Tag Archives: budget

Budgeting Basics: How to Save on Inconsistent Income

While budgeting for a fluctuating income can be difficult, Peoples Bank & Trust is here to help offer a few strategies to lessen the madness. Finding a process to help soften the blow of the months where revenue drops is a perfect solution. Check out the following rules you should follow when living on an inconsistent income.

Know Your Baseline

Always having an idea of your lowest point for income will help you prepare for the months where fewer dollars come through the door. You’ll also need to know your bare-bones budget, as in how much money do you need that month to make it through – like groceries, utilities, rent, childcare and so on. By knowing the minimum amount of money you need, you’ll be able to compare that to the minimum amount of money you’d potentially make that month. This will help you know what costs to cut, so you can break even!

Build Your Rainy Day Fund

Your emergency fund is there for times like this. If your income is fluctuating, you will need to prepare for the unexpected. The general rule of thumb for your rainy day fund is to accumulate three to six months of living expenses. Work on building up to the six months, and then add a little more for a buffer, in case your income is lower for a longer period of time than expected. This will save you from having to dip into a savings account if a large expense comes your way.

Give Yourself A Grace Period

It takes time to get into the budgeting rhythm, so don’t give up the first month if you don’t hit your goals. Keep your eyes on the prize and learn from your budgeting mistakes. If your income is unpredictable, it doesn’t mean your budget has to be. Utilize apps on your phone or make an old school spreadsheet – whatever works best for you! These tools will help you keep track of expenses, so you can stay on target as the months pass.

Spend Based Off Your Lowest Paycheck

When your income fluctuates from paycheck to paycheck, depending on how many sources of income you have, try basing your budget on your lowest paycheck. This will help you learn to keep your expenses low, while offering extra cash to pay off debt or add to your emergency fund.

We hope these budgeting basics help you continue to save and stay financially sturdy with an income that rises and falls. If you’re looking for a safe place to keep your savings, we have a savings account option for you! Peoples Bank & Trust also offers different solutions to grow your money, so feel free to discover more about the benefits of banking with us.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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

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 Have a Debt Free Holiday

Personal Finance

The holidays are filled with their own special traditions. From decorations, to gifts, feasts, and more, yule tidings never had so many ways to celebrate! While these gatherings are memorable to say the least, they often come with unwanted debt while working to achieve that perfect celebration. Throughout this time of year, many Americans turn to credit cards to help ease the burden of cost. There are some ways to maintain your ideal holiday, without the labor of debt. At Peoples Bank & Trust Co., we recommend the following steps:

Start Saving Early: While hindsight is always 20/20, this is a valuable tool when planning for next year’s events. If you set aside $100 a month, starting in January, your holiday savings will accumulate $1200 for this wonderful time of year! Alternatively, if you find yourself receiving a bonus, or bountiful tax refund, allocate those funds early on into your holiday savings, and put your $100 a month towards other savings goals. To help you save, Peoples Bank & Trust Co offers a Christmas Club account. This is a special, temporary account that is opened in November and comes with a coupon book prompting you to make small deposits all year long. Interest is paid on the account balance on the last day of the activity period and a check for the entire balance of the account is mailed to you the 3^rd week of October, just in time for the holidays.
Create a Holiday Budget: Completely separate from your current monthly budget, this holiday budget will help you plan for the funds you have saved. Just as your household needs to allocate money for food, home supplies, and bills, so does your holiday spending. Consider segmenting your budget into categories such as presents, food, and other supplies. Continuing to separate your budget for presents can be especially helpful. To track your spending best, write down each person you plan to buy for, and how much you would like to spend.
Save Money Where You Can. Throughout the coming months there are an array of opportunities for savvy shoppers to save. Whether it’s shopping during the famous Black Friday or Cyber Monday, or simply scanning the week’s grocery deals, each opportunity for savings is well worth the effort. With many Americans now shopping online, there are added ways to save through Amazon Prime, free shipping, and online apps to help get you the best deal. Don’t forget about those credit card rewards too – those are great points to put towards holiday travel or additional gifts for others.

This season, savor the memories more than the gifts! No matter what your budget is this season, at Peoples Bank & Trust we believe anyone can have a wonderful holiday. If you’d like to learn how to further organize your holiday budget, stop in today and speak with one of our customer service representatives. We’ll help you create the best holiday plan for you and your family.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Top 5 Budgeting Apps to Get You Organized

Budget

Have you noticed yourself hitting the “check out” button a little more frequently when you shop on your phone? You’re not alone. In 2015, mobile commerce grew to a staggering 30% of all U.S. online shopping. This shows a growing trend of mobile purchasing moving billions of dollars in sales via handheld technology.

