Tag Archives: budgeting

The Spender's Guide to Saving Money in 2023

The Spender’s Guide to Saving Money in 2023 

For those who love to spend money or often find it hard to restrain their purchases – this blog is meant for you to start 2023 off with smart saving habits. Spending money is most definitely easier than saving. Here are some tips to rein in on spending as well as save when spending. Keep reading to learn the spender’s guide to saving money in 2023.  

Step 1: Automate Your Paychecks  

Automating your paychecks is an easy way to save your money and hold yourself accountable to your budget. Distributing your paycheck each time will send a percentage of your money (up to you the percentage you set) directly into your designated account. Doing this allows you to allocate funds towards your savings, emergency fund, checking account, budget for bills, etc. It is important to set aside money for your fixed expenses as well as money used for coffee outings, gas, occasional splurges and such.  

Need a savings or checking account – we can help!  

Step 2: Utilize Autopay 

Along with automating your paycheck, it can also be a tip for budgeting and saving by utilizing autopay. Some companies even offer discounts simply for using automated payments. Companies such as internet providers, cellular businesses, and television networks will offer similar discounts. Look into this option to not only keep you organized and on track, but potentially add some additional savings to your pocket.  

The benefit of autopay can be a reward to you as it shows a level of commitment to paying your bills to a company. This is a great option to a avoid the potential of a late payment solely due to forgetting.  

Step 3: Don’t Keep Too Much Cash  

Spending cash can work for some but can also be difficult for others to spend sparingly. Even though you may automate your payments and paycheck, you can still leave aside a few hundred dollars (or whatever best fits your budget) as spending cash. A tip is to not keep your cash casually in your wallet to avoid spending it on random purchases. Plan out your spending in advance and get your cash out when and if you need it.  

If you find yourself spending money on non-essentials frequently, consider getting a white board or a day planner to list out those items, as well as items you have run out of, to plan into your budget in advance to grab the next time you are out.  

Step 4: Take Advantage of Cash Back on Your Purchases 

There are so many ways to take advantage of cashback on your everyday purchases. Many credit cards come with rewards that feature a cashback program. If you need a credit card, click here to learn more.  

Step 5: Use Store Rewards and Coupons  

When you plan to make a purchase, plan in advance what you’ll be getting and do your research to see if you can take advantage of your store rewards or apply any coupons. Most common stores typically over a rewards program. Sign up for store rewards and notifications for deals or coupons – if you find it offers no benefits, it is simple to unsubscribe.  

Saving money can be hard especially after a season known for spending! Take the tips from our Spender’s Guide for Saving to apply into your day-today and new year’s savings resolutions! 

Peoples Bank & Trust Co.  

Member FDIC  

Equal Housing Lender  

How to Save When Eating Out

How to Save When Eating Out  

Eating out is sometimes more than just giving our body the nutrients it needs, it can be fun, different than the norm, and be a social outing. We all need to eat to live, but for those who live to eat out, here are some tips to lower your bill but still enjoy that meal out here and there.  

Change Your Drink Order 

As much as we all love a good fountain soda here and there, the extra money spent on coffees, tea, and soda adds up. Most of the time, water is free so if your goal is to save extra, try out water instead. A tip is to carry a water enhancer with you to add flavor or to order your water with a lemon for a citrus flavor. We all love a good cup of coffee or tea but remember you are there for the food. Specialty coffees over time add up to be just as much as a light meal.  

Lunch Over Supper  

This is probably a given, but we all know restaurants that have both a lunch and supper menu. Supper tends to be a much larger and more pricey meal. Lunch tends to be a lot cheaper, and you also get some extras like soup or a salad to fill you up.  

Opt for an Appetizer and Share  

If you are ordering off the main menu, scratch the appetizer for additional savings. If you are looking to save, sometimes splitting one or two appetizers with your lunch date can be more cost-effective than the main dish. Also peek at the side options, if you are looking for something light opt for a few sides for a low bill.  

