Tag Archives: personal finance

6 Ways to Win with Your Budget

Savings Tips

Do your savings goals make you feel frozen? Get back on the ice this season, and let Peoples Bank & Trust help you win your personal financial game. We’ll show you how to keep pushing forward with these strategic hockey tactics:

Find the 5-hole.

One of the first and most important ways to save is to keep your eyes open! Whether it’s taking advantage of grocery store specials, buying household items in bulk, or cutting spending from your monthly budget, the biggest opportunity you have while saving money is continually searching for new ways to save.

Complete the hat-trick.

Before you start saving for the short-term items, be sure you have the long-term set in place. Just as in hockey, there are three things you need, to make the best play of the game. Start by setting up an emergency savings account, to help guard your savings. Follow up by opening a personal retirement account such as IRA, to continually grow your savings. For the last trick of the play, we suggest creating a 529 or Coverdell account to help save for your child’s future education. These three accounts will help not only you score your savings goals but will assist you in winning your entire financial game as well.

Put your debt against the boards.

Show your debt whose boss, and push them against the glass. By aggressively paying off your outstanding debt, you make additional funds available to further your monthly savings. We recommend paying the minimum payment on each debt, and then using any surplus funds to add extra payments to help pay it off sooner. Once you have paid off a debt, use the funds from that allocation to help erase the next obstacle, one payment at a time.

Place your spending in the penalty box.

While working on your savings goals, look into your monthly spending to see where you can cut costs. Consider reducing your funds for eating out and entertainment. The extra money can go towards your debt, or once paid off, can help you achieve your savings goal sooner!

To help, there are some innovative apps available that can you visualize your various expenses.

Beat the buzzer.

Saving for retirement is a marathon, not a sprint. Like hockey, if you don’t play until the end, you may lose the game in the last five minutes. To help prevent this, we recommend working with a personal financial adviser, ensuring your funds are in the right place at the right time. If you make a pass and transfer them to stocks too late, you could lose money and valuable time. We suggest creating a strategic and well-coordinated retirement plan to make certain all your savings get time on the ice, and your key players continue to stay in the game.

Drop your gloves for additional fees.

Whether it’s big banks searching for unnecessary add-ons, or potential financial advisers looking for a percentage of earnings, don’t be afraid to negotiate fees you deem excessive. The business is certain to have referees to let you know if you’re asking too much. However, it never hurts to ask!

 
With our affordable deposit accounts and expert financial coaching, we look forward to helping you sink your upcoming goal in the back of the net! Stop by and meet our dedicated team today!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Save for Retirement at Every Age

Retirement Savings

How much do you need to retire? Will you continue working after age 65? Do you want to travel during your retirement? These are just a handful of questions that are important for retirement preparation. Unlike saving for a home or new vehicle, saving for retirement requires long-term commitment and goal oriented benchmarks. At Peoples Bank & Trust we want to help you succeed as you save, and offer these milestone marks:

Age 18-25: During this point in your life, you are discovering what you want to do, and how to get there. Focus on creating a solid foundation through a monthly budget, and designated emergency fund. If your employer offers a 401(k) option we highly recommend utilizing its potential by contributing the maximum amount your budget will allow. Always be sure to take advantage of a company matching policy if available.

Age 25-35: In addition to your 401(k), we also suggest opening an IRA. This enables you to continue to save without having your funds tied to an employer. Now is a great time to take advantage of other tax beneficial accounts, such as an H.S.A., 529, or Coverdell account. Both the 529 and Coverdell accounts aide you in saving for your child’s education without the burden taxes.

Age 35-45: One of the key aspects of retirement is making sure your money is where you need it when you need it. An experienced financial adviser can help you invest in appropriate stocks, bonds, and other financial strategies. Together you can construct a plan to ensure your risk decreases as you age, and be certain the funds you need are available upon retirement.

Age 45-55: Now is the time to examine your current career path, and determine the year at which you would like to retire. Although the average age of retirement is 66, this may not hold true for you. Whether you decide to retire later at 72, or earlier at 57, you’ll need to have this number available to help continue the development of your savings. To easily calculate your current savings projection, this tool can provide the most accurate information to help you make the most informed decision for your specific goal.

Age 55-66: During this time you may begin to qualify for distributions from your 401(k) and IRA. By postponing these distributions, you can continue to save, and work to build your retirement nest egg before you need it. Additionally, look into various employment options upon retirement. If you decide to work part-time for enjoyment, it could mean added savings to help you afford extra splurges in the future.

Age 66 and up: Once you have officially retired, you will begin to take distributions from your 401(k) and IRA. While both a 401(k) and Traditional IRA require you to accept funds after age 70 ½, a Roth IRA can remain untouched until you decide to use the money. For this reason, we recommend using a Roth IRA when your income levels allow.

We look forward to joining you on your journey to retirement. Whether it’s in 10 years or 50, it’s never too early to start saving!

Peoples Bank & Trust Co.

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 3rd 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

10 Things Financially Successful People Do

Personal Finances

Ever wonder how Mark Zuckerberg or Richard Branson got where they are today? Success doesn’t come easy, but it grows where it is watered. At Peoples Bank & Trust, we want to help you climb into financial success with these simple tactics! Learn how to begin your money management journey with these 10 key actions:

1. Wake up early. The early bird gets the worm! Take care of morning tasks at the start of the day to start crossing items off your to-do list before you leave the house. Paying your bills in the morning can be a great way to avoid stressing out about it later, plus then you’ll know where you stand before the day’s purchases!

2. Say no. No is a powerful word. When waiting in the grocery line, saying “no thanks” to those tempting impulse buys can mean the difference between saving each month and spending over your budget.

3. Create a routine. Pay your bills on time, at the same time each and every month. By establishing a regular bill pay schedule you can ensure that each month you allocate the appropriate funds before the designated day.

4. Treat failure as a lesson. Miss a payment? Over withdraw from your account? No worries, it happens. Instead of getting upset about this simple mistake, take a it as a learning experience. Commit to not making that error again, and determine what steps you can do to stay on track.

5. Organize everything. Between your income statements, taxes, payment schedule and more, ensure that all your financial documents have a designated home. Investing in sound organizational tools will pay off in the long run by eliminating errors and boosting your managing capabilities.

6. Think Long-Term. Do you know where you want your finances to be six months from now? How about six years from now? By thinking beyond your immediate financial needs, you can create a well-rounded plan to help you avoid future financial troubles!

7. Live Frugally. Stretching those hard earned dollars doesn’t always come easy. Cooking instead of eating out, or buying used instead of new are some common ways to save throughout the year. By spending less you can increase your available funds to pay down debt and build your savings.

8. Automate Payments. Between tucking funds away for your 401(k) and paying your cell phone bill, there is a wide variety of ways to automate your money management. For monthly expenses and incomes, automation is a great tool to use. The old saying, “out of sight out of mind,” is tried and true. By automatically debiting your 401(k) each month, you’ll learn to budget your available funds without your subtracted savings.

9. Eliminate Balances. Credit Card and other debt balances pull your credit score down. Boost your numbers up and up by paring down your debt!

10. Grow Your Goals. Setting goals help you and your family determine what it is that you’re working towards. By increasing your goals as you begin to reach more and more of your commitments you can continue building your financial knowledge and capabilities.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

 

Generational Financial Habits: Baby Boomers, Gen X, Millennials, and Gen Z.

Spending Money

When it comes to your spending habits, your age may influence your decisions more than you think! Depending on your generation, there may be some key patterns that differentiate you from your older and younger counterparts. Discover your key financial traits with this helpful guide courtesy of Peoples Trust & Bank.

 

Baby Boomers

Typically classified as the savers of the modern age, many of those age 51-70 are known for tucking away funds as quickly as they can accumulate them. Many baby boomers were affected by both the Kennedy and Martin Luther King Jr. assassinations and hold strong sense of mistrust of the system. There are many in this generation who choose savings options outside of financial institutions. This large generation of approximately 70 million people, is currently in the process leaving the workforce and entering retirement. The most important item on their financial agenda is to save and secure funds for the decades of life they will enjoy outside nine to five.

 

Generation X

Often overshadowed by the large baby boomers ahead of them, generation X’ers tend to be strong willed and decisive, fighting for their share of the financial pie. Having been one of the first generations to experience divorce as a normal occurrence, many of those adults age 40-50 continue to look out for their individual financial wellbeing through strictly defensive tactics. Boasting on the highest education rates, this group makes strategic savings plans, constantly preparing for the ball to drop. They are best known for their cautious optimism and lofty financial goals.

 

Millennials

The current generation of twenty and thirtysomethings, were shaped by a highly digital world. Growing up in the age of computers and terrorism, these young adults believe that the typical American dream, may be slightly skewed. In many areas, home and car ownership is on the decline as more and more millennials strive to gain experiences over material possessions. Influenced by their parental counterparts, it is common to see this generation shying away from long term debt after seeing their parents succumb to missed payments and foreclosures during the 2008 economic crash. Couple that cautious initiative with crippling student loans and added inflation, where now today many college graduates are working multiple jobs to simply make ends meet.

 

Generation Z

The up-and-coming generation of the century, this group is the first age demographic to grow up completely immersed in digital technology. The days of cell phones and computers encompassed their childhood, and many of those age 0-20 have never known life without the digital realm. Still relatively young, these Gen Z’s take diversification to the next level, not trusting too much in any one entity. With advancing diagnostic systems this generation takes time and consideration into account before making any major life decision. As this generation ages, more experiences and choices will continue to shape their financial style.

 

No matter what generation you are a part of, there are a variety of ways you can improve your financial habits. Speak with one of our experienced personal bankers today, and we’ll show you how to get started!

How to Balance Your Check Book

Personal Finances

Staying on top of your check book is more important than you think! With daily transactions, online shopping, and cash donations, it’s hard to have a current and accurate history of your current personal finances. Peoples Bank & Trust is here to help with our specialized guide to balancing your checkbook. We’ll show you not only how to get the most accurate numbers, but how it protects your finances too!

  1. Once you have your transaction log from your check book or other personal notebook, find your current checking account balance online or from an ATM.
  2. Write down all recent incoming and outgoing transactions. It helps to reference receipts to make sure you don’t miss anything. Be sure to keep ATM receipts as well to have record of when and how much you withdraw or deposit.
  3. When recording your transactions, label each with the vendor which originated it, in addition to a brief indicator of what the expense or income was for.
  4. Balance the incoming funds with the outgoing funds to determine your current balance. Be sure to include any interest the bank has deposited to your account or fees they have charged.
  5. Double check your math and make sure your personal record keeping is accurate. Adjust any errors that need to be fixed, and compare this log with your online transaction history. Notify the bank immediately if you see a charge you did not make.
  6. Review your checks to confirm if they have been cashed or are still outstanding. Mark all check transactions once they have been cashed to keep an accurate and timely record.
  7. Once your checkbook is officially balanced make two double lines to indicate when you last went through your transactions.

Checking your balance on a regular basis not only helps you better manage your personal finances, but also enables you to catch any fraudulent charges before it’s too late! Let our experienced new account representatives at Peoples Bank & Trust get you started with the ideal checking account for your needs!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

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

How to Create your Emergency Fund and When to Use It

savings

Creating a structured savings plan is one thing that can set apart the financial dreamers from the financial doers! By setting strict guidelines to your goal, and ensuring the correct follow through with a backed up savings plan, you can be certain of your success in accomplishing your future achievement! One of the biggest obstacles in these plans is the unforeseen, and there is a way to manage even that. Using a well-rounded emergency fund can ensure that you don’t dip into saved funds for unexpected costs such as auto repairs, or medical emergencies. Want to get started setting up your emergency fund today? Follow these simple steps and you’ll be on your way to financial success!

  1. Open a dedicated savings account.
  2. Deposit Funds each month without withdrawing anything.
  3. Start by saving $1000.

– Next save 3 months’ worth of income and expenses.

– Finally maintain 6 months’ worth of income and expenses.

The reason you have this fund is simple, to prepare for the unpreparable. Whether it’s an unanticipated job loss, a costly home repair, or other unplanned expenses, your emergency fund can help you stay afloat when the waters get rough.

The main objective of this account is to have it work for you and your needs! By specifically determining what you define as an emergency (job loss, vet bills, auto repairs) and what doesn’t (last minute birthday gift, broken TV, new clothes) you can generate a structured list to know when you feel safe using those funds, and when perhaps its best to leave them untouched. The idea of the emergency fund is to have it when you need it. By gaining access easily via checkbook or debit card, you can use the account more quickly when the unexpected strikes.

By generating your own emergency fund you can continue to save for milestones and pay bills, without worrying about the what if’s that lie along the road to the future. Get started with your emergency account today at Peoples Bank & Trust, we’ll help you get to your next savings goal!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

 

Renting v. Buying a Home

mortgages

Jumping into the ring of homeownership is an exciting milestone! There are many ways owning a home can impact you and your family. How do you know when to rent and when to make the move to purchasing your home? Peoples Bank & Trust is here to help with our handy guide to the pros and cons to renting and owning a home.

Renting

Cons:

  1. No wealth creation. As your payments go directly to your landlord and not the specific property, you are unable to build equity and reap the return on investments from the home’s growing value.
  2. No tax benefits. While homeowners can deduct property taxes and mortgage interest payments from their federal income tax, renters can’t claim deductions for housing costs.
  3. Dependent on the landlord. For everything ranging from utilities, to paint, to the rent dollars themselves, your landlord makes the majority of the decisions when it comes to renting a home. Depending on your lease, your landlord can increase the rent each year, or month!

Pros:

  1. Accommodates flexible lifestyles. If you travel frequently for work, leisure, or medical care, you may not have the time or availability to take care of a home. Renting allows an affordable accommodation without any hassle of renovations or repairs.
  2. Freedom in allocating finances. For renters, expenses such as mortgage insurance, real estate taxes, and home maintenance costs, can instead be funneled into savings, stocks or discretionary funds after the monthly rent and utilities are paid.
  3. Reduced insurance costs. Apart from renters insurance that covers the interior of a home, costly homeowners insurance and unexpected repairs belongs to the landlord, not the tenant.

Buying

Cons:

  1. Unexpected costs. Leaky roofs, backed-up pipes, and cracking foundations create thousands of dollars worth of unplanned repairs that stretch your budget to the limit.
  2. You’re locked in. Once you sign on the dotted line the house is yours, and so are the payments.
  3. Fluctuating home value. Despite your best efforts, your home can become less marketable based on circumstances out of your control. A declining neighborhood, housing surplus, or unstable market can decrease the value of your home despite well done renovations.

Pros:

  1. Fixed monthly payments. Homeowners with fixed-rate mortgages can trust that their mortgage payment will stay consistent each month, enabling the creation of a stable monthly budget.
  2. Financial gains. From tax credits to equity building, home ownership offers buyers a number of monetary perks and freedoms they wouldn’t receive as tenants.
  3. Freedom in expression. A kitchen remodel, a four-season porch addition, and other decorative transformations are all up to a homeowner’s discretion with no strings attached to a lease agreement.

Still on the fence? Our experts at Peoples Bank & Trust can sit down with you to help make a guided decision that suits both your lifestyle and your financials. Call and set up an appointment with us today!

Peoples Bank & Trust Co.

NMLS# 407724

Equal Housing Lender

Member FDIC

 

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.

  1. 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)
  2. 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)
  3. 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)
  4. 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)
  5. 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