Tag Archives: save

How To Save On Your Taxes

Are you kicking yourself for how you handled last year’s taxes? You can feel better about next year by learning a little bit about tax savings now.

Consider Donations

Not only is donating to charity a great way to give back to the community, but it is also a smart way to have a tax write-off. It needs to be a charity that is recognized by the IRS in order to do this. This will require some organization on your part over the course of a year. You will be required to have written records. It should say the date of the contribution, the amount you gave and to who. If the amount is over $250 and you don’t have a receipt, the IRS may reject it.

Increase Contributions to Your Retirement

If you contribute to a 401(k) plan or an individual retirement account, you can reduce your income tax. You would need to increase the amount that is withheld from your paycheck automatically.

Start Saving for Your Child’s College Tuition

It’s never too early to start saving for your child’s education. A 529 is a college savings plan similar to an IRA except it’s for college. The contributions grow tax-free, and withdrawals are not taxed for a college education. You can either use this for your children or for yourself to take a fun college course in retirement.

Review Tax Credits for Children

Having children is incredibly expensive. Double-check that you’re getting all of the tax credits you qualify for. You can itemize medical and dental expenses. As we all know, these costs don’t come cheap. Whatever you are paying out of pocket for these costs may be itemized along with the child tax credit.

Begin a Health Savings Account

To help decrease some of the common stress of medical bills, consider starting a health savings account. Contributions made to an HSA are pre-tax dollars that can be applied to medical expenses. If you contribute the maximum amount, you can potentially save thousands on your taxes this year.

It is possible to pay less in taxes next year, you just need to put the work into finding some ways that you qualify for exemptions. For more ways to save, contact us at Timberwood Bank.

Energy Saving Tips For The Cooler Weather

Now that winter is here, it’s time to switch up your energy-saving strategy. Timberwood Bank offers plenty of fantastic solutions for you to increase your savings this season when the air continues to grow colder and colder.

Buy A Humidifier

Humidifiers offer health benefits as well as bigger savings! Humidity keeps your warm, forced air trapped in the living area in the house longer, thus satisfying your thermostat longer.

Switch Out The Air Filters

Even though it’s a little thing, changing out your filters can increase your savings exponentially. A blocked return from a filter can cause your system to work much harder than usual as well as not provide the temperature that you desire inside the home. Do the math, save more by spending a little to change your filter more often.

Lower The Water Temperature

By lowering your water temperature, you’re saving money on trying to heat the cooler water. Using your sink, dishwasher, washing machine and shower on such a regular basis means your home is working hard to continuously re-heat that water to a high temperature.

Cover Drafty Windows

The Department of Energy states, “Use a heavy-duty, clear plastic sheet on a frame or tape clear plastic film to the inside of your window frames during the cold months. Make sure the plastic is sealed tightly to the frame to help reduce infiltration. Install tight-fitting, insulating drapes or shades on windows that feel drafty after weatherizing.” By covering these big holes in your house that let cooler air in, you’ll be keeping the heat in and costs down.

Change The Temperature

When you’re not at home or asleep, lower the temperature as much as you can without being uncomfortable. Turning your thermostat back 10° to 15° for eight hours can save you around 10% a year on your heating and cooling bills!

Invest In Different Holiday Lighting

Now that the holidays are upon us, it’s important to make sure your decorations and Christmas lights aren’t draining your holiday cheer. Use light-emitting diode — or “LED” — holiday light strings to reduce the cost of decorating your home for the winter holidays.

Start saving during these cold months by implementing a few of these strategies. You can thank us later by opening a savings account with us to put in your newly saved funds.

How to Save for Your Baby’s Future

Blankets, gliders and toys galore – the list of items you need for your baby’s arrival seem like a mile long. The good news is that while some items like diapers and wipes are essential, baby can get along just fine without the matching crib and dresser set. What’s more important is planning for the days ahead. From braces to college, you can give your child a head start in life by saving for their future now. Here are some ways to start bulking up the savings!

Get Insured

Insurance can help to give you some peace of mind in case the unexpected were to occur. Having a policy on yourself is a certain way to ensure your children are taken care of should something happen. Even if the policy doesn’t get utilized before they leave the house, if it’s a permanent policy, it will last until they are adults to help pay for end-of-life expenses.

Another savings plan option is to take a policy out on your child. A permanent policy grows in cash value over their lifetime. They are able to deduct the cash value of the policy tax free to use however they wish when your child reaches adulthood.

Make a Budget

If there was ever a time to stick to a budget, it’s now. If you’re reading this blog, you’ve probably already decided that an important goal is to save for your child’s future. Now take a look at your other goals and calculate what percentage you want to put towards each goal and expense every month. Sticking to this will also set a great example of money management for your child as they grow.

Ask for Contributions

It’s easy to accumulate too many toys and items that your child simply does not need. While the baby is young, for each birthday party or celebration, ask for cash to go towards their financial future instead of a present.

Start a Savings Account

There are many different options for saving for your child’s future. There are some that are solely to be used for a child’s college tuition, like a 529 plan, and there are other basic savings plans. Meet with one of our financial specialists to determine which plan is right for your growing family.

Open a savings account with us today, so you can make sure your baby’s future is bright!

8 Surprising Ways to Save on Baby Stuff

Oh baby! Although they are small, babies can take up a significant amount of your budget. Many first time parents experience sticker shock with the numbers they see as they walk through the baby section at their favorite stores. Thankfully, there are ways to make these expenses easier to manage so you can focus on the excitement of the little one without the pain associated with the rising costs.

1. Sell What You Don’t Need

Because babies cost so much, it goes without saying that they often require a lot of things. This translates to your home being turned into an obstacle course with baby things now dominating your space. Stay ahead of the chaos by selling items you don’t need. You can use this money to buy things you know you will. This will give you extra space and some purchasing power.

2. Snip or Save Those Coupons

You might be surprised to find out not only how much coupons can save you on necessary items like diapers, but the amount of them available for babies is never-ending. Before going to stock up on baby basics, take a look to see how much you can save! Some stores may even price match brick and mortar or online deals.

3. Don’t Overindulge in Clothes

It might be one of the most fun things to buy, but you do not need as many clothes as you think you do! Consider what you think you need now. Split that amount in half. The first few months of their lives, something as simple as white onesies will suffice. Have a few favorites for them to wear when you leave the house. Additionally, babies grow incredibly quick, so often it’s best to wait to see what you will need before buying too many things in advance.

4. Question the “Necessary”

We want to get our children everything they could possibly need. Thankfully, babies actually need very little. So what about that wipe or bottle warmer you just added to the registry? Take it off, as things like these are in reality rarely used and take up wasted space. The wipe warmer will dry out your expensive wipes and bottles can be warmed with running hot water!

5. Consider the Green

When considering your money, think about going green. It may be unconventional in some ways, but some of the biggest expenses you may have are diapers and wipes. There are some start up costs to cloth diapers, but once you have the basics you are all set! To put it in perspective, diapers can cost about 1k a year, as opposed to the average $150 for cloth diapers. While your pockets become filled with green, so has the environment.

6. The Nursery: Keep It Simple

Getting the nursery decorated and set up like the influencers on social media can be a lofty and tiresome goal for any parent. We are here to tell you that it does not need to be that extravagant! It’s often safest for the little one, too.

7. Phone Your Insurance Company

Unfortunately, many are unfamiliar with what their policy will and will not cover. Don’t be afraid to give them a call to verify your coverage. Many companies offer additional services for first time parents such as weekly nurse check-ins, lactation consultants and free breast pumps.

8. Plan Ahead

The best thing you can do for your budget is to prepare for every expense this new baby will bring. For example, if you will be receiving maternity or paternity leave, you will want to calculate how much you need to save in order to be unpaid for that time (if your work does not offer paid leave). You’ll also want to factor in the additional health insurance costs that will be accrued. It is never too early to begin planning!

Save for your kiddo by using these nifty tips – then store the savings in an account with us!

4 Frugal Ways To Save On School Supplies

School is back! While you’re working on gathering those school supplies, be sure you aren’t overspending on some of the essentials. We’re here to give a little advice on ways you can save on supplies, while making sure you still get everything on the list.

Re-use

Start by shopping at home. You have drawers full of unused highlighters and almost-new pencils. Yes, your child may whine that they NEED the new 144 pack of crayons, but they will be just fine with the boxes you’ve accumulated over the years. Search through your crayons and find the newest ones and make your own box. Then find the notebooks, scissors and pencil bag from the year before to add to the pile.

Coupon It

Coupons are everything! Find the best deals online by adding a store’s app to your phone or simply search the web. Know when the best time to go shopping is for those supplies and grab your coupons. You can also bring your child along to teach them the value of saving and how those 2 for 1 deals work!

Go Generic

You don’t need to buy the $2.50 folder when you can buy almost the same one that’s a generic brand for $0.49. Knowing what items don’t need to be splurged on can save you some cash here and there – and quickly build up if you have more than one kid!

Follow Stores Online

Following stores online and subscribing to their email list may let you get ahead of the game. Stores sometimes have flash sales or extra coupons on their social platforms for devoted customers, so scoping it out won’t hurt! If you plan to bargain-hunt this year, monitor your favorite stores’ Twitter and Facebook feeds to find deals.

You can follow these stores on Twitter, for example:

Amazon Deals: @amazondeals
Coupons.com: @Coupons
Staples: @Staples
Office Max: @OfficeMax
TJ Maxx: @tjmaxx
Marshalls: @marshalls
Best Buy: @BestBuy
Target: @Target
Kohl’s: @Kohls
RetailMeNot: @RetailMeNot

We hope these simple solutions allow you to save a little here and there. Those small savings add up in a hurry, so take saving for school supplies seriously! Then, put those savings into an account for your child, so they can use it for college later.

8 Energy-Saving Tips for Spring

It was a cold winter and it isn’t quite the scorching days of summer. It’s a beloved time of year for many. But did you realize that you may be spending more than necessary on energy bills this season? Here are eight tried and true ways to save this spring!

1. Say Hello to Your Adoring Fans

Ceiling fans are the coolest way to get your home to a comfortable temperature. If you have fans that are energy efficient, they can potentially cut your costs by as much as 60 percent! Did you know that you should be changing the direction of your ceiling fan for the warm and cold months? Here’s a short how-to video.

2. Hello Sunshine

Get the windows open! Not only is it a great mood booster, but it can provide significant savings. Lighting costs can add up quickly, so take advantage of the natural light right outside of your window. Thankfully, the days are getting longer so you will be able to do this later and later into the evening as the season progresses.

3. A Grill is Swell

Who doesn’t love freshly grilled food? Even the smell of your neighbor grilling can get your mouth watering! A great additional perk of grilling is the cost it can save of having the oven or stove top on. If you’re cooking a meal in the kitchen, it can quickly heat up the whole house, thereby causing the air conditioning to run even more.

4. Seal the Deal

Do you remember the draft you felt coming from the window this year? It’s time to get that sealed. One-third of your energy costs may be going right towards paying for those leaks as cool air escapes in the spring and summer.

5. Suck It Up

In addition to spring cleaning the house, grab the vacuum and get behind your fridge. You may want some assistance to move it out from the wall. If you see that the back is starting to collect dust and debris, getting it cleaned off will help it to run more efficiently.

6. Filters: Forget Me Not

If you haven’t been regularly replacing your air filters, it’s time to do so. This will help it to run efficiently while providing clean air to your lungs.

7. Treat Your Windows Nicely

Window treatments can do wonders to cut costs on the electric bill in all seasons. You can get blinds or curtains. We would recommend thick light-blocking curtains that do a great job of keeping the temperature to your preference on the really warm days.

8. Shorten Spring Showers

Leave the long showers to mother nature. Your water bill can add up quickly, so start challenging yourself to no more than a five-minute shower. One way to make sure you stick to this time is by setting an alarm and placing it in the far corner of the bathroom opposite the shower. Nobody wants to hear that loud beeping while taking a shower!

When you start saving on your energy bills, open a savings account with us today so you can safely store that cash!

Money Savings Tips to Keep Your Finances On Track

Does it seem like your savings plan always becomes derailed? Starting too big or having unrealistic goals can prove faulty. Once you do have some money saved, it may be difficult to know what to do with all of it – leaving you wondering where to go from there. Luckily, we have compiled a list of simple saving guidelines to keep your finances on track.

Stop spending money you don’t have.

This may be one of the hardest rules to follow. Even though that check is coming on Friday or you’ve been doing “so good” with savings, doesn’t mean you get to throw it all away. The money you accumulate all has a place it needs to go, so don’t convince yourself otherwise.

Use less than 30% of your income for your wants.

Wants include movies, shopping, restaurants and nights out on the town. While allowing yourself to have fun, you’re still able to save as you’ve put a 30% cap on your monthly limit.

Reevaluate all of your bills.

Be able to look through your bills and know if you’ve got the best deals. If you’re already getting the best prices, try to find places to cut expenses. Do you need cable or can you switch to a cheaper option? Is an unlimited data plan necessary or do you fall into a different category that may cost less?

50% of your income should go to necessities.

Groceries, housing, utilities, health insurance and your car payment all fall under necessities. Work on your budget to see how you can make these payments fit under your 50% cap. If you’re lucky and have some left over, put that towards an emergency fund or vacation fund. This will make you more motivated to meet these limits.

Create a budget and stick to it.

Creating a budget is easy – sticking to it is the tricky part. Be sure to make your budget realistic, which is why we mention the 30% of wants portion. You’re going to spend the money, so allocate for it. Downloading a budgeting app will also help remind you when you’re close to reaching your budget. A few great options include Mint, You Need A Budget, PocketGuard and Wally.

Set 20% of your income aside for financial priorities.

As the 50/30/20 budgeting rule goes, 20% of your income should go to savings. By auto transferring a portion of your paycheck straight into savings, you won’t even realize you have more money you could be spending! These savings could be used for a house down payment, tuition for a child or part of an emergency fund. When you put a name to your savings account, it will make it easier to save for.

Keeping your finances under control can be fun! Challenge yourself to see how long you can go meeting all of your budget goals. Find ways to skimp on expenses and become a super saver. If you’re looking for a place to store your savings, our accounts are a great option. Give our team a call to set up a savings plan that fits your needs!

Saving For Retirement in Your 30’s

Congratulations, after your roaring twenties, you have made it to the thriving thirties. Unfortunately, with another candle added to the cake comes another responsibility. People in their thirties have a very high amount of expenses from a house payment to the cost of little ones, which is why we wanted to offer the following solutions to saving.

Automate Savings

You have hopefully already begun a savings account for the other financial goals in your life. If not, no worries! You’ve likely decided that this needs to be a priority now, or you wouldn’t be reading this blog. A simple way to start is to set up a percentage to be automatically put into a 401(k).

Many employers will automatically do this for you with each of your paychecks. If they don’t, this is something you will be able to set up on your own, so you don’t accidentally spend the money instead of investing in your future! If they already do this for you, consider increasing the amount even more.

Compound Interest

You’ve probably been saving for retirement since you became an adult, right? We would be very surprised if you did! A majority of Americans in their 20s and 30s have less than 10k saved towards retirement. If you’re late to the party, that’s okay! If you are thirty now, you still have until you are 65 to gain compound interest on your savings. Saving a little now will grow tremendously over the next thirty years.

Don’t Cash Out

You’ve probably been working for a while and have had a few different jobs. Even more likely, you will have more than one job within the next twenty years. A hard rule of thumb is to never cash out of your retirement policy when you switch employers. The money may be enticing, but it is crucial to roll it into your next retirement account to avoid the fees of withdrawing early. If you roll the money into a new account, it can be worth ten times the amount come retirement.

Keep Your Eye On That Golden Sunset

We understand you have many responsibilities you are managing daily. It can be difficult to picture retirement when you have so many other things or people fighting for your attention. However, retirement will come and the responsibilities will dissipate if you plan correctly. Try to not let the urgent things of today take priority over the important things of tomorrow. Instead of splurging on that brand new car, consider buying used and put extra money away for your golden years!

If you need help planning for your retirement, come see us at Timberwood Bank for guidance! We have numerous solutions to help you save for the future.

Holiday Hacks for Saving Money

Shopping for the holiday season can get pretty expensive – especially with gifts for the whole family and hosting traditional holiday parties. Luckily, this holiday season we are offering you 5 top-notch money saving hacks so you save more than you spend!

Be a Thrift Store Champ – When you shop at thrift stores, you can find inexpensive gifts and decorations for this holiday season. This is the perfect spot to find your ugly Christmas sweater and a wonderful resource for one-of-a-kind gifts. The items you can find here will most likely be under $10. What a bargain!
Download Discount Code Apps – Honey is a chrome extension that searches and applies online discount codes so you can find all the best deals for your holiday shopping. You also never have to pay full price for a gift card as there are discount sites online such as: Gift Card Granny or Cardpool that make it fast and easy for you to save money. Stack up those online codes to get the best deals!
Shop on Black Friday & Cyber Monday – Shopping the Black Friday deals might be a zoo, but in the end, the mess of people and long lines are worth it. Black Friday always offers some of the best deals at your favorite stores. If you have a large purchase to make, such as a T.V. or kitchen appliance, go shopping on Black Friday. Similarly, Cyber Monday offers great deals, but instead of going out into the madness, you can shop in the comfort of your own home. Shopping Cyber Monday will allow you to get special items at a good price without having to go anywhere. In addition to these two hacks, during the middle of December many retailers participate in Free Shipping Day. This is a one-day event where consumers are able to shop both big and small stores that offer free shipping.
Utilize Your Dollar Store – At the dollar store you can find decorations, wrapping paper, and even holiday ornaments! You can also buy serving platters, dinnerware and extra kitchen utensils to make your holiday party extravagant for your guests without putting a big dent in your bank account.
Participate in Secret Santa – Try something different this holiday season. Instead of buying gifts for everyone in your family, suggest the Secret Santa method! This is an easy and enjoyable gift exchange for everyone to participate in. A few weeks before Christmas, put the names of every member of the family in a hat or bucket, and have each person draw a name. They will then only have to buy a gift for that person. Not only will this help relieve some financial stress, it also serves the purpose of talking about the importance of service and giving during the holidays!

It is so easy to get all wrapped up into the spending cycle during the holidays, but hopefully with these hacks you will be able to find simple treasures and save money! If you’re looking for an extra special gift to give this holiday season, consider opening a savings account with us for your child – we’d love to be a part of the holiday spirit!

The Expert Saver’s Financial Bucket List

Savvy savers are full of great ideas and qualities, so those who aren’t the best at keeping our finances in check are always left wondering how they do it. Thankfully, Timberwood Bank offers a bucket list with some of the expert saver’s top priorities you can strive to meet!

Pay off your credit card debt.

As the average American has $16,000 worth of credit card debt, focusing on paying off yours can be a big financial undertaking. There are different methods you can utilize such as The Snowball Method, which includes making minimum payments on all your accounts and putting what you have left towards the account with the smallest balance. The Avalanche Method involves paying off the largest amount of debt first and continuing on until everything has been paid.

Say goodbye to student loans.

Student loans can be one of the longest standing debts in many households. With the average outstanding loan balance being at $37,000, starting a routine to pay off these loans should be a top priority. By committing to a certain amount each month to pay, you’ll see your loans decrease quickly. Be sure to put extra cash towards the loans with the highest interest rates or try to refinance to a lower interest rate.

Buy a home.

Being a homeowner is a big step to take in life but well worth it. In some areas, buying a home and paying your mortgage each month can be cheaper than paying rent. Figuring out how much home you can afford and getting pre-approved are your first steps to financial success. A rule of thumb can be to take your monthly after-tax income, subtract all current debt payments and then multiply that number by 25%. This is a good indicator of how large your monthly payment can be.

Set up an emergency fund.

It’s sad to say, but bad things are bound to happen. Instead of being caught off guard when a pipe bursts or you need an emergency surgery, build an emergency fund. Having money put aside for the unexpected will help life be much more enjoyable when problems arise. Depending on your income, monthly costs and lifestyle, try to have between three and nine months worth of expenses saved in your emergency fund. See about setting up a savings account with us for items just like this!

Get a raise.

Negotiating for a raise can be tricky, but you won’t be able to move forward financially if you don’t push for what you deserve. Focus on all of the benefits you have brought to the company and changes you’ve made for the better. However, don’t expect more than a 4-5% bump, as asking for too much can be viewed as greedy.

This bucket list is what all expert savers strive for as an end goal. Put into action a few of these tips to allow yourself the monetary success you deserve! Feel free to give us a call or stop in to discuss our different savings options!

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