Tag Archives: personal finances

Start Budgeting for Vacation

Start Budgeting for Vacation – What to Keep in Mind

One of the most important steps to pre-planning a successful vacation is your budget. There are many costs to manage and coordinate when booking a vacation. Keep reading for top tips on beginning your vacation budget now!

Step 1: Determine the Destination

A big factor in budgeting for vacation is getting an idea of the cost. Some may say you should set your budget in advance, which you absolutely can set a range, but your destination will be the main determinant for your budget. Depending on where you go can really change what you are willing to spend on what. Your budget can range depending on who is going, the type of trip, and your travel style. 

Step 2: Plan a Price 

Now that we have narrowed down the type of vacation you are planning and an idea of where you can begin nailing down a price point for what it will potentially cost so you can delve into the budget planning portion. As mentioned, your budget can really depend on your travel style, some people want to save money on where to stay and others are willing to splurge more in that category. Be honest with yourself and your idea of what you want out of your vacation to plan a budget range that you will not surpass. 

Step 3: Pick Your Priorities

As you nail down a budget, it is time to start picking your priorities for your trip. Everything will be included in a budget category such as food, activities, housing, travel, transportation, shopping, and really anything you intend to spend money on should have a budget within a category. Don’t forget to plan for the unplannable – it happens!

When you pick your priorities, identify your big-ticket items to ensure they are within budget and attainable. Typically, flights can be a huge expense especially if you are planning a family vacation. The more flexible you can be with your date and destination, the more you will most likely save. 

Step 4: Estimate Expenses

As we have picked our priorities, it is extremely important, to be honest with ourselves on estimating any and all expenses. Once your destination and travel plans are figured out it is important to look into a hotel on Airbnb rates and options for transportation as both of those can take a huge chunk out of your budget just so you can enjoy your time. 

It is important to think about your meals throughout the trip to weigh the cost of the hotel vs. Airbnb. If you have a large group, it may be more cost-effective to get an Airbnb and cook your own meals as you can more easily budget for groceries than meals out. 

Step 5: Start Saving Soon

By start saving soon, we mean begin saving NOW! Anything you can begin to set aside for your vacation budget will be a huge help in reaching your goal. Once you’ve worked out what you need, you can begin figuring out a map of how you need to save to be on track. To keep your motivation up, set a countdown on your phone or on your fridge so you see it daily and are reminded to save and not spend. 

Saving Tips 

  • Prioritize what you are spending money on. Clothing and items purchased leading up to the trip can add up, don’t let these offset your budget, plan for them. 
  • Try a budgeting app to stay on track.
  • Open a savings account for your trip so you can deposit it away and not touch it. 
  • Create a spreadsheet and track everything to map out your savings plan.
  • Find ways to save extra, whether that be a garage sale, side hustle, lightening some subscriptions – get creative. 
  • Change up your lifestyle. Challenge yourself to eat out less or spend less on costly activities.

You are going to thank yourself later if you began planning as soon as you could. How much you save will determine your travel plans and vacation priorities. Don’t let your vacation be financial stress, save now so you can relax and enjoy!

Peoples Bank & Trust Co.  

Member FDIC  

Equal Housing Lender  

Money Magic Tricks

Money Management

Magic is one type of entertainment that will never go out of style. Whether it’s David Blaine and his shocking stunts, or newly famous films such as Now You See Me, this classic art has proved to truly stand the test of time. While Peoples Bank & Trust may not be the best at sleight of hand, we do have a few savings tricks up our sleeves! See if you can understand the steps to these financial stunts and make your fiscal success appear out of thin air.

Make your money disappear (into your savings!)

Before you’re tempted to spend those hard earned dollars, we’ll show you how to make them vanish, and then reappear! By logging into your online banking, you can set-up recurring monthly transfers for a set amount from your checking to your savings. This way, your funds will get tucked away before you even knew they were there! The extra money saved can contribute to your retirement, education, or even an exciting getaway.

Cut your debt in two.

Tired of paying pesky credit card debt, a mortgage, or student loans? This helpful hack can show you how to saw that number in half, and potentially make it disappear. Financial talk show host Dave Ramsey has a proven method called Snowballing Your Debt. By continuing your monthly minimum payments, and using extra funds to “attack” one debt at a time, you can then rollover extra money from the fully paid loans into paying off the next biggest debt and then the next. Before you know it you’ll be debt free, and looking for another financial trick to master!

See double dollars on your retirement plan.