While smart phones enable spending, they can also be powerful tools for strategic saving. Check out these top budgeting apps and learn how to easily keep track of your finances.

Mint. By pulling all your balances and transactions into one simple design, Mint allows you to see the big picture. You can add accounts, cards, and bills and track spending patterns and investments in real time. A budget calculated by your average spending will break down where your cash is flowing from month-to-month and year-to-year so you can watch your savings progress over time. (Free)
PocketGuard. If spur-of-the-moment spending is your weakness, PocketGuard is here for you. Connecting directly to your bank accounts, the app’s home screen tells you how much you’ve spent for the day, week, or month in relation to your income. With transactions automatically updated 24/7 you have an instant visual of your personal cash flow. (Free)
Level Money. This helpful app aids you in spending for the short-term and saving for the long-term. By analyzing your income and expenses, Level Money reveals a daily allowance to help you save for a larger purchases or pay down debt. Connect the app straight to your bank account and create goals for saving and spending, all backed by a planning module that sends reminders and encouragements to help you stick to your goals. (Free)
You Need a Budget. YNAB operates on four rules; give every dollar a job, save for a rainy day, roll with the punches, and live on last month’s income. This app adjusts your entire budget to prevent overspending. This app also ensures a constant safety cushion of funds so you’re never scrambling to cover unexpected expenses. ($5/month or $50/year)
Good Budget. Unclutter your envelope budget with this exciting app. Instead of juggling a stack of envelopes for different expenditure categories, you can open digital folders on one simple screen. For joint accounts, you can easily synch the app with your spouse across multiple devices to prevent double dipping into funds. ($15/3 months or $24/6 months)

If you’re ready to take the first steps in re-evaluating your budget stop by Peoples Bank & Trust today, we’re here to help with your budgeting needs.

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

Taking Baby Steps to Eliminate Your Debt

Eliminating Debt

As of 2015, the average American with credit card debt owes $15,762 – and that’s just credit. Auto loans, student loans, and mortgages add thousands of dollars and years of repayment to your personal finances. However, debt doesn’t have to be a life sentence. Once you and your partner have made the commitment to work towards financial freedom, follow these steps from Peoples Bank & Trust to begin eliminating debts:

Establish an emergency fund immediately. Unexpected events can take a harder hit on your savings than unbudgeted spending habits ever could. Even if you’re juggling a current debt or two, work to set aside $1,000 as soon as you can in a separate emergency checking account. As you chip away at remaining debt, this cushion can protect repayment plans from being flattened by a faulty car battery or flooded basement.
Adopt the Debt Snowball method. Instead of listing them highest to lowest by interest rates, arrange debts from smallest to largest. Paying off a handful of small debts in the same time it’d take to chip away at a large one eases burdens, yields immediate results, and provides motivation to continue saving.
Reduce your rates. Refinancing your mortgage and negotiating lower interest rates on credit cards can make a huge impact. Reevaluating your health, life, and auto insurance policies may reveal services you don’t need, or it can spur you to shop around for providers with lower rates.
Chop extraneous expenses. Create a list of unavoidable monthly expenses – rent, utilities, gas, food, etc. Then create a second list of leisure expenses – gym memberships, cable, eating out, clothing. After budgeting for the necessities, pick a few discretionary categories you’d like to keep with reduced spending, but cut the rest. Putting your spending on a diet is easier when you allow yourself a few modest outlets.
Evaluate progress monthly. Creating a multi-year financial plan for eliminating debt is the first step, not the only one. Perform a monthly check-up on your plan to continue spending within your budget. It can also provide a boost of encouragement when you see progress, and you might spot ways in your new financial routine to make your budget even more cost-effective.

It may be a long road to eliminate debt, but it’s within your ability to travel it. Don’t go it alone – contact Peoples Bank & Trust Co. today to help you create and stick to your financial plan.

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

How-To Save for Your New Vehicle

auto savings

Purchasing a new vehicle is always an exciting venture. Peoples Bank & Trust wants to help you maximize your buying experience with a strategic and helpful savings plan! Before you start roaming the car lots, glance at our easy auto check list to see what type of vehicle both you and your budget are searching for.

Determine if you want a new or used vehicle.

Many auto dealers today offer both new and used. While new can offer updated technology and the assurance of no prior owners, choosing a used vehicle can drastically diminish cost and offers a comparable quality with moderate mileage.

Decide on a budget and a timeline.

