Tag Archives: financial planning

Tips to Reduce Financial Stress – From Panic to Plan

If you are feeling overwhelmed and losing sleep at night because of your finances, you are not alone. There are many factors that can contribute to financial stress such as: kids, marriage, debt, pregnancy, job status and physical health.  According to the American Psychological Association’s 2015 survey, 64% of stress is attributed to money. If you are experiencing a creeping sense of panic over your finances, take a deep breath and exhale. We are going to walk you through a simple plan to get you back in control.

1). Identify Stressors

Take time to write out a list of everything that is weighing on you. This can be financial burdens or anything that adds to your anxieties. Maybe you are struggling to meet your mortgage payments or taking care of an aging parent. Maybe it’s an addiction to spending with a mountain of debt surrounding you. Everyone has a story and struggle. Listing out and identifying these is not only therapeutic, but will be the start to knowing what you can and cannot change. What are the problems, and what are your realistic goals? Take this financial stress test to get a better understanding of where you are at and where you would like to be.

2). Create a Budget

This will be the map to the end of your tunnel. Doubtless, you have heard the importance of budgeting. Now it is time to heed those words into your plan. There are many financial gurus out there with their preferred budgeting outlines. We would recommend speaking to one of our personal bankers at Timberwood Bank, or learning more about people like Dave Ramsey and his program. When you are crafting your budget, keep in mind the goals you have created and the daily habits you want to develop. This is how you learn to make the most of your income. By adding a goal of establishing an Emergency Fund, you will help to eliminate future stressors should and when misfortune occurs.

3). Stay Positive & Get Help

The key to staying on track, is staying positive. Once you have your budget set, you are able to track your spending. You may fall off the wagon a time or two, but don’t let shame keep you from starting over. Reach out to a trusted friend or join an accountability group like Shopaholics Anonymous. Be sure to let them know your goals and your struggles. Having someone to keep you accountable will help you to not only relieve current stress but prevent future panic.

Habits of People Who Live Debt-Free

If you’re an adult living in America, chances are you’re living with debt. According to Pew Charitable Trusts, roughly 80% of American adults are in financial debt. You can see how it happens, between student loan payments, mortgage payments, car payments and credit card use, it’s easy to get yourself into debt and it can be tough to climb out.

But, how can you help yourself live debt-free? It is possible, and Timberwood Bank has some tips that you can use. Some are tips that you can right away, while others will require a dedicated approach over an extended period of time.

Create a Plan for the Future

It’s easier to implement money saving strategies when you have a goal in mind. Whether you’re looking to save for a purchase or to pay down debt, you need to set a budget to follow every month, and then stick to it. It’s also crucial for you to closely monitor your finances by checking your statements and reviewing your account balances so you can note any abnormalities from the budget you’ve set.

Trim the Fat

The best way to make sure you can keep yourself out of debt is to limit your spending. This is easier said than done. Whether it’s limiting your credit card use to emergencies or saying no to a friend who wants to go out for a night on the town, cutting back on spending is the best way to keep yourself out of debt. If you choose to live on less than you make, you’ll save long-term.

Cash is Your Friend

While your credit and debit card make it incredibly easy to make purchases, carrying cash can actually help you spend less in the long run. If you limit yourself to carrying cash, you know exactly how much money you have (or don’t have). This allows you to be more careful with your money and more diligent about your purchase decisions.

Living debt-free takes hard work and dedication. But, just like anything that requires patience, the payoff once you’ve reached your goal is worth all the work. Let Timberwood Bank help you develop the habits to live debt-free so you can live with less stress.

Top Five Savings Hacks

We all could stand to save a little more money. Whether it’s for an upcoming purchase, a rainy day fund or an emergency fund, saving money is a skill that benefits you throughout your life. It’s not easy to save, but Timberwood Bank has some hacks that you can implement right away to start developing better habits.

Set a Budget

In order to know how much you can save, you need to know exactly how much you’re spending. Sit down and develop a monthly budget to track your necessary expenses versus your monthly income. Any remaining income can be put right into your savings account.

Give Yourself a Goal

It’s easier to put money away when you know what you’re saving for. Whether you’re saving for a vacation, a car or a down payment for a house, you’ll find more success with your saving efforts if you set a monthly goal.

Learn to Say No

Saving money means cutting back on unnecessary expenses so you can limit your spending. That means saying no to going out for dinner with friends, skipping that trip to the movies and spending more time at home where you can save money.

Stick to Cash

Instead of using your debit card to make every purchase, take out cash at the beginning of each week or pay period within your budgeted amount. Once you’ve gotten the cash, leave your debit card at home. You’ll be surprised how much more careful you are as you think about whether you really need to spend the cash.

Use Technology To Your Advantage

It’s easier now to save than ever before thanks to technological advances. Keep track of your account balances using Timberwood Bank’s online banking, or download a budgeting app to your smartphone to keep yourself honest as you save.

If you don’t have good saving habits right now, don’t worry. Everyone has to start somewhere and it’s never too late to start saving. If you want more help with managing your finances more effectively, please contact Timberwood Bank and our staff will be happy to help!

How to Save $1,000,000 for Retirement

save for retirement

Retirement, 401(k), stocks and bonds, the subject matter of saving for the long term isn’t often as appealing as saving for the short term. Perhaps that’s why nearly three-quarters of Americans are underestimating how much they’ll need for retirement. The United States is on the brink, if not already in, a retirement crisis. However, at Timberwood Bank we believe retirement saving can still be easily accomplished, there are just a few steps to get started:

  1. The first thing you’ll need to do is determine when and how you want to retire. There are an endless variety of retirement lifestyles, each of which entail a different budget and distribution structures. Some popular options include traveling by RV, retiring in a new location, downsizing your home in the same area, pursuing a new business or passion,  and of course maintaining your current lifestyle without the need for work. By choosing your lifestyle goal we can begin to structure your savings plan around what you hope to achieve.
  2. Once you know what you want, start saving ASAP. As the old adage goes, “Slow and steady wins the race.” This is phrase is the epitome of retirement. If you save less, but start earlier you will consistently save more than if you deposited higher amounts later in life. We recommend utilizing any 401(k) or retirement savings plans your employer offers. If you are self-employed or don’t have access to retirement benefits, an IRA is a great self-funded option to help you save and take advantage of valuable tax incentives.
  3. Create a goal for how much you need to save. Financial Mentor offers a great calculators to help you plan your path to retirement.  They can help you determine your strategy to become a millionaire, or show you how much you may need beyond $1,000,000. Saving more than one million could be more pertinent than you think. Today’s research indicates that millennials may need to save more than their baby boomer or gen x counterparts.
  4. Add any available surplus funds to your retirement savings. Simple adjustments like changing grocery stores, carpooling, and bringing your lunch to work can save more than you think! If you are able to find some additional ways to save, put those funds to work by contributing to your retirement accounts.
  5. Diversify your retirement savings. Instead of putting all your funds in company stock, corporate shares, or your 401(k), we suggest diversifying your savings options to ensure your risk isn’t higher than you need. Speaking with a professional adviser could help you determine what type of risk you’re comfortable with, and how you would like to your contributions to grow over time.

By continuing to save each and every month you can beat the odds and have a fulfilling and successful retirement. The most important thing to do is to start. If you’d like to open a dedicated savings account, IRA, or CD, our team is here to help. Stop by or drop us a line today to get started today.

The Cost of Kids: How to Plan for Your Growing Family

Family Budgeting

At Timberwood Bank, we understand that adding to your family may not only be an emotional decision but a financial one as well. With the growing costs of childcare alone, it’s important to have a well-rounded plan for covering the expenses of your expanding household. In order to plan most effectively, we recommend structuring your budgeting into these three stages:

Beginning or Before Pregnancy: Examine your current health insurance to determine an estimate of cost for both prenatal care and delivery expenses. While many insurers offer prenatal care at no or little additional cost, the price for delivery can be complex. Study your monthly premium, annual deductible, and out-of-pocket limits for the calendar year to help establish these cost before the baby is delivered.

After Birth: Once the baby is born, there will be traditional costs such as health care, food, diapers, clothing, and more. However, many new parents also spend more on take-out meals to help lessen their time cooking. These expenses, along with a decrease in income for parents on maternity leave, can cause many parents to slide into debt. To help alleviate the burden of these growing figures, we recommend creating a monthly budget to designate every dollar to a purpose. By allocating a specific dollar amount to each area of your spending, you can ensure that all of your costs are covered while also planning for the future.

During the First Year: As your child continues to grow, the costs for new clothes and equipment will continue to grow with them. Many expectant parents can spend upwards of $16,000 during the first year of their child’s life, and variables such as location, number of children, and other factors can contribute to the overall costs as well. When possible we recommend saving for each step in your child’s growth. From birth to three month’s they’ll need many one-time purchases, but during the later stages, you may have adequate time to save for each time period’s necessities.

Continue to grow your finances as you grow your family using Timberwood Bank’s trusted deposit services. We’ll help you organize your funds, and make the most of your savings.

Budgeting 101 For Young Adults

Budgeting 101 for Young Adults

Budgeting 101 for Young Adults

You’ve taken all the tests, memorized all the vocabulary, and made your way across the stage. But what comes next? After graduation there are many questions that come with your diploma. Things like, how am I going to pay for rent? Or, how much should I budget each month for food? Not everything in life is as simple as A, B, C, or D. That’s why Timberwood Bank is excited to help young adults with the complex questions of budgeting and personal finance. Find the answers to your financial curiosities with our handy Budgeting 101 study guide!

  1. Identify money coming in. Look past the salary or hourly rate on your contract and focus on take-home pay. How much will you bring in after taxes? When do you see this pay-off – weekly, biweekly, or monthly? Factor in other sources of cash flow too, like earned interest or paychecks from a part-time job. Understanding what you own dictates how you spend.
  2. Establish money going out. Divide monthly expenses into three major categories: fixed costs, savings, and discretionary. Rent, utilities, food, gas, and debt comprise the fixed costs and determine funds for the remaining categories. Savings should include an emergency fund as well as allocation for retirement or down payments on vehicles or homes. Discretionary – the Fun Fund – is the most flexible and can ebb and flow with changes in income and expenses.
  3. Balance steps 1 & 2. The purpose of budgeting is to provide control over your financials. That means ensuring that money going out doesn’t exceed money coming in to keep your head above the debt line. If you find your listed expenses exceed your income, pick one of two options: seek ways to boost income or scale back expenses.
  4. Pick a management system. Armed with a financial plan, equip yourself with tools to help you stick to it. Traditional but trusted, the envelope method helps you keep funds in physically separated expense categories. Once money runs out from that month’s envelope, it’s gone unless funds can shift from other envelopes. A number of free or low-priced mobile apps can give you even tighter control of your budgeting, providing real-time updates of spending and handy visuals of your progress.
  5. Track progress. A long-term financial plan is simply a series of short-term goals. Monthly check-ups help you gauge success from the month, making sure you stayed on target. You can adjust funds as income or expenses fluctuate and spot ways to economize your budget.

Want to take your budgeting up a notch? Meet with one of our Personal Bankers, who will work with you to plan a secure financial future. Give us a call to set up your appointment today!

Daily Inspiration: Miracle on Ice

Miracle On Ice

Sometimes there are stories so inspiring they give you chills, make you want to go out and accomplish something spectacular simply because you now know the impossible can occur. In the financial realm of 2016 we believe anything is possible, and if you dream it, we want to help you achieve it.  So today if you’re a little short on motivation, enjoy this tale of the incredible feat by the 1980 U.S. Olympic Hockey Team, known as the Miracle on Ice.

In the summer of 1979 U.S. hockey coach Herb Brooks held auditions for the 1980 U.S. Winter Olympic Hockey Team. With a final roster of 20 young men, averaging an age of 21, the U.S. had its youngest team in history. Brooks decided to retain only one player from the prior Olympic team, Buzz Schnieder. Brooks knew that the U.S. was to be considered an underdog, and during the exhibition games he insisted the players learn a more European style of play to build strength and cohesiveness. In their final exhibition game on February 9, the U.S. played their future opponent, the Soviet Union National Team. They lost in an agonizing defeat of 10-3.

Once the Olympic Games began, the Soviet team paved their way to the top, scoring large leads against the majority of their opponents. During their first game, the U.S. team tied Sweden with a 2-2 game, pushing both teams forward. After several close games, the U.S. found themselves in the semi-finals playing against the Soviet Union National Team, which had defeated them less than two weeks prior.

In the first period of the game, the Soviets managed to sink a puck and gain the first lead. The U.S. managed to gain a goal, keeping toe-to-toe with the Soviets after another goal, eventually ending the period in a 2-2 tie with a last second goal by the U.S. In the second period the Soviets again took the lead gaining one culminating goal. After only eight minutes in the final period, the U.S. found its momentum. Through an incredible power play the U.S. earned a goal, and then another only minutes later. The Soviets began to panic, yet Brooks kept his players calm. He continued to keep the U.S. on offense making several other attempts on goal, repeating to his players, “Play your game! Play your game!”

As the seconds of the final period counted down, the sportscaster for ABC, Al Michaels joined in, famously saying, “Do you believe in miracles?! YES!!!!” When the final buzzer rang the field house was filled with exclamations from the U.S. fans as the players stormed the ice, cementing the moment as one of the best sports moments in the 20th Century.

After the game, sports anchor Jim McKay shared a comparison of the game as a group of Canadian college football players defeating the Pittsburgh Steelers.

Against all odds and predictions, the 1980 U.S. Winter Olympic hockey became a real life David and Goliath, knocking down the Soviet Union National Team and making hockey history. The U.S. later went on to defeat Finland in the finals to gain the gold medal.

Anything is possible if you plan and work to achieve your goals. We are happy to share this incredible tale to inspire you to reach for the stars. Share you financial aspirations with us, and we will work to help you do what perhaps you never thought was possible.