Tag Archives: personal finances

The Latte Factor 101

Financial Education

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 either! 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 First Security State 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.

The Best Financial Quotes and How to Use Them

Quotes

There are endless famous quotes amongst Facebook newsfeeds and Reddit threads, however, time and time again people seem to hold fast to their favored stand-bys. For topics ranging on everything from love to education, the wise words of others seem to implement a perspective in our lives, that may be left vacant otherwise. To help you achieve your financial aspirations this year, First Security State Bank would like to share the quotations we hold dear, to help encourage you along the way.

“Of this be sure: you do not find the happy life… You make it.” -Thomas S. Monson

The meaning of this phrase can be as simple or as complex as you see it. For us, it is a calming and reassuring reminder that the emergency fund, retirement plan, and vacation fund are all worth the effort. Unfortunately, no one will offer us a trip to Mexico for free, but with dedicated work and savings, WE can make it happen for ourselves and our loved ones.

“Attention is the rarest and purest form of generosity.” -Weil

This quote can be applied to both personal and business relationships. The more time you invest in a person, the more value they hold for you or your company. Whether it’s taking the time to answer customer questions, making it to your child’s basketball game, or simply being willing to pick up a phone call from a frazzled friend, giving someone your time is the ultimate connection to others. If you’re looking to improve a relationship, budget, or business, investing your time into it is the best place to start.

“If you define the problem correctly, you almost have the solution.” -Steve Jobs

Whether you’re working on restructuring your personal finances or trying to determine your most profitable product, the first step in finding a remedy is identifying the ailment. In the example of a budget, knowing what you’re spending, earning, and saving offers a visual into potential issues, so you can further adjust those efforts into a constructed monthly plan. This is the same with many things in life. By speaking with others, and getting all the cards on the table, you can ensure that problem is first made clear before the appropriate solution is determined.

“Never be afraid to try. Remember, amateurs built the Ark, professionals built the Titanic.” -Unknown

The worst action you can take is no action at all. No matter what challenge you are facing, always remember that the failure to act is the only true defeat. If you’re looking to start saving for retirement, expand your business, or tackle your debt, the first thing you have to do is start. No matter how you start, the biggest obstacle of your task will be committing to your end objective. At First Security State Bank, we want to help you succeed in both your personal and financial life. If you need a helping hand with your next venture, stop by our nearest office, and we’d be happy to lend an ear.

Community Banking: Why It’s a Wonderful Life

Community Banking

As the seasons begin to change, and the holidays approach, our team at First Security State Bank, would like to share all the wonderful reasons we are grateful to be a community bank. Just like Mr. George Bailey, in the classic tale, It’s a Wonderful Life, we have found countless people and experiences that make our bank lucky to consider this community home:

It’s all About the People: Unlike the big banks of America, our small and locally-owned operation prides itself on putting our people first, making the success of our customers the bank’s number one priority. Just like the old Building and Loan, First Security State Bank strives to help our customers make their home ownership dreams become a reality.

Growth Engine for Small Business: We succeed when you succeed. Just as George Bailey invested funds in Mr. Martini’s home and business, First Security State Bank is here to offer advice and financing on your next home or commercial project. We want to help you and our hometown community grow, just like Bedford Falls.

Built on Long Lasting Relationships: The movie’s guardian Clarence, was a very wise man saying, “No man is a failure who has friends.” At First Security State Bank we pride ourselves on not only helping our customers with their finances, but also building relationships with them as well. If you have a question on how to budget, which retirement plans to look at, or other money management inquiries, consider us your friendly neighborhood adviser!

Community Backed: Instead of being underwritten by Mr. Potter, or other national big banks, our institution is built directly upon the needs and wants of our community’s citizens. With no higher ups attempting to monopolize the town, our dedicated team of officers works to build up the community, and the men and women who call it home.

Employees Local Citizens: Just like George and Uncle Billy, First Security State Bank is filled with fun and lovable characters. We take great pride in employing local citizens throughout our company, and helping them grow within the banking industry. If you’re looking for a new career, stop in and see if First Security State Bank is right for you!

Get to know all of us at First Security State Bank and discover how community banking can help you achieve a wonderful life. For everything from personal financing, to commercial lending, we have the perfect solution for you. Get started today and share your next financial goal with us, we’ll help you shoot for the moon!