Spring Cleaning; Budgeting

Spring Clean Your Budget 

Spring is here and that means we’ve got some spring cleaning to do! This year, you’ll want to be sure to add ‘budget’ to your to-do list. Spend some time doing a deep dive into your finances and budget plan to boost determination for the rest of the year. Give yourself a budget refresh with these 4 tips.   

1. Review and Refresh  

Reviewing and refreshing your budget is something that should be done periodically. Life changes, there are new expenses, or in general, new goals that need adjusting. It is ok to change your budget if it accurately reflects where you currently are in life, and it aligns with your savings goal. Whether you have moved, made a big purchase or have room to allocate more to your savings, be sure your budget is refreshed to reflect new changes.  

2. Rebuild Your Savings  

There is always a time of rebuilding – whether it is after purchasing a new home or welcoming a new member into your family, think about what needs to be adjusted to rebuild your savings. Another thing to keep in mind is your emergency fund. As you rebuild your savings for new financial goals, be sure to plan for the unplanned. Delegate a percentage of your income or side hustle to build strong savings for the future and unforeseen circumstances.   

3. Track Your Spending   

Do you track your spending? Tracking your day-to-day spending is a great way to address any trends that may need to be reviewed in your budget plan. Tracking your purchases gives you the opportunity to see where you are at within your budget day-to-day or weekly to ensure you’re on track. Make it a point to schedule a monthly budget meeting with yourself. It is important to look ahead and try to forecast month-specific expenses coming up.   

4. Align Your Money Goals   

Lastly, be sure to give yourself credit for reaching weekly and monthly goals. It won’t always be perfect – overspending happens and life constantly changes, but you can always give yourself grace and have the self-awareness to address concerns. Be realistic with your lifestyle to align your progress in the right direction. Treating yourself occasionally is a great incentive to drive determination for long-term success.   

As you spring clean your budget to perfection, do not hesitate to reach out to Peoples Bank & Trust to set up a savings account or to discuss how we could assist you in reaching your financial goals today! In a world full of unknowns, you have the power to be self-aware of your budget and how you can adequately save for success.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Kids On Tablet; Cybersecurity

Cybersecurity Tips Every Parent Should Know 

Today’s generation of kids knows how to operate a device before they learn their ABCs. The internet has become inevitable. Parents, exercise the 3 P’s below to ensure online protection for your family.  

1. Practice Safe Online Habits  

When it comes to practicing safe habits online, it tends to be easier for parents if their children can understand why we implement online safety practices. Having these conversations can be hard, however more times than not, the child will understand why we utilize these essential cyber skills. Start with explaining basic rules such as posting photos – we truly do not know who is seeing what we are doing and where we are, that is why we only send photos to people we know directly.   

Another basic rule to practice as a parent is the idea of ‘clicking with caution.’ Phishing is very dangerous and only takes one click for malicious software to get on any device. Checking over spelling and links prior to clicking is a safe practice to hopefully diminish phishing. It is very important to keep a clean, updated and backed-up device to defend against potential viruses.   

2. Protect Your Identity  

Protect your family by utilizing privacy settings to secure personal information. The key to privacy is being very minimal with what you share online as well as cleaning up old profiles. Old and unused apps should be checked and deleted frequently. Apps that allow for messaging should be kept private to eliminate people they do not know adding or writing them.   

Safe online practices should be talked about and consistently monitored. Engaging in these conversations with your family on cybersecurity should be specific, so they can understand exactly why we practice safe online habits and so you can learn together. Kids today face more online risks that need parental guidance. Implementing age ratings and built-in controls can control and limit access to inappropriate content. Having these rules in place and under a watchful eye can help children stray away from bad practices.   

  • Incorporate a device docking station in a common space at night.  
  • Keep devices in common spaces for usage under supervision.   
  • Control their screen time and ability to log in.   

3. Password Persistence  

Teach and practice safe password protection for all mobile devices and online profiles. Strong passwords should never be shared or reused. You really should not even be reusing passwords amongst accounts – if a hacker can get into one, they can then get into all. When creating a strong password, the best tips are:  

  • Make it unique and not personal to you or your family.   
  • Do not use your name, family name, identifying number or birth date.  
  • The longer the password, the better. Utilize both uppercase and lowercase letters, as well as numbers and symbols.   
  • Do not reuse previous passwords or something too similar. You should be changing your passwords often.   
  • Pick a password you can remember and not have to write down/have on your phone.   

Parents, it is up to you to enforce safe online habits to ensure effective cybersecurity for your kids. Having those conversations on cybersecurity, as well as creating boundaries and rules will keep your kids much more aware. The more time you spend online, the more likely you are to deal with cybersecurity threats. The hackers and scammers target young children because they often lack experience and knowledge, but not yours. Educate your kids on cybersecurity training today!   

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Gardening; Home Improvements

Spring Improvements to Increase Your Home’s Resale Value  

Thinking of selling your home shortly? We’re here to share some easy springtime renovations to provide you with the greatest return on your investment. Spring cleaning is lots of fun, but a spring renovation, that’s what will give you the biggest bang for your buck!  

Replace the garage door.  

Replacing the garage door not only contributes to fantastic curb appeal, but the functionality will grab the attention of potential buyers when you upgrade to a more modern door with windows and smart control features.  

Install a kitchen backsplash.  

Kitchen remodels make a huge impact on the resale value of a home. Doing small weekend projects such as replacing or adding a backsplash can do absolute wonders and make a dramatic difference in your kitchen design! Make it as easy as laying tile one day and grouting the other for a quick home improvement.  

Update the popcorn ceilings.   

Yes, it is time to update those outdated popcorn ceilings. It is a fairly simple process you can do on your own with a few products from the supply store. This is such an easy and affordable way to spruce up your home with minimal cost and effort.   

Re-roof your house.   

The exterior of your home is the first thing a buyer will notice. Make the best first impression by addressing your current roof. You do not always have to completely re-roof your home and we understand this is more costly. There are options to replace shingles, partially replace or roof over. If you think your current roof will be a topic of discussion when listing your home, add this tip to the top of the list! If the roof is in bad shape, certain loans may require it to be replaced before the final sale could take place.  

Address the hardware and fixtures.   

What seems like a small, nitpicky detail can make the biggest impression on your buyers. Contemporize your outdated hardware and light fixtures to give a more stylish and fresh appearance.   

Stay neutral.  

Finally, when making home improvements – remember to stay neutral. Whether you change the color of your siding, cabinets or walls, you can appeal to a larger number of buyers by keeping simplicity throughout. Neutral tones make it easier for potential buyers to envision what they could do with the space and make it easy for them to paint over if need be.   

We believe these top tips will advance your home’s resale and help your budget. If you’re looking for a place to put your savings for your new home, we’re here to help. We also have all the home loan options you’ve been searching for and are happy to talk to you about the next steps.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

NMLS #407724 

Home Sweet Home

6 Reasons Why You’re Ready for Home Ownership 

Questioning if you are prepared to become a homeowner? Here are six helpful tips to break down buying a home and what you need to be prepared for. Purchasing a home can be a stressful process. Let these recommendations set you up financially and emotionally when you are ready to pull the trigger on buying.   

1. Be Mentally and Financially Ready  

Maybe you have reached your savings goal or have gotten out of debt. Knowing you are ready and what you want is probably one of the most important pieces of the house buying process. Buying a home is a big investment, so be sure you’re in a financial situation ready to pay for the house itself, property taxes, homeowners insurance, along with the furnishings and upkeep of your home.   

2. Check Your Credit  

Another big part of being ready for homeownership is making sure you have a good credit score. Your credit score will help determine the loan you can qualify for during this process. If you can qualify for a better interest rate, that will help lower what you are paying monthly towards your mortgage.   

3. Have a Steady Income  

Being sure you have a steady income is highly important when wanting to buy a home. Down payments can be a good chunk of money. You will want to be sure your income and savings will allow you to put down a very healthy payment. Mortgage lenders will check your income along with your credit score, as they both show your ability to repay. Purchasing a home is a very big financial and emotional decision, so being sure financially you’re in a good place can help give you peace of mind on the emotional side. It is important to think through your 5 or even 10-year personal and professional goals before buying. You’ll want to think about family, relocating for work and where you truly want to be at that stage of your life.   

4. Build Healthy Savings and an Emergency Fund  

There is a lot to think about when purchasing a home, but hopefully this helpful tip you have already been working on! It is especially important, regardless of whether you are buying a home, to be working towards healthy savings and an emergency fund. Why do you need strong savings and an emergency fund when buying a house? Along with the house itself, there can be many expenses and often unpredictable circumstances. Having some additional savings can ensure your comfort when moving as expenses arise. Setting aside money to build healthy savings will be great backing as you adjust your budget and incur monthly house payments.   

5. How Much House Can You Afford?   

How do you know what you can afford? There are several methods for calculating what you can afford, as well as several factors to address. You can utilize online down payment calculators to give you a better idea of what to expect.   

Down Payment Calculator: Calculate Your Down Payment https://bit.ly/3I0xCHM   

Refer to your budget to analyze your gross monthly income as well as annual. After you can nail down what you are bringing in, look at your set expenses. Another expense to account for is your state property taxes. Many lenders will utilize the 28/36 rule to determine their ability to afford a house. Money.com shares the 28/36 rule suggests your housing expenses should be no more than 28% of your total pre-tax income. Your total debt should not exceed 36% of your pre-tax income.  

6. Align with Your Personal and Home Goals   

Once you have learned about your home affordability, be sure making the move aligns with what you want. Buying a home is a big deal and can take up a good chunk of your budget. If it is more important to you to have the extras over a home, consider crunching the numbers to see what life would look like moving forward. In reality, when purchasing a home, you may have to push back that vehicle upgrade or vacation. Those are all good things to think about when aligning your personal goals with your home goals. It is critical to acknowledge the future and factor in your goals.   

The process of deciding to buy a home can be a lot to think about. Share these helpful tips with a friend, colleague or family member who is debating homeownership. Reach out to Peoples Bank & Trust today to discuss a mortgage on your new home! We would be happy to help you through this exciting process of becoming a homeowner.  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

NMLS #407724 

Traveling on the road

The Cheapest Ways to Travel 

It can be difficult when your goal for the year is to see more of the world, but you don’t have a huge budget to work with. Between flights, lodging and food, a quick weekend trip can turn into a trip that breaks the bank. Here are some ways to still experience the thrill of traveling while keeping the experiences relatively cheap:  

Go Camping  

There’s nothing quite as bonding as a fun family camping trip! Whether you have a camper, know someone with a camper, or want to go the old-fashioned route and pitch a tent, camping is a relatively cheap option.   

Book Your Flights Far in Advance  

The earlier you book your flights, the cheaper the rates usually are. Try to avoid planning last-minute trips since everything tends to cost more that way. Most airlines have flights available 11 months in advance which gives you lots of time to compare prices and book flights early. Keep your eye out for deals on flights to your desired location as well.  

Choose a Cheaper Airport  

Your local airport is close by and convenient, but smaller airports typically come with higher rates. It’s worth it to drive a couple of extra hours to make it to a bigger airport with more flight options as well as much lower rates.  

Go On a Cruise  

The great part about cruises is that you typically pay a single price that covers all expenses such as food, lodging and entertainment. Plus, you get to visit numerous locations all in one trip, making for a memorable and reasonably priced family vacation.  

Fly a Budget Airline  

Allegiant Air and Spirit are two examples of budget airlines that make flying a bit less expensive. The downfall of these airlines is the fact that things that are normally free with other airlines cost extra, such as carry-on luggage or seat assignments. Nevertheless, these budget airlines can save you hundreds of dollars and are a great financial choice.  

Airbnb Over Hotel  

Airbnb’s are located just about anywhere nowadays. Open the Airbnb app, enter the location and number of guests and you’ll be given lots of options. Not only is renting an Airbnb usually cheaper than a hotel, but they have a lot more character and feel more home-y.  

Now that you’ve read these helpful travel tips, it’s time to print your boarding pass and pack your bags! We hope your next adventure is fun, memorable and most importantly, budget friendly.   

  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

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  

Cyberhacker on a computer

How to Spot Cybercriminal Activity 

When we think of cybersecurity and cybercriminal activity, we often think about businesses being at risk. It’s important to know that anyone can be affected, so there are certain precautions to take when it comes to protecting yourself and your personal information.   

Things to Keep an Eye Out For:  

1. Unusual Account Activity  

One reason why it’s crucial to have notifications turned on for your bank accounts is so you can be alerted when withdrawals occur. If you get an alert and you weren’t the one to use your card, you can take immediate action and contact your bank to figure out the issue. Having these alerts turned on will give you peace of mind about your finances.  

2. Emails From an Unknown Sender  

Be careful with emails from an unknown sender as they may contain files or links that are meant to infect your machine with viruses and malware. Cybercriminals have a way of making their emails look legitimate, so even if it looks like it’s from an e-commerce site or financial institution, double check before clicking around.  

3. Messages Asking for Money or Personal Information  

Just as cybercriminals can mask themselves as businesses, they can also pretend to be people you know. It’s easy to figure out the names of friends and family members with the help of social media. If you get a message or email from someone claiming to be a person you know, always check with that individual over the phone or in person. Plus, you should avoid sharing personal or financial information over email or messenger – wait until you can talk on the phone or see them.  

Ways to Take Action:   

1. Always Keep Your Machines Updated  

One of the best ways to keep attackers out is to keep the software on your devices up to date.   

2. Better Safe Than Sorry  

If the email you receive looks legitimate but you’re still not sure, it’s better to be safe than sorry. When in doubt, just delete it.  

3. Multi-Factor Authentication  

Most of your accounts give you the option to set up multi-factor authentication. This is always a good idea just in case a cybercriminal is able to get past the first layer of account security.  

Remember that when it comes to cybercriminal activity, it’s always better to be skeptical than to assume the best. Keep you and your financial information secure by following these helpful tips!  

  

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

old-man

Cybersecurity Tips for Your Elderly Loved Ones

When it comes to older individuals, cybersecurity is something that can be commonly overlooked. Instead of hoping for the best, it’s important that we take steps to educate those who might not know how to spot cybercriminal activity. Here are some important things to remind your elderly loved ones: 

Even if an email looks legitimate, there’s still a chance it isn’t. 

Cybercriminals do a great job masking their identities by making emails and messages look like they’re coming from a reliable source. This can be tricky for people to differentiate, so make sure your elderly loved one knows that not all emails and messages are reliable, even if it looks like it. If they’re using the name of someone you know, always check with that person to make sure. If they’re using the name of a retail store, financial institution or other business, you can call that place and see if the message you received is really from them. 

If you’re making online purchases, use your credit card. 

Credit cards tend to be much safer than debit cards when you’re making purchases online because there’s better fraud protection. Encourage them to keep a close eye on their banking activity as well, especially if they aren’t alerted when purchases are made. Check with their financial institution to see if you can set up bank alerts so they’re notified whenever a purchase is made. This will give both you and your elderly loved one peace of mind. 

Keep your software updated. 

Not everyone understands the purpose or importance of keeping your software up to date, but cybersecurity is a big reason. These updates often include critical patches to security holes along with enhanced features. 

Shop on reliable websites that you know are real. 

There are countless websites out there, many of which are designed to scam you and take your money without sending you an actual product. It can be tricky to figure out which websites are real and reliable and which ones aren’t. Teach your loved one that the best choice is to only make purchases from websites that you know are real, have purchased from before or know someone who has purchased from them successfully. 

When it comes to cybersecurity, it’s always better to be safe than sorry. 

At the end of the day, it’s always better to take the safe route when it comes to cybersecurity. Continue to remind your aging loved one that it’s better to skip out on a supposed “great deal” than have your card information compromised by a website that is unfamiliar. Play it safe, delete unknown emails, avoid clicking on links from unknown senders, be careful what you download and always safeguard your financial information. 

These are reminders that should continue to be mentioned to your elderly loved ones as time goes on. Cybersecurity is extremely important, so we hope this helps you and the people you care about the most! 

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