7 Ways to Get the Most Out of Your Tax Refund

tax

So you’ve either gotten, or are about to receive, your long awaited refund. There’s quite a buzz of excitement as many Americans decide what types of things they are going to buy with their extra cash. But if you are looking to do something different with your money this year, we have come up with some great ways for you to not spend away your money, but to get the very most out of it!

Establish a Savings Account

We’re sure you’re not surprised with us telling you this, but pay yourself first! You have just given the government an interest-free loan, so immediately taking that back and putting it in a high interest savings account is a great option!

Keep Your Eye on the Prize: Retirement

Another wise move to make with this return is to invest the entire amount towards your future. If you get in the habit of doing this every year, think how large this amount can accumulate over time. Contact Peoples Bank & Trust to get an IRA started now.

Grow your 9-1-1

You never know when a disaster can take a blow to your savings account, snowballing you into debt you didn’t plan for to cover emergency expenses like illness or car problems. Adding some extra cushion to your life is a way to keep you on top of your game.

Grow Your Potential

This might be just the money motivation you needed to amp up your education! Get certified in a specialty area of your field, or attend a conference to network with other professionals. Many people don’t go back to school because of the costs, but this seed money could potentially help you to earn more in the future.

Update Your Home

If you are looking to put your house on the market soon, a great investment would be to improve an area of your home that would give you a good return on your investment. Maybe this is updating the kitchen sink or redoing the bathroom floor. You may make your money back and then some if you do it yourself!

Pay Down Your Debt

If you have gotten yourself in a bad spot when it comes to high interest debts, now might be the time to start paying those down. Getting those out of the way can make more room for savings and investments.

Invest in Your Emotional Health

Maybe it’s been a rough year for you, and you just need to getaway. Getting the most out of your return for you may be to take a vacation. You might want to just have the chance to restore and recalibrate your dreams and goals. Creating memories will last for years to come, and may be what you need in order to move forward this next year.

Peoples Bank & Trust Co.

Member FDIC

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Four Emotions That Are Interfering With Your Finances

emotions

Who doesn’t want a healthy financial life? Yet, the number of people who actually have one is decreasing. Americans’ total credit card debt grew by 8 percent in 2017, with an overall 12.96 trillion in debt. While there are many underlying factors, one component that can be limited in your budget is emotions. You may feel helpless when it comes to taking control of your finances, but one of the biggest hindrances is your emotional state. The good news is, where you are at doesn’t have to be where you stay!

Keep your finances in check by thinking through these emotions when it comes to financial decisions.

Sadness

Most likely you have heard the phrase, “You can’t buy happiness.” Even though many might know this, they have purchase habits that speak otherwise. Negative emotions like sadness have twice the intensity of positive emotions. This creates a feeling of a need or weakness to be remedied. For many, this is impulse purchases such as new shoes or ordering takeout after a bad day of work. The next time you’re down, remind yourself of your goals that will inevitably make you happier in the long run. Maybe even make a list of what you are grateful for, instead of being down about circumstances beyond your control.

Anger

Similar to sadness, acting on anger can have damaging consequences. You may even have a feeling of hatred towards money because you think it is the source of all your problems. Feeling like you are constantly struggling with your finances is frustrating, and can cause you to think there is no point in making wise decisions, so why not buy yourself that new TV? You’re angry and begin taking bigger risks than you should. Take a deep breath and remember that being consistent is key to success. Emotions are anything but steady.

Fear

Have you ever been told that your money defines you? We are here to tell you that you define your money. Maybe you are out of debt, but are paralyzed from making investment decisions because you fear falling back into old habits and feelings of guilt. Perhaps you worry about being accepted in society, so you break your budget to buy the latest name brand sunglasses.

Happiness

You’re happy, and that’s fantastic! Even so, emotions and finances don’t mix. If you let happiness rule your spending, you may lose sight of reality, becoming overconfident with the number in your bank account.

Letting emotions creep into your finances will slow you down in getting to your goals. Meet with a trusted customer service representative at Peoples Bank & Trust to help you make calculated decisions and create a monthly budget so you can set yourself on a path for success.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

What Sports Can Teach Your Kids About Finances

kids

As a parent, you want to do your best to give your children a great childhood and prepare them to be successful, contributing members of society. One of the ways that many parents are doing this is by encouraging youth sports. They realize that there are great lessons learned from athletics like how to be a part of a team and physical health. It’s also a good way to get kids away from the screens! By the same token, you may not realize that sports, particularly pay to play, have additional benefits of teaching your children about money, if handled correctly.

Spending on youth sports has grown incredibly high. So high, in fact, that it has prevented many kids from being able to participate at all. It’s estimated that, spending has grown up to 10.5 percent of gross income. While we certainly don’t recommend you sacrifice your retirement for your children to play, developing a spending plan within your budget, and including your children in the process will help them to understand that this does come at a cost. Yet, spending too much may have the reverse effect, putting extreme pressure on youth to perform worthy of the costs. It’s important to set boundaries, and stick to one or two sports. The more you involve kids in your finances, the more comfortable they will be with money in their adult life.

Earn

Most schools don’t teach financial literacy to minors, and even if they do, the national average of financial literacy is still at 59.6 percent. Instead of throwing money at the costs, have your children earn the money for participation or athletic gear. They could complete additional chores around the house, mow neighborhood lawns, or even help with training others younger than them. At any age, this is setting them up for the simple realization that things cost money, a concept muffled for many younger children.

Save

Encourage your children to save at least 15 percent of what they earn for next season, or incidentals. No matter what they are working for, it is incredibly important to teach them the habit of saving a portion of their earnings. This provides opportunities for them to understand spending on what you want now vs. what you may need in the future.

Give

Whether in time or their finances, helping your child understand that not every youth has the means to participate in pay to play sports, will be relatable to them in various ways later in life. If they would like to give a small percentage towards helping others pay for gear or participation it would be a relatable opportunity for them to understand how much meaning there is in giving. They could even give of their time to mentor others to help refine their skills.

In whatever way you want to teach your children about finances, getting the conversation started is the most important step for them being comfortable and competent with money!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Landscaping: 5 Tips to Increase Your Home’s Value

landscape

Home improvement projects can be overwhelming and who wants to spend their free time camped out inside covered in sawdust on a beautiful spring day? Whether you want to put your home on the market now or in the future, here are a few simple tips to get you outdoors while increasing the resale value on your house!

Have a Strategy in Mind

Before taking a shovel to your whole yard, have a strategy in place for the design you want. You could even hire a professional landscaper to come up with a design for you. You don’t typically have to hire them to complete the design, but do it yourself. Think about what goes with the design of your home, what plants might need the most time to grow and how to stay on budget. Some of your ideas might take some time to accomplish, so break up what you want to get done into separate timelines.

Keep it Green

Planting trees is not only great for the planet, but they will help cut down on energy costs from the shade they provide. They make your home more attractive to visitors and potential buyers. Did you know that one study even shows that neighborhoods with a lot of vegetation report less crime? That sounds like a win-win to us!

Think Low Maintenance

While you may want to go all out in landscaping your home, less is more. Unless a potential buyer is a master-gardener, a majority of people will translate a yard with extreme detail as more work. Focus on simplicity and utility to attract a wide range of spectators.

Front Side Curb Appeal

Some experts say to spend 10 percent of the value of your home into landscaping. However, this might not guarantee a 15 percent increase in resale value as suggested, nor be in your budget. There is curb appeal for a reason, and we recommend starting with the first side of the home that people see. It doesn’t even necessarily have to be with vegetation. Paint your front door or upgrade the numbers on your home. These are easy updates that will draw your visitors in.

Consider All Seasons

When deciding on plants, try to have an array of species that will make your home stand out all year long. From tulips in the spring, to chokeberry bushes in the winter, having an assortment will make it easier to draw potential buyers in all year long-whenever you decide it’s time put the house on the market. Try opting for plants that are drought-friendly, so you are not having to worry about daily watering.

When the time comes and you are ready to move onto your next home, Peoples Bank & Trust will be right beside you.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Protecting Older Americans Against the Top Scam: IRS Impersonations

No age group is immune to scams. It can happen to any age group, income level and gender. Scammers are no respecter to persons when it comes to getting your money. However, seniors should be protective of their finances, as they are more likely to have significant life savings and great credit. They also may be unsure of who to report fraud to, or don’t out of shame. This makes them a great target for scams. Unfortunately, the top scam among older Americans is IRS Impersonations.

Why IRS Impersonations?

Taxes and money are linked, so being able to access someone’s tax account gives them extensive amounts of highly personal information.
This information can be serviced into capital.

Telephone Scams

They may receive a phone call from the scammer, claiming to be from the IRS. They will give a fake name, badge number and even call from a Washington area code so they seem more legitimized. This is called Caller-ID spoofing. They say they are following up on letters sent by mail and threaten arrest, home foreclosure or deportation for immigrants if they are not paid. Seniors should be aware that the IRS will never call to demand immediate payment, nor will they ask for credit card information over the phone. These scare tactics are working far too well, so education, not shaming, is needed to prevent victimization. If they receive a suspicious call, hang up and call the U.S. Senate Special Committee on Aging’s Fraud Hotline at 1-855-303-9470.

Text Messages

Unfortunately, text messages seem to be more trusted than email. Scams by text are called smishing. Some criminals may only have access to the internet through their smartphone, so they will use this to target other phones as well. They may even send a link to a fraudulent site to intake your private information like a social security number so they can steal your identity.

Here is an example of what a text might say:

“IRS NOTICE: Your Tax Return is overdue! Click here to prevent penalty by law.”

Email Phishing

This term means the scammers are fishing for information through email, conning people into thinking they are someone they are not. The emails look like they have the branding of the IRS and they are leading to a legitimate website. They might request the same information that is requested by phone, but might be more prone to believe the emails to be valid with the fake IRS branding.

Key Takeaways:

Inform your loved ones of these IRS facts:

The IRS will never call to demand immediate payment.
They will never threaten to immediately arrest.
You will never be told that the taxes must be paid without the opportunity to appeal the amount owed.
They will never ask for payment information over the phone.

Data has shown that increased knowledge on scams makes a difference, so share this information with your loved ones, creating a safe place of discussion and education!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Relationships & Money: What Your Conflict Strategy Says About Your Finances

“I think what makes people fascinating is conflict, it’s the drama, it’s the human condition. Nobody wants to watch perfection” (Nicholas Cage). If you’re human, you experience some degree of conflict daily. With the American expenditures averaging $157 per day, the purchase decisions you make every day are impacted by how you manage conflict. Understanding your conflict-resolution style can not only help you better understand and improve your financial obstacles, but help improve your relationships with others when it comes to money.

Accommodating

Accommodation is when you are agreeable to such a high degree, that you actually work against your own self-interest. Essentially, you are either excessively polite or are in conflict with another party who has more knowledge on a topic. This style can be helpful when you are seeking advice from a trusted financial advisor. This can be problematic, if you automatically assume that others know more than you about money, or what to spend your money on. You may be too eager to please and too trusting. This is even more true if you are constantly finding yourself on the losing end.

Avoidance

People who use this style simply do not address conflict with themselves, or others. In this scenario, all are losers. This is acceptable for a short term strategy, but can be dangerous if it creeps into a long period of time. People who are prone to the avoidance style may also have high amounts of debt. If you are constantly avoiding the realities of your bank account and spending habits, you may be creating even more conflict for yourself and any financial partners.

Collaborating

This is the ideal way to handle financial conflicts within your relationships. This is a win-win style, where you work to meet each person’s goals. This can be helpful when you are crafting a budget with your spouse, and you both work to make sure your financial goals can be met based on the mutual plan you establish. In times of financial stress, you both communicate and work together to fix the situation for an outcome that is helpful to both parties. This can even be true for friendships. For example, if you have a higher income than your friend, and want to go out to a fancy restaurant, you may collaborate with your friend to find a restaurant that you will both enjoy, and afford. You can still go to a nice restaurant, but your friend can afford it, or maybe you can even treat them to a meal!

Competing

This is a style more commonly taken on by the aggressive or ambitious. It is typically a win-lose scenario. A person with this management technique doesn’t care about the other party getting what they want, and makes decisions with a sense of urgency. This may be okay in times of emergency, but can be damaging for the long term. For example, if you constantly spend on big ticket items without consulting your partner, you may have the competing style. You may take advantage of others, and seek to appear financially superior to your friends and family. This can be especially damaging if your bank account doesn’t match your spending habits, causing others to feel inferior, and your partner to feel weighed down by your decisions.

Compromising

Compromising is the worst way to handle your finances. It creates a situation where nobody wins. Both parties may not speak their full truth, or take the paths of least resistance, so no one truly gets what they want. This might be where neither party really wants to cooperate, so they make sure nobody gets what they want. This can be problematic on financial decisions, such as whether or not to buy a new or a used car. You might decide not to purchase a vehicle at all and really end up paying to fix the clunker you have, spending more on fixing it than you would have to just replace the vehicle.

Consider which one of these styles you lean towards the most and how it can be hurting or helping your financial situations and impacting those you care about. We suggest striving for collaboration to satisfy your relationships and bank account!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Habits of Financially Mature People

If you take a look around, you may notice that a majority of people from a variety of income levels seem stressed about their finances. Seventy eight percent of Americans are living paycheck to paycheck and debt is creeping up more and more every year. So what’s the secret for those who aren’t wealthy enough to be financially independent, but still manage to live the life they desire? We believe the difference is financial maturity and have collected top habits for you to integrate into your life.

Educate Yourself: Financial Literacy

Financially mature people take time to educate themselves about money. Set yourself apart by having a basic understanding of financial areas such as: investing, insurance, real estate, retirement and tax planning.

Pay Yourself First: Save!

Achieving financial stability means having enough in your account to pay cash. It means understanding that a financial crisis such as losing a job happens, and realizing that it’s important to have money prepared for that misfortune. There are so many things to save for such as retirement or a down payment on a house, and irresponsible spending can quickly eat away at your savings. Don’t let savings be an option, set up an account with us today at Peoples Bank & Trust.

Say No to Shopping Sprees

The financially stable realize that spending money for the sake of spending money will not help them get where they want to be. If you go shopping for fun, you’ll end up buying items you do not need, a hallmark of the financially unstable. Plan ahead for the items you need to purchase.

Use Credit as an Investment

They don’t use credit as a fall back for when they cannot afford to pay a bill. They only have a couple of cards, and pay them in full at the end of every month. They always pay their bill on time to reap the rewards that come with their use.

Know Your Numbers

A financially mature person has a budget, no matter if they have a lot, or little money. They know what’s in their account, what they owe, what they earn, what they spend and what they have invested. They put themselves in environments that encourage them to keep their budget. They also review their budget monthly to see if there is any fat to be trimmed. There is a realization of the difference between spending less and saving. Even if they are spending less, if their savings aren’t increasing, they haven’t gained anything.

The most important idea to realize is that financial maturity is up to you. If you need help navigating your process, reach out to a member of the team at Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Can You Save on Groceries From Gardening? What You Should Know Before Digging In.

Gardening isn’t for everyone, but if you are looking for ways to cut down on one of your greatest expenditures, your own home garden might be a great place to start! You don’t need to be a Master Gardener to see returns on getting your hands dirty. However, it helps to know a thing or two before digging in!

Plan Your Space

Getting your garden started can require a large input of costs. While you may be excited to begin, you can easily end up upside down in this hobby by not planning your tools and the plants you need. The average gardener invests $70, so if you are just starting out, aim for even less. Start small. Anybody can find room for a few plants, even if you live in an apartment, it just takes some creativity. Your goal should be to minimize costs and maximize yield. How wonderful would it be to only eat veggies grown by YOU?

Try to choose a location that has full sun and well drained soil. Use any of these garden planners to help figure out the layout of your plot. If you pick too large of a plot to fill, you may easily be overwhelmed and less likely to take great care of every vegetable. Efficiently use your garden space by succession planting or companion planning to get the most bang for your buck! You’ll have a variety of plants and waste less money running to the grocery store.

Pick Your Plants

One of the most important things you can do to make this a success is to plant vegetables that you actually like! Why spend your time and money on produce that won’t get eaten? Take a look at your grocery receipts. What veggies do you spend the most money on? Which items seem to cost the most? These are all questions you should take into consideration. Stick to mastering a few this season, and tackle more next year!

You can begin early in the spring by starting some seeds indoors – even herbs if you favor the delicious fragrance they offer. Plant cool season plants (carrots, beets, lettuce) early spring and warm season (squash, tomatoes, eggplant) after there is no chance of frost.

Preserve & Prosper!

If you’ve gardened correctly, you may have a higher yield than what you can consume. Congratulations! Some items, like potatoes and squash, can last a while if stored at the right temperature. However, other items such as beans, tomatoes, cucumber and even herbs can be canned or frozen to carry you through this winter. Once you get into the swing of things, you may hardly ever need to run to the store for your veggies. If you’ve planned, planted and preserved your produce correctly, you can have significant savings to your grocery bill – and a delicious BLT.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Giving back in the New Year: Practicing Selflessness

Many individuals have goals and resolutions they are striving for this year. They are fostering hope for a better tomorrow and realize they need to add or dilute some of their habits in order to have the life they envision. Many, if not most, of these resolutions fail for lack of motivation. In fact, only about 8 percent of individuals end up sticking with their resolutions and that could be attributed to the type of goals made.

A majority of resolutions are self-focused. Very few of them strive for the betterment of others, which could be one of the underlying reasons for failure. While it may not be for lack of trying, goals crafted that solely benefit the self, have less success than those that are others oriented. Although, practicing selflessness can indeed improve your own happiness and household economy in other ways.

Tax Deduction

When you decide on a charity, you want to be sure they are reputable. Check out Charity Navigator to find out if you should be giving to a certain organization. Giving to these organizations may enable you to deduct from your income tax if you itemize deductions. Be sure to do your research before giving if you would like to take advantage of this benefit.

Better Money Management

Deciding on giving monetarily to a cause will encourage you to monitor your budget. Don’t have a budget? Now you have another reason to make one! Do you need to make cuts elsewhere to excessive spending? Having cause to review your monthly statements can only help your finances. Come see us at Peoples Bank & Trust to set up an automatic withdrawal to your savings account for your giving; we want to make it easy for you! When you are able to focus your attention to those in need, you are investing in yourself emotionally and financially. Even if you are only able to give your time through volunteering, it may give rise to gratitude for what you have; decreasing your desire to purchase items you do not need with money you do not have.

What Goes Around Comes Around

Although your primary goal in helping others isn’t to help yourself, getting involved can create opportunities for you and even your children. People in need will remember those who helped them at their lowest. Maybe someday you will be in need of a favor and they will happily assist you. It enables you to make connections with others, which can help you to better establish yourself professionally. Is your child socially anxious? Kindness has been shown to reduce social anxiety and can help set your children on a stable track for the future including scholarships and job prospects.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How Reading Can Improve Your Financial Well Being

Does being a reader make you more of a leader? Well that might be the case in life and the financial world. When infamous Warren Buffett was asked about his success he pointed to a stack of books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.” Most likely if you’re reading this article, you already see some value in the declaration and are here for affirmation. However, for those of you who still aren’t convinced and maybe even guffawed at the notion of fitting in that much reading into an already hectic schedule, let Peoples Bank & Trust give you some insight to consider.

It’s a Low-Cost Investment

Instead of taking an expensive flight to a costly conference, you might consider swinging by your nearest bookstore. Because there is no limit to where knowledge can take you, investing in books is a low investment, with an infinite ROI. You can learn from the best in your business field, or pick up a novel. The jury is still out on whether memory or comprehension is better with print vs. digital, so get what works best for your lifestyle. Owning the book is preferred if you want to become more engaged by writing in the margins, but stopping at your local library is another great option!

Makes You More Employable

You can make a great difference in your success by expanding your education. Generally, knowledge cannot be lost. What you learn from reading a few books will set you apart, in that you already know something that has taken others years to learn from experience. Unfortunately, only 42% of adults will read a book after they graduate from college-just think about how much of an advantage that can give you! You will be a great resource for your team and have greater ability to think on your feet because of the reading “vitamins” you consume. This makes you desirable to potential employers and encourages a higher salary because of the value you bring to the workplace.

Boosts Brain Power

You’ve heard it said, knowledge is power. Are you unhappy about your financial situation? Pick up the Wall Street Journal or the financial matters section in newspapers. You are sure to gain a wealth of information to help you out of your current situation. Some studies show reading will help strengthen your analytical skills, increase your vocabulary and help you to prioritize goals. Your knowledge of the world will be stronger, and you may just notice your financial skills sharpening as your mind is being refined. This is especially true when you read chapter books, as it encourages deep reading and assessment.

The majority of what you read will not only make you a more rounded individual, it will help you to make more sound, financial decisions. You will be a greater financial asset to your company, and yourself. So grab a book, a hot cup of coffee and settle into your next lesson!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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