Tag Archives: financial planning

person-planning

Financial Planning Basics

If you’re thinking about revamping the way you handle your finances, the first step is to plan. If you lay the details out and write things down, you’ll be much more likely to follow through and be financially wise. We’ve gathered some of the basic and practical tips when it comes to financial planning!

Start an Emergency Fund

You don’t realize how fast your money can disappear until an emergency happens and you have no choice but to spend your hard-earned money. Planning and implementing an emergency fund into your finances is so helpful and gives you a sense of peace knowing you have a backup. This emergency fund can start small and build over time, but having some sort of cushion in case of emergencies is better than nothing.

Live Within Your Means

This is a hard concept for many people to grasp. The mistake of living beyond your means for a temporary period of time is commonly made and always regretted. Remember the stage of life you’re in, then think about the unnecessary items you’ve been spending money on. Living within your means is easier said than done, but your future self will be thankful.

Review Last Year’s Spending

A great way to plan ahead financially is to look back on previous years’ expenses. If you’re hoping to save more money this year, reflect on your purchase regrets or unnecessary spending from the year before. What did you spend money on last year that you really didn’t need? Now start cutting back on those things in the future.

Contribute to Your Retirement Plan

Studies show that millennials are waiting longer and longer to start saving for their retirement. With things like student loans, housing, cars, etc. it’s not easy to save for so far in the future. It might seem far away now, but it will come sooner than you think and it’s much better to be prepared. Start small if needed and work your way up, but start nonetheless.

Save, Save and Save!

Start factoring savings into your expenses. If you put it on the backburner while trying to meet all of the other expenses first, you won’t be able to build up a healthy savings account. Set aside a certain percentage of your salary before paying all of the bills, or to make it even easier, just have it automatically deducted into a savings account.

These are just some of the many factors that go into smart financial planning. It’s always nice to be reminded of the basics, because sometimes those are what make the biggest difference! Start planning your finances wisely today by opening an account with us!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Building Your Financial Reputation

Personal Finances

Your financial reputation starts the day you are born with a social security number. Over years of saving and spending you build that reputation to showcase your fiscal responsibility to lenders. This is presented to potential creditors in a numerical form which showcases your financial risk and repayment capabilities. This number is a fluid piece of your personal information, adjusting with your incoming and outgoing financial endeavors.

There are five pinnacle pieces to your financial reputation, and at Peoples Bank & Trust we want to help you make the most of them!

35% – Payment History: This is the primary part of your financial reputation, which lays out your repayment patterns on various past and current debts. This can be anything from paying off your credit card each month, to keeping current on your mortgage payments. Companies that score your risk and liability potential take this into account first when determining your lending potential.

30% – Amounts Owed: This portion of your reputation is comprised of how much you owe on things such as your mortgage, credit cards, car payments, etc. There are certain areas of debt that are considered good, such as up kept loan payments, and other bad debt such as high credit card balances. By decreasing your bad debt and continuing to pay down your good debt, you can improve this important factor.

15% – Length of Credit History: This factor is simply how long you have been an established creditor. The longer your credit history, the more long-term habits can be observed. While this benefits those who have a well-rounded history, it makes it impossible for a new users to have a perfect financial reputation.

10% – Credit Diversity: This smaller portion of your financial reputation indicates the capacity you have for handling multiple types of repayment. If you pay down credit cards while staying current on your car loan installments and mortgage this shows that you are capable of managing more than one type of debt.

10% – New Credit: This final portion showcases your continuous use of credit through your personal finances. Occasionally having a new source of debt can be a positive thing to show that you haven’t paused your use of credit. However, applying to multiple credit cards within a short time period can raise a flag, potentially indicating financial trouble.

If you’re looking to improve your financial reputation there are three important things you can do!

  1. The best way to get started is to check your FICO score, and check it often. The best offense is a good defense, and knowing what obstacles are in front of you will help you prepare your best plan of action.
  2. Once you have this information in front of you, you can see where you still owe various debts. To help remind yourself when different bills are due, set alarms on your calendar to notify payment dates to assist you in staying current!
  3. The last and most effective thing you can do is to reduce the amount you owe. If you have a large amount of outstanding debt on various credit cards, paying them down can significantly affect how potential creditors see your lending potential.

If you have questions on how to get started, or what your next steps might be, drop us a line! We’re excited to help you get on the path to a successful financial reputation.

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

Get Your Finances Back on Track with a Check-Up

Has the summer put a wrench in your finances? Get them back in shape with a Mid-Summer Financial Checkup

Has the summer put a wrench in your finances? Get them back in shape with a Mid-Summer Financial Checkup

If your summer has been anything like ours, things have been a little crazy. Between activities, weddings, trips and finding things for the kids to do, your life and your finances can get a little out of whack.

Peoples Bank & Trust wants to give you a chance to revisit goals or resolutions you made with our Mid-Summer Financial Check-Up. It covers spending, saving, retirement, loans and mortgages. Whether you need to complete the specific items we highlight, or reading through it reminds you of tasks you need to complete, we hope our guide puts you on a better financial path for the rest of the summer.

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