If you’re like most Americans and need to play a little catch-up on your personal retirement savings, this trick is sure to impress! To really maximize your saved dollars, we recommend diversifying your retirement accounts, by allowing one to be maintained by your employer (401k) and creating a separate account for you to contribute to on your own (IRA.) By automatically withdrawing money from your paycheck through your 401k, you can potentially invest MORE while having it managed through your employer. In addition to this, creating a dedicated IRA to store personal savings dollars in allows you to explicitly manage the growth of your continued contributions. Know what’s better than one retirement savings account? Two!

Pull extra money out of a hat.

Just like magicians, a good budget can help you find things you never knew were there – like money! Whether you’re using traditional methods like the envelope system, or more digital options like the YNAB, the end goal is still the same. To help you save even faster, you can couple your budget with additional savings tips and tricks on common recurring expenditures such as groceries, and you’ll see the savings in no time!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Save $1,000,000 for Retirement

Retirement

Retirement, 401(k), stocks and bonds, the subject matter of saving for the long term isn’t often as appealing as saving for the short term. Perhaps that’s why nearly three-quarters of Americans are underestimating how much they’ll need for retirement. The United States is on the brink, if not already in, a retirement crisis. However, at Peoples Bank & Trust we believe retirement saving can still be easily accomplished, there are just a few steps to get started:

 

  1. The first thing you’ll need to do is determine when and how you want to retire. There are an endless variety of retirement lifestyles, each of which entails a different budget and distribution structures. Some popular options include traveling by RV, retiring in a new location, downsizing your home in the same area, pursuing a new business or passion,  and of course maintaining your current lifestyle without the need for work. By choosing your lifestyle goal we can begin to structure your savings plan around what you hope to achieve.
  2. Once you know what you want, start saving ASAP. As the old adage goes, “Slow and steady wins the race.” This is phrase is the epitome of retirement. If you save less but start earlier you will consistently save more than if you deposited higher amounts later in life. We recommend utilizing any 401(k) or retirement savings plans your employer offers. If you are self-employed or don’t have access to retirement benefits, an IRA is a great self-funded option to help you save and take advantage of valuable tax incentives.
  3. Create a goal for how much you need to save. Financial Mentor offers great calculators to help you plan your path to retirement.  They can help you determine your strategy to become a millionaire or show you how much you may need beyond $1,000,000. Saving more than one million could be more pertinent than you think. Today’s research indicates that millennials may need to save more than their baby boomer or gen x counterparts.
  4. Add any available surplus funds to your retirement savings. Simple adjustments like changing grocery stores, carpooling, and bringing your lunch to work can save more than you think! If you are able to find some additional ways to save, put those funds to work by contributing to your retirement accounts.
  5. Diversify your retirement savings. Instead of putting all your funds in company stock, corporate shares, or your 401(k), we suggest diversifying your savings options to ensure your risk isn’t higher than you need. Speaking with a professional adviser could help you determine what type of risk you’re comfortable with, and how you would like to your contributions to grow over time.

 

By continuing to save each and every month you can beat the odds and have a fulfilling and successful retirement. The most important thing to do is to start. If you’d like to open a dedicated savings account, IRA, or CD, our dedicated team is here to help. Stop by or drop us a line today to get started today.

6 Traits of People with Excellent Credit

Credit Score

Did you know that your credit score is considered when you purchase a car, apply for an apartment, or buy home insurance? To increase your potential for prosperity in these future endeavors, Peoples Bank & Trust would like to share the top traits of consumers with excellent credit, to help inspire you towards success. See if you can work towards these benchmark goals, and push your credit score to the next level:

  1. They are organized. Unlike most Americans, people with excellent credit utilize a monthly budget to help them track and plan their spending for both long-term and short-term goals. Whether it’s a household budget, vacation budget, or wedding budget, keeping your money organized can make a big difference in how you visualize your spending strategies.
  2. They are patient. Instead of purchasing something that catches their eye at the store, those with excellent credit have mastered the skill of waiting. By sleeping on the idea of the purchase, and talking about it with a significant other or friend, they can ensure their money is not wasted on unneeded expenditures. Not only does this help to reduce spending overall, but also ensures that alternative options can be weighed before they reach a decision.
  3. They are efficient. Technology offers a wide array of tools to help users make the most of their finances; our favorite example of this is automation. Those with excellent credit are great utilizers of financial automation to help pay recurring bills, create monthly savings deposits, and assign allowances for their kids. By putting their money on a consistent timeline, they can ensure that all of their financial obligations are completed on-time each and every month.
  4. They are timely. Outside of their scheduled payments, people with excellent credit tend to regularly pay their miscellaneous bills early or on-time. This allows them to be certain their monthly debts are paid before they look to complete any additional transactions. To further ensure they have not missed a payment, these individuals tend to also check their credit score on a monthly basis. Typically, if a payment is missed or there are too many inquiries in too short of a time, this will raise a flag for credit reporting bureaus, causing them to lower the associated credit score. This can serve as the clue for the consumer to see an issue and resolve it before any further damage is done.
  5. They are forward-thinking. People with excellent credit aren’t thinking about the next day, or the next week, they’re thinking about the next 5, 10, or 20 years. Their goal is to have a continuous history of fiscal success, while also building savings for retirement, education, and other milestones throughout life. By preparing for these achievements ahead of time, they can create a fund that covers the entirety of their needs instead of only a portion.
  6. They are goal-oriented. No one ever said money management was fun, but those with outstanding credit know it’s worth it. Whether it’s creating a better life for their kids, reaching their personal dream, or obtaining the capabilities to create a new one, these people create a well-rounded vision of where they want to be, and how long it will take them to arrive.

With these traits, you too can accomplish your financial dreams! Peoples Bank & Trust would love to help you along your fiscal journey. Check our blog throughout the month for helpful and informative tips and tricks to help you continue to succeed in your money management.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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

21 Thoughts You Have Before Retirement

Thoughts Before You Retire

The journey to retirement is an ongoing process, filled with a marathon of decisions. We at Peoples Bank and Trust Co. understand that each phase of your life holds different questions and concerns along with new and exciting adventures. If you’re curious what your path to retirement may look like, take a glance at these common retirement thoughts throughout each decade of savings:

Age 20-30

  1. Should I pay off student loans or save for retirement?
  2. My 401(k) should be plenty for now.
  3. How much money do I really need to retire?
  4. If I can save something toward retirement, I feel like I’m doing good.
  5. What are the differences between a Roth 401(k) and a Traditional 401(k)?

During this time the most important part of your retirement savings is getting started. Whether this is through your company’s 401(k) or an independent IRA, the sooner you save, the more funds you can accumulate through interest. While paying down your student loans are equally important, the one commodity they could limit for your retirement is time. Even by saving a small amount early, you can have the potential to save more in the long run.

Age 30-40

  1. Kids, cars, and a home – where do I find extra income to save for retirement?
  2. I got a bonus! Should I save it or spend it?
  3. Save it! My future self will thank me.
  4. When do I really want to retire?
  5. I can’t wait until I don’t have to work for a living anymore.

Throughout this decade you may see a lot of exciting milestones. Whether these come in the form of promotions, expanding families, or other new personal opportunities, they each will add to the tasks you’re currently juggling while saving for retirement. To help manage your life and your money, we recommend automating your savings to ensure that no matter what life has in store, your retirement savings remains consistent.

Age 40-50

  1. I’d love to still have money to spoil any future grandkids!
  2. I’ll open an IRA to supplement my 401(k).
  3. I’m going to see what I need to save to still reach my savings goal.
  4. My savings should have a great future if I stay on track!
  5. I don’t want to have to work unless I want to.

Now is when you want to begin fine-tuning your retirement to the specific details. If you would like to retire in a certain location, you’ll need to budget the anticipated cost of living in addition to any other annual spending. This is also the perfect time to determine the age you would like to retire. The average age for Americans to retire is 67, however, this can be lower than 50, or higher than 75, it all depends on your preferences and planning.

Age 50-60

  1. I can’t retire yet, I’d just be bored!
  2. I’ll retire after 60; I can still work part-time if I want to.
  3. Thanks younger me!
  4. I can do all the things I love during retirement! Gotta love that compound interest.
  5. I’m so glad I started saving when I did.

After you decide when and where you want to retire, the final specifications begin to unroll. When you start taking distributions, and how much you take, is completely up to your discretion, depending on the retirement account. Many Americans continue working part-time, in order to bring in additional income and give their savings several more years of compounding interest. This can be a valuable option, but it’s not for everyone.

6 Steps to Scoring Your Savings Goal

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 advisor, 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

Different Ways to Save

Savings

After the bills are paid, the groceries purchased, and the kids taken care of, it’s time to decide what to do with your monthly surplus. One of the most financially responsible choices you can make is to save those additional dollars! By tucking away even a small amount of money each month you can prepare your finances to withstand any unforeseen expenses. Check out these important savings options available at Peoples Bank & Trust, and get started towards your next financial goal.

IRA: These Individual Retirement Accounts are typically divided into two categories, the Roth IRA and the Traditional IRA. It’s best to speak with your financial advisor or tax representative to determine which option best suits your personal finances. These accounts allow you to contribute funds pre or post taxes and after years of accumulation and compounding enable you to withdraw them upon your retirement.

CD: When you have funds that you intentionally don’t want to touch for a set period of time, a CD or Certificate of Deposit, can be a great resource! By depositing your money within a CD you are guaranteed interest on your account, often higher than the standard savings account. You must leave these funds untouched for the agreed period, typically a minimum of six months, ranging upwards to nearly five years.

Savings Account: Your typical savings account can help you manage personal funds without the hassle of navigating around any red tape. With constant access to withdraw and deposit post-tax funds you can set up multiple savings accounts for various needs. These accounts can help you save for emergencies, vacation, retirement, or other important purchases while gaining a small amount of interest.

For all of your savings needs, Peoples Bank & Trust is here to help! Our new account representatives will help you find the ideal savings option for you and your family. Get started and stop by today!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

Budgeting 101: Personal Finances for Young Adults

personal finances

You’ve taken all the tests, memorized all the vocabulary, and made your way across the stage. But what comes next? After graduation there are many questions that come with your diploma. Things like, how am I going to pay for rent? Or, how much should I budget each month for food? Not everything in life is as simple as A, B, C, or D. That’s why Peoples Bank & Trust is excited to help young adults with the complex questions of budgeting and personal finance. Find the answers to your financial curiosities with our handy Budgeting 101 study guide!

  1. Identify money coming in. Look past the salary or hourly rate on your contract and focus on take-home pay. How much will you bring in after taxes? When do you see this pay-off – weekly, biweekly, or monthly? Factor in other sources of cash flow too, like earned interest or paychecks from a part-time job. Understanding what you own dictates how you spend.
  2. Establish money going out. Divide monthly expenses into three major categories: fixed costs, savings, and discretionary. Rent, utilities, food, gas, and debt comprise the fixed costs and determine funds for the remaining categories. Savings should include an emergency fund as well as allocation for retirement or down payments on vehicles or homes. Discretionary – the Fun Fund – is the most flexible and can ebb and flow with changes in income and expenses.
  3. Balance steps 1 & 2. The purpose of budgeting is to provide control over your financials. That means ensuring that money going out doesn’t exceed money coming in to keep your head above the debt line. If you find your listed expenses exceed your income, pick one of two options: seek ways to boost income or scale back expenses.
  4. Pick a management system. Armed with a financial plan, equip yourself with tools to help you stick to it. Traditional but trusted, the envelope method helps you keep funds in physically separated expense categories. Once money runs out from that month’s envelope, it’s gone unless funds can shift from other envelopes. A number of free or low-priced mobile apps can give you even tighter control of your budgeting, providing real-time updates of spending and handy visuals of your progress.
  5. Track progress. A long-term financial plan is simply a series of short-term goals. Monthly check-ups help you gauge success from the month, making sure you stayed on target. You can adjust funds as income or expenses fluctuate and spot ways to economize your budget.

Want to take your budgeting up a notch? Meet with one of our new account representative to determine which type of bank account can help you optimize your budgeting and saving plans.

 

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC

The Number One Reason to Bank Locally – We are invested in YOU!

community

What makes the most impact when you step into a bank? The lighting, the decorations, the technology? At Peoples Bank & Trust it’s our people! The wonderful customers we have, and the incredible employees who make our work possible are what make us unique. After being your trusted bank for over 90 years, we are humble to be so appreciated in our local community.

Take a look inside our day-to-day operations and see how we are working to better serve you!

We Know Our Customers

We genuinely care and want to see our customers succeed! This helps not only our customers grow financially, but also enables us to become better lenders. Speaking with our customers one-on-one encourages interactive dialogue to help us better understand the specific needs of each and every individual we work with. From lending to savings, planning options, and more, we work to find the optimal financial fit for you and your family.

We Make Decisions In-House

No more untimely out-of-office decision makers. At Peoples Bank & Trust each and every loan is made in-house by one of our experienced lenders. Instead of contracting work out to other institutions we keep all of your hard earned funds close to home! Offering quick decisions can make a big impact when it comes to getting the most efficient loan for your needs. By getting approvals sooner our customers can ensure they start their desired project or purchase on time and within budget!

We Support Our Community

Many banks deem “Community Involvement,” to be writing a check and posing for a photo op. At Peoples Bank & Trust that isn’t the case. Deeply invested in our local communities, our employees are active participants in many local organization donating their time and talents. To us, community involvement is truly getting outside of our immediate operations, and working to make our thriving community a better place for everyone.

Our highest priority at Peoples Bank & Trust is YOU and your specific banking and lending needs. No matter what stage of life you’re in, if you’re looking to open a checking account, put some money away for retirement, or take the first step to home ownership, we’re ready to help you along the way! Get to know us and the incredible people that choose to be a part of our organization, and you’ll be glad you did.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender