Monthly Archives: August 2020

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! Contact us to learn more about the financial services we offer.

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 more.

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 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 to save at least 70% of your yearly salary for retirement. Another way to look at it is to 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 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!

Financial Tips Your Kids Should Know Before College

Whether you’ve had children head off to college in the past or this is your first child to do so, these financial tips are a great refresher for everyone. College students are known to live off of very little money, but there are ways to change that. Going into college with a financial plan will help your child avoid worrying about money while in school and can lower the amount of debt he or she might have in the future.

Talk About a Plan

Before your child moves out and has control of their finances, they should have some sort of plan ready. This might be as simple as creating a list of part-time jobs they could apply for, or it could be a detailed plan including monthly budgets. Whatever works best for your family is the smartest option, but even a small plan is better than no plan at all. Your child will go into school feeling much more prepared to handle money if you talk about it beforehand.

Create an Emergency Fund

You never know when a financial emergency will arise, so having a backup plan is important. Remind your child how important it is to have an emergency fund, and if they don’t have one started, create a plan to start one.

Be Careful With Credit Cards

Credit cards can help you build a good credit score if they’re used wisely. Many mistakes are made when it comes to credit cards, but if you use them the right way, they can be very beneficial. Make sure your child knows to limit the number of credit card accounts they open and to always pay in full each month.

Know the Importance of Budgeting and Saving

Not only will a budget and savings account help your child keep their spending in check, but it will teach them valuable lessons about self-control and patience. As badly as they might want to spend what they earn, help them understand why investing in their future is so worthwhile.

Leaving for college is a big and exciting step in your child’s life. Helping them to prepare financially will benefit them and also give you peace of mind. We hope both you and your children will benefit from being reminded of these simple, yet effective financial tips. If you have any questions about our banking services, feel free to contact us – we’re happy to help!