Tag Archives: personal finance

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!

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.

Why Checking Your Credit Score Matters

Financial Education

Across television ads, online banners, and even chit-chat among relatives, the phrase, “Check your credit score,” seems to be popping up everywhere. If something so important needs constant reminders, why does it have such a key importance in your personal finances? Well, the truth is that it doesn’t, your financial actions do.

A credit score is comprised of five different measures which indicate how you as an individual are perceived in terms of repayment and risk. Individuals who pay their bills on time, have been utilizing loans and credit cards, and don’t maintain too much debt, typically have a higher score. While the score itself is seen by potential lenders as a positive or a negative, the true meaning it portrays is to showcase whether you as an individual are a promising person to repay any funds you are lent. This score can be changed for the better or the worse depending on the actions you take.

This is why checking the report itself can be beneficial for your personal financial reputation. By reviewing your history on a recurring basis you can quickly identify any mistakes or missed payments that need correcting and do so in a timely manner.

For those who do not check their score scenarios like the following could occur:

Say you accept a job in another town, and after moving, you realize you still need to forward your mail. After a week or two in the new place, you go online and make the switch. However, unbeknownst to you, there was one last utility bill that was mailed to your prior address after you moved away. Weeks go by, even months, only now you’re connected with a new utility company, and you have new bills to pay. Behind the scenes, however, your credit score could be declining, because that one last bill has now been reported to collections. Your credit history will now note that a payment has been missed, and the longer it is missed the more it could damage your credit score.

Situations like this happen to many Americans, and while sometimes they can’t be prevented, the damage they cause can be minimized by checking your credit score on a monthly basis. Instead of allowing a payment like this to retain a balance for over 120 days, you can catch it in under 90 and minimize any potential negative effect on your score.

This is just one example in how checking your credit score can impact your financial health for the better. Other benefits include fraud prevention, better financial negotiation, and more accurate personal financial records.

If you’re ready to get started checking your credit score, we recommend Capital One’s FREE Credit Wise service, available for current and noncurrent Capital One customers. Our team at Heartland Bank would be happy to walk you through your credit report from and is always available to answer any questions you may have.

The Latte Factor 101

Savings

Making your way through the drive through every morning before 7:30 may give you a refreshing start to your day, but at what cost? The ideology that coffee shops and other retailers capitalize on is the notion that these small expenditures add a little excitement to your day without a hefty bill. However, when you enjoy perks like these on a daily basis, they add up, and quick!

Financial author, David Bach, is the mastermind behind the Latte Factor. This helpful calculator enables shoppers to see not only the cost of an individual purchase but the lost value it could cause for further investment as well.

For example:

If you purchase a $4.45 grande latte from Starbucks every weekday for the next thirty years, the total cost of your daily coffee is $34,786.29. However, if you had put that weekly $22.25 expenditure into an investment with an average earnings rate of eight percent or more, you could have made $109,225.02 in earned interest during that time. This showcases the true cost of a daily latte as the overall product expense ($34,786.29) + the lost interest ($109,225.02) = ($144,011.30)

While less than $5.00 a day may seem like chump change, compounding these expenses on a long-term level can showcase helpful savings opportunities to maximize your retirement savings efforts and limit unnecessary spending.

This equation doesn’t work just for coffee! If you find yourself splurging for a fast-food lunch break, buying extra sodas at work, or even paying for a magazine you hardly read, you’ll soon find that all of those little expenses can make a big impact.

To help break some common splurging habits Heartland Bank recommends the following:

Before making a purchase, ask yourself, “Should I spend these funds or should I invest them?”
Use free services like our Online Banking or Mint to visualize your spending and see areas where you can cut excess.
Remember the rule of 7. On average, invested funds will double every seven years, without any added contributions.
Utilize accounts like IRA, HSA, and 401(k) to maximize the dollars you invest and save.

If you have any questions on how to get started, or want to learn more about how to make your money work for you, our trusted personal lenders are here to help. Just stop by or drop us a line to set-up an appointment today.

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!

How to Save for Retirement at Every Age

Retirement

How much do you need to retire? Will you continue working after age 65? Do you want to travel during your retirement? These are just a handful of questions that are important for retirement preparation. Unlike saving for a home or new vehicle, saving for retirement requires long-term commitment and goal oriented benchmarks. At Heartland Bank we want to help you succeed as you save, and offer these milestone marks:

Age 18-25: During this point in your life, you are discovering what you want to do, and how to get there. Focus on creating a solid foundation through a monthly budget, and designated emergency fund. If your employer offers a 401(k) option we highly recommend utilizing its potential by contributing the maximum amount your budget will allow. Always be sure to take advantage of a company matching policy if available.

Age 25-35: In addition to your 401(k), we also suggest opening an IRA. This enables you to continue to save without having your funds tied to an employer. Now is a great time to take advantage of other tax beneficial accounts, such as an H.S.A., 529, or Coverdell account. Both the 529 and Coverdell accounts aide you in saving for your child’s education without the burden taxes.

Age 35-45: One of the key aspects of retirement is making sure your money is where you need it when you need it. An experienced financial adviser can help you invest in appropriate stocks, bonds, and other financial strategies. Together you can construct a plan to ensure your risk decreases as you age, and be certain the funds you need are available upon retirement.

Age 45-55: Now is the time to examine your current career path, and determine the year at which you would like to retire. Although the average age of retirement is 66, this may not hold true for you. Whether you decide to retire later at 72, or earlier at 57, you’ll need to have this number available to help continue the development of your savings. To easily calculate your current savings projection, this tool can provide the most accurate information to help you make the most informed decision for your specific goal.

Age 55-66: During this time you may begin to qualify for distributions from your 401(k) and IRA. By postponing these distributions, you can continue to save, and work to build your retirement nest egg before you need it. Additionally, look into various employment options upon retirement. If you decide to work part-time for enjoyment, it could mean added savings to help you afford extra splurges in the future.

Age 66 and up: Once you have officially retired, you will begin to take distributions from your 401(k) and IRA. While both a 401(k) and Traditional IRA require you to accept funds after age 70 ½, a Roth IRA can remain untouched until you decide to use the money. For this reason, we recommend using a Roth IRA when your income levels allow.

We look forward to joining you on your journey to retirement. Whether it’s in 10 years or 50, it’s never too early to start saving!

6 Steps to Scoring Your Savings Goal

Savings Goals

Do your savings goals make you feel frozen? Get back on the ice this season, and let Heartland Bank help you win your personal financial game. We’ll show you how to keep pushing forward with these strategic hockey tactics:

Always look for the shot.

One of the first and most important ways to save is to keep your eyes open! Whether it’s taking advantage of grocery store specials, buying household items in bulk, or cutting spending from your monthly budget, the biggest opportunity you have while saving money is continually searching for new ways to save.

Complete the hat-trick.

Before you start saving for the short-term items, be sure you have the long-term set in place. Just as in hockey, there are three things you need, to make the best play of the game. Start by setting up an emergency savings account, to help guard your savings. Follow up by opening a personal retirement account such as IRA, to continually grow your savings. For the last trick of the play, we suggest creating a 529 or Coverdell account to help save for your child’s future education. These three accounts will help not only you score your savings goals but will assist you in winning your entire financial game as well.

Put your debt against the boards.

Show your debt whose boss, and push them against the glass. By aggressively paying off your outstanding debt, you make additional funds available to further your monthly savings. We recommend paying the minimum payment on each debt, and then using any surplus funds to add extra payments to help pay it off sooner. Once you have paid off a debt, use the funds from that allocation to help erase the next obstacle, one payment at a time.

Place your spending in the penalty box.

While working on your savings goals, look into your monthly spending to see where you can cut costs. Consider reducing your funds for eating out and entertainment. The extra money can go towards your debt, or once paid off, can help you achieve your savings goal sooner!

To help, there are some innovative apps available that can you visualize your various expenses.

Beat the buzzer.

Saving for retirement is a marathon, not a sprint. Like hockey, if you don’t play until the end, you may lose the game in the last five minutes. To help prevent this, we recommend working with a personal financial adviser, ensuring your funds are in the right place at the right time. If you make a pass and transfer them to stocks too late, you could lose money and valuable time. We suggest creating a strategic and well-coordinated retirement plan to make certain all your savings get time on the ice, and your key players continue to stay in the game.

Drop your gloves for additional fees.

Whether it’s big banks searching for unnecessary add-ons, or potential financial advisers looking for a percentage of earnings, don’t be afraid to negotiate fees you deem excessive. The business is certain to have referees to let you know if you’re asking too much. However, it never hurts to ask!

With our affordable deposit accounts and expert financial coaching, we look forward to helping you sink your upcoming goal in the back of the net! Stop by and meet our dedicated team today!

5 Financially Savvy Ways to Use Your Tax Refund

Taxes

Getting your taxes done early not only takes one more thing off your to-do list but further allows you to start planning for the future. Working with your tax professional, determine how much your family may receive this year from a tax refund. No matter the amount, we recommend putting it towards your financial goals for the year. Here are some great strategies we’ve tried to get the best bang for our buck:

Max out your 401(k) or Traditional IRA contributions. If you aren’t taking advantage of one of these two accounts, we highly suggest opening one soon! These tax-beneficial accounts help holders accumulate and grow their funds without the burden of tax at the time of deposit. Each account, however, is limited by how much you can contribute. By allocating funds into these account types it may not only help you save for retirement but also allow your money mature throughout the years, with no additional effort.
Make an extra payment on your mortgage or student loan. Paying down your loan is always a great option when selecting financial goals. In the case of a mortgage, you earn more equity as you pay, while with student loans, you gain more momentum towards financial freedom. Instead of adding money to each monthly installment, we recommend creating one lump payment. By doing this you can you create a single but large decrease in your principal amount owed, drastically reducing your associated interest as well.
Save for the 2017 holiday season. While holiday events, family gatherings, and memories are held dear, the burden of the season can pose potential problems for your personal finances. If you struggled saving last year, now is the perfect time to set aside funds for the holidays. Determine how much you need to pay for each aspect of your seasonal activities, and save as much as possible in a separate account for your tax refund. If additional funds are needed, automate your savings to transfer a specific dollar amount to this account each month.
Pay off outstanding credit card debt. With one of the highest interest rates, credit cards are notorious for taking years to pay off. If you want to make a dent in your debt, we recommend tackling one card at a time. Using your tax refund, see if you can eliminate smaller debts first. Then with the remaining funds, begin paying down each additional credit card. By paying off the card with the least amount of debt first, you can begin to snowball your way to financial freedom!
Start saving for a vacation. Whether it’s a spring break, a summer adventure, or a fall festival, it’s never too early to start saving. Once you have determined a destination, then create a rough budget of the expected expense. Depending on your refund you may be able to pay for the whole trip outright, or you may need to couple the funds with some additional monthly savings. No matter how you choose to save, we recommend keeping your vacation funds in a separate deposit account so you’re not tempted to use them throughout the year.

If you still have questions on how to best use your tax refund, our personal bankers would love to help. At Heartland Bank, we can assist you in using all your savings options to help make the most of your money. Stop in and see us today!