Category: Budgeting

Summer Vacation Savings

How to Save When Booking Summer Vacation

Summer may be a few months away but planning to save now will ensure an awesome and affordable experience. The best tip for booking a vacation is to plan well in advance – start your planning process here by reading up on a few suggestions to make your summer vacation seamless and inexpensive! 

Book Flight Tickets in Advance

Planning in advance is the most important tip for a successful and budgeted vacation. Nail down where you are going and when. Purchasing airline tickets for travel well in advance can get you a better discount and a more desirable flight. Check flights regularly – specifically midweek throughout the day to catch a deal on airfare costs. Consider being flexible with departure and return dates, potentially even a connecting or redeye flight. 

Set a Budget and Detailed Itinerary

A big tip to saving on booking vacation relates back to the budget and itinerary you set for yourself. It is easy to spend extra here and there when you leave your days open to whatever they may bring. Once you’ve nailed down where you are vacationing to, start playing around with options to see what best will fill up your day and not your budget! Saving money when booking excursions or attractions will allow for extra spending money when you do schedule some downtime. It is also very important to know where you are staying and options for meals that may or may not be included. Schedule out your plans for mealtimes and consider buying some groceries once you get there to reduce eating out for every meal. Food is most definitely a huge part of the vacation experience, so be sure to give yourself some wiggle room to fully indulge at times. 

Road Trip to Savings

1. Take the Scenic Route

If flying is not the best option for you, consider taking the scenic route. Turn your sprint into a jog with a planned-out road trip. Road trips can save you a lot if you have a detailed travel plan to get to your destination. The best part about road trips is that you can enjoy your vacation sooner amongst the hidden gems along the way. Road trips have been said to allow you to live in the moment and be open to opportunities. You could very well plan out your stops in advance or pursue unique options as you go. 

2. Map Out a Plan 

When mapping out your travel route, factor in the number of miles, number of stops and duration of stops. Doing this can give you an approximate time frame, as well as the cost of meals and potentially hotels/Airbnb’s along the way. 

Ideas to Consider: 

  • Consider utilizing a camper or RV to additionally cut back on sleeping costs.
  • If you plan to make multiple stops, factor in the cost for the unforeseen attractions or extra meals you may indulge in. 
  • Driving yourself allows you the option to pack your own snacks for travel in comparison to utilizing an airline with the option of overpriced airport food. 

With many factors to consider when making your vacation a road trip, utilize this online calculator to play around with options to either fly or drive: https://www.befrugal.com/tools/fly-or-drive-calculator/

Summer Vacation to Staycation 

As nice as it is to travel quickly by plane, or enjoy the long drive on a road trip, sometimes you can have the most fun close to home. If your primary reasoning for a vacation is to get some well-deserved rest and relaxation, consider lessening your anxiety and rejuvenating at home. Minimize the pressure for preparation and say hello to peace and quiet! Consider the stresses a true vacation may bring to see if maybe it’s best to skip the trip this time. 

Here are some staycation day and night options to consider booking:

  • Spa – facial, massage, manicure, pedicure options
  • Farmers Market 
  • Museum 
  • Local Resort 
  • Winery or Brewery
  • Golfing
  • Movie Theatre 
  • Try a new restaurant 
  • Comedy Club
  • Concert
  • Sports and Games Club 

Save the money and the stress this year with these helpful tips for your next vacation. Ultimately deciding the details and what is worth the cost well in advance will ensure happiness for you emotionally and financially this season!

Savings Goal

Tips To Reach Your Savings Goal  

Do you have a savings goal you’ve been itching to reach? Here are some savings tips to speed up your process.   

1. Save Don’t Spend   

  • Spending Freeze  

Though it may sound easy to save and not spend, push yourself a little harder and try out a spending freeze. During a spending freeze, you set the duration of time where you do not spend on any outside purchases unless an emergency comes up. Make plans to stay in, cook at home and use what you have. It can be a hard thing to do, especially as things come up. Limiting spending for a couple of days or weeks can result in a good chunk of cash to add to your savings.  

  • Envelope Method  

The envelope method is a way to truly see what you are spending. The envelope method requires you to set aside money-filled envelopes for each category and use solely the cash to pay. When you take money out, you can see how much you have left to spend and when you are out. This trains you to see how much you are reaching for your money envelopes.   

2. Spring Clean Your Home   

  • Sell Some Belongings  

Sometimes selling a few things you are no longer using can add that extra amount you need to boost your savings. Maybe it’s time to sell some clothes, shoes, décor, appliances, electronics, etc. You can make it easy and post online or sell to your circle.   

  • Save On Utilities and Rent   

A roof over our heads can be a huge chunk of our spending. Consider living with a roommate if that works for you at the stage of life you are at. Cut your rent in half and bring in a roommate. If a roommate isn’t the best option for you, consider reducing your utility bill by using less energy.   

Some ideas to use less energy:  

  • Turn off fans when not in the room  
  • Run less laundry and dish loads  
  • Use less water – try out a dry shampoo instead of showering each day   
  • Schedule your thermostat to not run all the time  
  • Use natural lighting during the day  
  • Unplug items from outlets when you’re through using  

3. Do It Yourself Projects   

DIY projects are very budget friendly. To add some extra cash to your savings, consider doing DIY projects rather than buying things new. You also could find a DIY project you are good at and sell it for additional cash.   

4. Incorporate A Side Hustle   

Like the DIY projects to sell, that leads to incorporating a side hustle. A side hustle could be as much or as little as you make it. Here are some short-term side hustle ideas:  

  • Sell DIY projects  
  • Garden help  
  • Babysit  
  • Housesit   
  • Lawn maintenance  
  • Monetize your Amazon storefront  
  • Monetize your socials (ex. LIKETOKNOWIT)  
  • Promote products you love  
  • Edit for a freelancer   
  • Dog sit   
  • Bartend   
  • School pick up  
  • Farmhand   
  • Monetize a YouTube Channel, Instagram, Tik-Tok or Podcast   

5. Adjust Your Budget   

Finally, consider adjusting or reworking your budget and assess your finances. Do your research for ideas of how much you should be spending and how much you truly should be saving. Make sure that you have a deadline in place, so you know how frequently you need to cut spending here and there to meet goals.   

Do you have a savings goal you need to meet? The best answer is to make a change to your spending and start now. Contact First Security State Bank to open a savings account today!  

retirement strategies

Retirement Strategies for Your 20s  

It may seem like a lifetime away, but retirement has a way of sneaking up on all of us. Something to remember when it comes to retirement is that the earlier you start saving, the better. Plus, you’re never too young to invest in your future. If you’re in your 20s, here are some helpful strategies you can implement to set yourself up for a successful retirement.  

1. Rid Yourself of Debt  

The first step in creating a retirement fund is to look at what you’re dealing with in terms of debt. If you can realistically pay off your student loan debt in less than 10 years, financial advisors often recommend that you focus on that before worrying as much about saving.  

2. 401(k) Plans  

Investing money into an account specifically for retirement allows you to store up without paying taxes on gains until you reach retirement. If your employer offers a 401(k) plan, that’s a great place to start.  

3. Open an IRA  

On the same note, an IRA is a retirement account that has lower contribution limits than a 401(k). This doesn’t have to go through your employer, either, so the amount you invest is more in your hands. If your company doesn’t provide a 401(k) match, the smartest route would be to max out on your IRA then put the remaining money into your 401(k).  

4. Create an Emergency Fund  

You may have a good amount of money stored in your savings account, but how much of that can be used in cases of emergency? Keep your life savings and your emergency fund accounts separate so you have a cushion if things go wrong. This will prevent you from needing to withdrawal from your retirement account or main savings account. Try to save three-six months’ worth of living expenses to be safe.  

5. Automate Your Savings  

If you have a hard time staying disciplined and remembering to contribute to your savings account each month, there’s a way to help with that. By making your savings automatic, you won’t even have to think about it since it will transfer for you. Set a savings goal for the year, figure out how much you’d need to save each month in order to make that happen and go from there!  

6. Keep an Eye on Your Account  

If you’re making saving for retirement a priority in your 20s, you’re in a good place already. Check back on your account frequently to see your savings grow and that will continue to motivate you throughout your 30s, 40s and beyond.   

Questions about retirement or unsure where to start? Our team is here to help! Contact First Security State Bank with any questions. 

reading and wine activity

Date Night on a Budget  

It’s easy to skip out on date nights as life gets busier, and especially when money becomes tight. Making intentional time to spend with your partner each week or month is so important, and date night doesn’t always have to be extravagant. There are lots of sweet date ideas that cost little to nothing, so try some of these ideas on your next free night!  

Cheap Babysitting  

If you have kids and don’t want to spend money on a babysitter, there are some ways to get around that cost. Having family members or close friends nearby who are willing to watch your little ones for free is always nice, but that’s not an option for everyone. Think of another couple with children who you could ask to do a “babysitter swap” with each month. They watch your kids for an evening and you watch their kids another time, that way both couples get to go on a date without worrying about the childcare cost.  

Explore Nature  

One of the best parts about nature is that exploring it is usually free! If it’s nice out, you could go for a hike or find a pretty trail in your area to check out.   

Coffee Date  

Some coffee shops are a bit pricey, but it’s not bad if you stick with something simple like black coffee. Whether you want to try a coffee shop you’ve never been to or have a favorite, go-to spot, this is always a great idea for any time of the year.   

Picnic  

When the weather warms up a bit, you can’t go wrong with a romantic picnic. Pack a simple lunch or dinner with the food you have at home and find a nice picnic spot in your area. If you have some money to spare, you could mix it up by ordering a pizza or picking up a sub sandwich.  

Just Dessert  

Going out to dinner is usually what makes date night expensive, so what if you made the main course at home and went out for just dessert instead? This can be as simple as a drive-through ice cream cone or as fancy as cheesecake from a nice restaurant.   

Go On a Long Drive  

There’s nothing quite as peaceful as playing good music and going on a long drive. To add to the experience, visit Zillow.com to find some expensive houses in your area to check out just for fun.  

Games and Movie Night  

It’s time to dig out those old board games like Uno or Monopoly and have a fun game night. End the cozy night at home with a movie and some popcorn.  

We hope these ideas have sparked your interest and will help you stick to your budget. Now’s the time to go mark your calendar for a date night so you can spend time with the person you love!  

goals-notes

New Year, New Financial Goals

There’s no better time than the beginning of a new year to re-evaluate your financial habits and make changes. It may be challenging to know where to start, which is where we come in. Here are six different financial goals you can incorporate into the year to come. 

1. Work on improving your credit score. 

Take a look at your credit score and figure out how you can improve it – Are you making your payments on time and using a good amount of your available credit each month? There are various things that go into what your credit score is, so make adjustments now to improve it over time. Having a good credit score is crucial! 

2. Consider contributing to an IRA. 

It’s never too early to start contributing to an Individual Retirement Account (IRA). Whether you’re in your 20s and have lots of time or have been putting it off for a while, now’s a good time to start. An IRA is easy to set up and contribute to, it’s just a matter of opening the account. 

3. Make a new budget (and continue adjusting it). 

If you don’t already have a monthly budget, now’s the time to create one. If you do, it’s important that you revisit your budget and make adjustments as your financial needs change over time. Maybe you got a pay raise or decrease, had a baby, got a dog or moved to a new place. All these changes greatly affect your monthly budget and should be accounted for.  

4. Pay down some of your debt. 

Financial advisors recommend that you make paying off debt a main priority, so 2022 is a good year to focus on that. Know how much debt you’re in then figure out how much you’d have to pay each month to get rid of it in a year or two, making that a priority over adding to your savings account. 

5. Analyze your spending habits. 

Check out your banking history and find out exactly what you spend your money on. Once you add up the cost, you may be surprised how much you’ve spent on clothes, coffee, restaurant food and other unnecessary purchases. Once you get a better idea of your spending habits, make positive changes to avoid overspending and impulse purchases. 

6. Contribute to an emergency fund. 

An emergency fund is different than your normal savings account – this is strictly for situations where you must make an unexpected payment. For example, if you get laid off and need cushion money while you find a new job, you end up in the hospital and have bills to pay or you have an issue with your mode of transportation. This year, make it a goal to contribute to this fund and save anywhere from three-six months of normal expenses. 

Are you ready for 2022 to be your best financial year yet? If so, try making one or more of these goals a priority in your financial life and you’ll be taking steps in the right direction. Contact First Security State Bank if you need assistance! 

older-people

Common Retirement Mistakes to Avoid

Whether you’ve barely thought about retirement or are nearing the typical retirement age and want to know how to go through the transition properly, learning about the process is always a good idea. Learn from the mistakes of others and avoid these common mistakes: 

Putting Off Retirement Savings 

Don’t keep putting it off – the time to start saving for retirement is now. The earlier you start, the less stressed the retirement process will be. 

Not Having a Plan 

There are so many things that factor into how much money you’ll need to save, including when and where you’re retiring. Plan these things out in advance, coming up with an amount you’ll need to retire comfortably, then take action steps towards saving that much. 

Not Taking Advantage of Your Company’s 401(k) Employer Match 

If your employer offers a 401(k), make sure you maximize the amount you contribute and utilize the employer match if that’s an option. This is extremely important and the money matched can really add up. 

Waiting to Pay Off Debt 

Don’t wait until the last minute to pay off your debt – get rid of that as soon as you can so you don’t have to save for retirement at the same time as you’re paying off your student loans. Experts often say you should focus on paying off debt before you worry about saving for anything, including a new vehicle, a house and even retirement. 

Looking Past Potential Health Costs 

You never know what the future holds, and you may end up in a situation where you must pay for unexpected medical bills. While we hope this isn’t the case, it’s always better to be safe than sorry when planning for retirement. 

Changing Jobs Frequently 

There are benefits to sticking around at a certain company for an extended period. For some companies, when you’re there for a set period (usually five years), you become fully vested which means ownership of the funds or stock that your employer “matches.” Consider this as you navigate the job world and consider hopping around from one to another. 

While this is just the tip of the retirement iceberg, these are all common mistakes that can be easily avoided. Make sure you are planning for retirement ahead of time so you can save yourself the trouble that comes with going into the process blind! 

papers

The Dos and Don’ts of Budgeting

When it comes to budgeting, you might not even know where to start. The truth is, there are a million ways to budget and it’s not a one-size-fits-all process. You should try some different methods to decide what works best for your specific situation. Here are some general rules of thumb when it comes to knowing how to properly budget:  

DON’T stress yourself out about debt. DO take the first step in creating a budget. 

One of the biggest mistakes people make is over-stressing about the idea of a budget which prevents them from budgeting at all. Instead of stressing yourself out over creating the “perfect” budget, just start small. Over time you’ll learn what works and what doesn’t work for you individually. 

DON’T set an unrealistic budget. DO create a sustainable and effective budget. 

If you’re super motivated to save lots of money this year, you may get in over your head about how strict your budget should be. While budgeting should involve discipline, there are ways to create one that’s sustainable in the long run and that still allows you to enjoy life. It’s all about balance, so find a good mix between a budget that challenges you but is realistic. 

DON’T spend impulsively and carelessly. DO align your budget with your priorities. 

What are your main priorities in life? If you enjoy cooking extravagant meals, keeping your car in tip-top shape, going to classes at your gym every week other passions of yours, make room in your budget for that. On the other hand, the money you do have to spare should be used wisely, so always factor hobby spending into your budget so you don’t end up spending impulsively. 

DON’T give up after a few difficult weeks. DO follow through and trust the process. 

Just like most good things in life, saving money and budgeting properly takes time. You might become discouraged when you realize you can’t always go buy your morning coffee or you must limit the number of times you go out to eat. It’s not always an easy change but stay motivated. Over time you’ll look back and be thankful for the financial sacrifices you made. 

DON’T try to manage your finances by yourself. DO talk to a financial advisor or have an accountability partner. 

If you have a trusted friend or family member who is also wise with money, you can confide in them for advice as well as accountability. Having someone to keep you in check will be another source of motivation for you. You can also rely on a financial advisor for assistance if that sounds like the right step for you. 

Now that you know how to and how not to budget, you can feel confident going into the process. Take the first step and create a simple budget – we believe in you! Then place that savings in an account with us.

New Years Resolutions

New Year’s Resolutions: Money Edition

2022 is quickly approaching which means it’s time to pick a resolution. You may be surprised just how much financial progress you can make in the span of a year, so if you’re looking for a resolution, you’re in the right place. We are sure that these goals will not only be beneficial throughout the year but well into the future.

It’s Time to Make a Budget (And Stick to It)

One of the most common New Year’s resolutions is to finally create a budget, but most of us last until the end of January then forget about it. This year, make it a goal to stick to your budget which means you’ll have to make sacrifices to do so. Set goals for the end of each month and reward yourself when you meet them so you can stay motivated.

Eliminate Expensive Habits

This resolution is tricky to stick to unless you actually write your goals down. Whether your expensive habit is the morning Starbucks run, skipping the meal you prepped and going out to eat instead, impulse shopping or something else, a habit is difficult to break without an accountability partner. Ask someone you see a lot, like your spouse, roommate or sibling to hold you accountable for your purchases.

Build Good Credit

The best ways to improve your credit score are to pay your bills on time and to pay off your credit card in full each month. If you already have a good credit score, make it your goal to keep it high. If your score could use some work, 2022 is a great year to improve it.

Create an Emergency Fund

You may think you’re good to go if you have some money in your savings account, but financial advisors recommend that you open a separate savings account strictly for your emergency fund. This money is here to help when you face those unexpected purchases, like car problems, medical expenses, urgent home repairs and job loss.

Make Saving for Retirement a Priority

It’s never too early to start saving for retirement. If you haven’t started saving, an IRA is a great option and something to consider. Setting up automated savings is a good way to make sure you’re putting enough money away each month.

Start Paying Off Your Debt

Before you can achieve your other financial goals, it’s important to start with paying off your debt. Pick a method that works for you, such as the snowball or avalanche method. The snowball method involves paying off the smallest debts first before moving onto the bigger ones, while the avalanche method includes paying off as much as you can towards your highest-interest debt while making the minimum payments on the rest of your debt.

Looking to open a savings account, build your credit score with a credit card or open an IRA? We offer the resources you need to have a successful financial year. Contact us to learn more!

college books

Savings 101: College Edition

If it’s your first semester of college and you’re realizing that managing money is harder than expected, you’re not alone. It’s never too late to make changes to your financial habits. Here are some helpful money-saving tips for college students: 

1. Use Your Meal Plan 

If you have a meal plan, make it worth your money! Many college students still go out to eat often, even with a meal plan which ends up costing you way more than necessary. If you get sick of the dining center you always go to, mix it up by going to a different dining center on campus if your college has multiple. 

2. Walk If Possible 

The great part about living on or near campus, especially if you go to a smaller school, is that you can walk almost everywhere you need to go. Sometimes parking passes are necessary, but many times you can carpool with friends or walk where you need to go. Plus, you’re getting a little more exercise in. 

3. Rent Textbooks or Buy Them Used 

One of the biggest mistakes new college students make is buying their books new and at full price. There are countless websites that sell used textbooks for much cheaper or you could buy the online version instead of the hardcover book. Consider joining a student Facebook group at your university since many students sell their old books on Facebook or elsewhere. 

4. Utilize College Checking/Savings Accounts 

Many banks offer checking and savings accounts designed for the unique needs of college students. Not only is there usually no minimum balance required, but they have lower fees. 

5. Bring Your Student ID 

Student discounts are common, especially in college towns, so make sure you bring your student ID with you to stores and restaurants.   

6. Start Investing in Your Future 

It’s never too early to save for the future. Whether that means saving to pay off your student loans or opening an IRA, now’s a good time to start thinking long-term. 

7. Use the University Amenities  

Avoid paying for a gym membership or fitness classes if your university already provides them for students at no cost. You’re only a student for a few years, so take advantage of these amenities while you can. 

We wish you the best of luck with the rest of your school year! If you’re looking to open a checking or savings account, feel free to contact us and we’ll guide you through the process. 

christmas

Wallet-Friendly Christmas Gift Ideas

You want to give your friends and family something special for the holidays, but you don’t have hundreds of dollars to spend. Don’t worry because there are still lots of thoughtful gifts that won’t hurt your wallet. Plus, these are all practical gifts that your loved ones will get lots of use out of! 

  1. Self-care products: Throw a cute stocking together including holiday-themed facemasks, lotion, lip balm, a candle and whatever else you think they may like.  
  1. Jewelry: A necklace or a cute pair of earrings doesn’t have to be expensive. Look in places like Target to find affordable yet stylish jewelry. 
  1. Board games: This is a great gift for any age since there are games made for both kids and adults. If you’re participating in a white elephant gift exchange, consider buying a fun game that everyone in the group can play together. 
  1. Grooming kit: If the man you are gift-hunting for has a beard, a grooming kit is a great option so they can stay fresh and maintain their look. 
  1. Coffee essentials: This one is for all your coffee-loving friends out there. Get a cute coffee mug along with their favorite coffee grounds, creamer or syrup, or throw in a gift card to their favorite coffee shop. 
  1. A book involving something they’re passionate about: There’s a book out there for just about anyone, so find something you think they’d enjoy reading. 
  1. Subscription: Spread out the spending by paying for a monthly subscription to a streaming service they’re interested in. You can limit this as much as you’d like, too. For example, tell them you’re giving them a one-year Netflix subscription. 
  1. Framed poster: You can find both frames and posters for cheap, and this is a great idea for someone who needs some extra home décor. If it’s for a significant other, you can make it meaningful by framing a map pinpointing where you first met.  
  1. Kitchen supplies: If you have a friend who loves to cook or even someone who just moved in and could use necessities, kitchen supplies are a great idea! A rolling pin, whisk, measuring cups, serving utensils, mixing bowls, cutting boards and so on would be perfect gifts. 
  1. Plants: Who doesn’t love a cute succulent for their desk or nightstand? If they’re not big into caring for plants, you can always opt for fake ones to spruce up their home décor.  
  1. New wallet: If you’re shopping for a guy in your life, having a nice, leather wallet is always a staple.  
  1. Bottle of wine: Pair someone’s favorite bottle of wine with a cute wine glass and you have yourself a classy and thoughtful gift. 
  1. Homemade holiday treats: You can’t go wrong with gifting sweets. Bringing your loved one their favorite holiday-themed treats is guaranteed to make just about anyone’s day. 

We hope you find some reasonably priced gifts for your friends and family, but most importantly, spend quality time with the people you love. Happy holidays!