When choosing the right vehicle to purchase, there are many questions to help you research which option may be best on your pocket book in the long run.

-How long do you want to drive this vehicle?

-What does your budget allow you to spend for the down payment and installments?

-When do you need your vehicle by?

-What type of MPG do you need to keep gas costs within your overall budget?

-How long do you want to be paying the loan off?

With these questions in mind you can better view the credentials needed in the ideal vehicle for you and your family.

Do your part to save.

Once you have your budget set, it’s time to start saving! By putting aside a designated amount from each paycheck towards your new car, you can create a timeline for when you plan on purchasing it! In addition to these savings, cutting any additional spending can help you allocate more funds towards your new ride. Eating in more, buying generic, and carpooling to work are just a few ways to save some extra change.

Talk to us!

If you have questions regarding your savings plan stop by your nearest location today. We’re happy to help, and look forward to making your auto buying dreams a reality.

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

Home Buying in 5 Easy Steps

Mortgage

So you’ve decided to buy a home. Congratulations! You are about to embark on one of the most important purchases of your life. With so many options and financial decisions ahead of you, here are some key tips we want to share to help determine your ideal path to home ownership.

Evaluate your Financial Readiness

There are many factors in determining your current financial capabilities when considering the purchase of a home. Add up your current monthly expenses, except for your current rent payment, and see if a mortgage payment can effectively be added without diminishing your overall monthly budget. If the answer is yes than it’s time to check your credit history! Every bank, and the individual loan types they offer, have various requirements. Take the time to research these programs and determine which suits your specific needs.

Get a Mortgage Pre-Approval

Once you know your ideal lending option, it’s time to get pre-approved! By speaking with one of our experienced lenders you can determine if you qualify for various loan offerings, and at what amount and terms.

Determine Your Overall Budget

Even if you qualify for more, it may be beneficial to cap your budget at a smaller amount. This will help you prepare for any unforeseen expenses, or higher than anticipated utility bills. Other factors to consider in setting your budget are savings goals, planned future expenses, additional costs to commute, and any unplanned repairs or renovations to the home.

Find Your Perfect Home

Take your time while searching for your perfect home. Most home buyers stay in the same home for nine years before moving again, so you want to make sure this new house has everything your family needs. By working with a trusted local realtor you can ensure that you see all available properties within your budget, and act on new listings quickly!

Close the Deal

Once you’ve made an offer on your dream home it’s time to make the purchase official! Work with your realtor to sign the purchase agreement, and close the transaction. Your mortgage lender at Peoples Bank & Trust will work to ensure the funds for your home mortgage arrive quickly and hassle-free. Once the t’s are crossed and the i’s are dotted, you are officially a home owner!

After becoming an official home owner it’s time to celebrate! You did it! At Peoples Bank & Trust we want to help guide you through your home buying adventure! Give us a call at (636) 528-7001 or apply online today to get started.

Peoples Bank & Trust Co.

NMLS# 407724

Equal Housing Lender

Member FDIC

Save $5000 This Year with our 52-Week Challenge

savings

Whether it’s a house, a new vehicle, or other lending options, having a down payment is always a great first step. In this 52-week challenge you will begin saving a little at a time to accumulate $5000 this year! Here’s how it works, every week you deposit a different amount into your savings account. As the weeks go on you begin to build a steady base little by little. At the end of the year you will have saved $5000 when done correctly. You can also add to the numbers shown below if you’d like to save more than $5000. Simply take the additional amount you would like to save, and divide it by 52. Now add that number to each of the deposit amounts for the year and you have your game plan.

Savings

$5000 is a substantial sum of money that offers endless potential, so here are some ideas to get you started!

Vacation: Take a break and enjoy an exciting new destination with your family! Cruises start at less than $700 per person, and a week in Florida typically runs $4000+ for a family of four. The possibilities are endless!

New Vehicle: You can purchase a used vehicle with the $5000 (or less), or you can use the $5000 to put a down payments on a more expensive vehicle you’ve had your eye on.

Down Payment on a Home: Now with FHA loan offerings new home buyers can afford a mortgage easier than ever! Every home is different, but with $5000 you’re off to a great start!

Wedding: A little creativity may be involved but the celebration can go on! With the largest event expenses being the venue, food, and photographer, finding inventive shortcuts can turn $5000 into the wedding of your dreams!

With so many exciting things to save for, be sure to start our 52-week saving challenge ASAP! The sooner you begin saving, the sooner you can enjoy your reward. Let Peoples Bank & Trust help you get off on the right food with our easy and affordable savings account options!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Helpful Links »