Tag Archives: savings

How to Boost Your Retirement Savings

Maybe you are already off to a good start when it comes to saving for retirement, but there may be some ways in which you can amp it up. If you could boost your retirement savings even by a little now, it can pay off big time later! Here’s how:

Step Up the 401(k)

Most companies offer a matching contribution of up to three percent to your 401(k). If you aren’t taking advantage of this now, make sure you do so immediately. Once you have established this for a year, consider ramping up your percentage by 1 percent. Every other year or so, increase the percentage. Because you are increasing it at a slow rate, it’s unlikely that you will really notice it month to month, but you’ll love seeing your account grow.

Don’t Cash Out

When switching to a new job, many people cash out their retirement policies. However, this can be damaging to your retirement portfolio and leave you with much less money. Consider rolling over these funds into an IRA or if possible, directly rolled over into your next employer’s plan.

Play Catch Up

If you are age 50 or more, you can participate in what is called “catch up contributions.” As of 2018, the government allowed an additional $6,000 contribution to 401(k) and 403(b) plans. IRAs were allotted an additional $1,000. Even though you are over the age of 50, these contributions still earn interest and can make a significant difference.

Don’t Spend Bonuses

It’s tempting to go and celebrate a big bonus or raise with a big purchase. However, the smart thing to do is to pretend that it never happened, and pour it into your retirement account. Whatever you want to use that money for now, you’ll be able to do even more with it later. The practice of delayed gratification is tough but worth it.

Cut Something Out

Think of a luxury item that you use every day. Maybe it’s something small that you don’t think twice about. Consider cutting it out and using the money you’ve been putting towards it for something better, like your golden years.

You can reach your retirement goals by staying focused throughout your earning lifetime. For more advice on your savings plans, you can count on us at Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Make Your 2020 Savings Goals A Reality

The new year is full of hope and imagination for the future. It can be challenging for anyone to stick with these goals, especially financial ones. We’re happy to tell you that there is a way to make these goals a reality by sticking to these wise practices.

Be Realistic

In order to make your goals a reality, you should set realistic goals. While a beach house on Maui would definitely be an attractive prospect to most people, it’s not in the cards for everyone. Maybe something like this will be there for you someday, but first you want to master the baby steps. Think about goals within the next 1-5 years that you can see happening and are motivating.

Prioritize Goals

Not all your goals are likely to be reached in 2020. Prioritize the goals in the order that you think they can be accomplished first and that are also the most important to you.

Identify Roadblocks

Plan ahead for the things you think might go wrong or steer you off course. Is one of your savings goals to cut down on splurging but you find yourself repeatedly swinging through drive thrus and shopping online just because you have a free shipping subscription? Decide on alternatives to keep you from continuing with these habits. If there are events or emotional triggers that compel you to spend money, figure out another way to get relief. Go for a run, read a book or invite a friend over for a movie night.

Organize Accounts

Get familiar with the banking accounts available to you. Learn about how to use them to fit your lifestyle. Maybe you want each paycheck to have a percentage go straight to checking. Get this set up! Have you downloaded our mobile app yet? If not, consider doing so. It’s a great way to easily keep an eye on your everyday spending as well as check in on your growing savings account.

Celebrate Progress

Goals aren’t achieved overnight. You’ll be working hard to achieve your goals and you might experience some burnout. To keep this from happening, celebrate the strides you are making towards reaching your goals by having a visual that can remind you of your “why” and modestly celebrate each achievement in a way that’s fun for your household. If you have kids, get them in on the fun and teach them why following through on commitments is important and why celebrating mile markers is also important!

For more ways to follow through on your savings goals, reach out to us today!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Money Savings Tips to Keep Your Finances On Track

saving

Does it seem like your savings plan always becomes derailed? Starting too big or having unrealistic goals can prove faulty. Once you do have some money saved, it may be difficult to know what to do with all of it – leaving you wondering where to go from there. Luckily, we have compiled a list of simple saving guidelines to keep your finances on track.

Stop spending money you don’t have.

This may be one of the hardest rules to follow. Even though that check is coming on Friday or you’ve been doing “so good” with savings, doesn’t mean you get to throw it all away. The money you accumulate all has a place it needs to go, so don’t convince yourself otherwise.

Use less than 30% of your income for your wants.

Wants include movies, shopping, restaurants and nights out on the town. While allowing yourself to have fun, you’re still able to save as you’ve put a 30% cap on your monthly limit.

Reevaluate all of your bills.

Be able to look through your bills and know if you’ve got the best deals. If you’re already getting the best prices, try to find places to cut expenses. Do you need cable or can you switch to a cheaper option? Is an unlimited data plan necessary or do you fall into a different category that may cost less?

50% of your income should go to necessities.

Groceries, housing, utilities, health insurance and your car payment all fall under necessities. Work on your budget to see how you can make these payments fit under your 50% cap. If you’re lucky and have some left over, put that towards an emergency fund or vacation fund. This will make you more motivated to meet these limits.

Create a budget and stick to it.

Creating a budget is easy – sticking to it is the tricky part. Be sure to make your budget realistic, which is why we mention the 30% of wants portion. You’re going to spend the money, so allocate for it. Downloading a budgeting app will also help remind you when you’re close to reaching your budget.

Set 20% of your income aside for financial priorities.

As the 50/30/20 budgeting rule goes, 20% of your income should go to savings. By auto transferring a portion of your paycheck straight into savings, you won’t even realize you have more money you could be spending! These savings could be used for a house down payment, tuition for a child or part of an emergency fund. When you put a name to your savings account, it will make it easier to save for.

Keeping your finances under control can be fun! Challenge yourself to see how long you can go meeting all of your budget goals. Find ways to skimp on expenses and become a super saver. If you’re looking for a place to store your savings, our accounts are a great option. Give our team a call at a location near you to set up a savings plan that fits your needs!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Retirement Savings Made Easy

retirement

When you are in the early stage of your career, there’s usually lots of bills that add up. Things such as rent, student loans or car insurance can truly wipe out your bank account. We want to make sure you avoid excess financial stress, which is why we’re offering four simple strategies on how to start saving early for retirement.

Start small early on – The longer your money is invested, the more you can benefit from compounding. Compounding can turn small amounts of money into larger sums; it’s where you earn interest on the money you save and on the interest that money earns. It is best to start early, because the money you start to save will build up. Putting a small amount of money away can help establish a good savings habit — consistency is better than quantity early on!
Spend wisely – Create a budget for yourself so you can be better aware of your finances. At a younger age, you may think you have all of your spending under control but seeing a breakdown on paper will make it much clearer — or if you’re tech savvy download a budgeting app! Seeing a breakdown of your finances can help you see what to cut back on and if your spending matches your priorities. Doing this can make it much easier to save for retirement.
Create a debt repayment plan – Student loans or car loans, whatever it may be, take control of your debt! That may seem easier said than done, but once you create a feasible plan you can be more in control of your finances. Now, paying off your debt does not mean holding off saving for retirement. Take a look at your monthly income and order your debts by priority. Once a plan is set in place, set a small amount of money aside for the future.
Your employer-sponsored plan is no joke – Whether it’s a 401(k), 403(b) or 457, it is a really good idea to look into the retirement plans your employer offers. You could establish automated contributions from your paycheck each month or max out company match programs, where employers will provide a percentage or retirement contribution up to a certain amount. This is an easy strategy to get started with – your Human Resource manager can help!

So is today the day you start to save? Whether you save 1%, 6%, or more, it does not matter. What matters is you finding a spot in your budget to save your money. In the end, you will thank yourself. With these four simple strategies, we hope you find success with your budget and saving for retirement!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Holiday Savings Plan

holiday

The holidays are among us, but have you put together a savings plan? With all of the expenses hitting you at once, it’s important to have a plan of action. With the below tips and tricks, we believe you can keep your holiday shopping merry and bright.

Make a List

Create an entire list of every single expense you will have over the holidays. This can include presents, envelopes, stamps, cards, wrapping paper, bows, name tags, food, a tree, decorations and so forth. Once you create that list, see if there are any items you can take off or substitute with cheaper options. Many dollar stores offer all different types of wrapping paper for a quarter of the cost you may pay at a department store.

Set a Budget

It is okay to be a Grinch during the holidays when it comes to your budget. Saying no will help you keep your funds on track instead of having a dry bank account in January. Be realistic when creating your budget – don’t leave any little expenses out or your whole budget will be thrown off. From different ads to online shopping that offers free shipping and other holiday deals, do your research and create a plan of attack with your budget to help your money work harder for you.

Utilize Free Shipping

Free shipping is your best friend over the holidays. Some companies take part in Free Shipping Day in the middle of December, so it could be well worth your while. You can also sign up for a free trial on Amazon Prime. This can get you your items quicker and offers free shipping as well!

Download Apps

Many store apps offer discounts you may not be able to find online. Look at your favorite stores and download their apps onto your phone. Be sure to sign up for emails during the holidays as well. This will help tell you if a new 24-hour deal is taking place – then just unsubscribe once the holidays are over.

Mail Postcards

Instead of paying for special paper, a printed family picture, ink, envelopes and so on, find a deal online to purchase postcards. You can get all the information you wanted along with having the company ship it for you! Or create your card yourself for FREE with a design site such as Canva.com.

DIY It

Get creative with gifts by making them on your own. The Web holds unlimited amounts of ideas for homemade presents of any genre. Simply pull up Google and search away! Make fun little gift baskets for a great bonding activity to do with your kids and provide a special present for a loved one.

Have you been saving for the holidays? Ramp up your plan by putting into action a few of these easy ideas. These tips will help you slow down and enjoy the holidays for what they’re meant to be – a special time with friends and family. Avoid holiday hassle by banking with us, as we offer the flexibility you need to help keep all of your finances in order – during the holidays and the rest of the year!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Effective Old School Savings Tips

savings

It’s not surprising to hear that your grandparents and parents were frugal when it comes to money. However, that leads us to ask, “How did they get so good at saving?” We’ve gone and found some of the best old school savings methods that are still guaranteed to help you with your funds. Enjoy!

Patience Is Your Pal

Nowadays, it seems like everyone spends money right away on things they may not need. Taking a few days to think about what you want to buy is a great way to build your patience and cut down on impulse buying. Impulse buying can add up to $5,400 a year by just making a couple unplanned purchases each week. They may seem small, but if you don’t stick to your list, those purchases can add up quickly!

Limit Credit Cards

Yes, 25% off on your purchase makes for a great shopping day, but that store credit card only adds to your amount of bills to pay in the future. Work on limiting your credit cards and focusing on paying off your debt and bills for the ones you have left. This will help you begin to be the savvy saver you know you are. A couple credit cards are good to have, as they help you with needed purchases and building credit – just be sure to not go overboard!

Get a Money Saving Hobby

In the good ol’ days, there weren’t cell phones and video games to entertain us. Your grandparents had to find other ways to entertain themselves. These involved hobbies to help pass time. A good hobby to get into is one where it doesn’t cost you money, or will save you money down the road. Try canning food, as this will give you food for the winter when the price of fruit goes up or certain items are no longer on the shelves. You can also learn to sew – that way, your clothes are still functional and you don’t have to buy new ones every time there is a tear.

Cook At Home

Dining out takes a hefty amount from your account. Cooking from scratch is a great way to prepare multiple meals for a family while on a budget. Make a casserole or utilize that crock pot. Not only will dinner be ready, but you’ll have lots of leftovers to bring to work for lunch the next day or two. According to CNBC’s Jonathan Blumberg, if you go out to eat every workday and spend, on average, $10 per meal, it comes out to $2,500 a year. This is why utilizing your cooking skills can help you go a long way financially.

These old ways of saving are a few of the best to stay on track financially. If you’re looking to find better ways to save and take care of your funds, we are happy to help! Give us a call or stop in today, so we can help you succeed financially.

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

Water Your Lawn & Your Wallet Too

Savings

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

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

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

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

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

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

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

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:

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.
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.
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.
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.
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.

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

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