Category: Save Money

Jar full of cash labeled Emergency Fund with stack of books in the background

How to Build an Emergency Fund: 6 Tips and Strategies

In uncertain times, having an emergency fund can provide peace of mind and financial stability. An emergency fund is a savings account specifically set aside for unexpected expenses, such as medical emergencies, car repairs, or job loss. Here’s how you can start building your emergency fund and ensure you’re prepared for whatever life throws your way.

Why You Need an Emergency Fund

An emergency fund acts as a financial safety net, helping you cover unexpected expenses without resorting to high-interest debt. It can prevent financial stress and provide a sense of security, knowing you have a cushion to fall back on.

6 Tips and Strategies for Building an Emergency Fund

1. Setting a Goal

How much should you aim to save? Financial experts typically recommend having three to six months’ worth of living expenses in your emergency fund. This amount can vary based on your personal circumstances, such as job stability and monthly expenses.

2. Starting Small

If saving several months’ worth of expenses seems daunting, start small. Even setting aside a small amount each month can make a big difference over time. The key is to start now and build gradually.

3. Automating Savings

One of the easiest ways to build your emergency fund is to automate your savings. Set up automatic transfers from your checking account to your savings account. This way, you’re consistently contributing to your fund without having to think about it.

4. Cutting Unnecessary Expenses

Take a close look at your budget and identify areas where you can cut back. Reducing non-essential spending, such as dining out or subscription services, can free up money to put towards your emergency fund.

5. Using Windfalls Wisely

Whenever you receive unexpected income, such as a bonus, tax refund, or gift, consider putting a portion of it into your emergency fund. This can give your savings a significant boost.

6. Choosing the Right Account

Keep your emergency fund in a high-yield savings account. This type of account offers better interest rates than a regular savings account, helping your money grow faster while still being easily accessible when you need it.

Building an emergency fund takes time and discipline, but the peace of mind it provides is well worth the effort. Start today, and you’ll be better prepared for whatever financial challenges come your way. At Peoples Bank & Trust, we’re here to help. Learn more about our savings accounts and other services that can help you effectively build your emergency funds.

How to Budget Rising Food Prices

How to Budget Rising Food Prices  

It is no secret food prices have risen in the past few months. Food is generally at the top of the list for basic human needs, so how do we go about combating these rising food costs? Keep reading for top tips to fight rising food prices this winter.  

1. Eat Out Less 

Dining out is an extremely expensive option if you opt for it too often, especially if you are already budgeting for a full list of groceries as well.  Many meals you purchase out can be made for a fraction of the cost at home. And while fast food can be a cheaper dining out option, it may be a cost to your overall health – high-calorie and low-quality food is not as nutritional as food you can make at home.  

2. Don’t Shop on An Empty Stomach 

We’ve all been grocery shopping on an empty stomach and can agree that shopping while hungry will only fill your cart with unnecessary purchases. When grocery shopping on an empty stomach there is a likelihood of overspending and veering from your list. Stick to your necessities by grabbing a bite to eat or a small snack before you begin your shopping trip.  

3. Stick to Your List  

If shop without creating or sticking to a list, you may experience sticker shock when you check out your next grocery haul. If you fill your cart with everything that catches your eye, be prepared to spend a lot more than you planned. By creating a list in advance, you have the opportunity to plan out your meals and ingredient list to cohesively put together a plan for the week. This also allows you to plan around any sales the store may have or you may choose to shop elsewhere because there may be a better deal. Avoiding impulse buys is key to fighting these rising food costs. If you stick solely to your list, you won’t be tempted to go down every aisle. Many say all the products you need are on the edge of the store, so avoiding a couple of isles is a win! 

4. Fresh Over Prepared 

In a world that is already a fast-paced society, it is easy to opt for prepared items when shopping at the grocery store. Whether it’s convenience or to simply have on hand, these pre-ready meals are at a premium price tag compared to simply buying the fresh ingredients to make yourself. This same concept also goes for frozen items you may be grabbing. Yes, they absolutely are convenient and last longer, but they often are priced significantly higher than buying fresh ingredients to prepare yourself.  

5. Bulk May Be the Best  

Buying in bulk can save you time and money. It is important to pay attention to prices of family-sized options – if the price per unit is lower it is well worth your money to buy more if you have a place to store it and will use it before it expires. If you have items you go through consistently, it may be well worth the cost to purchase those at a big box bulk retailer such as Costco or Sam’s Club.  

6. Bulk Isn’t Always the Best 

If you find you are not utilizing a membership at a big-box retailer as often as you had thought, consider canceling. Chances are you don’t need nearly as much on hand and are paying for the  bulk items along with the membership price. It is very important to pay attention to your spending habits at these stores as well as your overall consumption. The prices at the big boxes aren’t always a bargain compared to discounts at other stores. In addition, the family-size packaging at these stores could mean you buy more than you need, driving up your grocery bill. 

7. Sign Up for Rewards 

If you are visiting the same stores consistently, it is well worth it to sign up for their rewards program. Some stores may raise their prices when they offer rewards so without the card your bill could be higher. Look into the rewards offered, they may have benefits such as a ham on the holidays or a discount on gas. Take advantage of the benefits at places you are already going to! 

8. Prices Are High, Look Low 

They strategically set up grocery stores to tempt you to spend money. As mentioned earlier, stick to the outsides of the stores. You also can avoid higher priced items by not shopping the end caps or checkout areas. The highest-priced items are placed where it is easy for you to look, such as the middle of the shelf at eye level. If you look down, chances are you’ll find generic and cheaper alternatives.  

9. Substitute the Expensive Items  

If you notice an item you use frequently has a price that is consistently climbing, look into finding a lower-priced alternative. For example, you could swap apple sauce for vegetable oil in recipes to cut the cost nearly in half.  

10. Maintain a Well-Stocked Kitchen 

Shopping infrequently or only when you need to is key to not overspending. If you shop when the best deals are available, you have the ability to stock up and put yourself in the position of only shopping when you need to or when the item is back on sale. 

Food is one of those purchases we simply cannot avoid. Be a careful and well-prepared shopper to minimize the amount you spend at the grocery store.  

Peoples Bank & Trust Co.    

Member FDIC    

Equal Housing Lender    

The Spender's Guide to Saving Money in 2023

The Spender’s Guide to Saving Money in 2023 

For those who love to spend money or often find it hard to restrain their purchases – this blog is meant for you to start 2023 off with smart saving habits. Spending money is most definitely easier than saving. Here are some tips to rein in on spending as well as save when spending. Keep reading to learn the spender’s guide to saving money in 2023.  

Step 1: Automate Your Paychecks  

Automating your paychecks is an easy way to save your money and hold yourself accountable to your budget. Distributing your paycheck each time will send a percentage of your money (up to you the percentage you set) directly into your designated account. Doing this allows you to allocate funds towards your savings, emergency fund, checking account, budget for bills, etc. It is important to set aside money for your fixed expenses as well as money used for coffee outings, gas, occasional splurges and such.  

Need a savings or checking account – we can help!  

Step 2: Utilize Autopay 

Along with automating your paycheck, it can also be a tip for budgeting and saving by utilizing autopay. Some companies even offer discounts simply for using automated payments. Companies such as internet providers, cellular businesses, and television networks will offer similar discounts. Look into this option to not only keep you organized and on track, but potentially add some additional savings to your pocket.  

The benefit of autopay can be a reward to you as it shows a level of commitment to paying your bills to a company. This is a great option to a avoid the potential of a late payment solely due to forgetting.  

Step 3: Don’t Keep Too Much Cash  

Spending cash can work for some but can also be difficult for others to spend sparingly. Even though you may automate your payments and paycheck, you can still leave aside a few hundred dollars (or whatever best fits your budget) as spending cash. A tip is to not keep your cash casually in your wallet to avoid spending it on random purchases. Plan out your spending in advance and get your cash out when and if you need it.  

