Category: Savings

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.

money smart kids

How Do I Raise Money-Smart Kids?

Whether you already have kids or are just preparing for the future, navigating the world of parenting may seem overwhelming. Don’t stress too much, as parenting is often a “learn from experience” kind of process. But, as a primary role model in your child’s life, it’s important to have important conversations early on so you can prepare them for life on their own.

Be a Positive Example

Don’t overlook this step because it’s one of the most important! Kids learn by example, especially the example of adults they spend a lot of time around. You can have a positive effect on your child’s financial future simply by managing your own money well. This means creating a budget and sticking to it, avoiding impulse purchases, saying “no” to their requests sometimes and providing a safe space for them to talk about money with you.

Have Financial Conversations Early

As previously mentioned, having conversations about money is crucial for your kids to take finances seriously. Be open about financial lessons you’ve learned at their age, check in to see how they’re doing financially, and be someone they can lean on for guidance.

Let Them Make Purchases, Too

This is something you can even incorporate into the lives of your youngest kiddos. While your younger children might not have money of their own quite yet, you can still give them the money you’re paying with and let them make the transaction. For example, if you’re at a store and they’re being rewarded with a new toy, give them some cash and let them hand it to the cashier. This teaches them from a young age that new things come with a cost.

Help Them Open a Savings Account

When they’re younger, a piggy bank works just fine for saving purposes. Once they reach the age where they have a part-time job and want somewhere to put the money they make, consider opening a savings account. The earlier they start saving, the better!

Use Age-Appropriate Chores for Allowance

Allowance is a wonderful way to raise money-smart kids, but only when it’s done the right way. Give your kids an allowance for completing a task to teach them that work is rewarded. When they’re younger this can be as simple as cleaning their room, feeding the pets or picking up their toys. Once they get older, they can help with things like cleaning the bathroom, folding laundry, doing the dishes or helping cook meals.

Budget With Them

Budgeting is especially important once your child is old enough to be working and making their own purchases. Help them come up with a realistic budget and show them the best way to track their spending, whether that’s using pen and paper or an app on their phone.

Yes, parenting can be taxing and tricky, but above anything it’s incredibly rewarding. Join the generation of parents who want to raise their kids to be financially wise! Visit our website to learn more about the services we offer or to open your kid’s first saving account.

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! 

calculator

Take Control with A Budget

If you can’t seem to get a handle on your finances, it may be time to reevaluate your spending and learn to budget. Budgeting is essential for those looking to be financially successful. You need to know where your money is going and make sure that it makes sense. Here are our tips on how to take control of your finances with a budget. 

Look at your overall monthly expenses. 

You will want to review what you are spending money on each month. Add up your grocery bills, daycare, utilities, cell phone bill, mortgage/rent, insurance and so on. This will give you a good basis of what you must have money for each month. And it will help you find places to cut – if you realize you’re paying for five different TV subscriptions, you can probably cut 2-3 of those and come out saving some extra cash. 

Track your odds and ends expenses. 

Now you need to make a list of everything you buy throughout the month – this includes going through the drive-thru for lunch, grabbing a coffee, getting gas, any extra groceries and more. Over a few months, you’ll have a solid average for extra items you need to budget for. Doing this will also help you notice what you are spending your money on and if you can cut that down to save more. 

Decide on your financial goals. 

What do you want your goals to be financially? Are you saving for retirement, college for kids, a car, down payment or trip? All this needs to be figured into your monthly budget so you can allot the correct amount of money towards your financial goals. Open a savings account to store this money safely as you begin to build your funds. 

Become debt-free. 

You will want to budget for your debt payments once the above has all been calculated into the budget. Becoming debt-free is crucial to your financial success. See how much you owe and work on a plan to pay off each debt. You can pay the highest interest debt off first, do the debt snowball method or look up other debt payment strategies that would fit you best. Budgeting to pay off more than the minimum each month will help you succeed. 

Stick with it and reward yourself. 

We know it may be hard to stick with tracking all your expenditures and saving for different financial goals, but don’t give up! Reward yourself when you hit milestones because it’s important to stay excited and motivated about budgeting. Take control of your debt by continuing this each month so you can solidify your financial success! 

home

How to Increase Your Home’s Value

Buying a home is a major achievement—and investment! Mortgage payments help build up equity in your home over time, but there are changes and upgrades you can make to your home to increase its value, resulting in a bigger return on your investment. 

Homeowners should look for simple, cost-effective ways to increase their home’s value, especially if they plan to sell in the future. Take a look at these 5 ways to increase your home’s value and get a stronger return on your investment. 

1. Spice Up the Landscaping 

Whether you heard it from a real estate agent or on HGTV, curb appeal matters! You want your home’s landscaping to leave a good first impression—on future homebuyers and neighbors alike. Ways to improve your home’s landscaping include: 

  • A well-maintained lawn – this is one of the first things people see and is a well-rewarded investment. 
  • Neat and tidy garden – keeping your garden tidy leaves buyers thinking it’s easy to maintain, which is always a plus. 
  • Clean and lighted pathway – having a clean pathway that’s lined with pretty plants or LED lights leaves a great impression. Repair cracks and pressure wash it to remove built up dirt or grime. 

2. Paint, paint, paint! 

One of the most cost-effective and easiest upgrades to do to your home is to simply paint it! Adding a fresh coat of paint to each room of your house gives it a newer, refreshed look and ensures that there is no discoloration behind long-standing furniture or stains left by tiny hands. Peeling or outdated paint can be a turn-off and repainting saves the prospective buyer from having to do it themselves. Focus on painting areas like the bathroom and kitchen as those tend to have more wear. Painting the interior can result in a 107% return on investment (ROI). 

3. Upgrade Your Bathroom 

When searching for a home, buyers consider bathrooms as some of the most important rooms in the house. Bathroom upgrades are some of the most cost effective to upgrade and ensure you get a return on your investment. Some ways you can upgrade your bathroom include: 

  • Repainting walls in a neutral, modern coat of paint or removing old wallpaper 
  • Painting or refinishing cabinets (or replacing them if you have more room in your budget) 
  • Installing matching modern hardware on drawers, cabinets and closets 
  • Upgrading lighting, faucets, showerheads, or installing a new toilet 
  • Cleaning everything – rid the bathroom of rust stains, scrub all the surfaces and re-caulk areas around the shower, bathtub and tile 

Keep the design neutral and light so you can appeal to as many buyers as possible, colors like light blue or gray work well. If you’re looking to save money by doing the bathroom upgrades yourself, plan for a few days of work. For every $1 spent on bathroom renovations, you can make back $1.71 in home value. 

4. Upgrade Your Kitchen 

Many consider the kitchen to be the heart of the home. Upgrading a kitchen can make a big difference for some buyers. Depending on your budget, you will have to choose between minor or major kitchen upgrades. Below, we’ve listed some ways you can do both: 

Minor Kitchen Upgrades 

  • Replacing cabinet doors and hardware (but leaving the box of the cabinet) 
  • Upgrading to quartz or granite countertops 
  • Installing a set of new matching appliances 
  • Repainting and adding backsplash throughout 
  • Putting in new flooring if existing is outdated, damaged, or worn

Major Kitchen Upgrades 

  • Adding an island to the kitchen 
  • Installing fully new or custom cabinetry throughout 
  • Upgrading to more high-end, energy-efficient appliances 
  • Replacing flooring with higher quality options and adding or upgrading trim 
  • Adding undercabinet LED lighting 

If you’re leaning toward making major improvements to your kitchen, we can help! Give us a call or contact us via our website to discuss your financing options for upgrading your home.  

5. Make Your Home More Energy Efficient 

Upgrading your home’s efficiency can be more affordable than you think. Some of the most popular environmentally friendly ways to increase your home’s value include improving heating and cooling costs, adding energy-efficient lighting and appliances, and upgrading windows, doors, and siding. Even adding a smart thermostat makes it easier for a homeowner to control the home’s climate from anywhere and allow them to manage their energy costs more easily. Home tech investments can provide a strong selling point for your home and increase its overall comfort, convenience, and functionality. 

Some upgrades, such as installing solar panels, are more of an investment and you may need to consider financing options to make this upgrade happen. 

How Do I Pay for Improvements? 

There are several routes you can take when upgrading your home. For upgrades that need to be done professionally, or those you cannot pay for in cash, there are several financing options available. 

  • Credit Card – This option may work for you if you are able to pay off the home improvements in a short amount of time. 
  • Personal Loan – A personal loan is a great option if you don’t have enough equity built up for a home equity loan or HELOC. These loans don’t require you to put your home or other property up as collateral to get approved. The interest rate for a personal loan will be higher than a home equity loan, but lower than a credit card in many cases. 
  • Home Equity Loan or HELOC – A home equity loan is similar to a personal loan in that you receive a lump sum of cash with a fixed interest rate and monthly payment. A home equity line of credit (HELOC) works like a credit card and comes with variable rates and a line of credit that you can borrow against. 

If you’re ready to spruce up your home and increase its value, give us a call, apply for a loan or credit card on our website, or schedule an appointment with our team to further discuss your options.