Monthly Archives: February 2018

Common Cyber-Security Threats While Traveling

Whether you are traveling for work or pleasure, the last thing you want to battle with is having your cyber-security compromised. If knowledge is power, Timberwood Bank has created a list of potential threats to your private information and steps to prevent damage while away from home.

Before You Go

Along with remembering to pack a toothbrush, you should also prepare your devices for travel. You should ensure all updates are completed. This will make your systems harder for hackers to penetrate.

You may consider backing up your information on cloud storage. You would hate to have forever lost important documents and photos. Should your information become compromised, having these copies of your private information will be useful. We would also recommend changing all of your passwords prior to leaving and again when you return. It is also extremely important, especially when traveling abroad, to let Timberwood Bank know where you will be traveling and when.

While You’re There

Unfortunately, you are at higher risk the more you travel and use the internet abroad. However, this shouldn’t stop you should you use the proper precautions from these threats.

While convenient, public wireless networks are not secure. Nevertheless, if you need to connect, be sure it is a legitimate network by verifying the account with employees. However, your mobile connection is going to be more secure. You are going to want to turn off auto-connect for WIFI and Bluetooth as well. If you are able, purchase a VPN  (Virtual Private Network), so you have peace of mind while surfing the web. We would recommend staying away from public computers-even the hotel and library. You cannot trust that these are on secure networks, and that Keylogger Malware is not present.

To many people’s dismay, you are being watched in ways like never before. You should get into the habit of guarding yourself at all times. When traveling to fun places, it is tempting to share your location. But waiting to share this information is best, so hackers don’t follow where you are, and maybe even make their way up to your hotel room to take your computer when they know you’re away. This is another reason why you might consider eating meals outside the normal hours, as that is when most hotel thefts occur.

You can’t avoid purchases while on the road, but be aware of ATM skimmers, point of sale compromises and hidden cameras. ATM skimmers have been on the news frequently. If you can avoid using this altogether by sticking to credit cards or Apple Pay on the road, it may make the experience easier. Business card readers may be compromised or a hidden camera could be tracking your pin input, so it’s important to always be aware.

We hope that these tips have informed you to be a cyber-secure traveler. For more information about anti-fraud services, please stop by and speak with our helpful staff!

Gloomy Day Fun for the Budget-Conscious

You made it! It’s finally the end of the work week, you can’t wait to do anything that doesn’t involve sitting in an office. Maybe you can get that hike in you’ve been thinking about all week. Disappointment sets in as you peek out the window to gaze upon a blustery, cloudy and plain gloomy day. And as misfortune would have it, there isn’t room left in the budget this week for a trip to the movies or an indoor game park.

However, this doesn’t have to call for an uneventful day. Timberwood Bank is here to give you some options to make the most of your day off! Here are some great low-cost activities you can do now.

Local Adventures

While you may not want to spend the gas money traveling out of town, this is an opportunity to explore places in the community you may not normally think of visiting. Local museums are typically low-cost and if you make it on certain days, they have discounts for the kiddos! You’d be surprised at how entertaining local history and innovation can be. Bring some friends with you so you can discuss what you learn.

Let’s not forget about the neglected library. They may even have free events going on! Join a book club, rent a book or take a free class about computer literacy. Nothing is easier on your wallet than the library.

If the library is closed on your gloomy day, check out local department stores. They may have a free class for you to take to learn about a DIY home improvement project. They teach a variety of classes from how to install a home security system to woodworking projects.

Host an Activity

Can’t go out? Bring people to you! There are probably others who are not digging the gloomy day, so invite them over for a game night. Everyone can bring their favorite board game and an appetizer to share.

What’s your favorite movie? Host a movie night or show marathon to watch with your friends. If you have kids, you can have two different movies playing. You can center your snacks around the theme of the movie with what you have in the pantry, or buy some generic items from the store. With a little creativity, you can make this a memorable event.

Plan a Vacation

“But it’s not in the budget.” This day is the perfect opportunity to not just daydream about a vacation, but get the wheels turning for how to practically get to the white sand beach or ride that elephant in Thailand. Break down what you want and how much you need, so you know what you need in savings to get there. Research average flight prices and best places to stay for the price – don’t forget to read those reviews! Maybe look around your place to see if there is anything worth selling that you are willing to part with. Once you have where and how, build an itinerary of everything you want to see while you are there! Adjust the budget sheet accordingly. Making your travel dreams become a reality is sure to boost your mood.

Any of these activities will be kind to your budget, and hopefully boost your mood on this not so bright day.

 

The Riches Reset: 30 Day Cash Only Challenge

You may have heard the suggestion, but in a day where even plastic purchases are becoming irrelevant, how can paying with cold hard cash be feasible or helpful? We challenge you to find out by going plastic-free for the next 30 days in order to shake up your spending habits for the New Year.  We will begin by informing you on some of the disadvantages you may experience, followed by the surprising benefits.

