Tag Archives: money management

Red Flags to Look for on Your Credit Score

Credit Score

Everyone and their brother seems to be sharing the importance of checking your credit score, but once you have the information, how do you actually know what it means? At Heartland Bank, we want you to not only have the information about your personal finances but be able to understand and act upon it as well. If you see any of the following red flags while viewing your report, you may want to look into the appropriate remedies as quickly as possible.

Missed or Late Payments

Your credit report should accurately showcase your current repayment history, which accounts for approximately 35 percent of your credit score. This area of the report should indicate if any payments have been missed and have been reported to the bureau as late. If you see a payment that you were unaware of, be sure to reach out to the company listed and contact them to pay off the bill in question.

Fraudulent Activity

It is possible to view your credit report and find bills or inquiries that you did not initiate. In this instance, it is important to take the appropriate steps to report identity theft and begin recovering your financial reputation. The sooner you alert the authorities and lending organizations to this unfortunate dilemma, the less likely you are to suffer any long-term side effects.

Excessive New Accounts

While having more than one account open can positively affect your credit score, attempting to open too many in a short time period can cause a negative reaction. If you see more than two accounts opened in the last three months, you may want to wait before attempting to apply for a credit card or other lending option.

Active Collections Accounts

If you haven’t checked your credit score in a few years, any potential missed or late payments may now have spiraled into active collection attempts. In this instance, the best practice is to contact the companies listed and discuss repayment options. Many times if you are actively working to pay down an account receivable, the company will work with you to structure monthly installments that fit within your personal budget.

At Heartland Bank, we recommend checking your credit score each month. Tools such as Capital One’s CreditWise make it affordable to see your score without having to pay any associated fees. If you’d like more information on how to increase your credit score, stop in today. One of our trusted personal bankers would be happy to answer any questions or curiosities that you have.

Fix-Up Your Budget

Budgeting

HGTV’s latest hit show, Fixer Upper, has fans and home buyers looking for new ways to save and restore old homes. While Chip and Joanna have become experts in home renovation, they’re not too shabby when it comes to finances either. Using their home building skills and our banking knowledge we offer these top tips to help fix up your budget in 2017:

Build a Strong Foundation

Just as a home cannot stand without a solid base, neither can your personal finances. To begin building the foundation to your finances, it is imperative to start a monthly budget. This system can help you organize how much money is coming in and out each and every month, allowing you to allocate funds for both spending and saving.

Make the Most of the Unexpected

Shiplap has become a household world thanks to Joanna’s love of this Texas home material. Often covered up by sheet rock, it is always a great find to add something special to the house. Similarly, should you uncover any income that you weren’t expecting, we suggest making the most of it by contributing to your IRA or other savings fund.

Take Advantage of Open Space

It seems every time Joanna finds a wall in a home project, you hear the words, “Open space.” By constructing areas that are connected instead of separated, she’s uncovered a way to not only make a home more welcoming but your spending too. Add this concept into your budget, and enjoy the feeling of flexibility in your monthly allocations. If your household remains stocked from bulk ordering, or your entertainment is your kiddos for a month, embrace those savings and shift your spending to another room of the house.

Always Take Free Advice

Chip and Joanna offer endless tips and tricks to their home flipping business. Always full of great ideas, and sage advice, these two make a consistent effort to give their viewers a leg up on their next home project. Similarly, our team at Heartland Bank wants to help you work to achieve your next financial goal! Whether it’s saving for your first home, purchasing a new vehicle, or setting a plan for your retirement, we’d love to offer our experience to help make your financial dream a reality.

Whether you watch Fixer Upper every week or are just starting this addicting series, we hope you keep your eyes peeled for other great financial tips. You may find more money management advice than you’d think!

Student Loan PSA: What Student Debt Really Looks Like

Student Debt

Obtaining your secondary education can be a landmark goal on your journey to success. By opening up opportunities, and enhancing your capabilities, the study of discipline gives you the skills you need to conquer your future ambitions. More often than not, student loans offer a helpful supplement when financing this experience. However, many students are able to obtain these financial aids without having to budget or offer a credit history, causing a higher likelihood of default among student borrowers. To help avoid this, Heartland Bank suggests answering the following questions before choosing how to pay for your collegiate participation:

What are you starting with?

The first question you should ask yourself is, ‘What money do I have to begin my education?’ If you have applied for and received scholarships, those should first count towards tuition and books. Additionally, if you have any financial support from relatives, these funds may be allocated best at the base of your budget during your college planning. By totaling the sum of these two amounts, you can determine the support outside your own savings that will be contributed towards your future learning efforts. Knowing whether or not this amount will be offered on a recurring basis can help you then decide what financial steps you need to take in order to save, earn, and/or borrow the remaining funds necessary.

How much and how often can you contribute?

After learning your total amount of support, it is now possible to create a plan of action to facilitate the rest. Depending on your length and type of education, your costs may vary drastically. When selecting both a field and institution of study, the factor of price is an important one to consider. By thinking of your education as an investment, you can ensure that you choose both a rewarding and promising career path to help you repay any debt you do incur during this time. To help decrease overall expenditures, many students take on a part-time job to supplement the costs of their education, along with the associated room and board. Utilizing this choice can decrease the overall amount of your anticipated loan, and help you avoid the additional expense of interest. Should the cost your education still be more than you can currently cover, the option of a student loan may be a viable solution.

What is student debt?

While obtaining an education has potential and opportunities, the accompanying debt can often be overbearing. In order to minimize this, we recommend borrowing only the minimum amount needed. By opting for a lesser sum, you are able to save your future-self hundreds or thousands of dollars on interest alone. For example, the average debt for a student is approximately $37,172. With borrowers averaging ten years for repayment, the potential cost of interest alone can add up to over $9,000.

Choosing the best option to finance your education can affect your life well past college. To help you make the most informed decisions, our team at Heartland Bank offers sound financial advice and information. To learn more, stop by one of our locations, we’d love to get to know you and your education aspirations.

Save $3,500 this Year by Removing These 6 Things

Savings

Saving money is no easy task! Only after dedication and determination, can you look successfully into your account to see the difference saving can make. At Heartland Bank, we’re excited to help you achieve your financial goals, and we can’t wait to get started! If you’re looking to tuck some funds away for an emergency savings, or vacation fund, these six tips can help you accumulate $3,500 in savings over the course of the next year.

$720: Cut the cable – at $60+ each month this common expense eat up your budget in a hurry!
$1400: Brew your own java – instead of grabbing a latte on your way to work make your own cup of joe and save that extra $4/day.
$600: Plan Your Meals – instead of playing by ear each night for dinner, make a dedicated meal plan each week and stick to it. This will help cut costs on eating out and unused groceries. Remove one dining out meal each month and see the difference this can make!
$468: Workout at home – the average gym membership runs $39/month which over the course of the year can add up quick. Try online workout videos and create a routine which uses various household items.
$312: Pack your lunch – With most quick lunches running about $10/each, sneaking away for lunch could be costing you! Try packing a lunch from home to avoid these expensive dining options. Changing just three lunches each month could save you more than three-hundred dollars!

Learn how to open up your ideal savings account at Heartland Bank to get started on your savings dreams today!

What Your Birth Order Says About Your Money Management

Personal Finances

Every family knows there’s a difference between the various siblings, but why is that? Many psychologists agree, birth order plays a large role! Each member of your family is generally rooted in one of four personality types which help define their core behaviors and beliefs. Discover how these traits can translate to your money management style at Heartland Bank.

First Born: Typically the leader of the family, first borns are strong minded and organized with a heavy protective tendency. Many of those born first err on the side of caution, creating savings accounts for emergencies and unexpected situations. This sibling tends to enjoy being in charge and knowing all the variables. Any expenses, debts, or other monthly bills will be allocated and prepared accordingly. First borns tend to work towards their dreams, and may have the downfall of taking a financial risk to do so.

Middle Child: Always the people pleaser, middle children are most known for helping others. If you need an extra buck or two for lunch, this sibling will the the first to lend a hand. Often on the rebellious side, the middle child may be more apt to invest in some riskier stocks, but depending if they pan out, it could make financial sense in the long run. Typically talkative and social, many middle children challenge the norm and create new versions of savings schemes. This sibling will be the first to try the next and best retirement plan before storing away long term savings.

Last Born: Optimism, attention, and organization generally drive the youngest of the siblings. After learning from the mistakes of the older members of the family, this child typically has most financial questions answered before ever needing to ask. This sibling will be the guru of rewards points, always finding the best perks and benefits for various programs. Always looking on the bright side, the last born is compelled to live the best of their life now, assured the future will work itself out later.

Only Child: Frequently told they’re mature for their age, the only child is known for their leadership, sophistication, and drive towards perfection. The typical only child will have a detailed account record with meticulous payment upkeep. These individuals strive to be the best, and are determined to achieve their goals. Expect them to have a strategic savings plan, retirement investing, and a well-rounded home improvement fund. Always up for a challenge, only children can often be great investors seeking out the best stock options for their needs.

No matter your place within the family tree, you’ll always have a financial partner with Heartland Bank. Whichever goal you’re aiming to tackle next, we’ll help you achieve it!

How-To Give Your Children a Financial Education with Their Allowance

Financial Literacy

An allowance, when treated as an educational opportunity, gives your child hands-on experience in budgeting, saving, spending, investing, earning, negotiating, and tracking their money. With these tactics, you and your child can make the most of their allowance while growing their financial literacy.

Shy away from weekly allowance. A bi-weekly or monthly allowance better reflects a real-world payment schedule than a weekly handout. Additionally, staggered money instead of a steady cash flow opens opportunities to practice budgeting for both spending and savings goals.
Pay financial, not household, chores. Paying your children for completing basic household duties can shift their helpfulness from intrinsic to monetary. Instead, link their allowance to financial chores, or spending responsibilities that they take off your hands. While you cover school lunch and back-to-school clothes, vacation souvenirs or sporting event concessions are up to their discretion, allowing them to make financial decisions from a young age.
Open a savings account. It’s never too early to start saving. Open a saving’s account with your child and explain the power of compound interest. Establish that they pull 10% of their total monthly allowance to funnel into savings, enabling them to budget the remaining 90% while teaching the discipline and value of saving.
Show them the options for their funds. Teach your children the potential their money has by creating four labeled jars for spending, saving, giving, investing. Each time your kids are given money via chores or other revenue sources, have them choose which jar to put the funds in. The spending jar can be used on small purchases like candy bars or little toys, and the saving jar can be put towards larger items that take more time to save.

With each dollar your children learn to save, they will continue to propel their education forward. If you’d like to get your little one’s financial education off to the right start stop by Heartland Bank today and enroll them in their very own checking or savings account.

Grow your financial education this month during Money Smart week at Heartland Bank April 23^rd-30^th! We’ll share exciting tips and tricks throughout the week to help you learn all about money management.