Tag Archives: savings

10 Financial Resolutions for 2017

Money Management

A new year brings exciting opportunities along with the promise of a fresh slate. Start 2017 off on the right foot with these 10 tips from Peoples Bank & Trust Co.:

  1. $1,000 Emergency Fund. Did you know most Americans do not have the savings needed to cover unexpected expenses or bills? By accumulating a decent emergency fund you have the potential to continue saving instead of withdrawing money from your monthly budget for each unplanned expense. Experts say to start with $1,000 and slowly work your way up to a three to six months’ salary of savings.
  2. Maximize Your 401(k). Employers who offer a 401(k) benefit often supplement it by matching a percentage of contributions. To take advantage of their FREE matching, start by contributing at least three percent of your income. Over time, increase it to the maximum amount. These funds will continue to grow over the coming decades and help you to build a well-rounded retirement plan.
  3. Start Saving in an IRA. Similar to the 401(k), an IRA is a great way to help you save money for your retirement. These accounts are not typically provided by your employer, but can be started through a bank or financial adviser. There are two options to choose from: A Traditional IRA  or a Roth IRA. A Traditional IRA will allow you to contribute pre-tax dollars and pay taxes upon receiving distributions at age 60. A Roth IRA will let you contribute post-tax dollars, but you don’t have to pay taxes when you receive distributions after age 60. Both options have a limit to how much you can contribute each year, so start with an affordable amount, and slowly work your way up to the maximum.
  4. File Your Taxes Early. Before the end of the year, every employee should receive their tax forms from their employers. With this information in hand, you can make an appointment with your local tax professional to determine your maximum refund. These funds can then be allocated towards paying down debt, contributing to your IRA, or deposited in your growing savings account.
  5. Save for Your Child’s Education. Children learn a great deal from their parents. Show them how to save, and get them involved with saving for their own education. By making automated transfers each month, you can ensure that you will have a designated amount to invest in their future. By incorporating this into an account like a Coverdell or 529 Plan, you can help these funds grow tax free. They can then be used for educational expenses like tuition, books, or computer equipment.
  6. Pay Off Your Credit Cards. Credit cards are notorious for having sky high interest rates. By paying off your debt quickly, you can save money. To help, our convenient calculator can determine how much you need to allocate each month for a debt-free 2017.
  7. Switch to a Community Bank. Community banks like Peoples Bank & Trust offer impeccable service without the hassle of unwanted fees. Staffed with experienced financial professionals, we have the tools to help you achieve your next financial goal.
  8. Save 10 Percent. Between your retirement, your child’s education, and your emergency fund, you should be covered for most of life’s unexpected expenses. While it’s great to save for the unexpected, having a fun goal to aim for makes the process more exciting by giving you a tangible experience to look forward to.
  9. Monitor Your Credit Score. One of the easiest ways to let your credit score dip is to forget about it! Comprised of payment history, number of accounts, and several other factors, one loose bill has the potential to compromise your entire score. The one federally authorized FREE credit reporting site, annualcreditreport.com, allows every American to have one copy of their credit report from all three reporting bureaus. This is a great tool to use annually; however, each month it is a good idea to check and see if there have been any changes. Many credit cards are now offering a service for this to help their consumers keep on top of their score.
  10. Create a Monthly Budget. Hands down the one change you can make with the biggest impact on your personal finances is to create a monthly budget. By allocating every dollar you earn to a role each month, you can ensure no money is wasted. This will also help you gain better insight into where you’re spending your funds giving you additional opportunities to find savings.

By accomplishing each of these goals in the New Year, you will complete the basic steps to attaining better personal finances. With the help of our dedicated team, you can begin today. Stop by one of our locations and see what your first step could be!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How a $1,403 Cup of Coffee is a Bargain

Retirement

What do you dream of doing when you retire? Relaxing at home, traveling the world, or maybe a mix of both. Wherever your retirement takes you, you’ll want to be sure your savings can support your future lifestyle. Keep your dreams on track and follow this simple guide courtesy of Peoples Bank & Trust.

When you decide to retire, you start to receive the benefit of those hard-earned savings you’ve tucked away. Interest earned from these savings, along with any assistance you may receive, will soon become your primary source of income. This means that in order to have a successful retirement, you need to have a successful savings.

As of today, the estimated cost of future income is $16.75. This means that if you want to accrue $1 in earned income each year, you need to keep a savings of $16.75 in the bank. Now, let’s say for example, one of your retirement goals is to go down to the local diner each weekend and meet with friends for a cup of coffee. This cup of coffee costs $1.61, and for the sake of simplicity we won’t factor in inflation.

$1.61 x 52 weeks = $83.72 for your yearly coffee.

At $83.72 for the year, that would calculate to be $837.20 over the course of a decade, and $2511.60 over the next 30 years. However, once we calculate the current dollar of future income:

$83.72 x $16.76 = $1403.15 to cover your coffee for 30 years.

By this measure, you can pay for $2511.60 of weekend coffee, over the course of 30 years, by utilizing the $87.72 yearly interest on a total sum of $1403.15.

Concepts like this help showcase the incredible potential your retirement can hold! If you’re curious on how to maximize your savings, stop in today to speak with one of our knowledgeable customer service representatives.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Start Saving for the Holidays in 7 Easy Steps

saveforholidays

The holidays are just over a hundred days away! In three short months, the days will be filled with wrapping paper, holiday cheer, and ringing registers. Instead of waiting until December to begin financing your family traditions, get started early this year, and make it easier on both you and your budget!

  1. Start a Separate Account for Holiday Savings

At Peoples Bank & Trust, we want to help you achieve your savings goal. You can open a Christmas Club Savings Account with a deposit as low as $5. This account accrues interest daily, and a check is sent to you for the balance during the third week of October.

  1. Create an ACH Deposit with Your Employer

Speak with your employer to see if you can set up an additional account for your payday ACH deposit. By doing this, you will start saving a designated amount each month, before you’re tempted to spend it!

  1. Set Aside Your Budget Surplus

If you’re sticking to your monthly zero-based budget, you could end up with some extra funds if you don’t spend as much on entertainment or food as you’ve budgeted for. Add those extra dollars to your savings account to help it grow even faster!

  1. Earn Extra Income to Contribute

Bolster your bank account with a little extra revenue. Whether its raking leaves for a neighbor, babysitting for a friend, or selling unused items online, there are a variety of ways to add some additional earnings to your holiday savings.

  1. Create a Personal Shopping List

Just like going grocery shopping when you’re hungry, purchasing gifts without a list may leave you with more than you budgeted for. Before you begin perusing the stores for the perfect items, sit down and determine the people you will be giving to this season. Once you have the names, you can then decide how much to spend on each, and if there are any specific things you plan to purchase for each individual. This gives you a great game plan, and helps to prevent overspending.

  1. Shop for Deals Early

Who says you have to start buying gifts, or food for that matter, in December! If you see a deal that could save you and your family money on something you already planned on purchasing, act on it! This could be discounted wrapping supplies, a sale on items you have on your personal shopping list, or even large food items that can be properly frozen or stored until December.

  1. Load Up on PTO and Vacation Days Too

The best part of the holiday season isn’t the gifts, or the budget you’ve stuck to so well, its spending time with your family and friends! Before the end of September, map out all of your scheduled time off leading up to December. If you haven’t already, start saving your available time to use during the holiday season. Between multiple family gatherings, Thanksgiving, Christmas, AND New Year’s Eve, you’ll want make sure you’re not left at the office while the family is out having fun.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

 

4 Ways New Homeowners Can Save on Their Taxes

Home owners

Becoming a homeowner is an exciting and trying time in your life. Once all the papers are signed, and the keys turned over, it all seems worth it. That is until a pipe bursts, lightning knocks out the tree, and your dog decides to burst through the screen door. Not all hope is lost however. In return for your endless work, and commitment to a never ending to-do list, the U.S. Government has provided four tax-based ways to reward you for home ownership. See how to take advantage of these four tax breaks, and make the most of your new home purchase:

  • Early IRA Withdrawal: For many new homeowners, securing the initial down payment can be the first hurdle in their real estate journey. If you’re a first-time home buyer and have an IRA, or Roth IRA, the IRS will allow you to withdraw up to $10,000, penalty-free, to aide in the cost of your new dwelling!
  • Valuable Deductions: Between your mortgage interest, mortgage insurance, and real estate taxes, your home deductions could make a big dent in your taxable income. When preparing your taxes as a new homeowner, be sure to bring any mortgage documents, and escrow account information, to your tax professional to gain the full benefit of the deductions.
  • Renewable-Energy Tax Credit: Did you upgrade your home appliances to more efficient and environmentally-friendly options? Did you install a geothermal system in your home? If so, this helpful tax credit may be able to take a portion of that improvement cost out of your deductible income!
  • Tax-Free Profit on Sale: When you go to sell your home, the IRS allows you to avoid the capital gains tax on the profits you generate from the sale. This means that if your home’s value goes up $35,000 in the two or more years you live there, you are then able to retain the additional $35,000 your home is sold for without having to pay any taxes on those funds. One other major stipulation of this benefit is that in order to avoid the capital gains tax, you must purchase a new home as your primary residence within the next two years.

With these key homeowner tax breaks, the next thing to put on your to-do list is to make a plan for those tax refunds! If you have questions on how to best budget for your new home, don’t hesitate to stop in. We’d love to talk taxes, financing, or other improvement ideas you have for your home!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

What Your Teen Needs to Know About Money Management

Money Management

Throughout their teenage years, your children will begin to grow their personal money management style. Offer them some assistance by offering these four financial lessons from Peoples Bank & Trust.

 

Securing Their First Job

No matter if it’s babysitting, lifeguarding, or bagging groceries, there are plenty of employment options for eager high school students. These opportunities typically start at minimum wage with zero benefits, but offer a foundation of experience and learning. Talk with your son or daughter, and help them select positions to apply for that resonate with them. Resources such as the Chamber of Commerce often list local job openings, and are a good place to comb for recent availabilities.

 

Managing Money

The younger you begin various habits, the better they stick with you. Teach your children the positive effect proper money management can have on their pocketbook. Start by opening both a savings and a checking account for your teen. Each pay period, help them figure ten percent of their earnings to put into their savings. You can also work with them one-on-one each month to help balance their checkbook and plan for any large expenditures.

 

Saving for College

Secondary education isn’t cheap. If your son or daughter plans on attending a college or trade school, the time to start saving is now! Work with your future student to determine an educational budget, providing an estimate of upcoming expenses. Once you know the amount needed you can set savings goals for both you and your teen to start tucking money away. The sooner you begin your savings journey the smoother the road will be to your target amount.

 

Making Payments

Whether it’s purchasing their first car or simply covering the cost of meals at school, learning how to maintain a payment plan is an important life lesson. Explain your personal bill paying system to your teen and see how they can tailor it to their needs. Once they have a grasp on the system itself, gradually add payments to your child’s list of responsibilities, even if you add the money to their account. This will help them learn to keep an updated payment calendar before they graduate high school.

 

Money management is a continual learning process. There are always new techniques or tricks to better arrange your finances. Don’t stop honing your teen’s money management after these four lessons – stop by Peoples Bank & Trust and see how you can keep growing your family’s financial skills today!

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!

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

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 Protect Your Finances During Vacation

savings

Vacations are about relaxation and enjoying yourself, so don’t let the worry of your finances bog you down! Keep the sunshine your first priority with these traveling safety tips courtesy of Peoples Bank & Trust.

  1. Only Carry What You Need

With beach towels, cameras, and sunblock already filling up your bag, it’s no use bringing extra items that could slow you down. The same is true with your wallet. Keep your pocketbook light with only essential payment options. This not only helps you to not overspend, but also allows you to store other payment options in your hotel safe as a backup in case any cards are lost or stolen.

  1. Contact Your Bank and Credit Card Companies

Before taking off on your next getaway be sure to call both your bank and credit card companies. By communicating your travel plans ahead of time you can ensure that potential purchases aren’t rejected while you’re outside of your typical spending zone. If your card is lost or stolen these are great contacts to keep in mind to protect your finances in the event that they’re compromised.

  1. Use a Credit Card for Major Purchases

If you find that perfect must-have item during your travels abroad it may be beneficial to use your card for larger purchases. With cards like Visa and MasterCard, their payments are accepted all around the world. Additionally, most credit providers have a maximum $50 liability, so if someone does steal your credit card you’re covered!

  1. Plan for the Unexpected

You can plan and plan, but sometimes things happen that you weren’t anticipating. Whether it’s additional food expenses, a last-minute excursion, or a trip to the local urgent care, sometimes things happen. Make your travel fund work to your advantage by adding a cushion of 10% to cover those spontaneous expenses. If at the end of the trip you’re still ahead, you can use the extra money for an exciting last night out, or put it towards your next exciting destination!

Traveling is one of the most inspiring activities you can be a part of! Let Peoples Bank & Trust help you get to your next destination with one of our structured savings accounts. We’ll help you continue crossing destinations off your bucket list, one penny at a time!

Peoples Bank & Trust Co.

Equal Housing Lender

Member FDIC