Tag Archives: save money

piggy-bank

How to Start Building Your Emergency Fund

Not only does having an emergency fund give you a peace of mind, but it can help you avoid the stress of being in debt. The best time to start building your emergency fund is now! If you’ve heard all about the importance of having this fund but aren’t sure how to get started, keep reading. 

Set a Goal 

The first step to building your emergency fund is figuring out how much you want to save. There are emergency savings calculators online that can help you figure out a smart amount to aim for. This amount will vary depending on many factors like how many people you’re providing for, what you pay for monthly, if you’re paying off debt, etc. 

Break Down Your Goal 

Many times your total emergency fund goal can be a large and intimidating number. Breaking the total down into monthly goals is a great way to ease the pressure while still accomplishing your goal on time.  

Set Up an Automatic Transfer 

The easiest way to make sure your monthly goals are being met is to have a designated amount transfer to your savings account. Your bank can set this up so you don’t have to worry about setting aside money since it does it automatically. Having an automatic transfer set up will make it feel like you’re not losing any money at all. 

Save the Change 

You might not think keeping your change for your emergency fund would make a big difference, but it sure adds up. Start keeping the $1 and $5 bills you get back when making purchases and putting them in a jar to add to your emergency fund. 

Make Adjustments 

As time goes on and your emergency fund grows, you might need to make some adjustments to how much you save every month or your goal amount. These things may need to change over time as your financial situation changes, so don’t be afraid to make proper adjustments. 

Having an emergency fund can be a life-saver when issues you weren’t expecting come up. Give yourself some peace of mind by starting to build your fund today. Contact Peoples Bank & Trust with any questions you have or if you’d like to learn more about our services. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

light-bulb

Energy Saving Tips For The Cooler Weather

Now that the heat is finally getting less intense, it’s time to switch up your energy-saving strategy. Peoples Bank & Trust offers plenty of fantastic solutions for you to increase your savings this season when the air begins to get cooler and cooler.

Buy A Humidifier

Humidifiers offer health benefits as well as bigger savings! Humidity keeps your warm, forced air trapped in the living area in the house longer, thus satisfying your thermostat longer.

Switch Out The Air Filters

Even though it’s a little thing, changing out your filters can increase your savings exponentially. A blocked return from a filter can cause your system to work much harder than usual as well as not provide the temperature that you desire inside the home. Do the math, save more by spending a little to change your filter more often.

Lower The Water Temperature

By lowering your water temperature, you’re saving money on trying to heat the cooler water. Using your sink, dishwasher, washing machine and shower on such a regular basis means your home is working hard to continuously re-heat that water to a high temperature. 

Cover Drafty Windows

The Department of Energy states, “Use a heavy-duty, clear plastic sheet on a frame or tape clear plastic film to the inside of your window frames during the cold months. Make sure the plastic is sealed tightly to the frame to help reduce infiltration. Install tight-fitting, insulating drapes or shades on windows that feel drafty after weatherizing.” By covering these big holes in your house that let cooler air in, you’ll be keeping the heat in and costs down.

Change The Temperature

When you’re not at home or asleep, lower the temperature as much as you can without being uncomfortable. Turning your thermostat back 10° to 15° for eight hours can save you around 10% a year on your heating and cooling bills!

Invest In Different Holiday Lighting

Now that the holidays are upon us, it’s important to make sure your decorations and Christmas lights aren’t draining your holiday cheer. Use light-emitting diode — or “LED” — holiday light strings to reduce the cost of decorating your home for the winter holidays.

Start saving during these cooler months by implementing a few of these strategies. You can thank us later by opening a savings account with us to put in your newly saved funds.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

retirement

Best Retirement Strategies for Your 20s

If you’re in your twenties and thinking about retirement, you are light-years away from your peers who wait until it’s too late. You’ll be so glad you started to take serious steps towards your golden years with these straightforward strategies.