Go Out During the Week Over the Weekend 

Restaurants tend to have some deals or specials they run during the week rather than on the weekend when more people tend to eat out. Earlier in the week may be your best bet for a steal as most places are looking to fill their booths. Some even have nights where the kids eat free.  

Go During Happy Hour 

Happy hour is a lot of fun and can be the best time to catch a bite or meet up with a friend and get the biggest bang for your buck. Many restaurants will have their happy hour menu set on their website. Whether you eat some appetizers (a great option for a large group) during happy hour to get your fix or start with something light to hold you over, try out a happy hour instead of going during mealtime.  

Prioritize Your Meal Plans 

If you are someone who enjoys eating out, it can be very hard to avoid it at all costs. Most people tend to really enjoy it here and there. The better you can make plans in advance and do your research, the more you will save on those one-off meals when you are truly in a rush.  

Summer is right around the corner, and we tend to get busier and busier with activities and often take the easy way out for meals. Save a little extra this summer and put some thought into your eating-out routine. Try out these seven tips and tricks to avoid blowing your budget on food this summer! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Most Common Money Mistakes to Avoid This Summer

Most Common Money Mistakes to Avoid This Summer  

We all tend to want to relax, let loose, and have a little extra fun in the summer months. Don’t let that summer fun lead to overspending or big money mistakes. Maintain your budget by reading up on the 12 most common money mistakes to avoid this summer.  

1. Not Setting Your Summer Budget 

A huge mistake we all tend to make during the summertime is not adequately planning out activities – especially the pricey ones and setting an accurate budget for them. Overspending on activities is a huge factor that may take you over budget. We know fun tends to happen out of the blue in the summer, so be prepared for that and do as much planning prior.  

2. Not Budgeting for Gifts  

Summer is the prime time for celebrations such as reunions, weddings, graduations, etc. You’ll thank yourself later if you start budgeting for those gifts now rather than later. Keep your celebration expenditures within your budget.  

3. Keeping Your Home Too Cool 

Your air conditioner is probably the most expensive item on your energy bill. When you are gone or the weather is cool, don’t run it! Saving energy here and there will help lower the bill for some additional savings and keep you from a hefty bill.  

4. Keeping the Blinds Open During the Daytime 

We all love the summer sunshine, but during the summer it’s worth it to keep those blinds closed. If you are running your AC and have your blinds open during the day, you are heating your house up and your bill is likely to soar.  

5. Spending Too Much on Summer Activities for the Kids 

Whether it be for a babysitter or day-to-day activities, map out your plan for summer. All parents want to keep the kids occupied and allow them to have tons of fun this summer. Map out your plan for childcare and make sure it meshes well with activities for them, so you aren’t paying for both every day. Look into day camps or babysitters that also help with your kid’s friends, that way you can get the biggest bang for your buck. 

6. Buying Out-of-Season Produce 

We all tend to want fresh produce during the summer as it is refreshing and a great treat. Make sure you check the prices, especially on out-of-season produce to avoid overspending on produce that may not be the best. Check out the farmers’ market to grab produce for less. 

7. Choosing Vacation Over Staycation 

A vacation may be a huge chunk of your summer budget and it may take even more if you haven’t booked the details yet. Rather than rushing to plan, push for a staycation to take a break but vacation close to home.  

8. Not Waiting for End-of-Season Sales  

Summer purchases in season can be spendy. Look to purchase towards the end of the season to save hundreds on those big-ticket items when you upgrade the grill, patio furniture, pool accessories, etc.  

9. Not Canceling Subscriptions and Memberships 

Cancel those subscriptions and memberships you can live without during the summer. Get rid of your gym membership and exercise for free outdoors! Challenge yourself to go a few months without streaming subscriptions or narrow down to keeping just one.  

10. Not Taking Advantage of Lower-Priced Activities 

There is a lot going on in the summer, so before you spend your summer savings on activities, do your research for lower-priced or free activities to enjoy and layer those with outdoor activities. Take advantage of outdoor carnivals, festivals, water activities, sports, parks, and recreational activities.  

11. Overspending Too Much on Summer Fun 

For some activities, rather than purchasing a day ticket, you can get a summer membership or a month-long membership to enjoy the fun longer and get some sort of deal. Take advantage of these opportunities that have a set cost to budget for. 

12. Not Making a Meal Plan  

Meal planning is huge in the summertime. Go to the store with a list and meal options in mind to work seamlessly with the week you have ahead. It is great to plan for snacks on the go as well to avoid mindlessly spending money on food out.  

Take some time to plan out your summer expectations, events, and budget to save yourself from making one of these money mistakes. Make your summer fun and financially efficient with these tips! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

home

Budgeting Checklist for Buying Your First Home

Buying your first home can be an exciting, but overwhelming experience. With the right bank and agent, most of the hassle should be taken off your shoulders. So now, it’s time to make sure you’re checking these items off your list to allow for a smooth house buying journey – without breaking the bank.

Check Your Credit Score

This is always one of the top points on anyone’s list. Making sure your credit score is high and on the rise will allow you the opportunity for better rates! Look for any issues with your report and contact the credit bureau to get them fixed.

Gather Your Documentation

You’ll need to get your documents in order when coming to the bank to discuss a pre-approval letter and loan. To help you get started, you should plan to have the following documents when applying – but contact us to find out if there’s anything else you’ll need in advance: 

  • Income verification/employment – Last two years’ tax returns, W-2s, 1099s and your last few pay stubs
  • Credit/ID – Drivers’ license, Social Security card or acceptable alternatives
  • Financial condition – Bank and brokerage account statements including retirement accounts, proof of funds to close or a gift letter (if your down payment is coming from a gift)

Secure Pre-approval

Having a pre-approval letter shows a buyer you are serious and have the funds to afford the home. This also lets you know how much home you can afford, so you don’t start hunting for houses that are out of your budget.

Decide On Your Max

Even if you can afford a certain amount, not spending it all may be wise. Scale back a little and decide on the price you’re willing to spend and hold yourself accountable to not pass that limit.

Think Of Additional Expenses

Repairs, maintenance, monthly bills, moving costs and closing costs will all factor into your budget. Know how much income you are making each month and subtract all of these costs, as well as other items like gas, groceries, loans and so forth. This will show you how much you’ll actually have left over to put towards your mortgage payments. Deciding on your max budget will only help you – instead of spending the full amount you may actually be able to afford.

We hope this checklist reminds you of the items you need to complete and think of to help you stay within your budget. If you’re looking for a great place to get your mortgage, we’re here for you! Contact us or stop on in to allow us to help you on the path to buying your dream home!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

emergency

3 Questions to Ask Before Using Your Emergency Fund

Emergency Fund

If you’re new to budgeting, we recommend having a $1,000 cushion to help offset the cost of an emergency expense without it derailing the rest of your budget. If you aren’t able to put the $1,000 aside now, start small and work your way up to a number that is comfortable for you.

When is a financial emergency, truly an emergency? Establishing an emergency fund is an incredibly important part of your budget, but knowing when to use it is just as important. Ask yourself these three questions before dipping into the pot:

  • Is it unexpected?

Unfortunately, life can hit us with some difficult challenges that result in significant financial hardship. These are the situations in which use of the emergency fund is acceptable. This could be an unforeseen medical expense, like a child’s broken arm. Or, maybe you lost your job and will need some help getting the bills paid until you find new employment.  These type of events are unexpected and difficult to plan for, as you hope you will never have to face them. What would not be “allowable” is using the EF (Emergency Fund) to pay for expenses that you know are coming each month, such as a cable or utility bill.

  • Is it urgent?

The word emergency typically implies immediate. For example, if you have a sick loved one who needs you across the country, it won’t do them any good for you to wait until you have saved up enough money to visit. They need you now and it is reasonable to use the EF to get there.

  • Will it fulfill a need?

For many, it can be tempting to spend the large amount of money accumulating in your emergency fund. But this is where you need to truly consider needs vs. wants. For example, let’s say your dishwasher broke. Of course, this is not ideal and can make your life more difficult, especially if you have many people in your household.  However, it wouldn’t be categorized as a need. You can wash dishes by hand and start saving for a new one. But, if your dishwasher broke causing water damage to the cabinetry, this would qualify as an unexpected and urgent need to take care of as soon as possible.

If you’re looking for a safe place to keep your emergency fund, allow us to help it grow a little by placing it in a savings account with us!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Why Your Child’s Allowance Should be Tied to Their Chores

Financial Education

There are literally thousands of how-to’s and self-help books for parents, but truly the only real way to learn how to raise a child is to do it! Luckily our growing team of parents at Peoples Bank & Trust have some true hands-on experience when it comes to upbringing and explaining money management to little ones.

One of the most common fiscal questions parents have concerning their child’s financial education is, “How do I teach them about money using an allowance.” The simple answer is, however you want. There are a number of ways you can utilize a recurring allowance to help your children understand both the importance of good money management and a sound work ethic. Below are two of our favorite strategies:

Example #1: Earn Your Extras

In this scenario, allowances are guaranteed to an extent. Every two weeks give your child a pre-determined amount of cash, say $5.00. That money then has to be split evenly between their educational savings and their retirement savings (yes – retirement savings!) While this money is technically theirs for future use, they have no tangible money to immediately spend. Where the fun part comes in, is the commission. Assign a small dollar value to various tasks around the house. Ensure things like making their bed, or doing their homework are givens, and they are required to do them no matter what. However, extra work such as mowing the lawn, cleaning the bathroom, or cooking dinner, earn a predetermined amount of commission. Paid every two weeks, this commission is then theirs to split between three areas: save, spend, and donate, but they MUST allocate at least $0.50 in each area. This lesson teaches three primary lessons: the first is housework is a part of everyday life and it doesn’t come with a paycheck. The second lesson is that working hard pays off, and the third is that creating a plan or budget for your money allows you to use it as a tool instead of using debt as a burden.

Example #2: Ambition Is Important

There is a viral story trending about a young boy whose allowance was determined by how many self-help books he read and wrote a report on. This simple lesson offers many variations and proves an important point on the dedication to values at a young age. For this example, there is no guaranteed allowance on a weekly or monthly basis. In this scenario, all funds are accumulated via commission. How that commission is earned is determined by you. This can be the number of extra assignments completed or the amount of successfully replicated YouTube tutorials. It could even be the quantity of miles your child is dedicated to running each week. Through this valuable learning experience, you can showcase to them that a solid work ethic is pinnacle to success, and can at times even out earn an education.

However you decide to help your children understand the complexities of personal finance, Peoples Bank & Trust is here to support you. Stop in today, and ask about our designated children’s savings accounts. We’d love to help your family get started on their journey to financial success.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Water Your Lawn & Your Wallet Too

Savings

If you’d like to grow your landscape and your finances this season, Peoples Bank & Trust has the perfect tips for you! To jumpstart this warmer weather, we’re excited to share our top tips and tricks to maintaining a healthy lawn and garden without digging too deep into your budget:

Seed your lawn early on. Get the growing season started right, and give your landscape some food to help it grow. By not only seeding your grass, but adding fertilizer as well, you can help ensure that your roots grow strong and healthy to fight off intermittent weather changes and pesky pets.

Automate your watering routine.  Keep your landscape looking green by maintaining a daily watering routine without all the fuss of hoses and watering cans. By setting up an automated system, you can make certain you’re not wasting water, while also saving additional funds from no longer needing to replace malnourished plants.

Utilize alternative landscaping options. Reduce your overall recurring costs by taking advantage of helpful products such as landscape fabric, river rock, and various xeriscaping plants. By using these tools to grow foliage other than grass you can cut down on your time and expenses associated with mowing and upkeep.

Other Outdoor Savings Tips: While the above tips can aid you in keeping a green and healthy landscape, saving money isn’t  about maintenance only. To help continue your savings in other areas of lawn care, we wanted to share some further tricks in how to reduce other outdoor expenditures associated with your growing landscape.

  • Choose colorful perennials over less-timely annuals when planting flowers. While annuals can have prominent blooms that catch your eye, these flora varieties will need to be re-planted every year. Avoid paying for new seedlings each spring by utilizing returning perennials plants instead. These recurring blooms will hibernate underground each winter, and emerge where they were originally planted year after year.
  • Plant prosperous fruit trees for added shade and earning through plant production. By providing an escape from heated sunlight, shade producing trees can help decrease the cost of your home’s monthly cooling bill. If you choose a tree that also produces fruit you can typically accumulate $200 or more worth of produce that you have the potential to sell as well.

Make the most of this planting season, and create a garden that will give you both joy and savings. We can’t wait to see what you and your family create, be sure to post photos of your outdoor creations on our Facebook page. We’d love to see what ideas and hacks you use!

Where Will You Be in 5 Years?

Financial Goals

Establishing your personal finances isn’t an overnight process, but deciding to start can be! Whether you want to save $1,000,000 for retirement, pay your child’s education, or become debt-free, choosing your next fiscal goal is the first step. At Peoples Bank & Trust we want to help you not only achieve your next financial aspiration but each and every one that follows! To help you start planning for the future we’ve compiled this strategic list to ensure you start your journey on the right foot. Here’s where to begin:

The first 2 Years:

  • Establish Financial Goals
  • Pay Yourself First
  • Create an Emergency Fund

During these years your primary priority is creating a solid foundation for your personal finances.  By deciding which goals mean the most to you, establishing monthly savings, and working those initiatives into a well-rounded emergency fund, you can be certain that whatever life throws at you, you and your finances will find a way to get through it.

Years 3 and 4:

  • Begin Your Debt Snowball
  • Build Your Credit History
  • Start Your Retirement Savings

The following two years will be creating the framework of your ongoing financial aspirations. These components will help ensure that your continued savings efforts are brought to fruition through retirement planning and debt elimination. Once you become debt free, the world is your oyster! Your final step to financial freedom is choosing where you want your journey to take you next.

The 5th Year:

  • Choose a Giving Strategy
  • Begin Investing
  • Determine Your Next Goal

Throughout the final year of this financial compilation, you should become focused on the future. Now that your debts are erased, your savings have been started, and you have put your money to work, it’s time to decide what you want to do with those funds. This is an extremely personal choice and should be made with the best intentions and available information. However, should you need assistance or further insight into possibilities, our dedicated team is here to help.

 
Over the next five years, we believe you can accomplish all of these endeavors and more. If you’re ready to begin your financial journey, stop by your nearest Peoples Bank & Trust branch today and speak with one of our personal bankers to get started. We’d love to help you achieve your personal and financial goals, one year at a time!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

10 Financial Resolutions for 2017

Money Management

A new year brings exciting opportunities along with the promise of a fresh slate. Start 2017 off on the right foot with these 10 tips from Peoples Bank & Trust Co.:

  1. $1,000 Emergency Fund. Did you know most Americans do not have the savings needed to cover unexpected expenses or bills? By accumulating a decent emergency fund you have the potential to continue saving instead of withdrawing money from your monthly budget for each unplanned expense. Experts say to start with $1,000 and slowly work your way up to a three to six months’ salary of savings.
  2. Maximize Your 401(k). Employers who offer a 401(k) benefit often supplement it by matching a percentage of contributions. To take advantage of their FREE matching, start by contributing at least three percent of your income. Over time, increase it to the maximum amount. These funds will continue to grow over the coming decades and help you to build a well-rounded retirement plan.
  3. Start Saving in an IRA. Similar to the 401(k), an IRA is a great way to help you save money for your retirement. These accounts are not typically provided by your employer, but can be started through a bank or financial adviser. There are two options to choose from: A Traditional IRA  or a Roth IRA. A Traditional IRA will allow you to contribute pre-tax dollars and pay taxes upon receiving distributions at age 60. A Roth IRA will let you contribute post-tax dollars, but you don’t have to pay taxes when you receive distributions after age 60. Both options have a limit to how much you can contribute each year, so start with an affordable amount, and slowly work your way up to the maximum.
  4. File Your Taxes Early. Before the end of the year, every employee should receive their tax forms from their employers. With this information in hand, you can make an appointment with your local tax professional to determine your maximum refund. These funds can then be allocated towards paying down debt, contributing to your IRA, or deposited in your growing savings account.
  5. Save for Your Child’s Education. Children learn a great deal from their parents. Show them how to save, and get them involved with saving for their own education. By making automated transfers each month, you can ensure that you will have a designated amount to invest in their future. By incorporating this into an account like a Coverdell or 529 Plan, you can help these funds grow tax free. They can then be used for educational expenses like tuition, books, or computer equipment.
  6. Pay Off Your Credit Cards. Credit cards are notorious for having sky high interest rates. By paying off your debt quickly, you can save money. To help, our convenient calculator can determine how much you need to allocate each month for a debt-free 2017.
  7. Switch to a Community Bank. Community banks like Peoples Bank & Trust offer impeccable service without the hassle of unwanted fees. Staffed with experienced financial professionals, we have the tools to help you achieve your next financial goal.
  8. Save 10 Percent. Between your retirement, your child’s education, and your emergency fund, you should be covered for most of life’s unexpected expenses. While it’s great to save for the unexpected, having a fun goal to aim for makes the process more exciting by giving you a tangible experience to look forward to.
  9. Monitor Your Credit Score. One of the easiest ways to let your credit score dip is to forget about it! Comprised of payment history, number of accounts, and several other factors, one loose bill has the potential to compromise your entire score. The one federally authorized FREE credit reporting site, annualcreditreport.com, allows every American to have one copy of their credit report from all three reporting bureaus. This is a great tool to use annually; however, each month it is a good idea to check and see if there have been any changes. Many credit cards are now offering a service for this to help their consumers keep on top of their score.
  10. Create a Monthly Budget. Hands down the one change you can make with the biggest impact on your personal finances is to create a monthly budget. By allocating every dollar you earn to a role each month, you can ensure no money is wasted. This will also help you gain better insight into where you’re spending your funds giving you additional opportunities to find savings.

By accomplishing each of these goals in the New Year, you will complete the basic steps to attaining better personal finances. With the help of our dedicated team, you can begin today. Stop by one of our locations and see what your first step could be!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How a $1,403 Cup of Coffee is a Bargain

Retirement

What do you dream of doing when you retire? Relaxing at home, traveling the world, or maybe a mix of both. Wherever your retirement takes you, you’ll want to be sure your savings can support your future lifestyle. Keep your dreams on track and follow this simple guide courtesy of Peoples Bank & Trust.

When you decide to retire, you start to receive the benefit of those hard-earned savings you’ve tucked away. Interest earned from these savings, along with any assistance you may receive, will soon become your primary source of income. This means that in order to have a successful retirement, you need to have a successful savings.

As of today, the estimated cost of future income is $16.75. This means that if you want to accrue $1 in earned income each year, you need to keep a savings of $16.75 in the bank. Now, let’s say for example, one of your retirement goals is to go down to the local diner each weekend and meet with friends for a cup of coffee. This cup of coffee costs $1.61, and for the sake of simplicity we won’t factor in inflation.

$1.61 x 52 weeks = $83.72 for your yearly coffee.

At $83.72 for the year, that would calculate to be $837.20 over the course of a decade, and $2511.60 over the next 30 years. However, once we calculate the current dollar of future income:

$83.72 x $16.76 = $1403.15 to cover your coffee for 30 years.

By this measure, you can pay for $2511.60 of weekend coffee, over the course of 30 years, by utilizing the $87.72 yearly interest on a total sum of $1403.15.

Concepts like this help showcase the incredible potential your retirement can hold! If you’re curious on how to maximize your savings, stop in today to speak with one of our knowledgeable customer service representatives.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender