Monthly Archives: December 2019

How Do I Pay Off My Debt?

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Extreme amounts of debt can weigh heavy on your shoulders. It has been found that extreme amounts of debt are linked to higher rates of suicide and depression. This is why it’s so important to have an understanding of good debt vs. bad debt and how you can go about paying back your debt efficiently. 

Don’t Let it Define Your Life

You, of course, want to have your debt paid off as soon as possible. However, letting it define the value of your life is counterintuitive to being able to pay off the debt. You can enjoy your life while simultaneously paying off debt. A common saying about paying off debt is to think of it as a marathon and not a sprint. You aren’t going to have all of the debt paid off at once, but consistent payments will help get you there instead of burning out from sprinting.

Be Careful Who You Surround Yourself With 

It’s hard to stick to a budget when you’re surrounding yourself with friends who want you to spend money with them. It’s difficult to say no to socializing because of the money. At the same time, you should be surrounding yourself with people who understand your financial priorities and support you in those goals. Spend time meeting with financial experts to help guide you in your investments and debt management. 

Press Pause on Credit Cards

While credit cards are a great tool when used correctly, they can be a hindrance to paying off debt. Do your best to refrain from using them until you have your debt under control. 

Utilize Extra Income

If you receive a bonus or a pay increase, place all or a portion of those funds towards your debt. You won’t notice the difference, besides seeing the decrease in your debt to income ratio!

Start a Payment Plan 

In order to keep the momentum going, you should start paying off your most expensive debts first. This typically means the highest interest. Establish a set amount that you will pay each month and work it into your budget. Your amount should be more than the minimum payment due. 

Don’t let your debt take over your life. Get control of your debt today!

How to Boost Your Retirement Savings

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Maybe you are already off to a good start when it comes to saving for retirement, but there may be some ways in which you can amp it up. If you could boost your retirement savings even by a little now, it can pay off big time later! Here’s how:

Step Up the 401(k)

Most companies offer a matching contribution of up to three percent to your 401(k). If you aren’t taking advantage of this now, make sure you do so immediately. Once you have established this for a year, consider ramping up your percentage by 1 percent. Every other year or so, increase the percentage. Because you are increasing it at a slow rate, it’s unlikely that you will really notice it month to month, but you’ll love seeing your account grow. 

Don’t Cash Out

When switching to a new job, many people cash out their retirement policies. However, this can be damaging to your retirement portfolio and leave you with much less money. Consider rolling over these funds into an IRA or if possible, directly rolled over into your next employer’s plan. 

Play Catch Up

If you are age 50 or more, you can participate in what is called “catch up contributions.” As of 2018, the government allowed an additional $6,000 contribution to 401(k) and 403(b) plans. IRAs were allotted an additional $1,000. Even though you are over the age of 50, these contributions still earn interest and can make a significant difference.

Don’t Spend Bonuses

It’s tempting to go and celebrate a big bonus or raise with a big purchase. However, the smart thing to do is to pretend that it never happened, and pour it into your retirement account. Whatever you want to use that money for now, you’ll be able to do even more with it later. The practice of delayed gratification is tough but worth it. 

Cut Something Out

Think of a luxury item that you use every day. Maybe it’s something small that you don’t think twice about. Consider cutting it out and using the money you’ve been putting towards it for something better, like your golden years.  

You can reach your retirement goals by staying focused throughout your earning lifetime. For more advice on your savings plans, you can count on us at Timberwood Bank. 

Cybersecurity Safety Tips for Your Business

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Don’t let living your dream of owning your own business end because of cybercrime. Stay on top of the latest defenses when it comes to cybercrime by implementing even one of these tips for your business. 

Never Assume You Are 100% Secure

Unfortunately, you can never be fully protected against a cyber threat. The minute you sit back and think that you are invulnerable is the best time for a cybercriminal to strike. There will always be a new potential threat. There may even be an employee mistake or a broken piece of data. It’s important to always be looking for ways to improve security. 

Amp Up Authentication

Every point of digital access to the internal working of your company should be blocked by outsiders with authentication. Authentication is a way of signing into a device with a code only authorized users have access to. Many companies are switching to Multi-Factor Authentication, which requires users to confirm their identity twice, often through the device and then a phone. This is simply an added layer of protection. 

Hire a Hacker

Not all hackers are ill-intentioned. Many work legally to help businesses discover the risks of penetrability. They will be able to evaluate areas that can use strengthening. 

Email Education

The weakest point of business cyber defense is often employees. Even if the worker is well-intentioned, they can still make defense mistakes. One common area of cybercrime is email. It’s an easy way for the perpetrator to access your company internally. This is why it’s important to not only have spam filters but ensure that all employees go through email education so they know what a suspicious email looks like. 

Be Aware of Personal Device Risks

Many businesses allow workers to bring in their personal devices and use them to conduct business. This can be dangerous, as there is likely not the same security software on their personal devices that you have for your business. This is another way for cybercriminals to get into your business’s information. One way to help with this and to still allow your employees the freedom of using their personal devices is to establish a “Bring Your Own Device” policy. 

Get on the Cloud

Keep your important business information on the Cloud, in order to avoid it getting taken from you forever. It’s currently the most used technology for small businesses. You can utilize it for managing finances, storing, sharing and accessing information from anywhere. 

These are just some of the basics of business cybersecurity. They are all fairly inexpensive and can likely save you from a headache of trouble if you were to get hacked. For more information on cybersecurity tips or business accounts, give us a call!

Kick Off The New Year With These Savings Tips

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Wow – we can’t believe it’s already 2020! The new year will bring children, weddings, new business opportunities and more. With that being said, we want to make sure you can continue to prosper financially. Here are our favorite savings tips to help you kick off the new year!

Start saving for retirement.

Yes, it’s far away and you can’t really see the benefits right now. But, starting to save for retirement now will be crucial in how much money you’re able to spend in the following years. The closer you get to retirement, the more you’ll have to put away if you haven’t started saving in earlier years. Making sure you find other ways to help your retirement fund grow will also be in your best interest. If your employer will match up to 3% of your 401(k) contributions, be sure to take advantage of that! If there is an opportunity to get good interest rates on a savings or checking account, stash some money there as well as in a CD or IRA.

Make a plan to pay off your debt.

Having an accumulation of different debts can become overwhelming and stressful. For the new year, think of a game plan to break down those debts and start to pay them off. Whether its credit card debt or student loans, there are always ways to come up with a doable plan to implement over the next few years. Use this debt calculator tool to add up all your debt and see how you can realistically pay if off. Start budgeting and begin to pay off debts in order from smallest to largest.

Start an emergency fund.

We understand that you may have some money built up in a savings or checking account, but when an emergency hits, you don’t want to have to take money out of those accounts. By having your own account for a rainy day, you will know exactly how much money you have saved up for potential expenditures. That way, you don’t take out a few thousand dollars from your savings account for an emergency, and then don’t have enough money for buying/paying for something you wanted.

Really start to budget.

It’s one thing to not drink a morning coffee from your favorite shop, but it’s another to actually have a list for a budget of all the things you need to stick to. It’s really easy to get off track and start eating out a few more times during the month or pay for something you really don’t need. Making a real budget and sticking to it will be the #1 thing that brings you financial success this year!

We hope you decide to implement all 4 of these savings tips into your new year. By starting to save for retirement, pay off debt, build an emergency fund and budget, your financial finesse is sure to flourish! Store your newly saved cash in a savings or checking account with us today!