If you find yourself spending money on non-essentials frequently, consider getting a white board or a day planner to list out those items, as well as items you have run out of, to plan into your budget in advance to grab the next time you are out.  

Step 4: Take Advantage of Cash Back on Your Purchases 

There are so many ways to take advantage of cashback on your everyday purchases. Many credit cards come with rewards that feature a cashback program. If you need a credit card, click here to learn more.  

Step 5: Use Store Rewards and Coupons  

When you plan to make a purchase, plan in advance what you’ll be getting and do your research to see if you can take advantage of your store rewards or apply any coupons. Most common stores typically over a rewards program. Sign up for store rewards and notifications for deals or coupons – if you find it offers no benefits, it is simple to unsubscribe.  

Saving money can be hard especially after a season known for spending! Take the tips from our Spender’s Guide for Saving to apply into your day-today and new year’s savings resolutions! 

Peoples Bank & Trust Co.  

Member FDIC  

Equal Housing Lender  

Money Moves for College Students

Money Moves for College Students

College is a fantastic learning experience for young adults but can often be a very expensive time of life. While many wouldn’t change their college experience for anything, we can all agree there would have been some things we would have done differently financially. Keep reading for some money tips for college students!

1. Don’t Carry a Balance on Your Credit Card

What may seem like a given, in a time of life where school is your primary focus, do not spend more than you can pay off in a month. College is a credit time to manage a credit card as well as build up your credit. Having poor money habits can easily tank your credit score and potentially put you in debt. If you do not have the money in the bank to pay for your expenses, do not charge your credit card. 

Need a credit card? Visit our website to get started!

2. Routinely Put Money In Your Bank Account

College can be a difficult time for consistent savings, but the best thing you can do is save every penny you get and stash it away in your bank account. Whether your money comes from a summer job, part-time job, or even a gift – save as much as you can! 

If you are in need of a checking or savings account, visit our website!

3. Be Smart with Your Student Loans

Paying for college can be tough and student loans are a great option to make it work for many students and families. Always keep in mind they are loans that you will eventually pay back. Apply for as many scholarships and grants as you can to help pay for your college. The less you borrow now the less you pay back later! 

If you are in need of a loan for college, we can help!

4. Work a Job If You Are Able

Working a job throughout college can often be a struggle, but if you are able, take advantage of the opportunity! Not only is this an option to make money to save up, but it is a good experience to add to your resume. There are many flexible jobs to apply for, especially for college students. Utilize your school’s resources or speak with a counselor to help you find a good option – potentially an opportunity on campus! 

College is a phenomenal time for students to learn not only the career path they choose to take, but real-life experience of expenses, budgeting, building credit, and more. Don’t let your money habits slip up in college. Incorporate these tips into your routine or share them with a college student in your life! Visit Peoples Bank & Trust Co to get the accounts and resources you need for financial success throughout your college years. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Why is Financial Literacy So Important

Why is Financial Literacy So Important? 

Lacking financial knowledge can result in bad money habits such as saving and investing. In this blog, we will outline what financial literacy is, why it is so important, as well as some tips to actively become more financially literate. How we spend and manage our money is crucial to our financial stability throughout every stage of our lives! 

What is Financial Literacy and Why is it So Important?

Financial literacy is the ability to understand and effectively use various financial skills to better personal finance, budgeting, and investing. Essentially, financial literacy is a strong foundation you build on your relationship with money and money habits. This is an ongoing process as you continue to learn through different points in your life. The earlier you start betting on your financial education, the better you will be later in life and when you retire. 

Stop waiting to prioritize your finances and start working on better habits to gain knowledge and improve all areas of finance, credit, and debt management to make financially responsible decisions—choices that are integral to our everyday lives. Evaluate your current financial situation, set goals, and learn something to become more financially aware and plan for your retirement. 

Ways to Improve Your Financial Literacy

Take this as a push to gain knowledge and financial growth. How can you improve your financial literacy? Here are some ideas: 

  • Seek financial knowledge
  • Subscribe to a financial newsletter 
  • Listen to financial podcasts
  • Join a financial club (investments, money management, money, financial literacy, etc.)
  • Read a personal finance book or blog
  • Speak with a financial advisor
  • Use social media to learn – join a finance group 
  • Make financial money moves (re-work your budget, open a savings account, open an investment account, put your money towards retirement, start an emergency fund, increase your retirement contribution) 
  • Consolidate high-interest debt
  • Make small changes in your spending habits; acknowledge bad habits and set goals to change them

How To Become Financially Aware of Retirement Planning

Money moves you make now will affect you later in life. Ultimately, saving for your retirement is securing your financial stability later in life. Here are the top tips to incorporate into your financial habits now to best save for your retirement: 

  • Focus on starting ASAP if you haven’t already
  • Contribute to your 401(k) routinely 
  • Open an IRA account
  • If you are 50 or older, take advantage of catch-up contributions
  • Create a spreadsheet to see where you are at and what you need to do to reach your retirement savings goal
  • Rein in your spending
  • Automate your savings

If you are looking to make good financial decisions and better your financial literacy, now is the perfect time to get started. Building a solid financial future is extremely important for where you are currently at in life and when you reach retirement. Take this time to reflect on your finances and educate yourself to make smart financial decisions and money moves – you will be extremely glad you did.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

What is a Certificate of Deposit

What is a Certificate of Deposit? 

Do you know what a Certificate of Deposit is? Today we are going to outline the top 5 reasons you should open a Certificate of Deposit (CD), what a CD is, and why it financially makes sense to open one now. Keep reading to learn about the benefits of a Certificate of Deposit.

1. What is a Certificate of Deposit (CD) 

For the folks who think the market is the only place to invest your money, we hope to change your mind by the end of this blog. A Certificate of Deposit is a product that provides an interest rate premium in exchange for the customer leaving a lump-sum deposit untouched for a predetermined period of time. Investing your money is the best way to make your money work for you – consider opening a CD with us to work yours.  

2. CDs Have Higher Interest Rates  

What you may not know is that CDs pay a significantly higher interest rate than savings accounts or money markets as long as you leave your deposit untouched for that predetermined period of time.  

3. If You Don’t Need the Money Immediately, Put it in a CD

There is a reason CDs pay higher interest rates than savings accounts and we are going to fill you in on why. You can pull your money in and out of your savings account as you please. With a Certificate of Deposit, you’re required to lock your money in for a set amount of time. With that being said, if you absolutely have to withdraw money from a CD you may experience a fee.  

So to put it simple, if you have a chunk of money saved that you don’t need immediately, it is worth it to open a CD and stash it away. As the saying goes, make your money work for you and it absolutely will if you move it from a Savings or Money Market account to a Certificate of Deposit 

4. CDs are Safer and More Conservative Investments

Certificates of Deposit accounts are known as a safer and more conservative investment option in comparison to stocks and bonds as they offer lower opportunities for growth, but with a non-volatile, guaranteed rate of return. Although you lock into a set period of time when you open a CD, there are options for exiting early should you encounter an emergency or change of plans.  

5. CDs Can Provide You Peace of Mind 

Certificates of Deposit provide you with fixed rates for fixed terms. In a world of unknowns, especially right now, knowing the benefits of a CD can provide invaluable peace of mind when it comes to your money. Feel secure in knowing potential gains in an uncertain market don’t outweigh the need for a financial product like a CD that provides reliable growth.  

Are you ready to move your money to a Certificate of Deposit? We can help answer any questions you may have and get your new account started! Contact Peoples Bank & Trust today to discuss a Certificate of Deposit!  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Don't Overspend this Holiday Season - Steps to a Better Budget

Don’t Overspend This Holiday Season- Steps a Better Budget  

Summer has flown by and that means the holidays will be here before we know it. Setting a budget is crucial for not overspending during a very expensive time of year. Start saving and setting your budget now so that when the holidays arrive you aren’t scrounging to stay within your budget. Here are the top steps for creating a budget for the holidays, as well as some savings tips. 

