacked, you don’t have to pay for those charges. 

Ask for Help Right Away 

If you’re struggling with credit card debt, reach out and get help before it gets worse. There are many people you can talk to such as finance professionals, credit counselors or your bank. These people can guide you in the right direction so you can take steps towards avoiding, getting out of and staying out of credit card debt. 

While using credit cards irresponsibly can lead to scary consequences, taking these smart steps will help you make the most of your credit card. Having good credit is extremely beneficial for your future, so don’t be afraid to use your credit card wisely. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Retirement: What You Should Know

While retirement might sound lifetimes away, it sneaks up faster than you think. Many people wonder when to start saving for retirement, how to start, how much money they’ll need and more. We’ll answer those common retirement questions in this blog, so keep reading to find out. 

When to Start 

The time is now! If you are earning paychecks, start saving for retirement as soon as you can. The sooner the better, and the main reason for this is because your money will have more time to grow. Compounding makes a huge difference, and those 5 or 10 years of extra saving can turn into tens of thousands of dollars more than you would’ve had before. 

How to Start 

Don’t be intimidated – you can start small and work your way up to saving more. Something is better than nothing, so even putting a couple of hundred dollars into your retirement savings is a good start. The next step is to be consistent. Keep adding to the pile periodically and don’t tap into that money unless necessary.  

How Much to Save 

One general rule-of-thumb is save 10-15% of your income starting in your 20s. The amount you save depends on what you plan on doing once you’re retired. If you plan on traveling the world or buying a new sports car, your retirement fund will look different. It’s smart to have an idea of your retirement plans so you can adjust how much you save accordingly. 

When to Retire 

The answer to this is different for every person, too, depending on your retirement plans and how much you’ve already saved. The average retirement age is 62, but many people retire earlier or later in life. Some people also enjoy working and staying busy, so working doesn’t really come with an age limit. Knowing what age to retire comes with lots of planning and financial analysis, so be sure to talk to an advisor to know if you’re on track.  

What if You’re Falling Short? 

If you’re saving like crazy but still won’t meet your retirement goals, it’s time to consider some alternatives. The most effective change to make is delaying your retirement by just a few years. Not only will this add to your fund, but it takes off a few years you would’ve had to pay for to make it through retirement. 

As time goes on, retirement gets closer even when it seems far off. If you haven’t started saving already, it’s time to start!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Smart Money Choices for First-Time Parents

Entering parenthood can be one of the most exciting yet scary times in life. The financial aspect of raising children is just one small piece to the parenting puzzle, but it’s an important piece. We’re here to help you make smart money choices you might not have thought to make. 

1. Re-think Your Budget 

Budgeting for two is completely different than budgeting for a family of three. The list of supplies needed for a baby is long and continues to grow as the baby gets older. Spend time sitting down with your partner to map out a new and improved budget for when the baby arrives. 

2. Get Rid of Debt 

It’s easier said than done, but if you’re in debt, getting rid of it before your baby arrives will be extremely beneficial. Not only will the debt still be lingering until you pay it off, but on top of that, you now have a baby’s expenses to pay for. Don’t let the baby purchases add to the pile of debt you’re in – instead, try to remove your debt before the baby even arrives. 

3. Start a College Fund 

Although it may sound like you’re getting ahead of yourself by saving for your newborn’s college tuition already, your future self will be thankful. 18 years goes by faster than you think and the cost of college continues to grow as time goes on. The sooner you start saving, the less stressful paying for tuition will be down the road.  

4. Don’t Forget About Retirement Planning 

Just because a new member is entering the family doesn’t mean you should put your future on the back burner. Remember to make your retirement fund a priority, too. Not only will this be of benefit to you, but it will take the financial stress off of the entire family’s shoulders in the future. Grow your money with compound interest by starting sooner rather than later! 

5. Increase Your Emergency Fund 

Just as your budget changes when you have a child, so should your emergency fund. With another person in the house comes more possibilities for an emergency to happen, so you’ll want to be prepared. Increase the emergency fund you currently have to have greater peace of mind when disaster strikes. 

Exciting times are ahead and with a new baby comes great joy. Becoming a parent can be scary, but with some planning, you’ll feel well prepared and excited. We hope this financial advice will benefit you and your growing family in the years ahead.  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Finance Tips for Newlyweds

Whether you’re getting married in the coming years or just recently said “I Do,” this exciting time of your life comes with things to think about and discuss. How you manage money will change and be adjusted once you get married, so planning it out beforehand is a must. Here are some tips for you and your partner to remember for after the wedding day. 

Talk about your debt 

Honesty is key in a relationship, which means it’s time to be honest about what debt you have. Whether you have student loans, a car loan, credit card debt or something else, knowing how much there is left to pay is important before planning your budget. This might not be the most fun conversation to have, but it’s an important one nonetheless. 

Discuss your financial past 

How your family handled money when you grew up can play a part in how you deal with finances when you’re older. It’s always a good idea to hear where your partner or spouse is coming from to get a better understanding of why they do things a certain way when it comes to their finances. 

Plan a new budget 

Once you get married, your individual budgets become one. Figuring out a monthly household budget is important so you’re on the same page. A good place to start is listing all of your monthly expenses, then deciding which ones aren’t necessary. Knowing what your budget is will help both of you avoid overspending. 

Decide on a bank account option 

Something to consider is whether you plan on having a separate or joint bank account. While there are pros and cons to both, one decision might benefit you over another. Once you decide what to go with, you’ll have to go over the cons of that choice and figure out how to handle issues that may arise in the future. For example, if you choose separate bank accounts, you’ll have to decide how to handle separating bills. On the other hand, with a joint bank account, budgeting can become a future issue. 

Think about retirement 

Retirement might seem far out, but it’s something that will play a big role in your life together. It’s better to start saving for retirement sooner rather than later. 

Keep the conversation going 

Continue talking about finances after you get married – conversations about money are important in every phase of life. Keep the financial talks going so you stay on the same page. 

Congratulations on your soon-to-be or new marriage! We wish you and your spouse the best and hope these financial tips can be beneficial to your relationship. Contact us to learn more about our financial services!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Simple Money-Saving Advice for Big Families

With each new addition to the family, expenses rise and finances can become more difficult to handle. That’s no reason not to enjoy having a big family, though! With these simple and effective money-saving tips, you can maintain peace of mind knowing you’re handling your money in the best way possible. 

Check the Discount Stores 

Going to a thrift store or discount store is especially helpful when shopping for kids’ clothing. Since the day they’re born, children grow out of their clothes faster than ever and the new clothes shopping can seem endless. Secondhand stores can be lifesavers for large and growing families! 

Do Your Research 

Before making larger purchases, make sure to do some research and compare what different stores have to offer. You can also find out if any sales are coming up as well as find coupons online. Putting a little bit of extra time towards research can save you lots of money! 

Don’t Fly When You Can Drive 

If you’re planning a family vacation, driving instead of flying will save you hundreds if not thousands. When you drive, you can take your entire family on vacation for the same price as just one airplane ticket. If you don’t want to take the family vehicle, you can rent a car for a much lower price than flying. Not only will it save you money, but it provides time for some great family bonding, too! 

Make Grocery Lists 

Going into a grocery store with your big family without a list is a recipe for disaster. Avoid the hassle of everyone throwing what they want in the cart by making a list and taking fewer people along. Relying on your grocery list can help you stay away from buying more items than you need, plus it can help you stick with healthier choices, too. 

Save for the Future 

The time will come when all of your kids will be old enough to need money for a whole new range of things. Whether it’s for a high school prom dress, a first car or a new iPhone, the expenses will continue to rack up. Eventually, they’ll be heading off to college and you’ll want to be prepared for those costs, too. Keep in mind what future payments will be down the road so you can adjust your budget accordingly. 

Having a big family comes with all sorts of wonderful experiences, and every member of the family is just another person to love. Keeping up with the finances of a large family can be tricky, but it’s doable – sticking to these helpful tips will make a big difference! Start by opening a savings account with us today.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How Can My Teenager Start Saving for the Future?

High school years are often tricky when it comes to money. Your teenager might have a part-time job, but how can they start using that money wisely and investing in their future? Keep reading to find out how you can guide your child towards smart financial decisions.  

Open a savings account and don’t touch it! 

The first step is for your child to open a savings account. Here they can stash a percentage of the money they’re making for future use. Time works wonders on money, so investing what they have will allow it to grow and become much more than it once was. That’s not all, though – make sure their savings account is strictly for saving and that it’s not being tapped into for other reasons. This will help them work on patience and self-control, too! 

Record and keep track of purchases. 

A great way for your teenager to find out if they’re overspending is to put it on paper. Have them keep a book and write down all the purchases they make. At the end of each week or month, they can look back at what they’ve spent and know what changes to make in their spending habits. 

Find a part-time or summer job. 

If your child is too busy to work during the school year, a great solution is to help them get a summer job. If weekends are open, they could even find a part-time, weekends-only job during the school year to help rake in some extra money. Working during summer break might not sound appealing to them, but many jobs aren’t bad if they are interested in what they’re doing. A common summer job that many high school students enjoy is lifeguarding since they can still be outdoors. 

Get a jumpstart on an emergency fund. 

If you haven’t talked to your teenager about the importance of an emergency fund, now’s a good time to do so. If they start putting money aside for emergencies only, they’ll be way ahead of the game by the time they need one as an adult. It’s never too early for your child to start investing in their future. Odds are, down the road they’ll need that emergency fund and will be more than thankful they started it early. 

Plan ahead and set goals. 

Once your high schooler graduates, they’ll be paying for things they might not have thought about. One smart move is to think ahead about what they’ll need to pay for so they can set a goal amount to save. For example, maybe they’ll need to buy a car, pay for college, move out and pay for rent, etc. Whatever it may be, having a goal in mind is a good motivator. 

There’s nothing better than planning ahead, achieving your goals and getting a jumpstart on the future. Your teenager will thank you later for guiding them towards smart financial decisions, and the best time for them to start implementing these tips into their life is now! To help them start saving, set up a savings account with us today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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I’m in Debt – What Should I Do?

While struggling with debt isn’t uncommon, getting out of it as soon as possible is important. Student loans, car loans, credit cards and other payments can lead to your pile of debt getting bigger and bigger. So, what steps should you take if you are in debt? Keep reading to find out. 

1. Clean Out Your House & Sell What You Don’t Use 

Start small and simply sell the things you don’t need. You’d be surprised how many things you have around the house that you never use. While doing this won’t erase your debt, it will give you some extra money to put towards paying it off and help you recognize some of the unnecessary purchases you’ve made. 

2. Find a Side Job 

If you have a full-time job but have weekends open, finding a part-time job to fill that time would be extremely beneficial. Working on your days off might not seem ideal, but if you’re serious about paying off your debt, it’s a great step in the right direction. Just remember these circumstances are temporary and the bigger your steps towards erasing your debt are, the quicker you can get it done. 

3. Analyze Your Spending Habits 

The best way to understand your spending habits is to write all of your payments from the last month or two down on paper. Once you see everything in front of you, try dividing that into categories – necessary expenses (like rent, utilities, groceries, etc.) and unnecessary expenses (coffee trips, clothes, video games, etc.). Now that you see how much you’ve spend on things that aren’t necessary, start rethinking the way you handle your money every day. Next time you think of buying that cute shirt, ask yourself if you need it. These small purchases add up and the money could be put towards your debt, instead! 

4. Never Spend More Than You Make 

How do people get into debt? They spend more money than they’re bringing in. If you’re trying to get rid of debt, you definitely can’t be adding more money to that pile. Trim down your budget so you know you’re making more than you’re spending. The best way to know if you’re doing this is to simply track everything you spend and everything you make. At the end of your pay period, make sure the money earned is higher than the money spent. 

Paying off the debt you owe might seem like a big job, but freedom from debt starts with taking the first step. Start by implementing these effective tips into your daily life, stay organized and keep a positive mindset. Debt is temporary if you work hard and stay motivated! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Most Common Money Mistakes to Avoid in Your 30s

Welcome to your 30s! This time of life is exciting, eventful and often comes with many financial decisions. These decisions have a big impact on your future as well as the future of your family. We hope you can learn from others’ mistakes and make smart money choices for a bright and less stressful future. 

Avoiding the Retirement Planning 

No matter what age you are, retirement often seems too far off to even imagine. In reality, it will sneak up faster than you think and the earlier you start preparing, the better off you’ll be. Talk to a financial advisor and get planning – your future self will be thankful you did! 

Living Beyond Your Means 

Comparison is dangerous and you might find yourself comparing your financial situation to others’. Doing this causes many people to make purchases they can’t afford, accumulate debt and end up regretting it. Now is the perfect time to build your wealth, so stick to a budget and make sure you’re living within your means. 

Breaking the Bank for Your First Baby 

Whether you have your first child in your early 20s or later in life, this is a common mistake so many first-time parents make. The medical expenses are one thing, but when excitement takes over, you may find yourself making big and often unnecessary purchases for your new arrival. Enjoy these times while you can, but remember to invest in your child’s future, too. 

Money Planning Before the Wedding 

If you plan on getting married soon, don’t forget about having the money conversation. It might not be appealing to discuss finances with your partner, but planning your financial future will help you avoid the common arguments and conflict that money can bring about in marriage. It’s also important to have a common financial goal when you’re married so you can be on the same page and both work towards achieving it. 

Whether you get married and have kids or not, this decade of your life will hold many important moments and decisions. We hope you can enjoy these moments while still making smart choices for you and your family’s future.  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender