Category: Save Money

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Spring Savings Guide

Spring is the perfect season for fresh starts, personal growth and positive changes. This season, along with the loads of spring cleaning and organizing, consider making your finances a priority. A great first step is to read through this practical guide to saving money so you’re ready for summer! 

1. Prepare for the heat by making sure your cooling system runs efficiently. 

Summer is on its way which means you’ll be cranking the AC before you know it. The best way to cool your home affordably is to schedule regular maintenance for your cooling equipment. Before the temperatures rise, you can make sure that your cooling system is running correctly and you’re not overpaying because of a leak or other issue. 

2. Revisit your budget. 

Something many people often forget to do is adjust their budget periodically. Life changes and so do your expenses, so make sure your budget matches your current stage of life. If there’s been an addition to your family, you’ve moved to another apartment or home or are starting to save for a new car, your budget should reflect those changes. 

3. Contribute to your emergency fund. 

Whether you’ve had an emergency fund for years or haven’t started one, it’s important to continue adding to it over time. You never know when unemployment or times of financial crisis may hit, so the more you decide to save for emergencies, the better. 

4. Make transferring money to your savings account automatic. 

A common issue that individuals run into is either forgetting to contribute to their savings each month or skipping it to avoid transferring money. By automating your savings, you’re contributing to the account without even thinking about it.  

5. Focus on getting rid of your debt. 

Contributing to your savings can seem difficult if a big portion of your income is going towards paying off debt. Getting rid of debt can be a big hurdle in the way of contributing to your savings, so it’s smart to make being debt-free a priority. Once you no longer have those monthly payments, you can put a much larger portion of your income towards your savings account. 

6. Reward yourself for reaching goals. 

Motivating yourself is easier when there’s a reward waiting for you once you reach your goals. Whether you’ve been eyeing a new item of clothing or want to go out to eat at a nice restaurant, treating yourself occasionally is a great incentive. Set a goal every month with small rewards or a long-term goal with a larger reward. 

This spring and summer, make it a goal to contribute to your savings account as much as possible. If this past year has taught us anything, it’s that you never know what’s coming and how it could affect you financially. To learn more about how we could assist you in your financial journey, contact Peoples Bank & Trust today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Get Back to Budgeting

Have you recently fallen off the budget wagon? Have no fear, Peoples Bank & Trust is here to help! Creating a budget is one thing but sticking to it is often hard. If you’re someone who struggles sticking to their budget, read these tips to get back to budgeting. 

Total Your Monthly Bills 

If it’s been a while since you last followed a monthly budget, it’s a good idea to double check your monthly bills. Take a look at your monthly bank statement as an easy way to total up your bills. Write down what each bill costs and then write down the total as well. This is your new budget base – a.k.a the amount you need for essentials every single month.  

Set Up Automatic Payments 

After you check your bank statement to remember what monthly bills need to be paid, set up automatic payments for all monthly plans and subscriptions! Then you don’t need to worry about obtaining late fees you didn’t plan on. If you’re worried about spending your paycheck before all the bills are paid, schedule your automatic payments to be paid on the first of the month. That way your essentials are taken care of first thing and you don’t need to worry about overspending to the point where you can’t afford to pay those. 

Cap Your Fun Money 

When we fall off the budget wagon, it’s most likely because we’re spending money whenever we feel like it, instead of giving ourselves healthy spending restrictions. After you total your monthly bills, essentials (gas and groceries) and determine how much to send to savings each month, set a limit for “fun money.” Fun money is the amount you let yourself spend on absolutely anything you want, but after you spend x amount, it’s time to stop! If you have your eye on something particularly expensive, try not spending the fun money for a few months so you can afford the item! 

Open Online Bank Accounts 

The easiest way to keep track of your money is setting up online banking for your checking and savings accounts. Online banking lets you see account activity for any account you have with the bank at the drop of a hat! Setting up online banking can help you keep track of your spending and savings habits to hold yourself accountable to your budget. 

If you need help managing your finances further, feel free to reach out! Our experts are more than happy to sit down with you or give you a call to go over financial strategies that fit your goals and lifestyle. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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6 Ways to Save This Spring

With spring comes a freshness that everyone enjoys. There’s different weather, new things are happening and the winter blues begin to fade away. Spring also brings spring cleaning! Peoples Bank & Trust wants to focus on different actions you can take to spring clean the way you save. By giving you six ways to save this spring, we hope you can begin to enhance your financial journey. 

1. Find Ways to Go Fee Free 

If certain fees suit your needs, that is okay. You don’t have to go fee free for everything, but it doesn’t hurt to see if there are some different options for a few items. When it comes to savings and checking accounts for example, there are many solutions that don’t require fees. If that works for you, then open an account like that. Another example would be credit cards. Find a credit card that offers no fees and other rewards to help you save money. 

2. Create a Fun Fund 

With all of the stress from COVID-19, it’s important to make sure you are taking care of yourself and still enjoying life during the new season. Put money aside into a fund meant for something you’ll enjoy. Be sure to continue to travel (maybe not oversees but there’s plenty of great outdoor travel options to continue social distancing here in the US). Another way to spend it could be renting a movie, getting your favorite takeout, buying something fun for the house and so on. 

3. Collect Change & Loose Bills 

You’ve heard about this before, but have you actually tried it? By collecting any change and loose bills you have lying around the house, in a purse, in your pockets, and so forth, you’ll begin to accumulate more than you realize. You can place a mason jar in your laundry room as a reminder to check for change there. Then use the savings for something special, whether it be your fun fund, child’s savings or a new pair of shoes. 

4. Download a Savings App 

By utilizing your online and mobile banking account features to stay on track of finances and also downloading a saving or budgeting app, you’ll be more connected on where you fall each month with your finances. There are many apps available that allow you to organize and plan out your expenses and savings. This will help those who have a hard time saving or sticking to a budget, as it will make you more accountable. 

5. Inspect Your Home 

By making any needed updates to your home, you’ll be sure things are running smoothly as the warm weather begins to come. Check your A/C, look for leaks on your roof, add insulation to the attic and so on. By making sure your home is in tip-top shape for the spring and summer, you’ll help avoid any random costs that may pop up in the future regarding updates or fixes. 

6. Make Use of Your Tax Refund 

If you received a tax refund, try not to spend the money. Put it into a savings or retirement account to help set you up for future success. If you don’t really need that money, be strict with yourself to not dip in and use it. 

We hope you found one or two helpful ideas that will encourage you save this season! If you’re looking for help, we have the products and professional experience to find the perfect solution for you. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How much money do I need to buy a home?

With rates continuing to be low, now is a great time to purchase a home! It may seem daunting at first, but it’s a great experience and can be fun if you are prepared. Whether you are a first-time homebuyer or have purchased a home before, keep reading to see how much money you need to buy a home. 

You may not need the full loan amount offered. 

While you can get a loan for a large amount of money, you may not want to get that full amount. Think about all of your other expenses first and the salary you make. Be sure to break it all down and make sure the monthly payment isn’t going to be too much when everything else is added on. 

Think about the upfront costs. 

Closing costs can be around three to four percent of your loan or more and it’s nice to try to have a down payment anywhere from ten to twenty percent. If you want to avoid paying additional private mortgage insurance (PMI), you’re looking at a twenty percent down payment. Here are some of the items included in closing costs: 

  • Application fee 
  • Appraisal fee 
  • Title search 
  • Title insurance 
  • Attorney fees 
  • Home inspection 

These are large upfront costs so it’s important to factor them in and begin saving for them. If you work on saving at least twenty five percent of the sale of the home, then you’d be in a good place to cover the down payment, closing costs, moving fees and so forth. You can try to negotiate that the seller pays for your closing costs which could help save you some money – your realtor can help you know if this is a good option or not depending on the circumstances of the area and home. 

Make note of utility, insurance and tax increases. 

If you are moving to a new area, even if it’s across town, utilities, taxes and home insurance prices could all be different than what you currently pay. Be sure you’ve calculated this into your monthly payments as well because it could be a couple hundred dollars more than what you are paying now depending on the new home you are looking at and the area it’s in. 

Ask your bank questions so you fully understand what the costs will be. 

If you have any additional questions, or just don’t fully understand what you’d potentially have to pay upfront vs monthly and when those payments would start, ask your bank. We are here for a reason – to help you and create a smooth home buying journey. Our mortgage options suit any need so contact us today with your questions and concerns so we can help put your mind at ease! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

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4 Steps to Home Buying

Whether you’ve been looking for a while or have just decided to begin the hunt, buying a home is an exciting adventure! With rates so low, it’s the perfect time to become a new homeowner. But do you know some of the things you should be doing before stumbling upon your dream home? We’re here to explain our top four steps to home buying so you can enjoy the journey. 

Know How Much You Can Afford 

Even though you could get a loan for $300,000, this may not mean you want to spend that much on a home. Go through your current debts, what equity you’d get back on your home, your salaries, monthly bills and expenses to know how much money you spend each month. Then calculate what your new mortgage would potentially be (including taxes, insurance and utilities as those may change) to know how much you are comfortable spending each month while allowing room for savings. This will help give you a final number you are truly comfortable spending, so you don’t go over your max when making an offer. 

You will also want to think about closing costs and the down payment. Closing costs are normally around 3% of your loan and it’s nice to try to have a down payment of 10-20%. These are large upfront costs so it’s important to factor them in and begin saving for them. 

Get Pre-Approved 

You may begin your search and think you’re in no rush – but what if you come across the perfect home and there’s already offers that could potentially be coming in? You want to make sure everything is lined up so you can put an offer in right away to get ahead of others. Waiting a whole day to meet with your bank and go over finances could cost you that slot that would get you to owning your dream home. You need to know how much you can actually afford, if you need the sale to be contingent on your home selling and so on. We can help you manage all of this and get you pre-approved for a mortgage. 

Don’t Just Look on Home Sites 

Don’t just wait to see a home on a website like Realtor.com or Zillow. You want to check Facebook and follow realtors there as they may post a home before it becomes live on the site. You can also ask around if anyone is thinking about selling so you can get your foot in the door first before it goes on the market. The same goes for your realtor – if you want to use a realtor, choose one and make sure they are looking for you to alert you to a home that fits your criteria before it may go on market. 

Get a Home Inspection & Appraisal 

After putting in your offer and getting it accepted, be sure to have an inspection. You’ll want to know everything is running smoothly before you make this big financial decision. You will also need the home to be appraised. A home appraisal is a review that gives the current value of the property you want to buy. You must get an appraisal before you buy a home with a mortgage loan. Lenders require appraisals because they can’t lend out more money than a home is worth. 

Even though this seems like a lot, it will leave you confident in your decision to buy a home. When you have everything above worked out, all you need to focus on is finding a home that fits your needs instead of wondering if you can even afford it. Keep in mind our team can help you with any of the above, so contact us today! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724

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Financial Planning 101

Nerdwallet states, “A financial plan is a comprehensive picture of your current finances, your financial goals and any strategies you’ve set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.” But where do you start? We’re here to help give you the basics of financial planning so you can begin improving your financial future. 

What are your goals? 

Where do you want to be 5, 10, 20 years from now? Think about how many kids you plan on having, where you’ll be living, the job you’ll be at and so on to realize where your financials should be. How much money would you like to have in your savings account, retirement fund and emergency fund. If you plan on paying for your kid’s college or daughter’s wedding is also a goal to mark down because that’s another area you’ll need to save for. Get really specific so you are able to identity and prioritize all goals you have. 

Where are you currently at? 

Now it’s time to take a close look at your monthly budget, current debt and savings along with thinking about how that will change in the future. Make a list of all your assets – things like bank and investment accounts, real estate and valuable personal property. Now make a list of all your debts: mortgage, credit cards, student loans and so on. You’ll be able to see where the money is at and where you need to work on things. Be sure to really nail down your budget as well, because you want to make sure you’re not overspending each month. 

What does your insurance and estate plan look like? 

You will want to make sure you are covered correctly to protect yourself in the future. Life/health, car, business and personal insurance are all things you’ll need to go over. Make sure you ask around to get the best deals without sacrificing the quality of coverage you will receive. You will also want to create an estate plan if you haven’t already. This helps lay out who makes financial and healthcare decisions for you if you can’t make them yourself. Make sure beneficiaries on your bank and retirement accounts are updated, so your family can have easy access if something were to happen. 