Step 1: List Out Your Known Holiday Expenses 

Your best strategy to avoid overspending is to set and stick to a holiday budget. It is very important to list out early your known holiday expenses and remember the spending doesn’t stop with gifts. Plan for hosting, food, entertainment, holiday activities, decorations, travel, donations, cards, wrappings, stocking stuffers, work Christmas parties, or anything you typically spend money on during your holiday season. 

The process of creating your holiday budget is similar to your household budget – list all expenses and add them up. Seeing this total, you can evaluate if it is within reach or if you need to tighten up your budget. As you shop this is a list to refer to and decipher how much to spend on each item as you check off your list. 

Step 2: Set Your Spending Limit

The most important step is to identify how much you can afford to spend and set your spending limit. This amount should come out of cash or savings to avoid relying on debt. Look at your list of holiday expenses and remove items if at all possible, compare what you’ve totaled up to the money you have set aside for holiday spending. If your total is within reach, this is a time to be creative with how to save a little extra over the next few months to continuously set aside money for your holiday budget. Here are some ways to save extra:

  • Buy gifts early and on-sale
  • Shop Black Friday
  • Sell some things
  • Pick up a side hustle
  • Cut back on buying wants 
  • Reduce social spending
  • Tighten your budget up and send additional savings to your holiday fund
  • Take a holiday job

Step 3: Number Your Priorities

The holidays can be overwhelming if you don’t plan in advance, set your spending limits, and save, save, SAVE! To relieve some holiday anxiety, set your priorities and do not feel bad doing so. If your expense list seems to be long, it’s ok if you can’t afford every single item that’s where your priorities come in. Go through your list and assign each item a number based on its importance. Rework your list, putting your high-priority items at the top. Your high-priority items should be the first you save for and purchase. 

For example, suppose you decide that purchasing gifts is your top priority, while new holiday clothes for yourself are a low priority. As you work out your budget, you would allot more items to your gift fund than your clothing fund, possibly even waiting to purchase clothing until gifts are all purchased, and you have room in your budget. 

Step 4: Re-Work Your Budget; Allocate Funds

Allocating your funds is figuring out how much money to put towards each item on your list. Examine your list to roughly estimate how much each item costs and how much you plan to spend. Keeping this list realistic and projecting costs to be higher will keep you within your spending limit. If you have 20 gifts to buy, budget for each of these gifts at a doable cost. 

Step 5: Check in On Your Holiday Savings and Budget

When you have added up the amounts you’ve allotted for your items be sure this equals the total you set as your spending limit. If it doesn’t match up, this is the time to rework your savings plan or lower a budget for one of your priorities. Consider scaling back on activities or even how elaborate your holiday party may cost. This is where you can reference your numbered priorities list and see what can be rearranged to keep you within your budget. 

As you begin to shop and plans change, KEEP TRACK. Keep notes of expenses and receipts to know where you stand on purchases and stay within your desired spending limit. Don’t risk blowing through your budget by simply being unorganized or overspending. If it makes it easier, open an account specific to holiday spending to help you keep track of how much you’ve spent and to reference the cost of items as you shop. You also could create cash envelopes to keep priorities separate. 

There are several ways you can get ahead on holiday spending this year! The best thing you can do is start planning and saving now – you’ll thank yourself for a great financial start in the new year!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

What is FDIC Insurance?

What is FDIC Insurance?

Deposit insurance is one of the biggest pros of having an account at an FDIC-insured bank. An FDIC-insured bank protects your money in the event of an unlikely bank failure. Keep reading to learn the benefits of being covered by an FDIC-insured bank. 

What is FDIC Insurance? 

FDIC insurance is a significant benefit of putting your money in a bank that is FDIC insured. “The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.” Simply banking with an FDIC-insured bank takes away having to purchase deposit insurance, as you are automatically covered. FDIC insurance maximizes your protection. 

What Does FDIC Insurance Typically Cover? 

Just because a banking institution offers FDIC insurance, that does not necessarily mean all accounts, products, and investments are covered. 

FDIC insurance often covers:

  • Checking Accounts
  • Savings Accounts
  • Money Market Accounts
  • Certificates of Deposits
  • Cashier’s Checks or Money Orders
  • Negotiable Order of Withdrawal Accounts

The FDIC does not cover:

  • Stock Investments
  • Bond Investments
  • Mutual Funds
  • Annuities
  • Safe Deposit Boxes
  • Life Insurance Policies
  • U.S. Treasury Bills, Bonds, or Notes

Remember if your bank is an FDIC-insured institution coverage is automatic to you, there is no need to apply for FDIC insurance.

Are You Covered? 

To find out if your deposits are insured utilize the tools below to check if your bank is insured, which of your accounts are covered, and how much of your deposits are insured.

Is Your Bank Institution Insured? – Not all banks are FDIC insured. Be sure to check that your is!

Are Your Deposit Accounts Insured? – Not all accounts, products, and investments are covered by FDIC insurance. 

How Much of Your Deposits Are Insured?  Use EDIE or Electronic Deposit Insurance Estimator to determine how much are insured. 

Frequently Asked Questions About Deposit Insurance

If you are looking to learn more about FDIC insurance, we would be happy to help. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

6 Ways to Cut Expenses this Fall

6 Ways to Cut Expenses During the Fall  

We all can probably agree that we’d love to have additional savings to go towards our holiday expenses. Whether you need to save extra for an upcoming vacation, want some Fall fun, or are trying to get your budget in-line before the holidays we’ve got some easy tips for you to reduce expenses for sweet fall savings. Shift your mindset to fall savings with these simple tips. 

Track Your Spending 

The first way to cut expenses is to see where your money is going. Maybe it’s time to hard-core track your spending and find the key expense that is busting your budget. Grab a piece of paper and write down every expense for 30-60 days to see what your money is going towards. Sometimes this tip alone is a great way to drop unnecessary spending because you see it and acknowledge how often you’re spending money on it.

Another tip when tracking your spending is to identify purchases as a need or want. Sometimes we need to think through our purchases to see how often we are spending money on things we need or want because that could be a key factor that maybe your budget is off. 

Comb Through Your Budget 

If you are already tracking your spending, you probably have a budget in motion. When you are looking to save extra, you need to comb through your budget to ensure it is accurate for your financial situation and the season. Create small goals to meet within your budget to reach. Monitor your spending categories to see if there is an area you don’t necessarily need as big of a budget for and can add that extra chunk to your savings instead. 

Remember these budget tips: 

  • Determine your monthly income. 
  • Determine your fixed expenses each month.
  • Determine your monthly budget for needs. 
  • Determine how much you need to set aside for your holiday expenses to stay within your set budget.

Scratch the Subscriptions 

Cleaning through the subscriptions is a great way to have some additional savings. When looking through your subscriptions it is important to ask yourself how much you use them and do you really need them. Gym memberships are great to cancel in the summer and fall because you can get your exercise outside or in the comfort of your home. Cancel those subscriptions sooner than later and you will see a great income for your savings. You may even realize you don’t need them back. 

Reduce Energy-Use

Fall is the best time of year to save money at home by reducing your energy use. Here are some ways to reduce energy at home to save on the energy bill:

  • Open the windows
  • Shut the fans off when you’re not using them
  • Run full loads of laundry and dishes
  • Shower in the early morning or night when it’s cool
  • Allow the sun to naturally heat your home
  • Use natural lighting
  • Manage your AC usage – shut it off completely when it cools off and open the windows

Love a List 

When you’re out shopping, particularly at the grocery store or on that unnecessary Target trip, bring a list and stick to it. This is a phenomenal way to control what you are buying and to plan how much you intend to spend. Learn to love a list this fall and challenge yourself to follow it.

Eat-In 

We all enjoy the ambiance and convenience of a meal out, but those most definitely add up. Rather than eating out too many times a week, stick to that grocery list and plan out meals and snacks to eat at home or bring with you on the go. Budget and plan those meals out to avoid overspending. 

Fall is here and we want your savings to be sweet! Start tracking your spending and finding a few things to cut to make saving easy.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender