Monthly Archives: April 2018

How to Stay in Debt – Crushing Habits

Nobody wants to be consumed with worrying about their finances. Debt for most people is a fact of life. Unless you have a stroke of luck with the lottery, or a Daddy Warbucks, you are probably unable to pay cash for life’s most important purchases: a car, house or your college education. The goal with debt is to take on good debt that will provide opportunities and income advancement. Bad debt is purchasing items with no return on your investment, with their value quickly depleting. If you are looking to stay in this good debt zone for years to come, we have delivered a list of habits those succumbed to debt do daily!

Thinking Money is the Problem

The financially insecure think that the reason they have so many problems with money is because they simply don’t make enough. It’s their employer’s fault. It’s their spouse’s fault. They don’t realize that whether or not they make $20k a year or 200k, they will forever be in debt if they don’t begin to take charge of their finances.

Tossing the Unopened Mail

The deeply indebted feel too overwhelmed or bored to read their credit card and checking statements. By doing this, they stay in a fantasy world where they spend more money than they have.

No “Uh-Oh” Fund

A great way to get yourself into unhealthy debt is by not establishing an emergency fund. If you lose your job or need a new transmission on your car, you may need to go further into debt just to get through the tough situation.

Treating Yourself (Daily)

While splurging on yourself happens to the best of us, it becomes a major problem if these impulses snowball into unnecessary debt, dinners and belongings you do not need.

LifeStyle Inflation

One of the biggest problems with Americans is the LifeStyle Creep. As their income increases with time, so does their spending. This inevitably leads to never really gaining wealth, because it is spent, spent, spent. Big debtors love those raises and can’t wait to spend them on more items they do not need.

Thinking Budgets Are for Poor People

This couldn’t be further from the truth, as those who are wise with their money have a budget that they stick to. Not having a budget is a plan to overspend and never truly understand your finances.

If you are looking to stay in debt long term, follow these habits. If not, run from these patterns and seek guidance from the financial experts at Heartland Bank!

Simple Ways Going Green Can Save You Money at Home

Have you ever thought about making your household more environmentally friendly, but felt it would just be too expensive? Many homeowners are under this impression, even though they have a desire to reduce their carbon footprint. However, you don’t need to buy all new energy efficient appliances. In fact, going green and saving money can even go hand in hand. By merely adopting a few of these suggestions, you can decrease excess and expenses.

Reduce

Travel – Dealing with traffic on your way to work is frustrating. Why not share the ride with a coworker? This not only decreases air pollution, but lessens the traffic, the daily stress of driving and gas costs. This is a huge help to the environment, as 30 percent of carbon emissions come from transportation. If this isn’t your thing, consider biking to work or working from home.
Waste – Whether it’s saving on stamps from Heartland Bank’s paperless billing or adjusting a thermostat, you can eliminate waste with simple choices. Unplug any electronics you are not using, or invest in a powerstrip to easily turn off of multiple money-hungry appliances. Say goodbye to plastic water bottles, and hello to a water filter and glass water bottle. Water-efficient fixtures and LED light bulbs are a low cost way to decrease waste – it’s that easy!

Reuse

Compost – Instead of throwing your banana peel in the trash, consider starting a compost bin. This is the hallmark of an eco-friendly household. This will not only lessen the use of garbage bags, but provide you with nutrient-rich soil for your garden!
Electronics – If you have gadgets you no longer use, there are many places that will buy them from you to refurbish. By not throwing these in the trash, you will have prevented harmful chemicals from entering the water systems. Never buy new when you can get it cheaper online!

Rethink

Cleaning – Even if you are buying chemical-free cleaning products, it can be easier to make your own products from natural ingredients like lemon and vinegar. Did you know your dryer can increase your electric bill by 6 percent? Set up a clothesline outside for fantastic smelling laundry and savings.
Purchases – Be a smart shopper. Convenience has a price when it comes to food. Buying from your local farmer’s market and cooking at home will eliminate the waste from packaging and the costs that come with manufacturing. Even buying clothing that seems “cheap” comes at a price, as those items typically come from countries with low environmental standards, and the products won’t last as long as quality items.

Implementing any of these tips into your routine is a great start to going green and saving money! For more great ways to maximize your dollar, check out the wide range of services at Heartland Bank.

Considerations of Renting Vs. Buying in Retirement

Congratulations, you have made it to retirement or are close to being in your Golden Years! As you may be discovering, a successful retirement plan involves extensive planning and a lot of patience. Likely, one of the last and biggest decisions to make in your plan is deciding what living situation is most financially feasible. While you may have invested in home ownership for many years, it may be time to downsize and your decision to rent or to buy your next space can have significant impact on your hard earned savings. Considering all the pros and cons of both will help aid you in your choice!

Buying

The perks of homeownership don’t necessarily change in retirement. In fact, the rate of homeownership for people age 65 and up has remained at about 80% since 2006. There are property and tax write offs, the potential for appreciation/equity and the power to make your place look exactly the way you wish. However, your needs are changing and with that so will the benefits and disadvantages.

A question you need to ask yourself is whether you want to leave an inheritance with your home. If you are not, it might be better for you to choose renting, unless the median home price in your area is low. Don’t forget to factor in closing costs and taxes. Your home as an investment late in life can become less important. You should run the numbers in your desired living community.

The reality is, one of the major advantages of home ownership is building equity, which would require you living in the home for at least 5 years. Unfortunately, depending on health, living in the new home for 15 years may not be possible, especially if you need to move into assisted living sooner than expected. The bottom line with home ownership is that it would make the most financial sense to ensure that you are going to be in the house long term.

Renting

You may be of the belief that renting is primarily for the younger generation. However, from 2005 to 2015, the number of renters ages 60 to 64 nearly doubled, increasing from 1.2 million households to 2.5 million. The benefit that comes with renting is the flexibility that retirees have been looking forward to all of their working years. You can move as often as you like and have notably less responsibilities that your body may not be up for such as lawn care and basic home maintenance.

Estimate your cash flow needs and assess the relative costs of home prices and yearly rent for comparable properties. Would it make most financial sense for you to put the proceeds from selling your home into investments that you can use for renting? Don’t forget to consider that rental prices will increase.

You may be so accustomed to the idea of “owning” that the transition to renting might not be easy. If you are planning on moving away from where you have lived for years, starting fresh in a new community will be an adjustment, along with not being able to paint or make large changes to your home.

As with all major decisions, the right one will vary for each individual and location. At Heartland Bank, we would love to help offer some guidance in your financial decisions to make your Golden Years truly golden. Give us a call, or stop by today to see how we can help!