Tag Archives: budgeting

The Envelope System 1-2-3

Budgeting

This age old budgeting system still offers valuable insights to individuals and families across the country. Simplistic in form, this budgeting tool can help you manage your funds through direct accountability and a simple tracking function. Get started today, and Heartland Bank will help you along the way!

  1. What is the envelope System?

The envelope system is a budgetary guide where each category of your budget is represented by a physical envelope, filled with the cash for that month’s spending. As you need to spend in a designated category, you only use the funds from its matching envelope. Once the envelope is empty, no more spending.

  1. How does it work?

This budget hinges upon your accountability to yourself, and not overspending in areas where there is no cash remaining. Before setting the amounts for the month, examine your current spending and see which areas perhaps you could cut back, and other categories that may need a few more dollars. This will help ensure that your monthly budget is an achievable goal, that won’t leave you wanting at the end of the month.

  1. Why should I try it?

Getting your finances together helps open opportunities that may not have been present before. By accurately and responsibly managing your finances you may have the potential to save for a vacation, pay off debt, or purchase that item you’ve been dying for. By trying this system you are creating a goal for you and your family to look forward to a debt-free and more financially secure future.

Getting started is as easy as 1-2-3. Stop in the bank today and we can work with you to withdraw the amounts needed for your individual spending categories, and we’ll even give you the envelopes to go with them. If you’re still curious on how to best set-up your monthly budget, we can help with that too – just drop us a line or stop by!

The 10 Most Affordable Winter Destinations

Savings

The snowbirds seem have the right idea! Just as winter becomes too chilly and snow-filled, they flee to warmer weather! It just so happens that this is the ideal time to visit a variety of areas, while their prices remain low during their slower season. See how you can capture the best deals on your getaway from the colder weather, along with other popular snow-covered destinations.

Panama City, Panama: This amazing city is a must-see for those with a case of wanderlust. Filled with old history, and new innovation, the town of Panama City continues to surprise your senses. Explore the Casco Viejo area, and make your way to the Manolo Caracol restaurant. With this deliciously simple meal in your belly, you’ll be able to take on any adventure you find in Panama.

Singer Island, Florida: For this tropical getaway you don’t even need a passport! Tucked along Florida’s southeast coast, this local paradise offers the best of the beach life along with luxurious city activities in the neighboring West Palm Beach. If you’re looking for adventure, scuba shop Pura Vida Divers can help you fulfill all your scuba dreams! With diving, snorkeling, and surfing services, this family-run business will make sure your time with them is the best memory of your trip.

Punta Cana, Dominican Republic: Filled with luxurious all-inclusive resorts, this caribbean getaway will help maximize any budget! There are hundreds of resorts to choose from, and most offer packages which include meals, beverages, and on-site hotel activities. Be sure to also catch a round or two of golf at their renowned clubs across the island!

Ambergris Caye, Belize: Feel the heat year round in this island paradise! With activities on both the island and inland, you’ll never have a dull moment at this destination. If you’re searching for some adventure, be sure to stop by Amigo’s to book your next cave tubing, zip lining, or ruin climbing tour! After your day you can enjoy an unwinding meal at the island’s best ceviche restaurant, Hurricane’s, but watch out for their signature hurricane cocktail!

Vancouver, Canada: Home to the famous Whistler Blackcomb mountain, this chilly destination is filled with plenty of activities and beautiful snow-covered trees! Extend your trip into the city of Vancouver itself to discover the Granville Island market and delicious local delicacies such as poutine and the JapaDog.

Big Sky, Montana: Avoid the chaos of Winter Park, and venture to the less populous, but immaculate slopes of Big Sky. With affordable packages to ski and stay, you and your family can enjoy your days on the slopes, and your evenings at the lodge. If you feel like venturing into town, you can warm up with some deliciously spicy food from the local favorite, Alberto’s.

New York City, New York: This iconic destination definitely makes its mark on your traveling memories, and during the winter, it becomes more affordable than ever! With inspiring sights such as the Rockefeller Center, and the Ground Zero Memorial, this city will inspire you throughout your vacation. Share a laugh with your family and get tickets to the Tony Award-winning Best Musical, Book of Mormon. This trip will surely be one to remember!

For every adventure you plan, there should always be a budget behind it! If you want to learn how to best save and budget for your next getaway drop us a line or stop by today!

How to Create your Emergency Fund and When to Use It

Savings

Creating a structured savings plan is one thing that can set apart the financial dreamers from the financial doers! By setting strict guidelines to your goal, and ensuring the correct follow through with a backed up savings plan, you can be certain of your success in accomplishing your future achievement! One of the biggest obstacles in these plans is the unforeseen, and there is a way to manage even that. Using a well-rounded emergency fund can ensure that you don’t dip into saved funds for unexpected costs such as auto repairs, or medical emergencies. Want to get started setting up your emergency fund today? Follow these simple steps and you’ll be on your way to financial success!

  1. Open a dedicated savings account.
  2. Deposit Funds each month without withdrawing anything.
  3. Start by saving $1000.

– Next save 3 months’ worth of income and expenses.

– Finally maintain 6 months’ worth of income and expenses.

The reason you have this fund is simple, to prepare for the unprepareable. Whether it’s an unanticipated job loss, a costly home repair, or other unplanned expenses, your emergency fund can help you stay afloat when the waters get rough.

The main objective of this account is to have it work for you and your needs! By specifically determining what you define as an emergency (job loss, vet bills, auto repairs) and what doesn’t (last minute birthday gift, broken TV, new clothes) you can generate a structured list to know when you feel safe using those funds, and when perhaps its best to leave them untouched. The idea of the emergency fund is to have it when you need it. By gaining access easily via checkbook or debit card, you can make use the account more quickly when the unexpected strikes.

By generating your own emergency fund you can continue to save for milestones and pay bills, without worrying about the what if’s that lie along the road to the future. Get started with your emergency account today at Heartland Bank, we’ll help you get to your next savings goal!

5 Ways to Save For Your Next Vacation

Savings

Whether it’s skiing in the mountains, scuba diving among the reefs, or exploring history throughout famous museums, your ideal vacation can be anything you make it. Wherever you dream of traveling to, price is sure to be a factor in your decision. Make the trip of your dreams into a reality with these smart saving tricks to help fund your travels wherever they may lead.

  1. Open a dedicated savings account. To keep your goal clearly in sight and prevent overspending, establish a dedicated savings account for family vacations. You can use these funds throughout the vacation planning stages to book hotels and tickets. During your trip, easily track your designated spending while preventing unneeded dips into a primary savings account.
  2. Trust the change jar. The nickels and dimes that collect at the bottom of your pockets may seem insignificant, but a mere $1.25 saved every day in spare change adds up to just under $500 in only one year. Establish a large lidded container for your trip funds, for gas or gifts. Be sure to keep your eyes peeled for loose change both at home and during your work day.
  3. Designate a pantry week. In the months leading up to your vacation, pick one week each month to skip the grocery store and eat out of personal food storage. By eating meals such as spaghetti, soup, or rice, you’ll par down the grocery bill while consuming pre-purchased food before it goes bad.
  4. Repurpose gift cards. Instead of letting that plastic currency go to waste speak with friends and family members to see if any of them are interested in a trade. If there is no trade to be had, selling the gift card for slightly less than the card’s value may create a better incentive for buyers while still allowing you to receive the best benefit.
  5. Save energy. Cut down on your monthly utility bill by creating a list of action items to save on energy costs. Running the dishwasher for extreme loads only, switching to cold instead of hot water for laundry, setting a time limit for showers, and only turning on essential lights can lower your utility bill piece by piece. Take the difference saved and funnel it into your travel savings account.

 At Heartland Bank, we love seeing you accomplish your financial goals and enjoy all of the incredible places they can take you. If a vacation is on your horizon, make an appointment with one of our financial advisors today and learn how to make the most of your savings.

5 Financial Tips for Farmers

Growing Your Agricultural Financial Future

Feeding America isn’t the job for everyone, but for the select few, a career in agriculture is the epitome of making a difference in the world. Getting up at dawn, and getting in at dusk, many rural farmers have daily tasks which keep them running 24/7. At Heartland Bank we’d like to help make one of those endless tasks just a little bit easier. We’ll show you how to maximize your operation’s cash flow and build a better financial future – just follow these five steps!

  1. Choose Your Agriculture Strategy

There are three types of agricultural operations, highly efficient, low-cost, and extended value. These types of operations vary drastically, but come down to one single component – what is your agricultural brand? Is your operation synonymous with high quality production, high quantity production, or is it in a unique form of production all its own? Once you determine what you want to be known for, you can begin to shape your operation around the principles of which that drives.

  1. Utilize State and Federal Programs

With programs backed by the USDA and various State organizations, there are endless solutions available to farmers today. From helping you secure a place to all home, to offering various land subsidies to supplement your income, there are a large variety of ways to maximize these programs tailored to help deserving farmers.

  1. Evaluate Your Investments and Profitability

By creating a continual plan with your equipment purchases and other investments you can add some much needed structure to your operation’s money management. Keep track of your loans and your timeline to repay them. By being aware of the revenue needed to continue these repayments, in addition to making profit, you can set attainable goals to help keep your operation on target.

  1. Review Hazard and Fire Insurance Coverage

When examining your current policy you may find you’re paying for coverage that your operation doesn’t need. Work with your agent to determine if a new policy could help you decrease costs, while still maintaining the coverage you need.

  1. Keep Your Operation on Budget

Recording a detailed account for your income and expenditures can help you ensure that you continue a healthy cash flow. By keeping continuous records, and detailed reports, you may find that you have been missing out on previously unused tax benefits. Staying organized and understanding your current financial state can also help you to make more knowledgeable decisions when seeking additional funds for future expenditures.

No matter if you’ve been farming for fifteen years or fifty, there are always new things to learn! Take a fresh look at your operation’s finances today, and let Heartland Bank help get your operation where you want it to be. Stop by this morning and speak with one of our knowledgeable lenders – we’ll get the coffee!

The Top 5 Budgeting Apps to Get You Organized

Budget

Have you noticed yourself hitting the “check out” button a little more frequently when you shop on your phone? You’re not alone. In 2015, mobile commerce grew to a staggering 30% of all U.S. online shopping. This shows a growing trend of mobile purchasing moving billions of dollars in sales via handheld technology.

While smart phones enable spending, they can also be powerful tools for strategic saving. Check out these top budgeting apps and learn how to easily keep track of your finances.

  1. By pulling all your balances and transactions into one simple design, Mint allows you to see the big picture. You can add accounts, cards, and bills and track spending patterns and investments in real time. A budget calculated by your average spending will break down where your cash is flowing from month-to-month and year-to-year so you can watch your savings progress over time. (Free)
  2. If spur-of-the-moment spending is your weakness, PocketGuard is here for you. Connecting directly to your bank accounts, the app’s home screen tells you how much you’ve spent for the day, week, or month in relation to your income. With transactions automatically updated 24/7 you have an instant visual of your personal cash flow. (Free)
  3. Level Money. This helpful app aids you in spending for the short-term and saving for the long-term. By analyzing your income and expenses, Level Money reveals a daily allowance to help you save for a larger purchases or pay down debt. Connect the app straight to your bank account and create goals for saving and spending, all backed by a planning module that sends reminders and encouragements to help you stick to your goals. (Free)
  4. You Need a Budget. YNAB operates on four rules; give every dollar a job, save for a rainy day, roll with the punches, and live on last month’s income. This app adjusts your entire budget to prevent overspending. This app also ensures a constant safety cushion of funds so you’re never scrambling to cover unexpected expenses. ($5/month or $50/year)
  5. Good Budget. Unclutter your envelope budget with this exciting app. Instead of juggling a stack of envelopes for different expenditure categories, you can open digital folders on one simple screen. For joint accounts, you can easily synch the app with your spouse across multiple devices to prevent double dipping into funds. ($15/3 months or $24/6 months)

If you’re ready to take the first steps in re-evaluating your budget stop by Heartland Bank today. With our knowledgeable lenders, we’re here to answer all of your budgeting needs.

The Do’s and Don’t of Home Buying

Home Buying

Begin the journey of purchasing your new home with Heartland Bank! We’ll help guide you through the process of securing a new residence for you and your family. Stick with these easy do’s and don’ts and you’ll be on the path to success.

Do:

  • Secure a loan before a home: While the hunt for the first house is exciting, your final decision will depend on the mortgage you can secure. Your first step in the home buying search should take place with a loan officer who can assess whether you qualify for a mortgage, and if so, at what price. This provides a framework guiding the search so you don’t expend time and money on houses outside your means.
  • Take your time: The average homeowner occupies their house for nine years before relocating, so additional time spent thoroughly searching for homes can reap a decade of benefit. Track trends in the housing market to buy during the most cost-effective season. Weigh personal, important factors beyond price listing, such as neighborhood quality, length of commute, and potential for expansion and home improvement.
  • Consult the professionals: The listing agent represents the interests of the seller, not the buyer. As a first-time home buyer, you’ll need as much trusted, unbiased advice as you can garner. Ask friends and family to recommend their real estate agents so you receive counsel from a professional with a track-record of success.

Don’t:

  • Look at homes well over your budget: You set a budget for a reason. Stick to it! Paying more than you designated for a home can financially limit you to update and repair as needed. By spending within your originally determined limit, you’ll avoid heftier mortgages and continue to withhold extra funds for any household incidentals.
  • Empty savings into a down payment: Securing your mortgage requires a down payment. Putting down less than 20% requires you to buy mortgage insurance. To avoid this added expense, some home buyers drain their savings to cover the down payment upfront. Liquidating your account, however, leaves you without a safety net in the event of job loss or medical emergency. The expense of mortgage insurance is worth the financial cushion you can leave in your account, and you can always eliminate the insurance once you’ve paid off 20% and opt to refinance your mortgage.
  • Speed through the closing: The end is in sight, but don’t let the glow of the finish line obscure your view of the paperwork. Review documents with a fine-tooth comb, double check that nothing has been altered in your agreement, and ensure that it describes your understanding of the transaction to a “T”. A day or two of extra analyzing can save you years of headaches!

At Heartland Bank, we offer a number of mortgage options to make securing your home as feasible as possible. To schedule your first meeting with one of our knowledgeable mortgage bankers, give us a call at (515) 352-3181.

How-To Purchase Your Next Vehicle

Auto Financing

Purchasing a new vehicle is always an exciting venture. At Heartland Bank we want to help you maximize your buying experience with a trusted and affordable auto loan. Before you start roaming the car lots, glance at our easy auto check list to see what type of vehicle both you and your budget are searching for.

Determine if you want a new or used vehicle.

Many auto dealers today offer both new and used. While new can offer updated technology and the assurance of no prior owners, choosing a used vehicle can drastically diminish cost and offers a comparable quality with moderate mileage.

Decide on a budget and a timeline.

When choosing the right vehicle to purchase, there are many questions to help you research which option may be best on your pocket book in the long run.

-How long do you want to drive this vehicle?

-What does your budget allow you to spend for the down payment and installments?

-When do you need your vehicle by?

-What type of MPG do you need to keep gas costs within your overall budget?

-How long do you want to be paying the loan off? (0-5 years)

With these questions in mind you can better view the credentials needed in the ideal vehicle for you and your family.

Save your down payment.

Speak with one of our experienced lenders to discuss your auto financing needs. It’s great to start saving now, to help secure some money down for your new purchase. When estimating the total cost of your new vehicle be sure to include any maintenance work, tires, or other repairs a car may need.

Talk to us!

If you have any questions or want to begin the process of auto financing, call Heartland Bank at (515) 352-3181 or stop by today. We’re happy to help, and look forward to making your next auto buying dream a reality.

3 Steps to a Successful Retirement

Retirement

A successful retirement plan involves extensive planning and lots of patience. Once accomplished however, you gain the benefit of watching your finances work for you! The average age of retirement is climbing. Currently averaging at age 62, reports speculate that the average retirement age may increase to 75 for recent graduates facing mountains of student debt. As in any successful game plan, the key is to have an effective and feasible strategy, here’s how to begin.

Start Saving Now

Even if it’s just a little at a time, saving 6% of your earnings annually can begin to set you up for a lofty retirement. Did you know if you save even 10% of your annual income you could save $1,555,000 and retire at age 70? (Based off of median salary of $45,478 and $35,051 in student loan debt.) Dig a little deeper and see what savings potential you have!

Hop on that 401k ASAP

Tucking away pre-tax money is like being asked if you want a puppy as a child, the answer is always yes! By using this valuable system you are able to put a percentage of your annual salary away without having to pay taxes on it that year. Generally employers may match a percentage of your contribution, so if you put 6% of a $45,000 salary ($2,700) into a 401(k), and your company contributes 3% additionally ($1,350), you would yield a yearly contribution of $4050 towards your retirement! Another perk of utilizing a 401(k) is the change in your taxable income. The amount that you invest in your 401(k) is deducted from your taxable income reducing the final amount you pay on your yearly income tax. (Example: $45,000 – $4050 = $40,950)

Grow a Diverse Portfolio

Ensuring your finances’ diversity is a large component to a successful retirement. The saying “Don’t put all your eggs in one basket,” is the epitome of investing. By creating an investment plan that entails stocks, bonds, equities and more you are able to gain the benefits and financial buffers that each individual product provides. Additionally this allows you optimize your savings, ensuring the gain and profit generated from each asset goes towards to your growing retirement fund.

Use these simple tips from Heartland Bank to help bolster your retirement nest egg! Stop in or give us a call at (515) 352-3181 to learn more today!

How-To Save $5000 This Year: Our 52-Week Challenge

52 Week Challenge

Whether it’s a house, a new vehicle, or other lending options, having a down payment is always a great first step.  In this 52-week challenge you will begin saving a little at a time to accumulate $5000 this year! Here’s how it works, every week you deposit a different amount into your savings account. As the weeks go on you begin to build a steady base little by little. At the end of the year you will have saved $5000 if done correctly. You can also add to the numbers shown below if you’d like to save more than $5000. Simply take the additional amount you would like to save, and divide it by 52. Now add that number to each of the deposit amounts for the year and you have your game plan.

52 Week Challenge

$5000 is a substantial sum of money that offers endless potential, so here are some ideas to get you started!

Vacation: Take a break and enjoy an exciting new destination with your family! Cruises start at less than $700/person, and a week in Florida typically runs $4000+ for a family of four.

New Vehicle: You can either purchase a used vehicle with the $5000 (or less), or you can use the $5000 to put a down payments on a more expensive vehicle you’ve had your eye on.

Down Payment on a Home: For first time home buyers using FHA loans, a down payment as little as 3.5% may be accepted. With lower closing costs, easier credit qualifications, and gifts allowed towards the home down payment, this $5000 potentially enables you to purchase a $140,000 home.

Wedding: A little creativity may be involved but the celebration can go on! With the largest event expenses being the venue, food, and photographer, finding inventive shortcuts can turn $5000 into the wedding of your dreams!