Monthly Archives: February 2016

Five Budgeting Tips for 2016

budgeting

 

The average debt-carrying household has more than $15,000 in outstanding credit card balances. That kind of debt places a significant strain on your finances, and can really hurt your credit score.

 

To avoid running up a big balance — or accumulating a bigger one, if you’re already behind on credit card payments — use the first few weeks of 2016 to create a well-thought-out budget.

 

Here’s how to get started.

 

  1. Have larger goals in mind

Most people don’t create budgets for their own sake. Instead, their monthly spending plans allow them to meet larger goals, including paying down debt, bolstering retirement savings or saving enough for a mortgage down payment.

 

Before you draw up your budget, think about your personal big-picture objectives. They should be as specific as possible. Detailed goals are much easier to track and measure than vague ones.

 

  1. Create spending categories

Apply the same level of detail to your budget’s spending categories, and go beyond simply differentiating between essential and nonessential expenses. Set aside money for your rent or mortgage, groceries, gas, and contributions to short- and long-term savings accounts. Then divide your nonessential spending into categories such as restaurant meals, trips to the movies and new clothes. This specificity will give you much better insight into your spending habits.

 

  1. Track your spending

Sorting your spending into smaller categories also makes it easier to track how much you’re shelling out each month — and the areas in which you need to spend less. Conversely, if your spending in a certain category is far below the upper limit that you’ve set, reduce the amount you budget for that category and reallocate those funds elsewhere, perhaps to your retirement savings.

 

  1. Review receipts and online statements

Make tracking your spending easy by keeping paper receipts or using online banking tools offered by financial institutions like Raccoon Valley Bank. Without them, it will be difficult to remember your last four weeks’ worth of spending. Receipts and statements also let you track your outgoing expenses based on various date ranges, which should give you better insight into your spending habits.

  1. Hold yourself accountable

All the time and effort you expend coming up with a budget will be wasted if you abandon it after only a few weeks. One of the best ways to stay on track is to regularly remind yourself of your larger financial goals.

 

Knowing what you’re working toward — be it debt elimination or saving for a summer trip — will keep you motivated, and will help pave the way for a financially secure 2016.

 

Tony Armstrong, NerdWallet

© Copyright 2015 NerdWallet, Inc. All Rights Reserved

4 Tips to Shrinking Your Student Loans

Student Loans

Over 40 million Americans utilize student loans. Across the country that adds up to be over 7 billion dollars in national debt, second only to mortgages. Take another look into your finances with these student loan tips courtesy of Raccoon Valley Bank!

 

  • Choose your loans wisely: Calculate the cost of the necessities – tuition, room and board, textbooks, and transportation – and sign loans that cover only what you need, even if you qualify for more. A part-time job or summer position can provide funds for added nonessential expenses. When possible, apply income from a part-time job to pay back a loan’s interest while you’re still in school to save hundreds on repayment when you graduate.
  • Increase your payments: If you’re on a 10-year installment plan, you’re paying a decade of interest on top of your original loan, adding more debt to your plate. When possible, pay back more than the minimum agreement each month and chop off extra time and interest. If you have multiple loans, direct your additional payments towards the loan with the highest interest rate. The faster you can pare down the principal, the less you accrue in exorbitant interest.
  • Make installments as often as you are able: With less time between payments for interest to accumulate, an accelerated payment plan can decrease your repayment term. By doubling your schedule of installments and making more payments over the same time period, you’re able to lessen the interest and pay your loan off sooner.
  • Track your interest: Motivate yourself with a continually updated track record of your current interest. The longer you have the loan, the more money you spend towards interest. Incentivize yourself by creating a cap for how much you want to pay in interest each year. Let that help guide you to make extra payments per year.

If you have questions on your student loan payments, or choosing the right option for your future education, call (515) 993-4581 or stop by today!

Making Banking Easier: Our Online Tools

Mobile Deposit

Raccoon Valley Bank

Online Banking Tools

 

Technology is a constantly evolving medium, and we’re continuing to grow with it! At Raccoon Valley Bank we offer a variety of digital tools for our customers. Take a look and discover a new way to manage your finances through our online technology!

 

Online Banking: Conveniently access all your banking accounts through our secure online portal. Not only does this give you a quick and easy way to manage your finances but it’s also where you can view a complete account history, re-order checks, transfer funds, and more!

 

Mobile Banking: Enjoy all the perks of online banking from the comfort of your mobile device. This easy mobile tool allows you to keep up on your finances while you’re away or during your busy day.

 

Remote Deposit: Not sure if you’ll have time to stop by for a quick deposit? Deposit your funds on the go with our quick and secure remote deposit. Available on our convenient app!

 

Online Bill Pay: Tired of writing checks for your monthly expenses? With our Online Bill Pay you can schedule reoccurring payments and take the hassle out of paying your monthly expenses. Go through our easy setup process and you can start paying bills directly from your Online Banking account!

 

Online Mortgage Applications: You can now apply for a home loan from anywhere!  Simply visit the Raccoon Valley Bank Mortgage page on our website and follow the easy step-by-step process.

 

E-Statements: Make a difference and go green with our E-statements at Raccoon Valley Bank. Not only are you helping the environment, but our E-Statements offer a quicker, simpler process to obtain your monthly statements. Simply log-in to your Online Banking page, click on User Services and select Account Statements to sign up!

 

Open a Savings or Checking Account: We want to make your transition to Raccoon Valley Bank as simple as possible! If you’re looking to open a new account simply hop on our website to sign-up.

 

Here at Raccoon Valley Bank it’s all about YOU, our customers! We love the ease and simplicity these products offer for the everyday financial tasks. Sign up online or call us at (515) 993-4581 to try them out! We would love to help you find the best product solution for your individual needs.

 

Raccoon Valley Bank

Member FDIC

Equal Housing Lender

5 Easy Lessons to Teach Your Children About Money

Teaching Your Children

Building a successful financial future for your little one starts with a strong foundation. At Raccoon Valley Bank we offer financial opportunities for all ages! Grow the building blocks of fiscal understanding with your kiddos using these fun and easy lessons.

 

  1. See the value of savings: Before they understand the concept of retirement, help them see the advantage of long term savings. Just as companies offer to match their employee’s savings plan contributions, offer to match your child’s investment in a purchase. If they save for half the amount, you’ll contribute the other half.
  2. Create a goal chart: Saving for a car, a college degree, or a home takes years of planning. Let your child see the value of long term savings by helping them visually track progress in their own investment. Choose a purchase such as a new tech device or a day trip to an amusement park. Based on their allowance and other sources of income, draw a column of boxes to represent the number of weeks of savings it will require, then draw an X or place a sticker in each box once they save the weekly amount.
  3. Open a savings account: An interest-bearing savings account can help your child track their money as it expands through simple deposits and compound interest. Open an account for your child early on to educate them on the concept of finances, and have them deposit a percentage of their allowance each month to see their own wealth grow.
  4. Demonstrate checking: When your child is comfortable with complex addition and subtraction, have them assist you as you track your deposits and purchases while balancing your checkbook. Show them a bank statement and explain the different components, identifying which numbers help you balance your checking account. Take this opportunity to explain the relationship between savings and checking accounts and give examples of why and when you would use each.
  5. Set an example: Your children look to you to set a precedent, so if you save, they save, and if you spend, they spend. Set up a savings jar at home for extra change and designate these additional funds to fun family events such as ice cream trips, movie nights, and more. Show them the power of savings one coin at a time!

Raccoon Valley Bank wants to see you and your little ones succeed. Stop in today to learn about our children’s savings account options!

From Plant to Pour: The Journey Your Latte Takes

Coffee

 

Whether it’s iced, pressed, decaffeinated, or steamed, coffee in the United States is a staple in the daily routine of over 50% of the population. For energy, for social gatherings, or for the sake of routine, consumption of caffeinated brews create an $18 billion industry in the U.S. each year. However, after the average cup of joe in 2015 rang in at $3.28 – higher than mugs in 2013 and 2014 – consumers may wonder what they’re actually investing in. Take a look at the journey your java travels from bean to latte!

 

  1. Planting: After a bean is dried, roasted, ground, and brewed, its coffee! When left in its natural state, it’s a seed that grows into a thriving coffee tree. Planted in shaded nurseries away from bright sunlight, coffee seeds are repotted in special soil after sprouting.
  2. Harvesting: It takes almost four years for a new tree to produce bright red coffee beans, commonly referred to as cherries. These cherries are picked by both hand and machine, eventually arriving at a processing plant.
  3. Processing: To prevent spoiling, harvested beans must be processed as soon as possible. Companies using a dry method spread the beans in the sun, turning them each day to even the drying. This process may take several weeks to complete. Alternatively, a wet method separates pulp from its skin, allowing the beans to ferment and leaves only the bean’s meat.
  4. Drying: An additional step in the wet version of processing, drying is a crucial step in the bean’s journey. Spreading them in the sun or passing them through a tumbler, the beans become dry and are ready for the next step.
  5. Milling: Dried husks are removed from the cherries, followed by sorting beans by size and weight. Additionally, they’re graded on a scale of 1-5, with Grade 1 beans exhibiting the highest quality taste, acidity, and aroma and Grade 5 beans revealing defects in more than 86% of the sample batch.
  6. Exporting: Now considered green, finished beans are loaded in bulk and sent worldwide.
  7. Tasting: During this step commonly known as cupping, professional tasters sample the brewed product and rate it on factors like visual appearance, scent of grounds, and variant flavors in each sip of a blend.
  8. Roasting: Placed into roasting machines approximately 550 °F, beans are heated until they turn brown, releasing caffeol, the natural oil responsible for coffee’s iconic aroma. They are then quickly cooled by air or water, completing the roasting process. This step is performed just before sale to consumers, preserving freshness and flavor of the coffee beans.
  9. Grinding: The different variations of coffee beverages are the result of overall choices on the coarseness of the grounds and length of time spent brewing. An espresso, for example, uses finely ground beans in a fast prep process, whereas a traditional coffee pot relies on coarser grounds in a longer brew.
  10. Brewing: Machine, water quality, coffee-to-water ratio, temperature, additives, and brew time all alter the effect of the final cup of coffee. The brew is the final step to achieving the end result of a delicious cup of coffee. With so many variables and potential additives, the list of coffee beverages is seemingly endless!

With such a long journey, that $3.28 doesn’t seem so unreasonable now, does it?

Shelling out a couple bucks for a latte here and there won’t break the bank. Making it a daily routine, however, could. Our financial planners at Raccoon Valley Bank can help you budget personal expenses so you can have your coffee and drink it, too. Stop by and share a cup with us today!

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