1. Negotiate More

Your first job isn’t typically known to be a real money maker. You’ve been told to “pay your dues” and take the work for little pay. However, it is especially important for college graduates to negotiate for a higher salary. Whatever number you are thinking, add $5,000 to that salary. This is important because whatever salary you start with will follow you and be the basis for much of your career. You will of course get raises, but often, each new position you take is related to the salary you had prior. Start off high so you can begin investing greater now.

2. Automate Savings

It’s never easy to save and can be incredibly challenging if it’s saving for something that’s thirty years away. One way to take the struggle out of this is to have your savings automated. You can set a specific percentage to come directly out of each paycheck and into your savings account. It’s a painless way to force yourself to make wise decisions with your money.

3. Establish an Emergency Fund

While you’re saving for the golden years ahead, your plans can be easily derailed with a major financial emergency like a flooded basement or an unexpected medical procedure. Having an emergency fund in place will help to provide some cushion so you aren’t going into debt to cover these losses.

4. Start a Retirement Fund

Having a straightforward savings account for retirement is not the best way to make the most out of your money. You are going to want to invest in a retirement fund that’s built for growing your wealth over time. Most employers offer a matching 401(k) compensation plan as a part of the benefits. However, if yours does not, you can and should invest in your own Roth IRA.

5. Pay Off Debt

Debt of all kinds is crippling to millions of Americans at all ages. Those in their twenties average $20,000-$35,000 in debt. Debt should be paid off as soon as possible so you can begin investing in the things that matter most to you. You shouldn’t have to be constantly playing catch up, but instead, planting financial seeds for your future.

Continue to build your retirement funds with a CD or IRA from Peoples Bank & Trust!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

car

How to Buy a Car – and Actually Save Money

Is your current car on the fritz or have you been eyeing that shiny new Jeep you see parked at a dealership on your way to work every morning? If you’ve been hesitant to buy a new vehicle because you’re worried about it costing too much, here are some ways that you can get the car you’ve had your eye on while still saving money.

Get Pre-Approved

Before starting your search, you should get pre-approved for a loan. It’s important to know what limit you can qualify for and match that up with your monthly budget. It has been estimated that your total auto expenses should not exceed more than 10 percent of your yearly income. This includes the loan, insurance, maintenance and interest. When you know your limit, you can stop yourself from gazing at cars out of your price range that you may have otherwise talked yourself into buying.

Sell Your Current Car

Many times the dealerships will ask for you to trade in your vehicle in order to get a “better” deal on the new car. However, you can typically get more for the auto if you sell it privately. This may cost you some additional time to fix anything major with the car, as well as listing it in the local classifieds. The dealership will turn around and sell the car for a profit anyways – shouldn’t that extra money be yours to put towards your new wheels?

Shop Around

You are your best advocate when it comes to finding and buying your new car. Don’t make any decisions right away. A smart way to start looking is searching at the average value of the car you are wanting. Look at reputable sellers online to see what the cars are typically going for, so you don’t find yourself getting swindled by a dealership transaction.

New to You Is Often More Valuable

The minute a car is driven off of the lot, it loses a significant amount of value. Often, the newer cars aren’t necessarily any different than ones a from few years prior in terms of features. Consider buying Certified Pre-Owned vehicles to save yourself hundreds or thousands of dollars.

Be Wary of Extended Warranties

Many dealerships will push heavily for you to have an extended warranty because this is how they make a large portion of their money. It is of course your choice on whether or not it is worth the risk of not accepting the warranty. However, many times these extended warranties are mute in comparison with the manufacturer warranty. They are usually very expensive and do not make it worth your dollar in the long run.

Allow us to help you with a big purchase like this – we’d be happy to speak with you about our options.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407727

save

Spring Into Cash With These Top Savings Tips

The grass is always greener on the other side of winter, but is your bank account? Make the most out of your spring by boosting your savings. All it takes is an idea and some creativity to make some green this spring!

Skip the Gym

Of course your health should take top priority in all seasons. However, it’s great to switch up your routine, not only for your health but potentially for your wallet! Now that the weather is warming up, you can look for some alternatives for working out. A gym membership has its perks, but you can find activities outside to get your heart rate up and keep your body strong – for free! These could be running outside, biking, hiking or even outdoor yoga!

Switch to Generic

More often than not, the generic version of most products are indistinguishable from the brand name. This goes for food, hygiene products and even medicine. You can cut your expenses by ⅓ by switching to generic everything when you have the choice!

Buy Used

Spring is typically the season when you see many garage or yard sales. People are anxious to clean out their homes for the spring while making a little extra cash! This is definitely something you can jump on board with, but if you don’t have the time, consider doing a little secondhand shopping for items you already need. It won’t save you any money to go secondhand shopping to only end up with many items you don’t truly need. However, if you are in the market for something like new clothing, shop around in your neighborhood before heading to the mall.

Make Savings Automatic

When we take the decision out of whether we will save and make it an automatic, I will save, it’s more likely to come to fruition. Set up an automatic savings account so that a percentage of each deposit will automatically go into your savings account. This is a great way you can see your savings grow and grow this spring!

Keep your cash safe by opening a savings account with us after utilizing these top savings tips!

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

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

Who Says You Can’t Make a Snowball in the Spring

Debt Elimination

While the weather can be as predictable as the Powerball, one thing that you can always count on through the seasons is your ability to snowball anytime you want. However, before you start creating snowmen out of ice shavings, let’s first cover what a snowball is. Typically in financial terms, snowballing is an action in which you structure your debt payment to decrease the overall time and cost associated with any accounts payable you have.

Here’s how it works: To begin a snowball, you first need to know what debt(s) you have on the table. By creating a list of your known debts, and also checking your credit report for any unknown ones as well, you can ensure you have all your bases covered. Then, using that information, prioritize your debts by amount from smallest to largest. Once you have them organized you can begin to set-up or continue minimum payments across all installments.

For the next step, you’ll want to look through your current spending and earning to see if there are ways you can allocate additional funds each month to pay off your debt. Whether it’s an extra $50 or an extra $500, every penny matters!

These additional funds can then be assigned to the debt you indicated at the lowest amount. Each month you’ll have a little extra money to help pay off that expense even sooner. Once the balance reaches zero, the snowball officially begins! Now that you have eliminated one payment, you can utilize all the funds that were going towards that expenditure and push them towards the debt with the next lowest amount.

Continue to do this process until each unwanted debt is paid off. Debts such as your mortgage are a great thing to pay off early, but may not be necessary to include in your debt snowball. Our helpful mortgage lenders can always assist in restructuring your payments if you are truly passionate about eliminating all debt.

If you’re ready to get started, we have some great money savings tips to help you find those extra dollars!

  • Switch to a Discount Grocer: You could reduce your monthly grocery bill by up to half when you shop at a bulk or discount grocer instead of a brand-oriented chain.
  • Bring Your Coffee and Lunch: Both of these items could be costing you more than you think! The typical American lunch runs approximately $12.00 and an average latte could cost you $3.50 a day. By bringing both food and beverages from home you can drastically decrease your monthly expenditure for dining.
  • Take Advantage of Apps: New technology based tools like Mint, Honey, and RetailMeNot, offer continuous and unique ways to save and manage your personal finances. By taking advantage you can not only save on unexpected items but better visualize your budget through tracked spending categories.

At Peoples Bank & Trust we are excited to help you succeed on your journey toward financial success. If you’d like to set-up automatic payments, or monthly transfers, our Online Banking can help! Visit our website to get started today.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Tuck Your Coins Away by St. Paddy’s Day

Savings

St. Patrick’s Day is always reminiscent of older times, filled with meaningful songs and dances, delightfully filling food, and timeless jokes or antics. Each year we celebrate the livelihood of the Emerald Isle, and the heritage of the Irish culture, through a wide variety of events and gatherings. To help your bank account prepare for the festivities, Peoples Bank & Trust offers these tips and tricks to help you save without missing out on the fun!

 

  • Avoid Dining Out ($150/month): The key aspect to achieving this savings is patience! If you can take the time to plan meals ahead of time, and shop only for what you need to make them, you can not only reduce your restaurant spending but your grocery spending as well!
  • Cut Cable ($75/month): With technology like smart TV’s, Fire Sticks, Apple TV, Sling and more, there are now endless options to view and stream your favorite shows without the high cost of cable. By bundling some of these internet based services you can reduce your expenses without limiting your entertainment options.
  • Pack Your Lunch ($100/month): Instead of eating out for ten meals throughout the month, designate two days you’ll bring your lunch from home and save the extra $10 day. You can increase your savings even more by utilizing leftovers from your home-cooked dinner the night before.
  • Carpool ($50/month): While commuting to work may allow you to live in a certain area, it does come at a cost. See if you can reduce that amount by finding fellow co-workers to share the ride in with. While $50 may seem small for a month, over the course of the year that easily becomes $600 or more that you can put toward other saving ventures.
  • Automate Your Savings ($100/month): The phrase, “Pay yourself first,” comes to mind every time we share this tip. Did you know that you can invest in your personal development by contributing your savings goals? Once all the immediate bills such as housing and utilities are paid, we recommend contributing to your savings before budgeting how much to spend in other areas for the month. This way you can make your ongoing financial wellness a priority before deciding on spending habits for the month-to-month purchases.

 

Before the festivities begin, Peoples Bank & Trust challenges you to put these strategic saving tactics into place. If you’re curious how to get started, or want to set up a designated savings account for your extra earnings, our dedicated team is here to help!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Most Common Money Problems Americans Face

Savings Tips

For most Americans, the development of personal money management is a lifetime learning process. Faced with firsthand lessons and ongoing expenses, it can be difficult to master the appropriate practices for many common financial obstacles. At Peoples Bank & Trust we want to help you obtain the best financial education possible, and offer these time-tested solutions to get you started.

 

  1. Creating a Budget

There are countless varieties of budgets, with different structures for all types of lifestyles. The real obstacle is finding the option that works best for you, and sticking to it! Nearly any budget format you choose can help you allocate and manage your money, however, it only works when it is consistent. Be sure that you check your balances at least twice a week to be safe. This will guarantee that you adhere to the amounts specified, keeping your expenses in line with what you’ve planned.

 

  1. Managing a Credit Score

The largest aspect of successfully managing your credit score is grasping the reins on where your number currently is. Sites such as annualcreditreport.com offer a federally authorized FREE report once per year from each of the three reporting bureaus. This gives you an all-encompassing view of your current credit standing, showcasing some key places for improvement. Many credit card companies now offer additional credit monitoring tools to help you keep an eye on your score month-to-month. We recommend checking it at least once every three months, to be sure you catch any errors or inquiries that may occur.

 

  1. Saving for Retirement

Due to the longevity of this venture, many people postpone the start of this savings process. However, in this situation, time is of the essence! An extra decade of saving could effectively double your money if you have an appropriate compounding interest rate.  We recommend starting your savings as early as possible, through either a company 401(k) or an independent IRA. The sooner you start, the longer you have for your funds to grow while you continue contributing to their ongoing prosperity.

 

  1. Paying off Student Loans

Debt is never something we want to hold onto. However, with over 44 million Americans borrowing funds to cover their continued education, the issue of student debt has become increasingly relevant. While we do suggest paying your loans off as quickly as possible, it is also important to ensure you take advantage of your time when starting to save for retirement. Every situation varies, and there is no blanket statement for every scenario. However, as a general rule of thumb, we recommend approaching your student loans with the snowball method, paying them off in order of least amount owed to greatest, while making the minimum contributions to your retirement savings.

 

Whether you’re ready to set-up a new savings account or create a new budget to better manage your debt, our team of professionals is here to help! Stop by your nearest branch, and speak with a qualified personal banker today.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender