Tag Archives: savings

Make Your 2020 Savings Goals A Reality

The new year is full of hope and imagination for the future. It can be challenging for anyone to stick with these goals, especially financial ones. We’re happy to tell you that there is a way to make these goals a reality by sticking to these wise practices.

Be Realistic

In order to make your goals a reality, you should set realistic goals. While a beach house on Maui would definitely be an attractive prospect to most people, it’s not in the cards for everyone. Maybe something like this will be there for you someday, but first you want to master the baby steps. Think about goals within the next 1-5 years that you can see happening and are motivating.

Prioritize Goals

Not all of your goals are likely to be reached in 2020. Prioritize the goals in the order that you think they can be accomplished first and that are also the most important to you.

Identify Roadblocks

Plan ahead for the things you think might go wrong or steer you off course. Is one of your savings goals to cut down on splurging but you find yourself repeatedly swinging through drive thrus and shopping online just because you have a free shipping subscription? Decide on alternatives to keep you from continuing with these habits. If there are events or emotional triggers that compel you to spend money, figure out another way to get relief. Go for a run, read a book or invite a friend over for a movie night.

Organize Accounts

Get familiar with the banking accounts available to you. Learn about how to use them to fit your lifestyle. Maybe you want each paycheck to have a percentage go straight to checking. Get this set up! Have you downloaded our mobile app yet? If not, consider doing so. It’s a great way to easily keep an eye on your everyday spending as well as check in on your growing savings account.

Celebrate Progress

Goals aren’t achieved overnight. You’ll be working hard to achieve your goals and you might experience some burnout. To keep this from happening, celebrate the strides you are making towards reaching your goals by having a visual that can remind you of your “why” and modestly celebrate each achievement in a way that’s fun for your household. If you have kids, get them in on the fun and teach them why following through on commitments is important and why celebrating mile markers is also important!

For more ways to follow through on your savings goals, reach out to us today!

How to Boost Your Retirement Savings

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.

3 Questions to Ask Before Using Your Emergency Fund

When is a financial emergency, truly an emergency? Establishing an emergency fund is an incredibly important part of your budget, but knowing when to use it is just as important. Ask yourself these three questions before dipping into the pot.

Emergency Fund

If you’re new to budgeting, we recommend having a $1,000 cushion to help offset the cost of an emergency expense without it derailing the rest of your budget. If you aren’t able to put the $1,000 aside now, start small and work your way up to a number that is comfortable for you.

Is it unexpected?

Unfortunately, life can hit us with some difficult challenges that result in significant financial hardship. These are the situations in which use of the emergency fund is acceptable. This could be an unforeseen medical expense, like a child’s broken arm. Or, maybe you lost your job and will need some help getting the bills paid until you find new employment.

These type of events are unexpected and difficult to plan for, as you hope you will never have to face them. What would not be “allowable” is using the emergency fund to pay for expenses that you know are coming each month, such as a cable or utility bill.

Is it urgent?

The word emergency typically implies, immediate. For example, if you have a sick loved one who needs you across the country, it won’t do them any good for you to wait until you have saved up enough money to visit. They need you now and it is reasonable to use the emergency fund to get there.

Will it fulfill a need?

For many, it can be tempting to spend the large amount of money accumulating in your emergency fund. But this is where you need to truly consider needs vs. wants. For example, let’s say your dishwasher broke. Of course, this is not ideal and can make your life more difficult, especially if you have many people in your household.

However, it wouldn’t be categorized as a need. You can wash dishes by hand and start saving for a new one. But, if your dishwasher broke causing water damage to the cabinetry, this would qualify as an unexpected and urgent need to take care of as soon as possible.

If you’re looking for a safe place to keep your emergency fund, allow us to help it grow a little by placing it in a savings account with us!

Organizing Your Finances for the Holiday Rush

The holidays are a time where we surround ourselves with family, friends and the people we love most. Whether you’re staying close to home or traveling across the country, the holiday season means you’ll be eating good food and spending plenty of time shopping.

And while all that food may mean your clothes fit a little tighter, the shopping can have a similar impact on your wallet. It’s important to make sure your finances are organized before the real holiday rush is upon us. Not only will you be better prepared, but you’ll be less stressed so you can enjoy the holidays with your loved ones. Make your holiday season more enjoyable by using these tips from Timberwood Bank.

Technology Is Your Friend

It’s easier than ever to use technology to organize your finances. Take advantage of online and mobile banking to get a real-time look at your account balances. Utilize the mobile deposit feature of your mobile banking app to deposit personal checks to your account so the funds are available sooner. There are also several financial management tools available online that will help you with setting a budget and establishing saving goals.

Set Alerts

You already know that your bills are due at different times throughout the month, but it’s important to remember that the holidays may cause changes in those due dates. Verify any upcoming due dates and make note of any changes from your regular monthly payment schedule. Utilize the bill pay features of your online banking account to make sure payments are scheduled well in advance, and set up alerts to make sure you’re reminded of your payment and to verify that the payment went through.

Hold On To Your Statements

This is hard to remember throughout the year, but keeping all of your statements organized is important. Something as simple as keeping separate manila folders for your savings and checking account statements, IRA statements, 401(k) records and other financial documents can go a long way and won’t cost you much.

Get Rid of High Interest Debt

It can seem easier to use your credit card when holiday shopping. To make sure you can use your credit during the holidays, make sure you’ve paid down anything you owe.

Organizing your finances before the holidays hit will make the season more enjoyable so you can focus on the things that matter most. Contact Timberwood Bank to make sure your finances are set up for a happy holiday season.

How to Create Better Habits

betterhabits

If you’re like us, starting a new diet, or working to exercise more often is more difficult than we initially planned. The same is true with many financial goals you may have. Saving for retirement, eliminating credit card debt, increasing your credit score; these are all things that take time and dedication to complete, but sometimes it’s hard to stay on track.

Luckily, Business Insider recently released an article that showcases just how it takes for your brain to form a habit. Surprisingly, it’s less than you’d think! It takes approximately 66 days for a consistent behavior to be added to your brain’s list of automatic actions. Thankfully, those 66 days do allow for some error. We’re all human, so there’s no need to be perfect during your trial practice. However, by committing to your new habit for 66 days or more, you can ensure that this new beneficial behavior sticks with you well into the future.

This new habit can be as simple as remembering to take the trash out, or as complex as maintaining a specified number of calories in a day. At Timberwood Bank we want to inspire you with some important financial habits to help you progress down the path of financial success. Take a look at these three examples, and don’t hesitate to ask our dedicated team members for help if you’re ready to begin your next 66-day practice round!

Use the Envelope System: To help train your brain to only spend what you budget for, withdraw your total flex spending budget for the month. Then, divvy it up amongst your budget categories like food, entertainment, transportation, etc. After it’s been segmented, stick to your dollars, and only spend what you have in the envelope. No credit or debit cards to spend extra. If you can successfully make this a habit, you could see a large amount of extra savings which can then be used for vacations, retirement, or other savings ventures.
Pay All the Bills Before They’re Due: Many habits appear easier than they truly are. In order to process this behavior into a habit, there are several steps you’ll need to repeat each month. To get started, make a calendar at the beginning of every month to mark the dates bills are due and for how much. Then, as the bills arrive, structure your payments to pay one at a time, leaving extra cushion in your account, should an unexpected expense arise. Using this recurring schedule, you can help yourself to get each expense paid before the designated due date. As an added bonus, an ongoing history of on-time payments may benefit your credit score too!
Save for Retirement: This one is often a habit that takes longer than 66 days because there is no immediate reward for the effort you put forward. Later in life, your future self will thank you, for putting the time and savings away early on. The first step in this process to research your options. If your company offers a 401(k) and a match, that may be the first place you want to start. By automating payments from your paycheck, you can use pre or post-tax dollars to bolster your savings without the temptation of spending. Then, when you save extra money with your envelope system, remember to add those surplus funds into your retirement savings account to give it an added boost.

We love the three goals listed above, but that doesn’t mean you can’t create your own unique financial habits! If you’d like to get started on a new financial behavior, stop into your nearest branch today and speak with one our personal bankers. Our team at Timberwood Bank would love to help kick off your next 66 day habit!

Eat This Not That

Save Money

Like many Generation X’ers we grew into adulthood alongside this viral diet book, which showcased the epitome of dieting in the late 2000’s. Now a decade or two later, there are still some relevant tips and tricks we’re excited to share here. See how Timberwood Bank can help you switch up your spending, by eating THIS instead of THAT, to put some extra bang in your buck.

EAT Dried Beans NOT Canned Beans: While many Americans are used canned beans as a pantry staple, you can save more than 50 percent when you take the time to cook with dried beans instead. According the Bean Institute, dried beans typically run about $0.15 per serving, with canned store brands bean coming in at $0.34 per serving, and your national brand of canned beans costing approximately $0.48 per serving. Additionally, if you cook your beans in a stock you can add additional flavor to your dish for only pennies per serving.
EAT Bulk Sized Snacks NOT Pre-packaged Portions: When trying to pack a child’s lunch, or meal prepping for yourself, it can be easy to turn to those pre-packed time savers. However, if you’re looking to lessen your grocery spending for the month, we recommend buying your family’s go-to snacks in bulk. Great retailers such as Sam’s Club, Costco, and Amazon offer great bulk pricing to help your household reduce their monthly expenses.
BUY Store Brand NOT Name Brand: Speaking of name brand, forget your brand loyalty and seek out the options that truly stretch your dollar the farthest. Great pantry staples like canned tomatoes, sugar, flour, stock, etc are consistently less costly than their national brand counterparts. Enjoy those extra dollars somewhere else in your budget, and see how much you can save off your grocery bill using this simple switch.
EAT Bread & Butter Roast NOT Flank Steak: Although these two cuts come from differents parts of the cow, they do offer very similar tastes. The bread and butter roast runs typically a few dollar less, but is still just as tender and buttery when sliced thin. Both options offer a great beef taste, however when shopping for the entire family, this bread and butter alternative could save you several dollars per person!
EAT Ground Pork NOT Ground Beef: Many people are familiar with ground pork when it comes to meatballs or brats, however, did you know you can supplement ground pork for beef in many other recipes? Something as simple as Hamburger Helper can be used just as easily with this more affordable alternative. If you purchase the ground pork unseasoned you can ensure it only has the flavors you and your family want, compared to it’s spicy italian sausage counterpart.
EAT Frozen Pizza NOT Delivery Pizza: Often you can find a frozen pizza at your local discount grocer for approximately $3.33 each. However, if you choose to purchase from a national chain you could be paying as much as $10.99 for a medium pizza depending on your brand. An added benefit of frozen pizzas is the sales cycle of many chains. If you wait until this frozen entree goes on sale you could snag them for as little as $2.50 each or less!
EAT Frozen Fruits and Vegetables NOT Canned Fruits and Vegetables: Not only do these frigid foods save you money but calories too! While the canned items can offer more convenience, they typically contain syrup or oil to help keep the produce fresh. Avoid these extra calories and costs by purchasing the frozen option instead.
EAT Whole Chicken NOT Rotisserie Chicken: This change-up is purely time related. You can cut the cost of your meal in half or more by taking the time to roast your own whole chicken at home instead of purchasing one which has already been prepared. While you may need additional ingredients such as olive oil, herbs, and spices, they come at a fraction of the cost, and can be used for countless other dishes in your kitchen. Not to mention you can make your own stock with the scraps!

We love cooking, and we can’t wait to hear how these tips and tricks can help your family succeed! Be sure to share your favorite success stories and recipes on Timberwood Bank’s Facebook page. We’d love to see which hacks have helped your household the most.

3 Sure Fire Ways to Save on Travel

Budgeting

Still planning that next family vacation, or you and your sweetheart’s upcoming getaway? Timberwood Bank is here to help you save as much as possible! We know the internet is flooded with travel savings hacks and hints, however, these three strategies have proven their value time and time again!

Before we jump into these smart savings strategies, we want to offer some affordable inspiration for your next getaway! For example, did you know there are various destinations where your dollar can go farther, or other getaways which are less expensive during the holidays? Vacations like these aren’t always the easiest to find, but they’re well worth looking for! Once you know where you want to go, it’s time to implement these supportive saving systems.

Costco Travel – Save MONEY when booking. In our searches for an affordable and fulfilling vacation, we stumbled across this great article detailing the incredible savings offered through Costco Travel. After looking into many of these packages and adventures, we found the savings were almost too good to be true. While you do need to purchase a membership, the savings from your vacation alone far outweigh the expense of the annual cost. (Not to mention the countless savings you can find in store or online too!)
TSA Precheck – Save TIME when traveling. After you’ve saved your money during the booking process, you’ll want to enjoy every minute of your hard earned vacation, even those few minutes (or hours!) at the airport. Instead of waiting in security lines for what seems like an eternity, enjoy a quick and speedy process through the Transportation Security Administration’s Precheck program! After doing one extensive background check and identification, you and those traveling with you, can enjoy the ease of transit for the next 5 years for only $85.00 dollars. If you could miss one flight due to security lines, this membership would pay for itself in saved ticketing fees alone.
FLIO Airport App – Save your SANITY in transit. Sometimes when you’re traveling you end up in an airport you may not have traveled through, but fear not! Before you start searching for you next departure gate, or walking to find the best bite to eat, open up this all-encompassing airport app. Filled with airport layouts, restaurant ratings, and flight tracking capabilities, you can manage all your in-route activities with this one helpful hack.

We hope you and your fellow travelers enjoy these tips as much as we do! If you need to setup a designated savings account for your next adventure, Timberwood Bank has the perfect solution! Stop by your nearest location, and start saving today!

7 Items Worth the Splurge

splurge a little

When you make your savings plan, you often don’t think about the things you should spend extra money on. While scrimping on other items such as groceries or kids clothes could help you in the long run, there are some expenditures that could cost you in the future if you don’t pony up for the better option. At Timberwood Bank we suggest taking a second look at these seven products, and see if you need to upgrade the next time you buy:

Toilet Paper: You may not think it’s necessary, but let’s be honest; when you’re staying at a hotel that doesn’t have the good stuff, you notice. Household items such as toilet paper or garbage bags are bought to complete a task, and if they don’t complete it well or comfortably then it’s time to reconsider your options. We believe this product is worth the extra couple bucks, but we do recommend saving by buying in bulk!

Office Chair: If you’re like many Americans, you may spend a majority of your day sitting down. To avoid chronic back pain, and a slew of other ailments, we recommend investing in a comfortable and reliable office chair. If your employer is willing to pay for all or a portion of the chair, be sure to offer your measurements to be sure their options fit your height and weight specifications.

Mattress: Did you know you spend 33 percent of your life sleeping? For such a large portion of your time, you’ll want to be sure you’re getting the best sleep possible. Avoid those box store less costly options, and test out a few of the higher end options available in your budget. Not only can you sleep better, but you may find yourself spending less on coffee or energy drinks as well.

Pillows & Bed Sheets: While the mattress will make the biggest impact on the quality of your sleep, upgrading your thread count and purchasing the proper pillows can make a world of difference as well. Something as simple as changing the firmness of your pillow could help you sleep through the night more soundly.

Work Clothes: Sweats, shorts, and other home attire may not require the added expense, but the clothing that you wear to portray yourself at work should come across as professional while also remaining intact over time. We suggest finding one or two brands that fit both your budget and your style, and selecting key basic pieces to compile a wardrobe of endless combinations.

Garbage Bags: Do you enjoy it when you go to take the trash out in the early morning and just as you reach the bin, the bag breaks across your feet? No, neither do we. We agree that it is more than worth the extra dollar or two for the name brand bags that won’t break. After all, if the bag breaks, that means you’ll need to take a shower too!

Data Plan: Every cell phone provider seems to come out with a brand new plan option as soon as a new phone is released. While the choice of phone is completely up to you, we think that the data plan should cover not only what you think you’ll use, but some buffer room too. Instead of paying the expensive overage fees every time to go over your data limit, we recommend purchasing a more comprehensive plan to ensure you have a little extra space when you need it.

These seven things will prove their worth in the long run, and many items only require a one-time investment. If you have any other items you think we should add to our list, let us know on our Facebook page. We’d love to hear from you!

Who Says You Can’t Make a Snowball in the Spring?

Debt Management

While the weather can be as predictable as the Powerball, one thing that you can always count on through the seasons is your ability to snowball anytime you want. However, before you start creating snowmen out of ice shavings, let’s first cover what a snowball is. Typically in financial terms, snowballing is an action in which you structure your debt payment to decrease the overall time and cost associated with any accounts payable you have.

Here’s how it works: To begin a snowball, you first need to know what debt(s) you have on the table. By creating a list of your known debts, and also checking your credit report for any unknown ones as well, you can ensure you have all your bases covered. Then, using that information, prioritize your debts by amount from smallest to largest. Once you have them organized you can begin to set-up or continue minimum payments across all installments.

For the next step, you’ll want to look through your current spending and earning to see if there are ways you can allocate additional funds each month to pay off your debt. Whether it’s an extra $50 or an extra $500, every penny matters!

These additional funds can then be assigned to the debt you indicated at the lowest amount. Each month you’ll have a little extra money to help pay off that expense even sooner. Once the balance reaches zero, the snowball officially begins! Now that you have eliminated one payment, you can utilize all the funds that were going towards that expenditure and push them towards the debt with the next lowest amount.

Continue to do this process until each unwanted debt is paid off. Debts such as your mortgage are a great thing to pay off early, but may not be necessary to include in your debt snowball. Our helpful mortgage lenders can always assist in restructuring your payments if you are truly passionate about eliminating all debt.

If you’re ready to get started, we have some great money savings tips to help you find those extra dollars!

Switch to a Discount Grocer: You could reduce your monthly grocery bill by up to half when you shop at a bulk or discount grocer instead of a brand-oriented chain.
Bring Your Coffee and Lunch: Both of these items could be costing you more than you think! The typical American lunch runs approximately $12.00 and an average latte could cost you $3.50 a day. By bringing both food and beverages from home you can drastically decrease your monthly expenditure for dining.
Take Advantage of Apps: New technology based tools like Mint, Honey, and RetailMeNot, offer continuous and unique ways to save and manage your personal finances. By taking advantage you can not only save on unexpected items but better visualize your budget through tracked spending categories.

At Timberwood Bank we are excited to help you succeed on your journey toward financial success. If you’d like to set-up automatic payments, or monthly transfers, our Online Banking can help! Visit our website to get started today.

The Latte Factor 101

Saving Money

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 Timberwood 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 Bankers are here to help. Just stop by or drop us a line – no appointment needed!

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