Author Archives: Heartland Banks Blogger

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. They realize money is a tool that they have efficacy with. Unfortunately, public schools aren’t preparing students to be financially literate. 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 Heartland Bank.

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 Heartland Bank.

3 Things You Need to do for a Successful Garage Sale

Hosting a garage sale is not for those who are afraid of hard work. Like most things in life, in order for it to be a success, you need to be willing to put in the time and effort to make the experience pleasant for buyers and yourself. You need to be sure that the items you want to sell are going to be worth the time it’s going to take. If you don’t have any big ticket items, it is less likely that your sale will do well, as it will not be as attractive to buyers. Your time has value and we want to ensure you make the most of yours! If you have decided to move forward with the garage sale, utilize these three tips to make yours a smash!

Prepare

Start by going through each room in your home with three boxes. Go through cabinets and closets and start weeding out items to sell, toss or donate in separate boxes. You are going to feel so much better afterwards in your home, knowing that you mostly only have wanted or needed items taking up space.

Purchase pre-marked stickers for your items to make it simple. You don’t want introverted people putting an item down because they couldn’t read your handwriting and felt uncomfortable asking. Additionally, you will want to organize all of these items into their appropriate categories (women’s clothing, toys, books, etc.). A rule of thumb is typically pricing items about ⅓ of the original purchase price, but some items may even require a lower sticker price. Don’t assume that people will haggle with you, as many feel uncomfortable doing so. The most popular items you can have is: furniture, kids’ toys and collectibles.

Advertise, Advertise, Advertise!

There’s no point in preparing if you can’t convince people to come to your sale. If there’s a local newspaper or community bulletin for free or a small price, post your biggest ticket items for sale here. Make sure you are specific with every ad. This will make people more likely to come to a sale where they know what they can expect. If you can join in with another family and label the sale as “multi-family,” you are more likely to draw a larger crowd. Create large, easy to read signs and post them the night before. You are going to want 15-20 signs to draw attention. Make it fun and in an easy to read font.

Don’t try to make the ad too cutesy, but simply list what you have. Post on at least three online sites, whether that’s Craigslist or multiple social networking groups. Quality pictures can only help! Post these ads 1-2 days before your sale, so it stays top of mind. We recommend having the sale on Friday and Saturday mornings, starting as early as 6. Most people don’t like to interrupt their day plans for a sale and would rather get it out of the way.

If you really want to think outside of the box, have a themed garage sale! If you mostly have outdoor, sports or entertainment items-list them as such! This will generate more curiosity and interested buyers.

Create an Experience

Having a sale that will make people come back next year is all about creating an experience! Make your sale similar to a department store environment that is accommodating and causes customers to linger. Greet guests with a simple hello and nice background music when they enter. Display your best items at the front, with a couple of eye catching items at the very back to attract visitors to the whole space. If you haphazardly throw your items into a box, they may think that you don’t take very good care of your things and will not want to buy them. You will have to keep up on this throughout the day. When selling accessories, have a mirror ready for people to try on items. If you are selling electronics, have a plugin available for guests to test. To really step it up, have refreshments to suit the weather. Lemonade for the hot days or coffee for the chilly ones.

All of these recommendations will make your items more attractive to potential buyers. If you are going to have a sale, we believe going all out in order to not only clean your home, but to have a nice stack of cash at the end of the day!

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!

The DO’s and DON’TS of Using Credit Cards

Personal Finances

Using a credit card is a great stepping stone to help boost your personal credit history. By proactively managing your ongoing finances, you can showcase to potential lenders that you know how to fulfill your repayment promises. What many people don’t know, is that simply having a credit card does not automatically indicate an increase in your credit score. To help you succeed with your credit, Heartland Bank has put together our most commonly asked do’s and don’ts of using credit cards.

DO: Pay your balance in FULL every month or every two weeks.

DON’T: Keep a balance even if the interest rate is low

While keeping a balance less than 30 percent won’t drastically harm your credit score, it’s always better to be safe than sorry. We recommend never spending more than you can pay off each and every month. By keeping yourself to this standard you can make certain to never become a victim of expensive credit card debt.

DO: Choose a card that will compliment your lifestyle.

DON’T: Pick your credit card based on mail or TV offers.

There are countless websites and app centered around helping you find the ideal credit card. Instead of signing up for a credit card through the mail, start perusing sites like NerdWallet to discover which card fits not only your spending but your rewards preferences too! Before you start applying, remember to only apply for a credit card if you need one If you plan on using more than one, wait six months or more before applying for a new line of credit. This will help to keep your credit score on track and assist in preventing any unwanted dips.

DO: Use reward points to save money.

DON’T: Spend more just to get additional points.

While some credit card options certainly do offer some great sign-on rewards, remember that added debt and expenses are never worth the hike in points. The money you manage is yours, and it’s real! While the points are truly a great perk, never let them outweigh the tangible money you currently have in your individual accounts. If you allow this to happen you may find yourself with a mountain of debt, equivalent of half the vacation you can no longer afford to take.

DO: Have more than one card when you can pay them all off on time.

DON’T: Cancel a credit card without researching its history.

There are certain cards that boast the best rewards when utilized for specific industries, and others that can add extra perks for those all-encompassing purchases. To make the most of these various benefits, we recommend using multiple credit cards for your household’s purchases, only once you’ve maintained a zero balance on one for more than six months. If you feel confident in managing multiple credit cards, you’ll find great advantages of using the rewards behind the various programs and their associated bonus structures. However, if you close a card, always check and see if that card holds your longest history of a credit line. Should that be the case, you may not want to cancel it, as it could create a slight dip in your credit score.

Did you know Heartland Bank offers credit cards too? If you’re looking to boost your credit or want to begin building your history with a local institution, our dedicated staff would love to help you get started. Simply stop by your nearest location, and we’ll help find the perfect fit for you and your spending.

Money Advice from the Movies

Personal Finance

Occasionally, even the best movies hold fantastic financial advice. We love these classic films and their timeless tales. At Heartland Bank, we’re excited to share their hidden financial advice, and help you make the most of your money-management, (while cluing you into some great movies to watch along the way!)

“You… you said… what’d you say a minute ago? They had to wait to save their money before they even ought to think of a decent home? Wait? Wait for what? Until their children grow up and leave them?” – It’s a Wonderful Life, 1946

Just like this movie’s protagonist, our lenders at Heartland Bank believe you should enjoy your home as soon as you can instead of waiting to pay for it in full. Our dedicated team of mortgage professionals are here to help you find the ideal lending solution to purchase the perfect home for your growing family. Instead of waiting ten, fifteen, or twenty years down the line to purchase your first house, stop in today and discover your home ownership potential.

“One more thing, they don’t want to pay taxes again, ever.” -Armageddon, 1998

Just like the heroic men of this movie, we understand you don’t want to pay any more taxes than you have to. While we can’t help you eliminate having to pay taxes, helpful savings accounts like an educational 529, or options such as a Roth IRA, can assist you in legally avoiding extra taxation later in life. If you’re curious and would like to learn more about our savings account options, stop by your nearest branch today!

“You know why the Yankees always win Frank?” “Cause they have Mikey Mantle.” “No, it’s ‘cause the other teams can’t stop staring at those… pinstripes!” -Catch Me If You Can, 2002

Instead of choosing your personal loans or mortgages based off of flashy deals or specials, choose a reliable lineup with our team of community focused professionals at Our goal is to help you have the best experience possible alongside our local lenders, without the need for door-buster deals. Before you start your search for financing, ask yourself if you’re searching for the ideal teammate, or if you’re just staring at those dang pinstripes.

“The moment you become embarrassed of who you are, you lose yourself. I changed the house, the way I dressed, the way I ate – and for what?” -Oceans 13, 2007

If you haven’t heard already, keeping up with the Joneses is overrated. A high amount of debt, low savings, and never feeling like you have enough; there aren’t many upsides to this eternally competitive contest of who has what. Instead of trying to compare and contrast your belongings, instead, focus on the experiences and essential items that mean the most to you and your family. These fundamentals can help you structure your financial well-being and focus your earnings on things that mean the most to you, not your neighbors next door.

We love the movies showcased above! Are there any movies you find yourself watching time and time again? If you notice any great financial tips or tricks, be sure to post them to our Facebook feed. At Heartland Bank, we’re always searching for new and exciting ways to help our customers save!

Saving for Tuition 18 Years in Advance

Educational Savings

After you get to see those little eyes open, it’s like a whole new world has unfolded before you. When you’re elbows deep in changing diapers, cleaning up whoopsies, and trying to sleep more than four hours a night, the last thing on your mind is college savings. At Heartland Bank, we understand the chaos which ensues with each new addition to your family. To help you prepare for this upcoming transition, we’d like to help you find the best educational savings account for your little bundle of joy before he or she arrives!

There are two primary types of accounts when it comes to saving for your child’s ongoing education. Similar to retirement savings accounts, both of these options do require various stipulations when it comes to distributing the saved funds. Here we’ll show you the pro’s and con’s to each option, to help you better determine which option will suit you and your needs best.

The Coverdell Savings Account: This account option utilizes after tax dollars, which means there are no taxes on distributions when the funds used for education. The account does have a nationwide $2,000 a year contribution limit, in addition to various income restrictions. While you and your spouse may manage and contribute to the fund, once the child turns eighteen, he or she will own the account and all the funds within it. However, the child once of age may only use the funds for education related expenses without incurring an additional distribution tax.

The 529 Savings Account: This account option also utilizes after tax dollars, which again indicates no future taxes on distributions if the funds are used for education. The account does not have income limitations, however, each state stipulates their own yearly contribution limit, typically ranging from $100,000 to $350,000 per year. For this account type, the physical savings account, and the funds within it, remain yours, only designated toward a specific beneficiary (which you can change up to once per year.)

Let’s compare the two when looking at national average college costs across the U.S.

If you choose to save using the Coverdell account option, suppose you save $2,000 per year for eighteen years, yielding a total of $36,000 of total out-of-pocket contributions. Add in the compound interest of those eighteen years, and you’ll find yourself with approximately $80,983 in total educational savings. Fun Fact: The national average for a year of in-state public college in the U.S. is $20,090 or $80,360 for a four year degree.

Alternatively, if you choose to save with a 529 account, you can save more than $2,000 per year, say $3,500 per year instead. Multiply those contributions by eighteen years, and you’ll have $63,000 in total out-of-pocket contributions. After calculating your compound interest into the equation, you’ve grown up to $141,562 in total educational savings. Fun Fact: The national average for a year of any college in the U.S. is $35,370, or $141,480 for a four year degree.

As you can see, both of these accounts allow you to make much more through the benefit of time and compound interest. Just like your retirement savings, the sooner you start contributing, the more interest you can earn. While the Coverdell allows you to give the account to your child, the 529 shows better savings opportunities, allowing you to maximize your potential interest.

If you’d like to learn how you can start saving for your upcoming chick-a-doo, stop by and speak with one of our dedicated personal bankers at Heartland Bank today! We’d love to help your family continue to grow!

Eat This Not That

Budgeting

Like many Generation X’ers, we grew into adulthood alongside this viral diet book, which showcased the epitome of dieting in the late 2000’s. Now a decade or two later, there are still some relevant tips and tricks we’re excited to share here. See how Heartland Bank can help you switch up your spending, by eating THIS instead of THAT, to put some extra bang in your buck.

EAT Dried Beans NOT Canned Beans: While many Americans are used canned beans as a pantry staple, you can save more than 50 percent when you take the time to cook with dried beans instead. According to the Bean Institute, dried beans typically run about $0.15 per serving, with canned store brands bean coming in at $0.34 per serving and your national brand of canned beans costing approximately $0.48 per serving. Additionally, if you cook your beans in a stock you can add additional flavor to your dish for only pennies per serving.
EAT Bulk Sized Snacks NOT Pre-packaged Portions: When trying to pack a child’s lunch, or meal prepping for yourself, it can be easy to turn to those pre-packed time savers. However, if you’re looking to lessen your grocery spending for the month, we recommend buying your family’s go-to snacks in bulk. Great retailers such as Sam’s Club, Costco, and Amazon offer great bulk pricing to help your household reduce their monthly expenses.
BUY Store Brand NOT Name Brand: Speaking of name brand, forget your brand loyalty and seek out the options that truly stretch your dollar the farthest. Great pantry staples like canned tomatoes, sugar, flour, stock, etc are consistently less costly than their national brand counterparts. Enjoy those extra dollars somewhere else in your budget, and see how much you can save off your grocery bill using this simple switch.
EAT Bread & Butter Roast NOT Flank Steak: Although these two cuts come from differents parts of the cow, they do offer very similar tastes. The bread and butter roast runs typically a few dollar less, but is still just as tender and buttery when sliced thin. Both options offer a great beef taste, however, when shopping for the entire family, this bread and butter alternative could save you several dollars per person!
EAT Ground Pork NOT Ground Beef: Many people are familiar with ground pork when it comes to meatballs or brats, however, did you know you can supplement ground pork for beef in many other recipes? Something as simple as Hamburger Helper can be used just as easily with this more affordable alternative. If you purchase the ground pork unseasoned you can ensure it only has the flavors you and your family want, compared to it’s spicy Italian sausage counterpart.
EAT Frozen Pizza NOT Delivery Pizza: Often you can find a frozen pizza at your local discount grocer for approximately $3.33 each. However, if you choose to purchase from a national chain you could be paying as much as $10.99 for a medium pizza depending on your brand. An added benefit of frozen pizzas is the sales cycle of many chains. If you wait until this frozen entree goes on sale you could snag them for as little as $2.50 each or less!
EAT Frozen Fruits and Vegetables NOT Canned Fruits and Vegetables: Not only do these frigid foods save you money but calories too! While the canned items can offer more convenience, they typically contain syrup or oil to help keep the produce fresh. Avoid these extra calories and costs by purchasing the frozen option instead.
EAT Whole Chicken NOT Rotisserie Chicken: This change-up is purely time related. You can cut the cost of your meal in half or more by taking the time to roast your own whole chicken at home instead of purchasing one which has already been prepared. While you may need additional ingredients such as olive oil, herbs, and spices, they come at a fraction of the cost, and can be used for countless other dishes in your kitchen. Not to mention you can make your own stock with the scraps!

We love cooking, and we can’t wait to hear how these tips and tricks can help your family succeed! Be sure to share your favorite success stories and recipes on Heartland Bank’s Facebook page. We’d love to see which hacks have helped your household the most.

The Basics Behind New Business

new business

A mouthwatering dish your grandmother made you, a leaf falling across the park, or one of the endless questions your preschooler has begun to ask you; the truth is great ideas can come from anywhere. If you have a concept you are itching to turn into a reality, there are some key components you’ll need to make it happen. At Heartland Bank, we were founded upon our commitment to small and medium sized business, and we are thrilled to help you transform your inspiration into a live entity.

To complete the process from conceptualization to implementation, there are ten key components to ensure your business has all the legal qualifications necessary. Simply follow these helpful prompts, and if there are any components you’d like further clarification on, never hesitate to reach out! Our experienced team of commercial lenders is here to answer any questions or inquiries you or your business partners may have.smallsmall

Write a business plan. Your company’s business plan should detail the purpose and differentiators associated with your business. gov is an informative resource to help you determine all the required components for your proposed document.
Register as an LLC or Corporation. An LLC is the most common choice for new business because the Corporation classification does mandate a $10,000,000 revenue requirement.
Finance your new business. There are a variety of ways to finance your business. Whether debt or equity based, our dedicated team can help you determine which route is best suited for your business.
Determine your business location. Keeping your budget in mind, purchase or lease the space you’ll be using for your location. If you’ll be working from home be sure to take advantage of the associated tax benefits.
Register for EIN and determine payroll structure. Before you hire any employees, you’ll need to register for your Employer Identification Number for federal taxation purposes.
Register your business name. You can choose to register your business as a DBA, or Doing Business As, or you can choose to register your company name and/or logo as a trademark. Both options will allow you to operate under your desired business name.
Open a designated banking and credit card account. Separating your personal finances from your business is imperative in keeping accurate accounting records. Additional tools such as Quickbooks Self Employed can help you manage all aspects of your finances at home or on the go.
Complete registration for state and local taxes. Business taxes are set up differently than your personal taxes. Be sure you’re accounting for all the variables before you open the doors.
Receive business licenses and applicable permits. If you plan to sell alcohol or firearms, you may need federal licenses in addition to the various state requirements.

Structure and start a marketing campaign. Marketing is an ongoing effort, but to get customers in the door, they’ll need to know you’re an option. Get the word out with a strategic marketing initiative, and make a yearly plan on how to keep new clients coming in.