Tag Archives: savings

Community Banking: Why It’s a Wonderful Life

Community Banking

As the seasons begin to change, and the holidays approach, our team at Iowa State Bank would like to share all the wonderful reasons we are grateful to be a community bank. Just like Mr. George Bailey, in the classic tale, It’s a Wonderful Life, we have found countless people and experiences that make our bank lucky to consider this community home:

It’s all About the People: Unlike the big banks of America, our small and locally-owned operation prides itself on putting our people first, making the success of our customers the bank’s number one priority. Just like the old Building and Loan, Iowa State Bank strives to help our customers make their home ownership dreams become a reality.

Growth Engine for Small Business: We succeed when you succeed. Just as George Bailey invested funds in Mr. Martini’s home and business, Iowa State Bank is here to offer advice and financing on your next home or commercial project. We want to help you and our hometown community grow, just like Bedford Falls.

Built on Long Lasting Relationships: The movie’s guardian Clarence, was a very wise man saying, “No man is a failure who has friends.” At Iowa State Bank we pride ourselves on not only helping our customers with their finances, but also building relationships with them as well. If you have a question on how to budget, which retirement plans to look at, or other money management inquiries, consider us your friendly neighborhood adviser!

Community Backed: Instead of being underwritten by Mr. Potter, or other national big banks, our institution is built directly upon the needs and wants of our community’s citizens. With no higher ups attempting to monopolize the town, our dedicated team of officers works to build up the community, and the men and women who call it home.

Employees Local Citizens: Just like George and Uncle Billy, Iowa State Bank is filled with fun and lovable characters. We take great pride in employing local citizens throughout our company, and helping them grow within the banking industry. If you’re looking for a new career, stop in and see if Iowa State Bank is right for you!

Get to know all of us at Iowa State Bank and discover how community banking can help you achieve a wonderful life. For everything from personal financing, to commercial lending, we have the perfect solution for you. Get started today and share your next financial goal with us, we’ll help you shoot for the moon!

Thanksgiving Costs Through History

Holiday

Filled with laughter, good food, and heart-warming conversation, Thanksgiving is a holiday centered on all things family. Dating all the way back to 1621, this festive celebration originally began to signify a successful and fruitful fall harvest. Today we enjoy this day of thanks to remember all the blessings and loved ones in our life.

Many things have changed since 1621, or even since 1916! We wanted to see what this holiday may have looked like over the past century, to visualize how traditions and costs have changed through the years.

There are several factors when determining the cost of a Thanksgiving celebration. Today the average feast runs approximately $49. This includes a 16-pound turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, carrots, celery, pumpkin pie with whipped cream, and coffee with milk. However, back in 1916 this meal cost approximately $6.81, but keep in mind, the turkey then cost $4.48, or $99.23 in today’s standards.

In the tables depicted below, you can see how the costs have changed over the course of the last century with the help of inflation. While the costs depicted on the left showcase the deflation process of our costs today, the right visualizes what the typical Thanksgiving feast could cost now, if the prices of food had remained stagnant.

Cost of Today’s Feast Cost of Past Century’s Feast

1916 – $2.21 1916 – $6.81

1926 – $3.59 1926 – $11.06

1936 – $2.82 1936 – $8.68

1946 – $3.96 1946 – $12.18

1956 – $5.52 1956 – $16.99

1966 – $6.58 1966 – $20.24

1976 – $11.55 1976 – $35.55

1986 – $22.24 1986 – $68.47

1996 – $31.84 1996 – $98.03

2006 – $40.92 2006 – $125.95

2016 – $49.00 2016 – $150.84

At Iowa State Bank, we love learning about holidays and their history. It’s easy to see now how $6.81 can really add up! If you put those dollars in today’s standards, food costs would be astronomical! Can you imagine paying over $100 for just your turkey? This year the average cost per pound is about 93 cents, so for a 16-pound turkey, you should expect to pay around $15. Now that’s something to be thankful for!

How to Tip on Vacation

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Traveling the world is both adventurous and insightful. From climbing mountain peaks, to swimming among tropical fish, wherever your next vacation takes you, make sure you’re financially prepared. At Iowa State Bank, were excited to help you get ready for your upcoming destination! Try these tipping tricks next time you’re out and about on your future getaway.

Bartenders: $1 per drink or, or 15-20 percent of the total bill.

Bellman/Porter: $1-2 per piece of luggage.

Casino Card Dealers:Tip a chip in the amount you are betting, staggered on your amount of win’s. If you are playing $5 chips and win a few then giving the dealer a $5 chip as well.

Concierge: $5 per request.

Hairdresser/Manicurist: An additional 10-20 percent for a good service.

Housekeeping: $2-3 per night up to $5 generally in more high end hotels.

Instructors: An additional $10-20 per quality lesson for various sport or leisure activities.

In suite dining: Service charge goes to the hotel not the waiter. If no gratuity added put on an additional 15-20 percent tip.

Scuba Diving: For an afternoon (or 2 tank dive) it is common to tip $20 per person, per day of the trip. These tips generally go to the deck hands and dive guides for equipment hauling and tank turnover.

Spa: Tip 10-20 percent if gratuity has not already been included.

Tour Guides: 15-20 percent or more depending on knowledge and quality of the outing.

Valet Parking: $2-5 when picking up car.

For all your vacation excursions and more, these helpful tips will aid you in all of your travel spending. To better manage your finances back home, be sure to give Iowa State Bank a call! We’ll work with you to help boost your savings to make your next vacation a relaxing success.

What Your Birth Order Says About Your Money Management

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Every family knows there’s a difference between the various siblings, but why is that? Many psychologists agree, birth order plays a large role! Each member of your family is generally rooted in one of four personality types which help define their core behaviors and beliefs. Discover how these traits can translate to your money management style at Iowa State Bank.

First Born: Typically the leader of the family, first borns are strong minded and organized with a heavy protective tendency. Many of those born first err on the side of caution, creating savings accounts for emergencies and unexpected situations. This sibling tends to enjoy being in charge and knowing all the variables. Any expenses, debts, or other monthly bills will be allocated and prepared accordingly. First borns tend to work towards their dreams, and may have the downfall of taking a financial risk to do so.

Middle Child: Always the people pleaser, middle children are most known for helping others. If you need an extra buck or two for lunch, this sibling will the the first to lend a hand. Often on the rebellious side, the middle child may be more apt to invest in some riskier stocks, but depending if they pan out, it could make financial sense in the long run. Typically talkative and social, many middle children challenge the norm and create new versions of savings schemes. This sibling will be the first to try the next and best retirement plan before storing away long term savings.

Last Born: Optimism, attention, and organization generally drive the youngest of the siblings. After learning from the mistakes of the older members of the family, this child typically has most financial questions answered before ever needing to ask. This sibling will be the guru of rewards points, always finding the best perks and benefits for various programs. Always looking on the bright side, the last born is compelled to live the best of their life now, assured the future will work itself out later.

Only Child: Frequently told they’re mature for their age, the only child is known for their leadership, sophistication, and drive towards perfection. The typical only child will have a detailed account record with meticulous payment upkeep. These individuals strive to be the best, and are determined to achieve their goals. Expect them to have a strategic savings plan, retirement investing, and a well-rounded home improvement fund. Always up for a challenge, only children can often be great investors seeking out the best stock options for their needs.

No matter your place within the family tree, you’ll always have a financial partner with Iowa State Bank. Whichever goal you’re aiming to tackle next, we’ll help you achieve it!

How to Budget When You Have Seasonal Income

Rewarding careers don’t always come with a steady paycheck. For people who work in agriculture, construction, tax preparation, entertainment, landscaping or other types of freelance and seasonal businesses, income may vary wildly depending on the time of year. This uneven cash flow makes budgeting especially challenging, but it’s by no means impossible.

Here’s how to budget for long-term financial stability when your income changes with the seasons.

Determine your average monthly income

With most traditional budget plans, you start by determining your monthly income. But how can you complete this first step if your income keeps changing? The most effective strategy is to use your average monthly income. To calculate this, add up your post-tax income for the past three or more years and divide that sum by the total number of months. If economic conditions have — or are projected to — hit your industry or business hard, you may want to deduct 15% to 20% from this number to create a safety cushion.

Calculate your average monthly expenses

When work is seasonal, expenses often fluctuate, too. During busy times, you may have to spend more on gasoline, utilities, equipment maintenance and office supplies. If you spend more during your busy season, determine your average monthly costs by adding up your personal and work-related expenses for at least one year and dividing that figure by the total number of months.

Fine-tune your budget

Subtract your average monthly expenses from your average monthly income to get your baseline budget figure. If you find you’re cutting things close or dipping into the red, you’ll need to make some adjustments. Consider cutting unnecessary expenses or picking up extra income by expanding your existing business’s volume, taking temp work during slow times or offering complementary services that peak during your off-season.

Become a saver

Having a savings plan is an especially important safety net when income is irregular. When planning your budget, be sure to include a line for saving each month. It’s best if you can put away 10% or more of your income, but even small amounts deposited consistently add up significantly over time with compound interest. Aim to save at least three to six months’ worth of expenses to ensure you can live comfortably during lean times or emergencies.

Additional survival tips

To help even out cash flow and make the most of seasonal income:

Make it easier for customers to pay you quickly by improving your invoicing procedure, offering options such as PayPal or Square to accept credit card payments, or setting up direct deposits to your account with customers.
Negotiate with vendors and suppliers for discounts or extended payment terms.
Take advantage of financial and budgeting software such as QuickBooks.
Consider offering discounts and promotions during slow times to boost business.
Track your cash flow regularly and adjust your budget as necessary.
Even with your budget plan in place, keep spending to a minimum during slow seasons.
Stick to your budget during your busy season to avoid spending the cash you’ll need during the down times.

Seasonal income doesn’t have to mean financial feast or famine. With proper budgeting, you’ll be able to live well no matter what the season.

10 Ways to Save Money in College

10 Ways to Save Money In College

With delicacies such as ramen, easy mac, and PB&J, college doesn’t always seem as glamorous as it is in the movies. Learn how to build up your bank account this year with these helpful savings tips courtesy of Iowa State Bank! We’ll show you how to make the most of your dining dollars, classroom supplies, and other on campus opportunities!

Books. Instead of purchasing those $300+ textbooks, utilize your university’s library and study using the same materials without any of the cost!
Coffee. Get the best bang for your buck when you go for your next caffeine fix. Many coffee shops offer free wifi for studying in addition to free refills on basics coffee and teas. Simply purchase the size of your choosing, and stick around for a proper study session complete with all the coffee you need!
Meal Plans. Dining dollars aren’t just for dinner. Utilize those additional funds to purchase other necessities such as toiletries to ensure you never leave any allocated dollars unused.
Student Activities. Keep tabs on school events. With many university sponsored events offering free food or drinks, students tend to jump at the opportunity, so it’s best to arrive early!
Scholarships. You never know until you try, or in this case submit, but in many cases writing a simple essay and answering some questions is all you need to do to be considered for a $500+ scholarship.
Student Discounts. They’re everywhere; whether you’re on campus, or out and about, always be sure to carry your student ID to save a little extra money at various retailers.
Loan Interest. Start paying off your student loans ASAP. Compounding interest especially can rack up additional expenses quickly, so be sure to begin paying down your debt as soon as you can.
Cars. Ride your bike around campus instead of paying for costly gas, auto maintenance, and parking passes. During the winter months, you can skip waiting in the cold for the parking lot shuttle, and warm up as you cycle home!
Recycle. Those pop cans and soda bottles can be valuable. It may not seem like a lot of money at first, but over time you’ll find yourself saving more and more.
Work. Get a part-time job during the school year that offers great benefits like free gym membership, discounted meals, or free drinks!

Whether you’re a first year, or a PhD student, there are countless ways to save some green throughout your college years. Let us help you tuck away some of those valuable dollars with a structured savings account at Iowa State Bank!

7 Tips to Decrease Your Gardening Costs This Season

Saving Tips

Gardening season is upon us! Whether you’ve been gardening for decades or are flexing your green thumbs for the first time, save some green as you grow it this spring with these helpful tips from Iowa State Bank & Trust:

Study the sun. You can burn hundreds of dollars by accidentally placing plants in areas that receive too much or too little sunlight. Take time before planting to make notes on the sun’s path across your yard, scoping out key sunny and shady spots along the way.
Invest in mulch. A layer of fresh mulch aids in protecting against soil erosion while cutting the costs of weed killer.
Reuse newspapers. Before you lay down protective mulch, spread layers of old newspapers directly onto the soil to block weeds and lock in moisture. Eventually the newspaper decomposes while saving on water costs in the long-run.
Try natural bug protection. Instead of buying pricey pesticides and bug zappers, place fabric softener sheets next to outdoor light fixtures to deter flying insects.
Make your own weed killer. Eco-friendly and inexpensive, you can create your own weed killer by mixing 1 gallon of white vinegar with 1 ounce of liquid dish soap. Put this mixture in a spray bottle and directly apply to weeds for the maximum effect.
Start composting. Create nature’s best fertilizer in your own backyard by forming a small compost pile of kitchen and yard waste. Not only do you reduce your footprint by saving space in a landfill, but your homemade compost saves you money and increases the yield of your plants.
Plant the pricier edibles. To save money, time, and precious garden real estate, invest in planting herbs and vegetables that would normally cost you a bundle at the grocery store. Grow pricier crops such as raspberries, shallots, and basil yourself and buy cheaper produce like lettuce, carrots, and parsley at your local farmers markets.

At Iowa State Bank & Trust, it’s always growing season when it comes to building your wealth. If you’re looking to prosper your financial gains stop by and give us a call at (641) 472-3161 today!

Ultimate Guide to Yard & Garage Sales

With pockets full of dollar bills and a list of dream finds in hand, serious garage sale goers are perking up for the upcoming season. Become a pro deal-spotter by harnessing some of their top tricks of the trade!

Check for warranties: Even if they’re dinged or damaged, goods by brands like Craftsman and Chaco may offer lifetime warranties if you send them in for repair. Avoid: Electronic-based gadgets – everything from blenders to tablets – as they’re likely past warranty and cost more to repair than buy new.
Snap up fun novelty items: Infrequently used finds like wedding accessories, costume sets, and kitchen appliances can be pricey when purchased brand new. You can buy these gently-used finds for a fraction of the original cost! Avoid: Holiday-themed wares that you’ll use once, store for the year, and toss out at your own yard sale.
Think a few seasons ahead: A summer yard sale will be loaded with wintertime treasures. Scope out pricier outerwear like parkas and boots, while keeping your eye out for cross-country skis, durable metal shovels, and other seasonal goods marked at a steep discount. Avoid: Cold weather apparel worn close to the skin, such as hats and long underwear. Also, be wary of major items like snow blowers and snowmobiles, which may require costly repairs that outweigh the price of a newer model.
Shop for the kids: When they’re set to outgrow clothes every few months, garage sales are a treasure trove of inexpensive apparel for infants through teens. Be on the lookout for limited-use clothing like costumes and formal wear to save big during special occasions. Avoid: Cribs and car seats which are frequently recalled, soft toys that can’t be easily washed or sterilized, and truly vintage toys which may pose the risk of lead-based paint.
See Beyond the Paint: Furniture can be a phenomenal find if you’re willing to pin some extra effort. A new finish or a fresh coat of paint can make all the difference on wood & metal furniture. Avoid: Mattresses and upholstered items which may have unknown stains or trapped in odors.

Saving dollars here and there add up big time in the long run. For even more ways to save on your monthly expenses, stop by Iowa State Bank & Trust to meet with a financial adviser about personal budgeting.

How-To Create Your Emergency Fund & When To Use It

Creating a structured savings plan is one thing that can set apart the financial dreamers from the financial doers! By setting strict guidelines to your goal, and ensuring the correct follow through with a backed up savings plan, you can be certain of your success in accomplishing your future achievement! One of the biggest obstacles in these plans is the unforeseen, and there is a way to manage even that. Using a well-rounded emergency fund can ensure that you don’t dip into saved funds for unexpected costs such as auto repairs, or medical emergencies. Want to get started setting up your emergency fund today? Follow these simple steps and you’ll be on your way to financial success!

Open a dedicated savings account.
Deposit Funds each month without withdrawing anything.
Start by saving $1000.

– Next Save 3 months’ worth of income and expenses.

– Finally maintain 6 months’ worth of income and expenses.

The reason you have this fund is simple, to prepare for the unprepareable. Whether it’s an unanticipated job loss, a costly home repair, or other unplanned expenses, your emergency fund can help you stay afloat when the waters get rough.

The main objective of this account is to have it work for you and your needs! By specifically determining what you define as an emergency (job loss, vet bills, auto repairs) and what doesn’t (last minute birthday gift, broken TV, new clothes) you can generate a structured list to know when you feel safe using those funds, and when perhaps its best to leave them untouched. The idea of the emergency fund is to have it when you need it. By gaining access easily via checkbook or debit card, you can make use the account more quickly when the unexpected strikes.

By generating your own emergency fund you can continue to save for milestones and pay bills, without worrying about the what if’s that lie along the road to the future. Get started with your emergency account today at Iowa State Bank & Trust, we’ll help you get to your next savings goal!

Basketball Budgeting: Game Winning Financial Tips

Basketball season is in full swing and there are many comparisons to the sport that can apply to building your own personal budget. From knowing when to pass an expense, to hitting a three with an unexpected bonus, budgeting is a lot like basketball. Learn how to win at structuring your finances with this helpful game plan.

Brush up on your coaching.

Every team is built around the choices of its coach, just as your budget is. The coach selects the players based off merit, potential, and cohesiveness to create a well-rounded team structure. This coach represents you, you decide what direction your budget will take you, and if one piece isn’t working the way you desire it is your responsibility to make the change.

Recruit your team.

Every team has three key player types, centers, forwards, and guards. The center is going to be your all-around player, in the middle of all the action, just like your income. In your budget, this income is going to be after both taxes and your designated savings, this is your center player. Now those savings, giving you a financial buffer, are acting as your guard. Whether it’s a retirement savings, emergency fund, or personal investments, your guard player covers it all. Something additionally has to be driving your budget to financial success, and that is where your forward comes in. Spending is the determining factor to the successfulness of your budget. Just as in basketball, if no one takes the ball up the court there is no potential to score. By managing your spending, you create momentum through your forward player to move your money in a positive direction.

Keep your elbows in.

Every game comes with rules to keep the players safe, staying within these guidelines helps to protect you from receiving any unwanted fouls in the realms of finances.

Foul 1: Spending more than you earn. Penalty: Paying Interest and losing savings capabilities.

Foul 2: Not having a savings plan. Penalty: No structure for emergencies or retirement.

Foul 3: Carrying bad credit. Penalty: Added obstacles in gaining financial freedom.

Just as in basketball, practicing the fundamentals will push you to better your skills. If you work to create a successful budget based on what you can afford, your consistent monthly expenses, moderated spending, and a sound investment plan, you will be a winning coach in no time.

If you have questions on how to begin checking or savings account, give us at Iowa State Bank & Trust Company call today (641) 472-3161!