Tag Archives: savings

Savings Resolutions For The New Year

Now that we’ve welcomed a new year, we must also begin welcoming new saving habits. Setting reasonable resolutions isn’t always the easiest, which is why we wanted to offer some simple ideas to start. Begin promoting your financial positivity by picking one or two of these savings resolutions to implement for the rest of the year!

Make extra mortgage payments

Making your minimum payments on what you owe is completely fine. However, try stepping up your game by increasing the amount you pay towards your mortgage. We understand you can’t make extra payments each month, but when you can, put your cash towards that. You can even utilize a financial calculator to help!

Open a new savings account

We offer savings accounts that match your needs. Opening a new account will help you allocate money to a specific purpose. For example, one savings account could hold your normal funds while another is specifically for emergencies. Figure out what will work for you best and divide your money accordingly.

Save more for retirement

Until retirement hits, many people don’t think about putting plenty of funds towards it in their 20s and 30s. However, if you wait to save until you’re older, you won’t be able to have enough funds. Start thinking about how much you will actually need when the time comes to retire. A good rule of thumb for your 20s is to save 10% of your pre-tax income. When you come to your 30s and begin saving, you’ll need to save 15-20%. If you start saving in your 40s, 30% will be the number to save.

Track your spending

Many don’t realize the positives of tracking how much is spent each month. Knowing how much money you make and where it goes every month will help you budget better. This will help you realize where you are spending too much and find ways to save!

Build an emergency fund

If you don’t have an emergency fund, this should be your first item on your resolutions list. The unexpected happens, well, unexpectedly. Don’t get caught off guard without the money to fix your problem. A new HVAC system or car can be needed out of the blue, and you’ll want to be sure you’re prepared for random expenses. If you already have an emergency fund, great! But, you’ll want to work on growing it. That 500-1,000 dollars you have saved for emergencies won’t be enough to buy that used car you need when yours quits.

Only pick one or two of the above items to implement this year. Once you’ve locked down your resolution, begin thinking which one you’ll pick for the next year. With these ideas in mind, you’ll be able to get closer to your financial goals sooner than expected! If you need help growing your funds, contact us – we’d be happy to provide a solution for you.

When to SAVE and When to SPLURGE

savesplurge

When you and your sweetheart set your budget each month, there are a variety of factors at play. Where can you get the best deals for groceries? How many date nights will you have each week? Do the kids have any sporting activities that require new equipment? At Iowa State Bank we recognize that everyone’s budget is different. No matter which categories you enjoy most, we’d love to showcase some great examples to help you find extra ways to save, and better identify which costs are worth the splurge.

SAVE: The best areas to find savings.

Weekly Groceries: If you don’t need the atmosphere, or the free samples, there are numerous discount grocers which can save you BIG for weekly grocery runs. Coupling those savings with a pre-planned menu, and sale scanning, can further reduce your overall food costs.
Kids Activities: During both the summer months, and those after school hours, you may find yourself searching for activities to keep your children occupied. Whether that’s going to the pool, attending various summer camps, or finding an after school caretaker, keeping your kiddos active can be easier said than done. To help reduce these costs, we recommend season passes to recurring parks/activities, along with fun and affordable activities at home, which you can do with a number of household supplies.
Exercise: If you have ever purchased a gym membership you didn’t use, you are not alone! Many Americans see a gym membership as automatic attendance, when truly, it may be easier for you to workout at home. With so many new callisthenic exercises, yoga, and free-weight routines, there are a variety of tools out there to help you stay in shape without having to pay that monthly membership fee.
Travel: Searching “travel savings” on Google will inevitably leave you with pages of results. One fantastic tip we’ve found, is purchasing travel through membership programs such as Costco, even if there’s not one in your area! There are countless reports of happy customers who not only saved money, but had a much better experience when compared to booking it themselves.

SPLURGE: The expenditures worth the extra cost.

Budgeted Special Occasions: Occasions like your child’s birthday, or you and your spouse’s 30th anniversary deserve a special treat. While we do recommend saving for these outings in advance, as long as the funds are budgeted for, feel no regret in celebrating your family’s happiness.
Childcare: Raising a child is no simple task, and for most parents the number one expense after a mortgage is childcare. We recognize that there are certainly savings opportunities to be had, however, in the long you’ll find that a friendly and reliable caretaker can make the world of difference on your child’s happiness, and your sanity, for years to come.
Healthcare: Your health, and the health of your family members is paramount to everything else in life. Whether you’re looking to find a reliable family practice physician, or are seeking long-term care treatment, now is not the time to scrimp and save. Making sure that your family is well taken care of and continues to live a happy and healthy life means you’ll have plenty of time to save for nearly everything else life throws your way.
Toiletries: Toilet paper, toothpaste, shampoo, etc.; these are items you use every day. If you’re using poor quality products to save a few cents you may find yourself with dry skin or poor hygiene. While it’s not necessary to purchase the most expensive option available, know that spending the extra dollar or two is well worth the cost to avoid potential problems.

Whether you’re looking for a place to store your savings, or budget your spending, Iowa State Bank has the perfect solutions for you. Stop by your nearest branch today and learn about our personal savings and checking services.

5 Affordable Summer Vacations

vacation

One of the best things summer brings, aside from the beautiful weather, is time to enjoy with your family. Whether that’s planning a fun weekend adventure, or carving out a week to go exploring, your kids are sure to remember these getaways for decades to come. After years of trial and error, we’ve discovered some ideal destinations where you can stay in budget while enjoying all the perks of your family’s time away.

Wisconsin Dells, USA

This midwestern hot spot is filled with many of the nation’s premier water parks. With options at every price range, many resorts include park passes and discounts on other area activities. For those looking to save some extra funds, we recommend finding accommodations with a kitchenette. This added feature allows your family to cook meals instead of having to eat out at pricier restaurants, plus the kids will appreciate the extra time in the pool!

Tamarindo, Costa Rica

One of the most difficult parts of organizing a vacation is finding all the activities for you and your family to enjoy. At GO Adventures in Tamarindo, they have a bit of everything for your little ones to experience. Back at the hotel, they can run across award winning beaches, and spend the day relaxing in the sand. For those days you want to venture out, there is always an endless supply of options, and not to mention delicious food!

New Orleans, USA

This city is filled with a rich and vibrant history perfect for family vacations. With countless historical tours, you and your little ones can learn about the history of the South while enjoying some truly decadent dishes! Exciting excursions such as airboat tours and crocodile encounters will give your kiddos stories they’ll be anxious to share back home! For added savings, we recommend booking a home rental to avoid costly hotel fees and save some extra money by trying out your own creole recipes.

Vancouver, Canada

This vibrant town, just north of the border, is filled with fun and flavor! Enjoy all the best bites and adventures alongside your family at the Granville Island Public Market, and then take a walk through the Vancouver Aquarium, to watch your children learn all about Canada’s sea creatures. No matter what you and your family decide to do, you’ll be warmly greeted throughout one of the happiest cities in the world. Just be sure to remember your passport!

Austin & Waco, USA

These two sister towns are separated by just over 100 miles, but offer fun-filled activities in both locations. By combining the two cities for this memorable trip, your family can step on the set of Magnolia Market and savor the mouth-watering taste of Franklin Barbecue, all in one fell swoop. Austin will provide an endless list of new restaurants and tours, while Waco can set the tone for the ride home with classic family-fun that the whole clan can enjoy.

Wherever your summertime travels take you, Iowa State Bank is here to help safeguard you and your finances while you’re away.

Why Checking Your Credit Score Matters

credit score

Across television ads, online banners, and even chit-chat among relatives, the phrase, “Check your credit score,” seems to be popping up everywhere. If something so important needs constant reminders, why does it have such a key importance in your personal finances? Well, the truth is that it doesn’t, your financial actions do.

A credit score is comprised of five different measures which indicate how you as an individual are perceived in terms of repayment and risk. Individuals who pay their bills on time, have been utilizing loans and credit cards, and don’t maintain too much debt, typically have a higher score. While the score itself is seen by potential lenders as a positive or a negative, the true meaning it portrays is to showcase whether you as an individual are a promising person to repay any funds you are lent. This score can be changed for the better or the worse depending on the actions you take.

This is why checking the report itself can be beneficial for your personal financial reputation. By reviewing your history on a recurring basis you can quickly identify any mistakes or missed payments that need correcting and do so in a timely manner.

For those who do not check their score scenarios like the following could occur:

Say you accept a job in another town, and after moving, you realize you still need to forward your mail. After a week or two in the new place, you go online and make the switch. However, unbeknownst to you, there was one last utility bill that was mailed to your prior address after you moved away. Weeks go by, even months, only now you’re connected with a new utility company, and you have new bills to pay. Behind the scenes, however, your credit score could be declining, because that one last bill has now been reported to collections. Your credit history will now note that a payment has been missed, and the longer it is missed the more it could damage your credit score.

Situations like this happen to many Americans, and while sometimes they can’t be prevented, the damage they cause can be minimized by checking your credit score on a monthly basis. Instead of allowing a payment like this to retain a balance for over 120 days, you can catch it in under 90 and minimize any potential negative effect on your score.

This is just one example in how checking your credit score can impact your financial health for the better. Other benefits include fraud prevention, better financial negotiation, and more accurate personal financial records.

If you’re ready to get started checking your credit score, we recommend Capital One’s FREE Credit Wise service, available for current and noncurrent Capital One customers. Our team at Iowa State Bank would be happy to walk you through your credit report from and is always available to answer any questions you may have.

Three Things to Look for in a Starter Home

Mortgage

If you’re in the market for your first home, congratulations! Becoming a homeowner is an exciting step on your financial journey. At Iowa State Bank, our dedicated mortgage lenders are here to help you find the best financing option for your new home. Remember to stop in and secure a pre-approval letter before you start your home search.

After speaking with a mortgage lender to help determine your family’s ideal price point, it’s time to start viewing potential homes. During this process you’re bound to find a home you’ll fall in love with, and others that may send you running for the hills. As you ride this rollercoaster of an experience, we recommend searching for the following three things in your family’s ideal new house:

Good Bones. Starter homes are a great option to find a great house within an affordable budget. To ensure your investment lasts for the long-term, we recommend taking a hard look at any foundational cracks, leans, or other structural ailments. While the rest of the house could look fantastic, these three issues should be instant red flags signaling you to continue looking at other homes.
Cohesive Neighborhood. The people you surround yourself could be the individuals you see at 6:00 AM taking the trash out, or the partiers you have to ask to turn down the music at 11:00 PM. As you tour properties, don’t be afraid to chat with any potential neighbors and see if there is any information they can give on families you’ll be living alongside.
Suitable Layout. While some renovations are certainly possible when purchasing a starter home, obstacles such as load-bearing walls could limit your expectations. Consider the overall layout of the home at the showing, and see if you could picture yourself the ways it is. If the answer is no, then you may want to find a few backup options should the renovations not be available within your budget.

The perfect home will look different to everyone. If you’re ready to start searching for your family’s new house, our experienced mortgage lenders are here to help. We work with many successful local realtors, and we would be happy to refer you to the one that fits your needs best. Give us a call or stop by to begin the search for your home today.

7 Items Worth the Splurge

Spending

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 Iowa State Bank we suggest taking a second look at these seven products, and seeing 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. Afterall, 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!

Water Your Lawn & Your Wallet Too

Savings

If you’d like to grow your landscape and your finances this season, Iowa State Bank has the perfect tips for you! To jumpstart this warmer weather, we’re excited to share our top tips and tricks to maintaining a healthy lawn and garden without digging to deep into your budget:

Seed your lawn early on. Get the growing season started right, and give your landscape some food to help it grow. By not only seeding your grass, but adding fertilizer as well, you can help ensure that your roots grow strong and healthy to fight off intermittent weather changes and pesky pets.

Automate your watering routine. Keep your landscape looking green by maintaining a daily watering routine without all the fuss of hoses and watering cans. By setting up an automated system, you can make certain you’re not wasting water, while also saving additional funds from no longer needing to replace malnourished plants.

Utilize alternative landscaping options. Reduce your overall recurring costs by taking advantage of helpful products such as landscape fabric, river rock, and various xeriscaping plants. By using these tools to grow foliage other than grass you can cut down on your time and expenses associated with mowing and upkeep.

Other Outdoor Savings Tips: While the above tips can aid you in keeping a green and healthy landscape, saving money isn’t about maintenance only. To help continue your savings in other areas of lawn care, we wanted to share some further tricks in how to reduce other outdoor expenditures associated with your growing landscape.

Choose colorful perennials over less-timely annuals when planting flowers. While annuals can have prominent blooms that catch your eye, these flora varieties will need to be re-planted every year. Avoid paying for new seedlings each spring by utilizing returning perennials plants instead. These recurring blooms will hibernate underground each winter, and emerge where they were originally planted year after year.
Plant prosperous fruit trees for added shade and earning through plant production. By providing an escape from heated sunlight, shade producing trees can help decrease the cost of your home’s monthly cooling bill. If you choose a tree that also produces fruit you can typically accumulate $200 or more worth of produce that you have the potential to sell as well.

Make the most of this planting season, and create a garden that will give you both joy and savings. We can’t wait to see what you and your family create, be sure to post photos of your outdoor creations on our Facebook page. We’d love to see what ideas and hacks you use!

The Best Financial Quotes and How to Use Them

Budgeting

There are endless famous quotes amongst Facebook newsfeeds and Reddit threads, however, time and time again people seem to hold fast to their favored stand-bys. For topics ranging on everything from love to education, the wise words of others seem to implement a perspective in our lives that may be left vacant otherwise. To help you achieve your financial aspirations this year, Iowa State Bank would like to share the quotations we hold dear, to help encourage you along the way.

“Of this be sure: you do not find the happy life… You make it.” -Thomas S. Monson

The meaning of this phrase can be as simple or as complex as you see it. For us, it is a calming and reassuring reminder that the emergency fund, retirement plan, and vacation fund are all worth the effort. Unfortunately, no one will offer us a trip to Mexico for free, but with dedicated work and savings, WE can make it happen for ourselves and our loved ones.

“Attention is the rarest and purest form of generosity.” -Weil

This quote can be applied to both personal and business relationships. The more time you invest in a person, the more value they hold for you or your company. Whether it’s taking the time to answer customer questions, making it to your child’s basketball game, or simply being willing to pick up a phone call from a frazzled friend, giving someone your time is the ultimate connection to others. If you’re looking to improve a relationship, budget, or business, investing your time into it is the best place to start.

“If you define the problem correctly, you almost have the solution.” -Steve Jobs

Whether you’re working on restructuring your personal finances or trying to determine your most profitable product, the first step in finding a remedy is identifying the ailment. In the example of a budget, knowing what you’re spending, earning, and saving offers a visual into potential issues, so you can further adjust those efforts into a constructed monthly plan. This is the same with many things in life. By speaking with others, and getting all the cards on the table, you can ensure that problem is first made clear before the appropriate solution is determined.

“Never be afraid to try. Remember, amateurs built the Ark, professionals built the Titanic.” -Unknown

The worst action you can take is no action at all. No matter what challenge you are facing, always remember that the failure to act is the only true defeat. If you’re looking to start saving for retirement, expand your business, or tackle your debt, the first thing you have to do is start. No matter how you start, the biggest obstacle of your task will be committing to your end objective. At Iowa State Bank, we want to help you succeed in both your personal and financial life. If you need a helping hand with your next venture, stop by our nearest office, and we’d be happy to lend an ear.

The Cost of Kids: How to Plan for Your Growing Family

At Iowa State Bank we understand that adding to your family may not only be an emotional decision but a financial one as well. With the growing costs of childcare alone, it’s important to have a well-rounded plan for covering the expenses of your expanding household. In order to plan most effectively, we recommend structuring your budgeting into these three stages:

Beginning or Before Pregnancy: Examine your current health insurance to determine an estimate of cost for both prenatal care and delivery expenses. While many insurers offer prenatal care at no or little additional cost, the price for delivery can be complex. Study your monthly premium, annual deductible, and out-of-pocket limits for the calendar year to help establish these costs before the baby is delivered.

After Birth: Once the baby is born, there will be traditional costs such as health care, food, diapers, clothing, and more. However, many new parents also spend more on take-out meals to help lessen their time cooking. These expenses, along with a decrease in income for parents on maternity leave, can cause many parents to slide into debt. To help alleviate the burden of these growing figures, we recommend creating a monthly budget to designate every dollar to a purpose. By allocating a specific dollar amount to each area of your spending, you can ensure that all of your costs are covered while also planning for the future.

During the First Year: As your child continues to grow, the costs for new clothes and equipment will continue to grow with them. Many expectant parents can spend upwards of $16,000 during the first year of their child’s life, and variables such as location, number of children, and other factors can contribute to the overall costs as well. When possible we recommend saving for each step in your child’s growth. From birth to three month’s they’ll need many one-time purchases, but during the later stages, you may have adequate time to save for each time period’s necessities.

Continue to grow your finances as you grow your family using Iowa State Bank’s trusted deposit services. We’ll help you organize your funds, and make the most of your savings.

How to Save for Retirement at Every Age

Retirement

How much do you need to retire? Will you continue working after age 65? Do you want to travel during your retirement? These are just a handful of questions that are important for retirement preparation. Unlike saving for a home or new vehicle, saving for retirement requires long-term commitment and goal oriented benchmarks. At Iowa State Bank we want to help you succeed as you save, and offer these milestone marks:

Age 18-25: During this point in your life, you are discovering what you want to do, and how to get there. Focus on creating a solid foundation through a monthly budget, and designated emergency fund. If your employer offers a 401(k) option we highly recommend utilizing its potential by contributing the maximum amount your budget will allow. Always be sure to take advantage of a company matching policy if available.

Age 25-35: In addition to your 401(k), we also suggest opening an IRA. This enables you to continue to save without having your funds tied to an employer. Now is a great time to take advantage of other tax beneficial accounts, such as an H.S.A., 529, or Coverdell account. Both the 529 and Coverdell accounts aide you in saving for your child’s education without the burden taxes.

Age 35-45: One of the key aspects of retirement is making sure your money is where you need it when you need it. An experienced financial adviser can help you invest in appropriate stocks, bonds, and other financial strategies. Together you can construct a plan to ensure your risk decreases as you age, and be certain the funds you need are available upon retirement.

Age 45-55: Now is the time to examine your current career path, and determine the year at which you would like to retire. Although the average age of retirement is 66, this may not hold true for you. Whether you decide to retire later at 72, or earlier at 57, you’ll need to have this number available to help continue the development of your savings. To easily calculate your current savings projection, this tool can provide the most accurate information to help you make the most informed decision for your specific goal.

Age 55-66: During this time you may begin to qualify for distributions from your 401(k) and IRA. By postponing these distributions, you can continue to save, and work to build your retirement nest egg before you need it. Additionally, look into various employment options upon retirement. If you decide to work part-time for enjoyment, it could mean added savings to help you afford extra splurges in the future.

Age 66 and up: Once you have officially retired, you will begin to take distributions from your 401(k) and IRA. While both a 401(k) and Traditional IRA require you to accept funds after age 70 ½, a Roth IRA can remain untouched until you decide to use the money. For this reason, we recommend using a Roth IRA when your income levels allow.

We look forward to joining you on your journey to retirement. Whether it’s in 10 years or 50, it’s never too early to start saving!