Cons of Cash

Safety

Carrying cash can be a safety concern. You may feel more exposed to not only being pick-pocketed, but to losing the cash altogether.  When your credit card is stolen or lost, you have an inconvenience, but not a loss of protection. Check in with a member of our team at Timberwood Bank to learn more about the safety features of our credit cards.

Inconvenience

Unless you write down all your purchases, you will have no way to track spending. You’ll need to ensure you have receipts printed or emailed to you if there is a chance of return. Cash takes up a lot of room, especially if there are coins. This becomes consistently challenging if you only carry a wallet. You don’t want to be THAT person who spills their clanging change all over the floor. To say nothing of the inconvenience you will cause others in line behind you, as their plastic taps impatiently on the counter. We recommend using all of the coins you can first, so you’re not weighed down with change.

Credit Benefits

One of the primary reasons many utilize credit cards is the rewards.  With cash, the only reward you can hope to receive is a punch card for your next visit. You also lose out on the opportunity to build your credit. Additionally, an obvious downside would be you are unable to purchase items online or make travel plans. This may be an economic imperative that you cannot accomplish with cash.

 

Pros of Carrying Cash

It’s Painful

Leaning into the pain of cash-only can be good for you. Research shows that the act of spending cash is emotionally more painful than it is using a debit/credit card. Because of this, you may, in fact, spend less. With each purchase you make, you see your cash value deplete. Unlike a credit card, the effects are immediate. You don’t need to wait until the end of the month to feel the pain, when it is most likely too late.

You Become a Budget Master

Some people have had success with the envelope system in their budget planning. It is a way to limit your spending to a predetermined amount allotted in each envelope. They are separated into different categories such as grocery and gas.  It helps you to be aware of how quickly that $4 latte takes away from your “fun money”. This is more hands-on than establishing multiple savings accounts.

Appreciation

Research shows that you also have more of an appreciation for your things when you buy them with cash. It’s an aesthetically pleasing reward as you are seeing what your money can get. You are better able to see your hard work pay off. Moreover, if you find yourself taking better care of your belongings, don’t be surprised.

While it may not be possible to go cash-only forever, your Riches Reset will help to cleanse you of negative habits to start fiscally strong in the New Year. Afterwards, come see us at Timberwood Bank to see what products can help you reach your financial goals. Best of luck!

 

How to Tackle Student Loan Repayments

What they didn’t teach you in school, was how to pay for school. Many know what it’s like to look excitably into your direct deposit account or open that envelope on payday to only be dissatisfied by the large withdrawal that was taken towards your student loan debt.

Confronting what seems like the impregnable wall of debt can be overwhelming. And many can feel unprepared – even duped at the debt to income ratio their college degree has given them. However, it doesn’t have to be this way forever. By changing your strategy and perspective on your educational investment, you can eliminate your monthly payments at an accelerated rate. Learning to tackle debt in the right way will become muscle memory for future financial discipline.

Choose the Right Repayment Plan

Americans owe 1.45 Trillion in student loan debt, spread out among 44 million people. While this may seem counterintuitive, choosing the right plan for your income can make a large difference in how much you pay over time. 85 percent of student loans are either: Stafford, Perkins, PLUS, & Direct Consolidated. They have 5 repayment options, with the lowest minimum payment starting at $50 for ten years, to the income based plan that takes a “fair” percentage of your salary (decided by the Federal Government) and forgives any debt left after 25 years.

Although it’s tempting to pick whatever has the lowest monthly payment, it isn’t the wisest. How much you pay and on what terms can seriously impact future investments like a home or being able to put enough away for retirement. Try to pay 10% of your gross (pre-tax) income towards your debt. By biting the bullet now, you will give yourself freedom in the future.

Scrap for Savings

There are some basic practices you can implement to prevent being delinquent on payments. One of those is consolidating your Federal loans. This won’t initially save you on interest, but it will help to relieve you from the headache of keeping track of many different loans. Having them all in one place with one simple payment will enable you to stay on track. Second, sign up for automatic withdrawals from your checking account. Doing so will cut your interest rate by .25 percent. If you would like to establish a college fund repayment account, contact one of our loan specialists at Timberwood Bank to help.

Keep Your Eye on the Prize

The average student loan monthly payment is $351 a month, and we recommend you paying more than that if you can fit it into your budget. The most important thing you can do is to not fall off the wagon when it comes to tackling your debt. Stay focused on the goal set before you. The impulse purchases and comforts of the present are alluring, but ridding yourself of a financial burden is more rewarding. The more you take hold of your debt, the sooner it will be conquered.