How will you reach those goals? 

This is where you’ll need to stick to your finalized budget, pay everything on time and start saving for all of your goals. Work on paying off your smallest debt first and once that’s done, pay off the next smallest debt – all while making minimum payments on your other debts. This will help you lessen your monthly costs over time to help allow for that money to now go into a retirement or college fund. Working with a financial advisor to help you along the way is a good idea. Think about bigger ways to save – for example, with home rates so low, you could also think about refinancing your home as that could help save on your monthly costs as well. 

If you’ve enjoyed these first steps to financial planning, feel free to contact us with more questions or speak to a financial planner to learn more about how to get where you want to be. We wish you luck on your future endeavors!  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Spring Clean Your Finances

Its Spring! With the new season comes a new energy and attitude which we want to take full advantage of! Over the last year and this winter, it’s been easy to get into a financial rut or overspend on subscriptions which is why it’s time to purge your finances. Keep reading to see our top tips to help you spring clean your finances! 

Sweep Away Subscriptions 

You’ve heard this before, but it becomes easy for subscriptions to build up over time. Maybe you’ve accumulated multiple streaming services but now things are picking up, so you don’t need them all. You could have been offered a free trial that has turned into an actual subscription now or you may have signed up for a monthly plan that charges you for something you could buy yourself for cheaper at the store – all of these are good to cancel and help lessen your monthly expenditures.  

Buff Your Budget 

After the holidays and last year, your budget may have taken a backseat. It’s time to dust off that budget and take a look at your expenses each month. See what it looks like after canceling a few subscriptions and get back into the routine of following it. There are apps that can help you track what you spend to allow you an easier way to stay on top of things. 

Deep Clean Debt 

Now is the time to look at your different debts such as credit cards, mortgage, student loans, etc. See what seems the most practical to work on paying off first. Your credit card may be the best place to start – while still making minimum payments on other debts, pay a little extra if you can afford it to your smallest debt. Once that’s paid off, continue doing the same for the next debt. 

Declutter Old Accounts 

You or a significant other may have an old 401k or HSA from a past job. Be sure to get everything transferred into a new account, so you are actually being proactive with that money. You may also have an old savings account from a different bank that you need to switch over. All of these items are important to keep track of and get moved and closed. 

Restore Your Retirement 

Even though retirement is far away, it’s important to save for that now. Open a retirement account such as a 401k with your company as well as a CD or IRA with your bank. Just think about not working once you’re older and all the expenses you’ll still need to pay for – that money you start saving now will come in handy then. 

Tidy Up the Emergency Fund 

You may have dipped into your emergency fund over the past year, so be sure to work on building that back up. Open a savings account with us to store your money so it’s ready when you need it most. When you are creating your budget, you’ll see how much money you can afford to put away in your emergency fund each month. 

We hope these tips give you a few things to focus on this season, so you can get back on track with your finances. If you need a safe place to store your money, build retirement or take out a loan, Peoples Bank & Trust is here to help! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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5 Challenges to Test Your Money Management

We may all think we know a thing or two about finances, but do we really know it all? There’s always more you can learn to better yourself and that includes money management skills. Today, we’ll give you five challenges to test your money management in order to whip your finances into shape! 

1. No Spend Challenge 

We know this sounds scary, but you can still buy groceries and pay your recurring bills. Try not spending money on any unnecessary items for one week or one month. Yes, we know that coffee may feel necessary, but make your coffee at home instead of buying it. You’ll be surprised at how much you save when you don’t buy an extra item here and there. 

2. Change Challenge 

Any change you accumulate, save. This could be a fun game to play with your kids as well. You and your significant other can give any change from the day and have your children count it and put it in a jar. Do this for one month or a full year to see how much you accumulate!  

3. No Online Shopping Challenge 

We know that more shopping is being done online now than ever before, which makes it seem easier and easier to spend more money since you aren’t giving physical cash away. Try not buying anything online for a whole month – besides your groceries and essentials if you now purchase those online. 

4. 52-Week Money Challenge 

This is a fun one! This occurs weekly for a whole year, so it will really hold you accountable. Start with saving $1 for week 1, $2 for week 2, and so on. By week 52, you’ll be putting away $52. The 52-week challenge adds up to saving a total of $1,378! You can choose what you’ll spend that money on if you make it all the way. Will it be for a vacation, child’s college fund or emergency fund? It’ll be up to you. 

5. No Eating Out Challenge 

Since people are staying home more, this is a little easier than before. But this also includes take out and drive-throughs as well – not just sit-down restaurants. We know supporting small businesses is important, so we’re not saying don’t eat out forever. Just try it for one month to see how much potential savings you earn. 

Pick one or a couple of these challenges to test your money management skills. You won’t regret it! Then, store your new savings in a savings account with us. We’ll be happy to keep your hard-earned money safe and sound in an account. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Financial Literacy 101: Teen Edition

If you have a teenager who doesn’t quite understand how important good financial habits are, it’s time to teach them! Giving your child the building blocks on saving, budgeting and understanding debt will help make them into responsible adults. Here’s some financial literacy 101 for your teenager. 

Bank Accounts 

Explaining the different types of bank accounts to your child is crucial. Start by opening a savings account with them so they can understand the importance of saving. When they have a job, you could also work with them to open a checking account. This will help teach them the process of saving, spending money, using a debit card and writing checks. 

Credit Cards 

Even though your teen won’t have a credit card at that age, it’s important to teach them about credit cards and how they work. Explain the limits that are set, paying your minimum each month and how that will affect their credit score. This will help them be prepared for when they do get their first card. 

Debt 

Teach your teen that debt is no joke. There will be car payments, groceries, entertainment purchases, credit card bills, student loans and so on. Making sure they know not to bite off more than they can afford is extremely important. This will help them understand all of the bills they will have to afford in the future. 

Credit Score 

Start explaining what a credit score is and how that will help them get lower interest rates in the future. This can also tie into the credit card conversation. Understanding the basics of a credit score now will help keep them out of trouble in the future. 

Budget 

Understanding needs vs wants is a great life lesson. Start your teen off with budgeting by having them help with the grocery list. Tell them the rough prices of what things cost, have them make a list and keep it under a certain amount. This will help teach them how to budget, so they can apply it to other things in their life down the road. 

These basic items are critical for teens to understand. Looking back, you may realize you didn’t quite know all of these things when you were a teen. This is why we wanted to share this information, as we believe it’s a good thing to get ahead in the financial world with your child, so they are prepared. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Financial Advice for Big Families

When it comes to big families, there is extra love and enjoyment to go around. There also comes more money that needs to be spent. Managing finances with a larger family can be stressful and difficult depending on the expenses you have. We’re here to offer some helpful financial advice for big families, so you don’t have to feel tight on cash! 

Own Less Vehicles 

Reduce transportation costs as much as possible by limiting the number of vehicles you own. Gas, upkeep, repairs and car payments add up quickly for each vehicle. Work on scheduling carpools and staying home when possible to limit your driving. Having multiple kids in school and activities can have you driving all around, so come up with a plan that makes the most sense, so you aren’t wasting time and gas. 

Eat Out Less  

Each mouth you need to feed adds up, especially if you have multiple growing boys who seem like they never get full. Eating out and going to restaurants means you’re paying for drinks as well as the main meal and sides. Coming up with a meal plan for home, budget and grocery list to stick to will help you spend less and have a plan for food every day so there’s no need to eat out! 

Buy or Borrow Secondhand 

We’re sure you have plenty of friends and family who have toys or clothes they no longer need for their children. Don’t be afraid to ask to buy or borrow their items for a discounted price. The clothes and toys are just as good as if they were new. Plus, small children grow so fast, so you may not always want to buy something new that they may not fit a few months from now! 

Buy in Bulk 

When you do need to buy items, consider couponing and buying bulk items. Larger cans and extra boxes of non-perishable food won’t hurt anyone! You’ll go through that food before it’d expire anyways. Large stores, like Costco, will have sales on bulk items. This means you will spend a little more originally, but you’ll have extra items on hand, and it’ll be for less than what you’d spend on that amount if it wasn’t bought in bulk. 

We hope this financial advice will help you save a little extra money. Put that savings into a savings or checking account with us! We’re happy to safely store your hard-earned money. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender