Category: Save Money

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5 Major Life Purchases to Plan For

Once you enter adulthood, your finances become your own and the major life purchases quickly approach. While not all of these purchases take place at the same time nor is everyone guaranteed to make them all, it’s common for the average person to make most if not all of these purchases at some point in time. Continue reading to be prepared for your financial journey in the future!

1. New Car

That car you got when you turned 16 won’t last forever, and soon enough you’ll be ready for a new vehicle. Whether this purchase takes place once you graduate college or when you need a size upgrade to fit your growing family, a new car is a big financial investment. It’s important to look into smart loan options available to you before you make the big decision. Another important factor to mention is that your credit score will have a big impact on the loan options available to you, so keep that in mind as you prepare for a new car.

2. The Wedding

As of 2019, the average cost of a wedding in the United States is over $33,000. While the bride’s family traditionally holds the responsibility of paying for the wedding, that’s not always set in stone in all families. Finding out where the wedding money is coming from is something important to find out by talking to your partner, your family and your partner’s family. Marriage is also another thing to plan for financially as you and your new spouse learn to handle expenses together rather than separately now. Also, even if you don’t have to pay for your wedding, if you choose to have kids the day will come when your daughter gets married, so the wedding finances could be on your shoulders down the line.

3. Starting a Family

The cost of having children is seemingly never-ending. From the hospital bill when they’re born until they head to college, you’re paying for the many expenses that come with having children. Keep in mind childcare, prom, clothes, college, sports and more which can add up quickly. Don’t let the many purchases that come with having kids push you away, though, as starting a family is truly priceless!

4. Buying a House

One of the most obvious and major purchases you’ll make in your lifetime will be your first house. With lots of research, thinking and searching, you’ll finally find the house of your dreams. This is something to plan for and keep in mind as early as possible, as many young adults push this off and procrastinate on saving. Set up a savings account to get a head start on this future purchase!

5. Making Your House a Home

A major financial investment that’s often overlooked when it comes to planning is furnishing your new home, getting appliances, landscape work, renovations and more. To make your house a home, lots of improvements and additions have to be made. Furniture and appliances can get pricey, especially the high-quality pieces that will last you awhile. Factor all of these home improvement payments into your budget before taking the step of buying a house.

As you enter this exciting stage of your life and the major purchases get closer, it’s always a good idea to set a budget and maximize your savings as much as possible. One great way to make the most of your savings is to open a savings account with us, set up automatic transfer and watch your savings grow! Contact us with any of your finance questions and we’d be happy to help.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Find Out How to Pay Off Your Debt While Still in School

Just because your student loan payments don’t start right after you graduate, the sooner you start making payments, the better. Paying for the college student life is tricky enough, so paying off debt at the same time might seem impossible, but it’s doable with a few lifestyle adjustments. Continue reading to find out the best ways to make payments before you even graduate.

Make it Automatic

One of the best ways to be dedicated to setting money aside is to set up automatic payments. By making it automatic, you won’t even have to think about the payments since the money will be going straight towards your student debt. Along with that, these payments become a habit and force you to make smart financial decisions.

Increase Your Income

It might seem obvious – if you want to make payments but can’t afford much to begin with, now’s a great time to pick up a side gig. The college life is busy as is, but there are ways to make time for some extra income. You can find remote work to do on your own time, get a weekend-only job or even get a paid internship. A paid internship would benefit your education, your resume and your finances all at once!

Try a Budgeting App

There are countless money management apps out there that make budgeting a breeze. Download an app such as Mint or PocketGuard to help you better manage your expenses. Visually seeing what you spend your money on puts your spending habits into perspective, allowing you to cut some unnecessary expenses and put that money towards your student debt.

Don’t Overborrow

It’s common for lenders to offer more money than you really need, but don’t be fooled by overborrowing and having to pay more interest. Only borrowing what you need will save you money down the road, which you can use towards more student loan payments.

Tackle the High Interest Rate First

Focus on the loan with the highest interest rate first, paying that one down to avoid more and more accruing interest. This is called the “debt avalanche method” and it’s great for paying off debt as quick as possible.

By starting your student loan payments as early as possible, you can save a substantial amount over time. Interest racks up, time flies by and before you know it you’re graduating and making monthly payments. Relieve yourself of future stress by getting a head start! Contact Peoples Bank & Trust to open a savings account and learn more about the services we offer.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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A Beginner’s Guide to Saving Money

While saving money isn’t the easiest task, the first step is often the hardest part. If you’re new to the finance scene and are hoping to learn about some basic, money-saving tips, you’re in the right place! Setting realistic and doable goals is the key and we’re here to help give the push you need to get going.  

Track Your Spending 

The first step to knowing how to save is figuring out what your spending habits look like. Spend a few weeks tracking everything you spend, from each coffee run to the cash you tip the waiter. There are many money-tracking apps out there to make the process easier, otherwise the old-fashioned pen-and-paper method works great. 

Analyze What You Tracked 

Now that you figured out exactly what you spend, it’s time to break it up into categories and get a closer look. Organize the data into sections like food, rent/mortgage, gas, clothes, etc. Putting this into a chart is a great way to understand your habits visually. Most of the money-tracking apps will automatically show you organized categories of what you’ve spent for your convenience. 

Make Spending Adjustments 

Now is where the budget comes into play. Looking at the data you tracked, what did you spend the most on? What amounts surprised you? Pick out some things that weren’t necessary to spend money on and adjust your spending. Now that you know how much you spend, you can limit that amount and create a budget. 

Set Up Automatic Transfer 

This step is crucial! If you haven’t already set up automatic transfer to your savings account, now’s the time. You get to choose exactly how much along with when the money will be transferred, making saving money a breeze. This also limits the temptation of reaching for the extra cash you set aside since it’s in an account instead. 

Create Realistic Goals 

We’re not done yet! It’s time to set both short-term and long-term goals to make the most of your savings. Whether you’re saving for a car, hoping to buy a house, building an emergency fund or more, having goals to work for gives you the motivation to keep going. Figure out some short-term goals of how much you want to save along the way, leading to your long-term goals. 

Now that you know the steps towards smart saving, you’re ready to start! Saving your money leads to a great reward and allows you to practice patience and persistence. If you have any questions or are looking to open a savings account, contact Peoples Bank & Trust. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How Do I Trim My Grocery Bill for Good?

Did you know it’s possible to cut your grocery bill in half by making some simple changes? Many consumers are spending much more on food than is necessary and those grocery bills can add up faster than expected. Before you take your next trip to the store, read these five helpful tips. 

Always plan ahead and stick to the plan. 

The grocery store is the prime place for impulse purchases to rack up. Rather than figuring out what you need once you get there, plan your meals for the week and stick to the plan. Avoid the tempting aisles that you don’t need to visit and only get the food that’s on your list. 

Keep an eye out for deals. 

There’s a good chance you can find what you need either in bulk or on sale. Buying something in bulk will last you much longer and often ends up being a much better deal than the smaller portions. When things you use frequently go on sale, like spices, canned goods or packaged snacks, you might as well stock up so you’re saving money down the road and getting the best deal.  

Limit the grocery trips. 

The more often you go to the store, the easier it becomes to make purchases you don’t really need. Going once a week or once every two weeks is doable rather than making shorter and more frequent visits. 

Generic is the way to go. 

The biggest difference between name-brand and generic brands is the packaging. Save yourself some money by sticking with the off-brand products – they’re practically the same thing except much cheaper. 

Check the prices at checkout.  

Pricing errors are more common than you think. Keep an eye on the register as your items are being scanned, so you know the price it was advertised as is what you’re paying. Prices are constantly changing at grocery stores, so you might catch a pricing error and get an additional discount if you’re lucky. 

If you’re looking for some lifestyle changes to make that will have a positive impact on your bank account, your grocery bill is a great place to start. Become an expert grocery shopper and say goodbye to spending most of your income on food! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Our Top 5 Money Management Secrets

Figuring out how to properly manage your finances can be overwhelming when there are hundreds of dos and don’ts you may have heard. Following these five tips will make a huge difference in the way you handle your finances and can give you a clear slate of basic rules to follow. When it comes to starting good money habits, the sooner you begin, the better! 

1. Have and Follow Your Budget 

Setting a budget is one thing but sticking to it consistently isn’t simple. It’s easier now than ever to follow your budget with the various money management apps out there. Make a realistic, time-based budget and find an accountability partner if you need help sticking to it. 

2. Always Compare Before You Buy 

Before buying anything, even the small things, make sure you’re paying the best price. Is there a different grocery store nearby that has the same item? Can you find the same shoes on sale at another store? Is there a sale coming up you can wait for? Avoid making impulse purchases and look around at other cheaper options first. 

3. Automatic Transfer is the Answer 

If you haven’t already opened a savings account and set up automatic transfer, now is the time. Putting a certain amount away every month makes a massive difference over time, and it’s even easier when it’s automatic. This is a great way to help you or your children build healthy financial habits. 

4. Track Everything You Spend 

Keeping your receipts and writing everything down that you spend puts your money habits into perspective. Tracking what you spend also allows you to see exactly what you’re overspending on so you can make adjustments. One of the best things about today’s technology is how easy it is to manage your money. To better keep track of what you spend, download a budgeting or money management app. 

5. Practice Makes Perfect 

When you first start making money, it’s not always first nature to manage your finances wisely. Building good money habits takes time, life experiences, mistakes and lessons to learn from. Don’t let a couple mistakes throw you off course – a little financial bump won’t destroy your success. If finances are new to you, give yourself time to practice and adjust your spending habits overtime.  

There’s no better time than now to make sure you’re on the right road with your money. It all starts with creating a smart plan, sticking to it and watching your money grow. Your hard work and patience will pay off in the future! For more financial assistance and to learn about the services we offer, contact Peoples Bank & Trust.  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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7 Daily Habits That Will Save You Money

Saving money doesn’t have to be complicated – there are habits to incorporate into your daily routine that will save you money in the long run. These tips are simple and easy to start but also very effective. It’s time to take control of your finances and make some healthy changes! 

1. Pay with cash 

Using a credit card for everyday purchases can be tempting and often lead to impulse buying. A good way to stick to your budget is to have a certain amount of cash for the week and use only that cash. This is also great because you can’t spend money that you don’t have. 

2. Do more things at home 

Too often we rely on other places to do tasks that can easily be done at home. For example, many people spend lots of money going out to eat, getting their car washed, stopping for coffee, getting their hair trimmed and more. These are all things that can be done for a much lower cost in the comfort of your own home! 

3. Check the secondhand shop first 

You never know what secondhand gems you can find until you try! Before making a purchase, check garage sales, thrift stores, the Facebook Marketplace or more to see what deals you can find. 

4. Schedule when to track your spending 

To hold yourself accountable for what you’re spending, it’s a good idea to track your spending. Plan a day you’ll do this each week, so it becomes a habit. It’s a great way to reflect on what purchases were necessary and which ones weren’t. There are lots of apps you can download to help with this. 

5. Be careful with your utilities 

Even though utilities are a recurring cost, there are still many ways to reduce how much you must pay. Try cutting costs by keeping lights off, taking shorter showers, opening your windows rather than cranking the AC, etc. These costs can add up so this is a great habit to start! 

6. Reevaluate memberships and subscriptions 

Go through all the subscriptions and memberships you pay for. Which ones are necessary and which ones aren’t? Save yourself some unneeded costs by getting rid of some monthly payments. 

7. Take time to think before you buy 

Before making a non-essential purchase, give yourself a few days to think about it. Only follow through with the purchase if after those days you still really want it to help reduce impulse buying. 

We hope these tips will make a difference in the way you handle finances in your everyday life. Turning these seven things into habits will certainly pay off in the long run, so give them a shot! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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How to be Responsible with Your Credit Card

Credit cards have their benefits – building your credit score, earning rewards, convenience and more. They can also be dangerous if not used correctly. Since people often tend to spend more using credit cards rather than cash, it’s easy to get in over your head without realizing it. Keep reading to find out some great ways to be responsible when using your credit card. 

Don’t Spend What You Can’t Afford 

Just because credit cards allow you to buy things without having the money doesn’t mean it’s a good idea. Trouble, debt and stress all start building up when you realize you can’t pay for what you spent. The easiest way to stay out of credit card trouble is to simply never make purchases you can’t afford at that moment.  

Pay on Time 

Building good credit comes down to paying your credit card bills on time so lenders can see you are reliable. Do this by always paying your bill before it’s due so you’re not scrambling to pay at the last minute, as well as avoiding late fees. 

Go for Low-Interest and Low-Fee  

Before even getting a credit card, make sure you read the cardholder agreement to see what you’re signing up for. Look for a credit card with a low interest rate as well as a low annual fee so you can make the most of the credit card you use. 

Don’t Go Over Your Limit 

Over limit fees can sneak up on you if you’re not careful. Going over your limit can lead to charges and can hurt your credit rating as well. Make sure you know your limit and are staying well under it, so you are prepared for emergencies. 

Get Fraud Protection 

Credit cards can be hacked, but the good news is that credit card fraud protection is available. This way, if your card is hacked, you don’t have to pay for those charges. 

Ask for Help Right Away 

If you’re struggling with credit card debt, reach out and get help before it gets worse. There are many people you can talk to such as finance professionals, credit counselors or your bank. These people can guide you in the right direction so you can take steps towards avoiding, getting out of and staying out of credit card debt. 

While using credit cards irresponsibly can lead to scary consequences, taking these smart steps will help you make the most of your credit card. Having good credit is extremely beneficial for your future, so don’t be afraid to use your credit card wisely. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Retirement: What You Should Know

While retirement might sound lifetimes away, it sneaks up faster than you think. Many people wonder when to start saving for retirement, how to start, how much money they’ll need and more. We’ll answer those common retirement questions in this blog, so keep reading to find out. 

When to Start 

The time is now! If you are earning paychecks, start saving for retirement as soon as you can. The sooner the better, and the main reason for this is because your money will have more time to grow. Compounding makes a huge difference, and those 5 or 10 years of extra saving can turn into tens of thousands of dollars more than you would’ve had before. 

How to Start 

Don’t be intimidated – you can start small and work your way up to saving more. Something is better than nothing, so even putting a couple of hundred dollars into your retirement savings is a good start. The next step is to be consistent. Keep adding to the pile periodically and don’t tap into that money unless necessary.  

How Much to Save 

One general rule-of-thumb is save 10-15% of your income starting in your 20s. The amount you save depends on what you plan on doing once you’re retired. If you plan on traveling the world or buying a new sports car, your retirement fund will look different. It’s smart to have an idea of your retirement plans so you can adjust how much you save accordingly. 

When to Retire 

The answer to this is different for every person, too, depending on your retirement plans and how much you’ve already saved. The average retirement age is 62, but many people retire earlier or later in life. Some people also enjoy working and staying busy, so working doesn’t really come with an age limit. Knowing what age to retire comes with lots of planning and financial analysis, so be sure to talk to an advisor to know if you’re on track.  

What if You’re Falling Short? 

If you’re saving like crazy but still won’t meet your retirement goals, it’s time to consider some alternatives. The most effective change to make is delaying your retirement by just a few years. Not only will this add to your fund, but it takes off a few years you would’ve had to pay for to make it through retirement. 

As time goes on, retirement gets closer even when it seems far off. If you haven’t started saving already, it’s time to start!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Smart Money Choices for First-Time Parents

Entering parenthood can be one of the most exciting yet scary times in life. The financial aspect of raising children is just one small piece to the parenting puzzle, but it’s an important piece. We’re here to help you make smart money choices you might not have thought to make. 

1. Re-think Your Budget 

Budgeting for two is completely different than budgeting for a family of three. The list of supplies needed for a baby is long and continues to grow as the baby gets older. Spend time sitting down with your partner to map out a new and improved budget for when the baby arrives. 

2. Get Rid of Debt 

It’s easier said than done, but if you’re in debt, getting rid of it before your baby arrives will be extremely beneficial. Not only will the debt still be lingering until you pay it off, but on top of that, you now have a baby’s expenses to pay for. Don’t let the baby purchases add to the pile of debt you’re in – instead, try to remove your debt before the baby even arrives. 

3. Start a College Fund 

Although it may sound like you’re getting ahead of yourself by saving for your newborn’s college tuition already, your future self will be thankful. 18 years goes by faster than you think and the cost of college continues to grow as time goes on. The sooner you start saving, the less stressful paying for tuition will be down the road.  

4. Don’t Forget About Retirement Planning 

Just because a new member is entering the family doesn’t mean you should put your future on the back burner. Remember to make your retirement fund a priority, too. Not only will this be of benefit to you, but it will take the financial stress off of the entire family’s shoulders in the future. Grow your money with compound interest by starting sooner rather than later! 

5. Increase Your Emergency Fund 

Just as your budget changes when you have a child, so should your emergency fund. With another person in the house comes more possibilities for an emergency to happen, so you’ll want to be prepared. Increase the emergency fund you currently have to have greater peace of mind when disaster strikes. 

Exciting times are ahead and with a new baby comes great joy. Becoming a parent can be scary, but with some planning, you’ll feel well prepared and excited. We hope this financial advice will benefit you and your growing family in the years ahead.  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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Finance Tips for Newlyweds

Whether you’re getting married in the coming years or just recently said “I Do,” this exciting time of your life comes with things to think about and discuss. How you manage money will change and be adjusted once you get married, so planning it out beforehand is a must. Here are some tips for you and your partner to remember for after the wedding day. 

Talk about your debt 

Honesty is key in a relationship, which means it’s time to be honest about what debt you have. Whether you have student loans, a car loan, credit card debt or something else, knowing how much there is left to pay is important before planning your budget. This might not be the most fun conversation to have, but it’s an important one nonetheless. 

Discuss your financial past 

How your family handled money when you grew up can play a part in how you deal with finances when you’re older. It’s always a good idea to hear where your partner or spouse is coming from to get a better understanding of why they do things a certain way when it comes to their finances. 

Plan a new budget 

Once you get married, your individual budgets become one. Figuring out a monthly household budget is important so you’re on the same page. A good place to start is listing all of your monthly expenses, then deciding which ones aren’t necessary. Knowing what your budget is will help both of you avoid overspending. 

Decide on a bank account option 

Something to consider is whether you plan on having a separate or joint bank account. While there are pros and cons to both, one decision might benefit you over another. Once you decide what to go with, you’ll have to go over the cons of that choice and figure out how to handle issues that may arise in the future. For example, if you choose separate bank accounts, you’ll have to decide how to handle separating bills. On the other hand, with a joint bank account, budgeting can become a future issue. 

Think about retirement 

Retirement might seem far out, but it’s something that will play a big role in your life together. It’s better to start saving for retirement sooner rather than later. 

Keep the conversation going 

Continue talking about finances after you get married – conversations about money are important in every phase of life. Keep the financial talks going so you stay on the same page. 

Congratulations on your soon-to-be or new marriage! We wish you and your spouse the best and hope these financial tips can be beneficial to your relationship. Contact us to learn more about our financial services!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender