Category: Save Money

Student paying off loans

How Do I Pay Off Student Loans Quickly? 

Paying off student loans isn’t going to happen overnight – it takes time, and most importantly, discipline. There are some steps you can take to speed up the process and be debt-free sooner rather than later. If you’re in need of some advice on this subject, you’re in the right place.   

1. Pay MORE than the minimum.  

If you’ve only been paying the minimum, odds are you haven’t seen a whole lot of progress. Plus, the interest you’re piling up isn’t helping either. Instead of worrying about saving as much as you can, focus on putting a bigger chunk of your money towards your student loan debt to make the payoff process much faster.  

2. Put all promotions, tax refunds and bonuses towards your student loans.  

It may seem tempting to reward yourself when you get a promotion or a bonus, but take a step back before spending impulsively. Make the decision to put all your “extra” money towards paying off your student loans rather than spending it all.  

3. Pick up a side hustle.  

If you have some extra time on your hands before or after work or on the weekends, consider picking up a side job for extra cash. You could waitress on the weekends or evenings, start your own side business involving a hobby of yours or sign up to be an Instacart driver or DoorDasher.  

4. Re-evaluate your budget (and stick with it).  

Take a look at your current budget if you already have one and figure out what adjustments can be made. You’ll most likely have to make some sacrifices, but they’ll be worth it in the long run when you’re finally debt-free. Once you’ve adjusted your budget and left plenty of room for money to go towards your student loans, stay disciplined and make it a priority to stick with your budget.  

5. Don’t give up – stay motivated.  

Paying off student loans takes time and patience – you won’t see results in a week or month. The key is to stay positive and consistent in your payments and you’ll be debt-free before you know it.   

Today’s the day to make a change! Your future self will thank you for ridding yourself of debt as soon as possible. Peoples Bank & Trust believes in you and is here to help! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Beginner's Guide to IRAs

A Beginner’s Guide to IRAs 

Why should I worry about saving for retirement right now? Are IRAs really that important? If you are wondering the importance of saving for retirement and how much that can drastically affect your future, you’ll want to continue reading. We wanted to provide a beginner’s guide to IRAs so you can understand your options and the differences between IRAs.  

What is an IRA?  

An individual retirement account (IRA) is basically a savings account with tax advantages for you to use to prepare for retirement. There are several different types of IRAs, including Traditional IRAs, Roth IRAs, SEP IRAs and SIMPLE IRAs.  

What are different IRA options?  

A Roth IRA or Traditional IRA are two options. These will be explained in the next section. Other options may be a SEP IRA which stands for simplified employee pension. A nondeductible IRA may be an option if you (or your spouse) have a retirement plan at work and your income exceeds the IRA income limits, then you may not be able to deduct your traditional IRA contributions. A SIMPLE IRA stands for Savings Incentive Match Plan for Employees – it mainly exists for small companies and the self-employed. There are others out there, but these are the most common you would come across based on your employment.  

What is the difference between a Roth and Traditional IRA?  

For starters, with a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½. Investopedia states, “Roth IRAs are similar to traditional IRAs, with the biggest distinction between the two being how they’re taxed. Roth IRAs are funded with after-tax dollars; this means that the contributions are not tax-deductible. But once you start withdrawing funds, the money is tax free. Conversely, traditional IRA deposits are generally made with pretax dollars; you usually get a tax deduction on your contribution and pay income tax when you withdraw the money from the account during retirement.” To learn more, click here: https://www.irs.gov/retirement-plans/traditional-and-roth-iras   

How much should I be saving for retirement?  

There are lots of different ways to be sure you are saving enough for retirement. When you retire, you’ll need to factor in monthly bills, living expenses, rent, loans, medical bills, travel and so on – so it does add up quickly! One way to be sure you are saving enough is to look at your age. In your twenties, one rule of thumb is to save 10% to 15% of your pay for retirement. By thirty, you’ll want it to be at least 15%. At 40, you should aim to save 3 times your salary. Consulting a financial advisor will also be helpful, so you can determine how much to save and also how much to contribute to other areas such as a savings account or 401k.  

We hope this helps you feel more confident about beginning to save for retirement with an IRA. We offer solutions for you along with any other help you may need financially. Reach out to us today! 

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender  

budget

The Dos and Don’ts of Budgeting

When it comes to budgeting, you might not even know where to start. The truth is, there are a million ways to budget and it’s not a one-size-fits-all process. You should try some different methods to decide what works best for your specific situation. Here are some general rules of thumb when it comes to knowing how to properly budget:  

DON’T stress yourself out about debt. DO take the first step in creating a budget. 

One of the biggest mistakes people make is over-stressing about the idea of a budget which prevents them from budgeting at all. Instead of stressing yourself out over creating the “perfect” budget, just start small. Over time you’ll learn what works and what doesn’t work for you individually. 

DON’T set an unrealistic budget. DO create a sustainable and effective budget. 

If you’re super motivated to save lots of money this year, you may get in over your head about how strict your budget should be. While budgeting should involve discipline, there are ways to create one that’s sustainable in the long run and that still allows you to enjoy life. It’s all about balance, so find a good mix between a budget that challenges you but is realistic. 

DON’T spend impulsively and carelessly. DO align your budget with your priorities. 

What are your main priorities in life? If you enjoy cooking extravagant meals, keeping your car in tip-top shape or going to classes at your gym every week, make room in your budget for that. On the other hand, the money you do have to spare should be used wisely, so always factor hobby spending into your budget so you don’t end up spending impulsively. 

DON’T give up after a few difficult weeks. DO follow through and trust the process. 

Just like most good things in life, saving money and budgeting properly takes time. You might become discouraged when you realize you can’t always go buy your morning coffee or you must limit the number of times you go out to eat. It’s not always an easy change but stay motivated. Over time you’ll look back and be thankful for the financial sacrifices you made. 

DON’T try to manage your finances by yourself. DO talk to a financial advisor or have an accountability partner. 

If you have a trusted friend or family member who is also wise with money, you can confide in them for advice as well as accountability. Having someone to keep you in check will be another source of motivation for you. You can also rely on a financial advisor for assistance if that sounds like the right step for you. 

Now that you know how to and how not to budget, you can feel confident going into the process. Take the first step and create a simple budget – we believe in you! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

old-couple

Common Retirement Mistakes to Avoid

Whether you’ve barely thought about retirement or are nearing the typical retirement age and want to know how to go through the transition properly, learning about the process is always a good idea. Learn from the mistakes of others and avoid these common mistakes: 

Putting Off Retirement Savings 

Don’t keep putting it off – the time to start saving for retirement is now. The earlier you start, the less stressed the retirement process will be. A CD or IRA is a good place to start!

Not Having a Plan 

There are so many things that factor into how much money you’ll need to save, including when and where you’re retiring. Plan these things out in advance, coming up with an amount you’ll need to retire comfortably, then take action steps towards saving that much. 

Not Taking Advantage of Your Company’s 401(k) Employer Match 

If your employer offers a 401(k), make sure you maximize the amount you contribute and utilize the employer match if that’s an option. This is extremely important and the money matched can really add up. 

Waiting to Pay Off Debt 

Don’t wait until the last minute to pay off your debt – get rid of that as soon as you can so you don’t have to save for retirement at the same time as you’re paying off your student loans. Experts often say you should focus on paying off debt before you worry about saving for anything, including a new vehicle, a house and even retirement. 

Looking Past Potential Health Costs 

You never know what the future holds, and you may end up in a situation where you must pay for unexpected medical bills. While we hope this isn’t the case, it’s always better to be safe than sorry when planning for retirement. 

Changing Jobs Frequently 

There are benefits to sticking around at a certain company for an extended period. For some companies, when you’re there for a set period (usually five years), you become fully vested which means ownership of the funds or stock that your employer “matches.” Consider this as you navigate the job world and consider hopping around from one to another. 

While this is just the tip of the retirement iceberg, these are all common mistakes that can be easily avoided. Make sure you are planning for retirement ahead of time so you can save yourself the trouble that comes with going into the process blind! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

picnic

Date Night on a Budget

It’s easy to skip out on date nights as life gets busier, and especially when money becomes tight. Making intentional time to spend with your partner each week or month is so important, and date night doesn’t always have to be extravagant. There are lots of sweet date ideas that cost little to nothing, so try some of these ideas on your next free night! 

Cheap Babysitting 

If you have kids and don’t want to spend money on a babysitter, there are some ways to get around that cost. Having family members or close friends nearby who are willing to watch your little ones for free is always nice, but that’s not an option for everyone. Think of another couple with children who you could ask to do a “babysitter swap” with each month. They watch your kids for an evening and you watch their kids another time, that way both couples get to go on a date without worrying about the childcare cost. 

Explore Nature 

One of the best parts about nature is that exploring it is usually free! If it’s nice out, you could go for a hike or find a pretty trail in your area to check out.  

Coffee Date 

Some coffee shops are a bit pricey, but it’s not bad if you stick with something simple like black coffee. Whether you want to try a coffee shop you’ve never been to or have a favorite, go-to spot, this is always a great idea for any time of the year.  

Picnic 

When the weather warms up a bit, you can’t go wrong with a romantic picnic. Pack a simple lunch or dinner with the food you have at home and find a nice picnic spot in your area. If you have some money to spare, you could mix it up by ordering a pizza or picking up a sub sandwich. 

Just Dessert 

Going out to dinner is usually what makes date night expensive, so what if you made the main course at home and went out for just dessert instead? This can be as simple as a drive-through ice cream cone or as fancy as cheesecake from a nice restaurant.  

Go On a Long Drive 

There’s nothing quite as peaceful as playing good music and going on a long drive. To add to the experience, visit Zillow.com to find some expensive houses in your area to check out. 

Games and Movie Night 

It’s time to dig out those old board games like Uno or Monopoly and have a fun game night. End the cozy night at home with a movie and some popcorn. 

We hope these ideas have sparked your interest and will help you stick to your budget. Now’s the time to go mark your calendar for a date night so you can spend time with the person you love! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

chart

Retirement Strategies for Your 20s

It may seem like a lifetime away, but retirement has a way of sneaking up on all of us. Something to remember when it comes to retirement is that the earlier you start saving, the better. Plus, you’re never too young to invest in your future. If you’re in your 20s, here are some helpful strategies you can implement to set yourself up for a successful retirement. 

Rid Yourself of Debt 

The first step in creating a retirement fund is to look at what you’re dealing with in terms of debt. If you can realistically pay off your student loan debt in less than 10 years, financial advisors often recommend that you focus on that before worrying as much about saving. 

401(k) Plans 

Investing money into an account specifically for retirement allows you to store up without paying taxes on gains until you reach retirement. If your employer offers a 401(k) plan, that’s a great place to start. 

Open an IRA 

On the same note, an IRA is a retirement account that has lower contribution limits than 401(k)s. This doesn’t have to go through your employer, either, so the amount you invest is more in your hands. If your company doesn’t provide a 401(k) match, the smartest route would be to max out on your IRA then put the remaining money into your 401(k). 

Create an Emergency Fund 

You may have a good amount of money stored in your savings account, but how much of that can be used in cases of emergency? Keep your life savings and your emergency fund accounts separate so you have a cushion if things go wrong. This will prevent you from needing to withdrawal from your retirement account or main savings account. Try to save three to six months worth of living expenses to be safe. 

Automate Your Savings 

If you have a hard time staying disciplined and remembering to contribute to your savings account each month, there’s a way to help with that. By making your savings automatic, you won’t even have to think about it since it will transfer for you. Set a savings goal for the year, figure out how much you’d need to save each month in order to make that happen and go from there! 

Keep an Eye on Your Account 

If you’re making saving for retirement a priority in your 20s, you’re in a good place already. Check back on your account frequently to see your savings grow and that will continue to motivate you throughout your 30s, 40s and beyond.  

Questions about retirement or unsure where to start? Our team is here to help! Contact Peoples Bank & Trust with any questions. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

moving-boxes

How Much Does Moving Cost?

If one of your to-dos for 2022 is packing up your house and moving, you may be wondering how much that will end up costing you. While the amount varies greatly depending on how far, how much stuff you have and other factors, this blog will help you come up with an idea of what to expect. 

Average Moving Cost 

Local move: $1,250 

Long distance move: $4,890 

Factors Affecting the Cost 

The following factors are unique to your specific moving experience, meaning the price you pay varies: 

1. Fuel 

If you have a long-distance move, gas money is an expense to keep in mind. Not only do you have to drive any vehicles you have to the new home, but you also must pay a per-mile rate if you use a moving truck. 

2. Amount of Items 

The size of your moving truck will affect how much you pay for it, so if you have more things to move it will be more expensive. If you’re hiring a moving service, it’ll also take them longer to move the boxes out if there’s more stuff.  

3. Storage 

Sometimes moving gets a bit complicated and you need to store your belongings in a storage unit for a period of time. Storage rates vary as well depending on the place, how much you have to store and how long you store your items for. 

Cutting Costs 

Now that you know the general costs of moving, it’s time to discuss a few ways you can lower those costs to make your moving experience as cheap as possible: 

1. Reach Out for Help 

Ask your family members and friends to help with packing and moving if possible. There’s a good chance you’ll get plenty of help at no cost! 

2. De-Clutter and Sell Some Items 

One of the best ways to make the moving process both cheaper and easier is to go through your things as you pack and make a pile of items you no longer need. Take this extra stuff to a donation center and you’ll clear up lots of space in the moving truck. 

3. Find Free Moving Supplies 

Rather than going out to buy a bunch of boxes, seek out free supplies from grocery stores, office buildings, schools and other places that may have boxes to get rid of.

Do what you can to be prepared for the moving costs to come as well as to cut costs as much as possible. We wish you the best of luck on your new adventure this year and we hope the moving process goes smoothly! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

calculator

Make 2022 Your Best Financial Year Yet

If your new year’s resolution is to take control of your finances, you’re in the right place. We’re here to give you some ideas on how to make 2022 your best financial year yet. All it takes is some time, discipline and lots of motivation! 

Figure out your monthly income. 

The first step is to start from scratch, which means re-evaluating exactly how much money you have coming in each month. If you work a job that has a varying monthly income, estimate it to be on the lower end to be safe. 

Create a list of all monthly expenses. 

Write down every monthly expense you have, first starting with the expenses that are guaranteed such as rent/mortgage, car payments, insurance, etc. Then, estimate what you spend on varying expenses such as gas and food. 

Look back at your payment history. 

Now’s the time to look back at your banking history in previous months and find out what extra things you’ve been spending money on. This step is difficult because you begin to realize just how much you’re spending, but it’s worth it.  

Adjust your budget. 

Once you divide those items into categories, decide how much you want to spend from now on. Using a budgeting app is a great way to break your expenses down into specific categories and keep track of just how much you’re spending. Make it a goal to stick with your budget, tracking all of your expenses if necessary until it’s natural. 

Build up your emergency fund. 

You never know what 2022 is going to throw your way, so adding to your emergency fund is crucial. Set yourself up for a stress-free year by preparing for emergencies and unforeseen payments to come. If you don’t have an emergency fund quite yet, this is the year to start one! 

Do regular budget check-ins and adjust. 

Once you’ve completed the above steps, it’s important that you continue to do regular check-ins to make sure you’re following your budget. With time comes changes to your finances, so adjusting your budget every so often is also important.  

If you want to take your finances seriously this year, this is a great place to start. Once you begin incorporating the basics into your routine, you can start adding things like investments to the list so your finances can continue to grow. Questions? Feel free to contact Peoples Bank & Trust and we’d be happy to help! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Christmas-gifts

Wallet-Friendly Christmas Gift Ideas

You want to give your friends and family something special for the holidays, but you don’t have hundreds of dollars to spend. Don’t worry because there are still lots of thoughtful gifts that won’t hurt your wallet. Plus, these are all practical gifts that your loved ones will get lots of use out of!

1. Self‐care products: Throw a cute stocking together including holiday‐themed facemasks, lotion, lip balm, a candle and whatever else you think they may like.

2. Jewelry: A necklace or a cute pair of earrings doesn’t have to be expensive. Look in places like Target to find affordable yet stylish jewelry.

3. Board games: This is a great gift for any age since there are games made for both kids and adults. If you’re participating in a white elephant gift exchange, consider buying a fun game that everyone in the group can play together.

4. Grooming kit: If the man you are gift‐hunting for has a beard, a grooming kit is a great option so they can stay fresh and maintain their look.

5. Coffee essentials: This one is for all your coffee‐loving friends out there. Get a cute coffee mug along with their favorite coffee grounds, creamer or syrup, or throw in a gift card to their favorite coffee shop.

6. A book involving something they’re passionate about: There’s a book out there for just about anyone, so find something you think they’d enjoy reading.

7. Subscription: Spread out the spending by paying for a monthly subscription to a streaming service they’re interested in. You can limit this as much as you’d like, too. For example, tell them you’re giving them a one‐year Netflix subscription.

8. Framed poster: You can find both frames and posters for cheap, and this is a great idea for someone who needs some extra home décor. If it’s for a significant other, you can make it meaningful by framing a map pinpointing where you first met.

9. Kitchen supplies: If you have a friend who loves to cook or even someone who just moved in and could use necessities, kitchen supplies are a great idea! A rolling pin, whisk, measuring cups, serving utensils, mixing bowls,
cutting boards and so on would be perfect gifts.

10. Plants: Who doesn’t love a cute succulent for their desk or nightstand? If they’re not big into caring for plants, you can always opt for fake ones to spruce up their home décor.

11. New wallet: If you’re shopping for a guy in your life, having a nice, leather wallet is always a staple.

12. Bottle of wine: Pair someone’s favorite bottle of wine with a cute wine glass and you have yourself a classy and thoughtful gift.

13. Homemade holiday treats: You can’t go wrong with gifting sweets. Bringing your loved one their favorite holiday‐themed treats is guaranteed to make just about anyone’s day.

We hope you find some reasonably priced gifts for your friends and family, but most importantly, spend quality time with the people you love. Happy holidays!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

painting

Cheap Home Improvement Projects

Ready to upgrade your home in a wallet‐friendly way? We’re here to give you lots of ideas for your next project. Rather than explaining each idea in detail, we’re going to list out 12 projects that you can take and make your own. Let’s get started!

1. Add a fresh coat of paint.

One of the simplest and cheapest ways to upgrade a room in your home is to pick a nice paint color for the walls. This can brighten and modernize your space in less than 24 hours.

2. Replace your cabinet and dresser hardware.

You’d be surprised at how much of a difference it makes to simply replace your outdated hardware for a more modern look!

3. Hang string lights on your patio or porch.

There’s nothing quite as warm and comforting as sitting under some beautiful outdoor string lights.

4. Repaint your kitchen cabinets.

If you have outdated kitchen cabinets, you might not have to completely replace them. Instead, paint them a lighter, neutral color or simply fix up the paint job that’s already done if you like the color.

5. Get a new shower curtain.

Swapping out your old shower curtain for a new and improved one is one of the cheapest ways to change the look of your bathroom.

6. Add an accent wall.

Have a room that’s a little boring? Paint one wall a bolder or darker color to make it stand out.

7. Get rid of the popcorn ceilings.

Out with the old and in with the new! Click here to learn how you can get rid of your popcorn ceiling on your own at home.

8. Paint the front door.

Upgrade your curb appeal by painting your front door to make a better first impression.

9. Replace your ceiling fans.

You can either get new fans altogether or save money by simply repainting the fans you already have to make them more modern.

10. DIY some wood shelving.

Give your kitchen the popular look of open shelving by building wood shelves for the walls.

11. Upgrade the house numbers on your front door.

This small change can make a big difference on your home’s curb appeal. Replace the old numbers with larger, modern numbers to match the look of your house.

12. Add some greenery.

One of the best ways to improve the look of your house is to add plants, real or fake, in the rooms that need a little life.

When it’s time to complete the bigger home improvement projects that might be a little pricey, Peoples Bank & Trust has the personal loan to help you get it done. Contact us or visit our website to learn more!

Peoples Bank & Trust Co.
Member FDIC
Equal Housing Lender
NMLS #407724