Author Archives: ISBTC Blogger

Rainy Day Fund: 4 Ways to Save for Unexpected Events

We all have bad days when unexpected misfortune is thrown our way. You can make those days a little less painful by preparing for the costs ahead of time! A Rainy Day Fund will help you protect yourself financially from life’s mishaps, such as fixing a flat tire or a small plumbing problem.

1. Separate Your Savings

You can separate your savings accounts to better track your savings. For example, you may have one savings account for medical emergencies, one for vacations, and one for your Rainy Day Fund. This could motivate you to save more. If you see one of your savings areas lacking, you can concentrate more money into that account on your next payday.

2. Save Extra Income

While it may seem obvious, it’s definitely not easy. When you receive extra income, whether it be a work bonus or birthday money, put that money directly into your savings account. Delaying the short-term gratification of spending it can lead to more significant peace-of-mind in the future.

3. Start Saying No to Whimsy

Before you go shopping, make a list of what you need. Buy no more than what is on that list and shop purposefully. If you love the occasional “splurge,” account for that in your budget. For example, allow yourself $20/week to spend however you please, whenever you please.

4. Set a Goal

It’s hard to know where to begin if you haven’t set a goal. For many, a Rainy Day Fund is the first step in learning how to build a larger emergency savings. It sets the foundation for a more detrimental financial emergency, such as losing a job. Start small but be specific about what you hope this account to look like three, six, and twelve months from now. Setting and achieving your goals is great motivation!

We offer a variety of accounts to keep your Rainy Day Fund safe and secure. Learn what works best for you at Iowa State Bank.

Savings Hacks for College Students

While college remains one of the best ways to invest in yourself and your future, the cost of attending college continues to grow. Developing strong saving habits can help reduce financial stress and better prepare you for life after graduation.

Set a Budget

Creating a budget is the first step in any successful savings strategy. Outline your monthly expenses, including things like going out with friends on weekends. Next, figure out how much money you have to spend each month. If you’re working while in school, your goal should be for your income to exceed your expenses. If you’re living off of money from a summer job, figure out how much you can afford to spend to make it last throughout the entire school year.

Save on Supplies

Your school’s bookstore may have the latest and greatest when it comes to logoed swag, but shopping there won’t help you save money on school supplies. When it comes to notebooks, pens, pencils, and backpacks, you’re much better off going to a local big box store.

Additionally, buying new course textbooks from campus is usually much more expensive than alternative options. Purchasing a used copy of the book, or using an online book rental program, will save you hundreds.

Find a Part-Time Job

Even if you’re a full-time student, you probably have some free time outside of attending classes, doing your homework, and studying for exams. Getting a part-time job is a great way to earn extra money and build your savings. If you can find a job on campus, it’s easy to work around your class schedule. But don’t be afraid to look for an off-campus job. Just be clear about your class schedule with your potential employer, and set realistic time expectations for yourself.

Develop a Strategy that Works for You

There are countless ways for a college student to save money. All you need to do is develop a strategy that works for you, and stick to it. We hope these tips will give you a good starting point to develop strong savings habits that will serve you well throughout your life. Place your new savings into an account with us – we love to help your money grow!

7 Surprising Costs of Buying a Home

Buying your first home is so exciting. It can also be a little nerve-racking. Here are some home buying expenses to consider before becoming a homeowner.

The Appraisal

An appraisal involves having an unbiased, professional appraiser determine the market value of the home. An appraisal helps ensure that you do not pay more for the home than what it is worth. This costs an average of $300 to $400, and should be factored into your budget.

Home Inspections

Not to be confused with appraisals, home inspections more closely examine the condition of the foundation, plumbing, roof, attic, appliances, electrical system, and more. An inspection will help you understand which future maintenance repairs to expect. The average cost of a home inspection is $325.

Closing Costs

While sellers pay most of the closing costs, buyers should expect to pay an average of 2% to 5% of the home’s purchase price in closing costs. This typically includes application and recording fees, flood certification (in some areas), taxes, and title searches.

Homeowners Insurance

If you rented prior to this, you may be new to homeowners insurance. It differs from rental insurance, as that covers your liability and personal items, while homeowners insurance also covers the physical structure of a home. The average cost of homeowners insurance in Iowa is $1,205.

Home Maintenance

The nice part of renting is not being responsible for home maintenance. The maintenance that comes with home ownership may require items like a lawnmower, gardening equipment, a ladder, and a snow blower.

Homeowners Association Fees

A homeowners association (HOA) is an organization that enforces rules and regulations for the properties and residents. Purchasing a property within an HOA’s jurisdiction will require you to pay HOA fees. The fees go toward maintaining properties and shared services among the community. HOA fees vary drastically, with an estimated average of $200 to $300 per month for a single-family home.

The Big Move

The move itself can be a significant expense, especially across state lines. Depending on the size and distance of the move, hiring professional movers may cost between $300 and $5,000.

Budgeting for these costs will allow you to have a realistic price in mind when house hunting. Our team offers great insight into our mortgage products. Discover more today!

How to Buy a Car – and Actually Save Money

Is your current car on the fritz or have you been eyeing that shiny new Jeep you see parked at a dealership on your way to work every morning? If you’ve been hesitant to buy a new vehicle because you’re worried about it costing too much, here are some ways that you can get the car you’ve had your eye on while still saving money.

Get Pre-Approved

Before starting your search, you should get pre-approved for a loan. It’s important to know what limit you qualify for and align that with your monthly budget. It has been estimated that your total auto expenses should not exceed more than 10 percent of your yearly income. This includes the loan, interest, insurance, and maintenance. When you know your limit, you can stop yourself from gazing at cars out of your price range that you may have otherwise talked yourself into buying.

Sell Your Current Car

Many times the dealerships will ask you to trade in your vehicle in order to get a “better deal” on the new car. However, you can typically get more for the auto if you sell it privately. This may cost you some additional time to fix anything major with the car, as well as listing it in the local classifieds. The dealership will turn around and sell the car for a profit anyway. Shouldn’t that extra money be yours to put toward your new wheels?

Shop Around

You are your best advocate when it comes to finding and buying your new car. Don’t make any decisions right away. A smart way to start looking is searching at the average value of the car you are wanting. Look at reputable sellers online to see what the cars are typically going for, so you don’t find yourself getting swindled by a dealership transaction.

New-to-You is Often More Valuable

The minute a car is driven off of the lot, it loses a significant amount of value. Often, the features in brand new vehicles aren’t much different than vehicles from a few years prior. Consider buying Certified Pre-Owned vehicles to save yourself hundreds or thousands of dollars.

Be Wary of Extended Warranties

Many dealerships will push heavily for you to have an extended warranty because it makes them more money. It is, of course, your choice whether or not declining the warranty is worth the risk. However, these extended warranties may be moot in comparison to the manufacturer warranty. They are usually very expensive and do not make it worth your dollar in the long run.

We want to help you get a new set of wheels! Contact a Personal Banker today to find out about our affordable auto loan options.

Cybersecurity for Beginners

Let’s get back to the basics! Cybersecurity is important for everyone, whether you use the Internet daily or weekly. If you’ve never considered the best security tactics for the cyber world, hold on tight and pay close attention as we run through the biggest pillars of cybersecurity.

What is Cybersecurity?

Cybersecurity is the act or process of protecting devices, networks, and programs from theft or damage. Everyone has something to lose, whether it be their identity, money, or hardware. Cybercrime can happen to anyone. It’s important to be aware and prepared.

Start with the Physical

In addition to protecting yourself in cyberspace, protecting your physical space is also important. Keep all of your devices secured with password protection, so that if your device is taken, your sensitive documents cannot be accessed. This also goes for being cautious on the flash drives or hard drives you plug into your computer. Unknown drives may be infected with malware seeking to steal your information. Never leave your devices unattended in public spaces.

Create a Tight Password

The first line of defense against a cyber-criminal is your password. It’s tempting for many to choose something that is short and easy to remember. However, your password should be complicated enough to keep a hacker out. It’s suggested to use a sentence for a password. For example, instead of choosing your pet’s name as a password, create a sentence about your animal. It could be something like: ”Mydogspotlikestonap.” Get creative!

Avoid Public Wi-Fi

While we believe it’s fantastic to make use of public libraries and coffee shops, using public Wi-Fi can put you at risk. There are two types of public Wi-Fi: secured and unsecured. One is safer than the other. A secured network will require you to enter a password, or register an account, in order to access the service. This is the safer option. Unsecured networks do not require a password or any login information. If you want to use an unsecured network, be careful not to access any personal information, as the line can be easily hacked.

Be Social Media Conscious

Social media is a great tool to stay connected with friends and family. However, be sure that you are not posting sensitive information about your identity, such as your birth date and current location. It’s also important to keep your settings private so only your close friends can view your account.

Welcome Updates

Software updates may seem tedious, but they keep your device secure by patching any areas that are prone to hacking. Most software will alert you when updates are available, and your computer will often ask you to restart to complete the installation of updates.

Be Suspicious

Always be suspicious of anyone asking for your personal information or money online, whether it’s an unsolicited advertisement or an email from an unknown source. It’s often the best course of action to not interact with any unknown sources.

Stay safe and secure by utilizing these cybersecurity tips! You can also open an Online or Mobile Banking account with us – so you can securely view your account balance, transactions, and make transfers between accounts.

Top Tips to Save Money on Back-to-School Supplies

Whether you are taking your little ones for their very first school supplies shopping trip or perhaps gathering items you need as you continue your education this fall, there’s no need to empty your wallet. Here are some great ways to save money on school supplies, while still getting everything that’s on the list!

1. Ask a Friend

If you have a friend who has taken that class before or whose child has had the same teacher, it’s time to give them a call. Ask them what supplies were truly needed and what items you can do without. Sometimes lists have a lot of excess supplies, so be sure everything you purchase will be used!

2. Skip the Extras

Think carefully about the list. Does it seem like there are unnecessary items? For example, if the list says to buy pencils, there likely isn’t a reason to buy separate rubber erasers. You may be doubling up on supplies if you don’t examine the list carefully before buying.

3. Scour Your Home

You know that junk drawer you’ve been wanting to clean out for some time? Now is your chance! There are likely many items like pens and pencils laying around the house already.

4. Online Shop, but Don’t Buy

One trick to online shopping is placing items in your shopping cart, but not purchasing. Leave those items there and often, you will be offered a coupon to convince you to complete the purchase. A penny saved is a penny earned!

5. Stock Up

There are often many back-to-school sales that won’t come around again throughout the year. If there are supplies like glue sticks or folders you are sure will need replaced at some point this school year, go ahead and buy extra at the lower cost. This will save you money during the year and if you don’t end up using it this term, you’ll have part of your shopping already finished for next year.

6. Know the Stores

Social media can be your best friend when it comes to back-to-school shopping. Either sign up for email sales alerts or “like” your favorite retailers’ Facebook pages. This will keep you updated on the latest school sales and which stores have the best deals on each item.

7. Don’t be Fooled

Often, places like dollar stores or general retailers will make items seem significantly cheaper by decreasing the size of the item. They may have folders listed for 50 cents each, but in reality you could buy a pack of three folders for a dollar. Be sure to calculate the cost per unit to verify if this “deal” truly is a deal.

8. Consider Alternatives

Not all items need to be purchased new. You’d be surprised at what you can find at garage sales and consignment shops. Many people have too many school supplies already laying around their house and are ready to get rid of them and sell them for a fraction of the price.

If you’re looking to save on more than school supplies, we offer a variety of different accounts to help you do so!

Wedding Planning on a Budget

Your wedding day is one of the happiest days of your life. You’re surrounded by family and friends as you embark on your new journey with your spouse. While your wedding is one of the best moments in your life, it is also among the most expensive. According to The Knot, the average cost of a wedding in 2018 was almost $34,000. Luckily for you, there are some strategies you can use to help trim costs and still have the wedding of your dreams.

Dressing Your Wedding Party

Everyone knows it’s most important for the happy couple to look their best, but dressing bridesmaids and groomsmen doesn’t need to break the bank. There are several ways you can save money by taking a look at the wardrobe of the wedding party. If having a set dress code for your wedding party isn’t imperative, you can allow them to dress themselves within basic guidelines that you’ve defined. Or, you can choose to ditch the tuxedo rental in favor of going with a classic suit and tie, which not only saves on rental fees, but allows your groomsmen to reuse their suits in the future.

Controlling Food Costs

Food and bar costs are among the largest contributors to expensive wedding receptions. So, how can you save some money while making sure your guests don’t go hungry? The first thing you need to do is ask about your reception venue’s rules for food and drink. If your venue allows you to bring in outside food and beverages, you can save thousands of dollars on a caterer by preparing the food yourself with some help from family and friends.

If your reception venue does not allow you to bring your own food, choosing a buffet option is usually cheaper than a plated dinner. With a buffet, your guests can choose from a variety of options while you save on the cost of table service and wait staff.

Be Creative When Setting a Date

Summer through autumn is wedding season, with the most popular wedding months being June, September, and October. Opting for a winter wedding can save you quite a bit of money. First, most venues are cheaper for weddings outside of the peak summer season, which can save you thousands. Secondly, there isn’t as much competition from other couples for the venue you want.

If a summer wedding is important to you, most reception venues are cheaper to rent on Fridays and Sundays. If you’re willing to be flexible and not have a traditional Saturday wedding, you can save big.

Make Decisions that Work For You

Ultimately, your wedding day is about being surrounded by the people you love as you celebrate your new union. We hope these savings tips help put you and your spouse in a stronger financial situation as you begin your life together. Open a savings account with Iowa State Bank today in order to start saving for your big day!

Budgeting Checklist for Buying Your First Home

Buying your first home can be an exciting but overwhelming experience. The right bank and agent can take most of the hassle off of your shoulders. Make sure you’re checking these items off of your list to allow for a smooth home buying journey – without breaking the bank.

Check Your Credit Score

Making sure your credit score is high and on the rise will allow you the opportunity for better rates! Look for any issues with your report and contact the credit bureau to have them fixed.

Gather Your Documentation

Have your documents in order when coming to the bank to discuss a pre-approval letter and loan. Contact us in advance to find out which documents we require. To help you get started, you should plan to have the following documents when applying:

Income and employment verification – Last two years’ tax returns, W-2s, 1099s, and your last few pay stubs
Identification – A primary form of photo ID (driver’s license or passport), and a secondary form of ID (Social Security card, student ID, insurance card, etc.)
Financial condition – Bank and brokerage account statements including retirement accounts, proof of funds to close, or a gift letter (if your down payment is coming from a gift)

Secure Pre-approval

A pre-approval letter shows a buyer that you are serious and have the funds to afford the home. This also lets you know how much house you can afford, so you don’t start hunting for houses that are out of your budget.

Decide On Your Max

Even if you can afford a certain amount, not spending it all may be wise. Scale back a little and decide on the price you’re willing to spend. Hold yourself accountable to not pass that limit.

Think Of Additional Expenses

Repairs, maintenance, monthly bills, moving costs, and closing costs will all factor into your budget. Know how much income you earn each month and subtract all of these costs; then subtract your daily expenses (such as gas and groceries). This will show you how much you will actually have to put toward your mortgage payments. Deciding on your max budget will help you know your purchasing capacity and live more comfortably.

If you’re looking for a great rate on your mortgage, contact us or stop by the bank. We will be happy to help you along the path to buying your dream home!

How to Boost Your Curb Appeal On a Budget

There’s always that house in town that makes you stare a little longer. It’s either landscaped so beautifully that you can’t help but take in their attention to detail or it’s so terribly neglected with tacky lawn ornaments you can’t help but gawk. We hope that you are the former but if you are looking to spruce up your curb appeal while sticking to a reasonable budget, here’s what you can do.

Power Wash Like You Mean It

You may be surprised just how dirty the exterior of your home is until you hit it with a power washer. Check to see if the material on the exterior of your home is safe for the intensity of a power washer. It can clean the mildew, mold and dirt off of brick and siding. It can even dramatically brighten up your driveway and sidewalk.

Paint the Front Door

Make your house pop by painting the front door a bright color. Usually, many people seem to like painting theirs red, blue or black. However, it can of course be whatever color you like! Paint for a door won’t put a dent in your pocketbook and can help your home to stand out in a classic way.

Clean Your Gutters

If the outside of your home is not well-maintained, it may impact future resale. If potential buyers see that you aren’t conducting routine household maintenance, it might make them wonder what you are neglecting on the inside of your home. Having clean gutters keeps your house looking fresh!

A Touch of Nature

Hiring a professional landscape architect may be outside of your budget right now, but adding some greenery to your home can really make it come alive. Consider adding two potted plants to your entryway or building your own flower boxes for the front exterior windows. This attention to detail and color will be sure to get noticed.

Welcome to Our Home

First impressions are everything, so be sure your front walkway and door say, “Welcome to our home.” This can be done by purchasing a welcome mat, adding cozy lighting and some colorful flowers to the front porch. These are all minimal expenses that make all the difference!

We believe you can make your home shine, without breaking the bank. Contact us today if you’re looking for a place to grow your money.

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 EF (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 EF 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!