Category: blogs

5 Strategies to Shrink Debt

Personal Finances

Minimizing your debt can always seem like a mountain of to-do lists. With various recurring payments, differing interest rates, and due dates that never seem to end, if you feel overwhelmed, you’re not alone.

 

While having a credit card, or other outstanding debt, isn’t a situation anyone wants to find themselves in, a surprising 38.1% of American households carry credit card debt.  Couple that with a total household debt average of $134,643.00 and the idea of debt starts to seem more common than you’d think!

 

While we know that having debt isn’t always the best solution, but Raccoon Valley Bank is here to help you conquer it. We’ve found five proven ways to reduce your debt, and stop your spending process from adding more! Take a look at the five tools below, and see if they help you become debt free!

 

  • Find New Ways to Save: Whether it’s reducing your grocery bill, finding more affordable clothing options, or simply turning to the cash-only budget. There are numerous ways you can save. In fact, we recommend blogs such as The Simple Dollar, Making Sense of Cents, and Penny Hoarder to continue bolstering your savings knowledge.
  • The Snowball Method: This is by far our favorite way to reduce your overall debts. While you may need to start with finding some new ways to save, once you can allocate some extra dollars, you can put  this effective method in action, eliminating your debts. Simply pay the minimum amounts on all outstanding balances, and then using the surplus funds, add to your smallest payment to help pay it off sooner. Once your smallest debt is completely paid, you can rollover the funds being used for that into your next largest debt and so on. Repeat this process until all the debts have been paid off.
  • Refinance Your Current Loans: The snowball method will help you erase debts one by one, however, using this other strategy you can see about reducing those payments in one quick action. Speak with one of our dedicated lenders to see if your home mortgage or personal loan can be refinanced at a lower rate to save on monthly payments. This may make a small dent, but every little bit counts!
  • Freeze the Credit Cards: In order to proactively prevent yourself from overspending, freeze all credit cards you currently have in your possession. This step helps you to force yourself to spend only what you have. If you decide to use cash only, the envelope system may help you save even further!
  • Set Up Automatic Transfers: This one simple trick can save you hundreds each and every year! By using your online banking as a resource, you can create an automation to ensure you are never tempted to spend those extra dollars. Instead of waiting for them to be spent, allocate them in your savings plan, and tuck them away for paying down debt or building your emergency fund to eliminate emergency debts.

 

However you and your family decide to decrease your household’s debt, Raccoon Valley Bank is behind you! We’d love to talk about your family’s financial goals and help you identify the best tools to help you get there. Give us a call, or stop by your nearest branch to get started today.

10 Tips for a Great Holiday Party

Seasonal Get Togethers

No matter which holiday you are prepping for, there are some essential party essentials you should always plan for! Throughout this holiday season, try these top 10 planning tips, courtesy of Raccoon Valley Bank:

 

  1. Pick the best date. Saturday’s are always the prime time for holiday parties. Be sure to book venues ahead of time to ensure you can capture the best date for your gathering.
  1. Choose a simple theme. Don’t oversimplify it, but make sure it’s something that will click well with your guests. Simple things such as color coordinating, can help continue your theme throughout the event.
  1. Send invites at least six weeks before. People want time to plan, but not too much time to forget. Let your guests know about this holiday party six weeks prior to ensure they have plenty of time to plan. If you ask them to RSVP this can help you gain an accurate head count for food and beverage purposes.
  1. Email a reminder the week of. Sometimes people forget, ensure that all your guests who are available can attend, with a simple email reminder one week out from the party.
  1. Keep food fun yet familiar. A little twist here and there keeps things interesting, however, going too far can turn guests off to food altogether. Work with your caterer to determine what the best
  1. Set-up a good flow of traffic. Create a space that allows hungry guests to move through the food on both sides, well out of the way of your more conversational area.
  1. Create a timeline. Every party has activities, whether it’s dancing, trivia, or a simple informational slideshow, planning ahead of time can save you a headache later. Create a schedule for the evening to share with your guests. This will help them plan their time accordingly as well!
  1. Play festive music. Create a simple playlist full of upbeat and festive songs, but also be sure to include some current music selections as well! This will keep the holiday tone, without being overwhelmingly so.
  1. Give away or donate leftovers. Leftovers are a given at any holiday event, be sure you send your guests home with some goodies to help avoid discarding surplus food. If doggie bags are not an option, stop by your local food bank that night, or the next day to see if it can be used.
  1. Have a clean-up crew. Cleaning up is the worst part of event coordinating. Make this task easier on yourself, and recruit a team of guests and friends to help clean after the event, or the next day. Offer to provide a meal and beverages as thanks, in addition to a free ticket or gift at the party.

 

If you follow these holiday hacks, your event could be the best gift of the season! Show us your favorite holiday get together by sharing a photo on our Facebook page. We can’t wait to see all the different themes!

What Your Teen Needs to Know About Money Management

Personal Finances

Throughout their teenage years, your children will begin to grow their personal money management style. Offer them some assistance by offering these four financial lessons from Raccoon Valley Bank.

 

Securing Their First Job

No matter if it’s babysitting, lifeguarding, or bagging groceries, there are plenty of employment options for eager high school students. These opportunities typically start at minimum wage with zero benefits, but offer a foundation of experience and learning. Talk with your son or daughter, and help them select positions to apply for that resonate with them. Resources such as the Chamber of Commerce often list local job openings, and are a good place to comb for recent availabilities.

 

Managing Money

The younger you begin various habits, the better they stick with you. Teach your children the positive effect proper money management can have on their pocketbook. Start by opening both a savings and a checking account for your teen. Each pay period, help them figure ten percent of their earnings to put into their savings. You can also work with them one-on-one each month to help balance their checkbook and plan for any large expenditures.

 

Saving for College

Secondary education isn’t cheap. If your son or daughter plans on attending a college or trade school, the time to start saving is now! Work with your future student to determine an educational budget, providing an estimate of upcoming expenses. Once you know the amount needed you can set savings goals for both you and your teen to start tucking money away. The sooner you begin your savings journey the smoother the road will be to your target amount.

 

Making Payments

Whether it’s purchasing their first car or simply covering the cost of meals at school, learning how to maintain a payment plan is an important life lesson. Explain your personal bill paying system to your teen and see how they can tailor it to their needs. Once they have a grasp on the system itself, gradually add payments to your child’s list of responsibilities, even if you add the money to their account. This will help them learn to keep an updated payment calendar before they graduate high school.

 

Money management is a continual learning process. There are always new techniques or tricks to better arrange your finances. Don’t stop honing your teen’s money management after these four lessons – stop by Raccoon Valley Bank and see how you can keep growing your family’s financial skills today!

The Real Cost of a Fixer Upper

Fixer Upper

The Real Cost of A Fixer Upper

Throughout your real estate search, you’ve probably asked yourself the infamous question, “What would Chip and Joanna do?” With HGTV’s Fixer Upper series gaining popularity, more and more families are looking to buy inexpensive fixer uppers to fulfill their home buying dreams. Filled with projects, setbacks, and endless design potentials, these diamonds in the rough come with their own unique set of pros and cons. Luckily, Raccoon Valley Bank is here to help you discover the true cost to working through your own fixer upper.

 

Every home has different needs, but these are some key expenses you’ll need to plan for when purchasing a fixer upper:

 

  • Realtor Fee: if you’re selling your current property, be prepared to fork over the 6 percent fee to have your home sold. Ideally you’re looking to sell your home for a higher dollar than you purchased it for, but this is not always the case. Be sure to have some funds in reserve just in case you have to cover the realtor fee out of your own pocket.
  • Construction Costs: Typically divided into two billing arenas, you can expect to either pay one lump sum, or a calculated cost of labor, materials, and an added profit margin. Expect to pay $100-$200 per square foot of intensive renovation work.
  • Materials: The more upgrades you want, the faster your price will climb. While simply getting the property up to speed is a task all its own, creating your own customized space inside will continue to add dollars and cents to your overall bill.
  • Furnishings: Depending on the format of your last home, you may be upgrading your furniture in this new abode. After various searches and bargain finds, you’ll still need to tuck away and extra some extra funds to ensure you can furnish the home once it is finished.
  • Landscaping: Now that the house is complete, it’s time get to work on the curb appeal – and it isn’t cheap! With an average price tag of $5,000, finishing your home with a completed landscape design can also add to the overall budget.

Altogether, purchasing a fixer upper may cost about the same as a newer home purchase after the cost of renovations. The advantage to these love-needing homes however, is their potential for customization, and creating the ideal home for you and your family. If you’re looking to repair or update your next home, consider financing through one of our structured Home Equity Lines of Credit. Our experienced mortgage lenders are here to help you every step of the way!

The Most Common Phishing Scams and How to Avoid Them

Scams

The Most Common Phishing Scams

Phishing is a common term for the unfortunate schemes hackers and online criminals use to lure users into giving their personal information. Typically disguised as familiar online activity, these scam artists have cleverly found several distinctive ways to attempt to trick YOU into handing over your private details. Be on the lookout for these common phishing scams next time you’re roaming the web!

 

  1.   Foreign Lottery Scam

With this tactic you generally receive an email informing you that you have just won the lottery of some far-away land! To obtain these exorbitant funds you simply have to send a small fee to cover the transfer cost. A simple online search will show that this thrilling lottery is no more than phony website with a long distance phone number. Typically if the sending address doesn’t look familiar, or if you have not applied to any foreign lotteries, it will be a dead giveaway that this email is just an attempt to get your information and your money.

 

  1.   Survey Scam

Do you like supporting the humane society or other animal organizations? This scam takes advantage of your online history and sends you a survey to submit your opinion on issues that matter to you. Instead of using your responses on animal treatment, this system discovers your email address, and other relative personal information, to hack your account and send out further spam emails.

 

  1.   Online Banking Scam

Most phishing schemes disguise themselves as something familiar, often as PayPal or even your personal bank. This particular scam typically indicates that some type of immediate action is needed, and your financial account is at risk. Before sending any type of reply communication, check the source of the email, and call your personal contact at the organization to see if the email is legitimate. If you question the validity of any portion of the email, delete it and call the company this con artist is attempting to masquerade as ASAP.

 

  1.   Clickbait

Social media has a hacking arena all its own. With links scattered across newsfeeds, it’s often hard to determine what is genuine and what is clickbait. Clickbait is a link generated using common controversial issues to get you to click on it. Once clicked, the link may switch to a Facebook login, where you login again. Unfortunately this false login page is a common maneuver by cyber criminals to get your social media login. Having this information, online criminals can now access your account and spam the people you are connected with.

 

If you think you’ve been a victim of an online phishing scam and your personal banking information has been compromised, call Raccoon Valley Bank. We’ll help you watch for signs of identity theft within your personal bank accounts.

What’s Your Spending Style?

Spending Style

What’s Your Spending Style

Everyone spends and saves differently. There are spending personalities on all ends of the spectrum that range from extreme spenders to tireless penny pinchers. Discover what type of spender you are with this helpful quiz courtesy of Raccoon Valley Bank.

 

What’s your typical lunch during the workweek?

A: A packed lunch, typically leftovers from the night before.

B: A variety of prepared lunches from home and a handful of take out meals throughout the month.

C: I usually grab something from one of the local restaurants during my lunch break, occasionally I’ll bring something from home if it was really good.

D: I can’t get through the day without my latte in the morning, and a solid lunch out of the office in the afternoon.

 

How important is your credit score to you personally?

A: I live and breathe by this number, it influences almost all of my buying decisions.

B: I check my credit every month, it’s important to know where you stand.

C: I have a general idea where I’m at, but it’s not the first thing on my mind.

D: What’s a credit score?

 

If you want something that is $3,000 but you only have $1,500 available funds in your account what would you do?

A: Wait until I can save the additional $1,500 I need before purchasing it.

B: Compromise on a similar item that only costs the $1,500 I currently have.

C: Purchase the $3,000 item, paying $1,500 up front, and putting the rest on credit.

D: Purchase the $3,000 item and put it all on credit.

 

What does retirement savings mean to you?

A: Roth IRA, 401(k), stocks, bonds, and personal savings.

B: Using my work benefits along with personal savings.

C: I think I get something for retirement through my place of employment.

D: Something I don’t have to worry about until I’m older.

 

When you see an exciting impulse buy, how do you manage the situation?

A: I remind myself I’m here for these 5 items and nothing else.

B: I remember I already bought a small impulse buy yesterday, so this one could potentially harm my budget.

C: I made it through the work day today, I deserve this.

D: I already have 4 other things I wasn’t expecting to buy, what’s one more?

 

If most of your answers were [A] then you are a Penny Pincher: For you, finances are the key to your existence. All aspects of your financials are crafted into a strategic plan to make the most out of your various savings accounts. You’re the first to suggest a restaurant based on cost, and the last to splurge on a large purchase. Typically you’re also the person other family members typically ask for well-rounded financial advice.

 

If most of your answers were [B] then you are a Balanced Budgeter: In your world, the life of a budget doesn’t have to centered around a hunker down mentality. A budget is a fluid medium that is meant to be customizable to you and your needs. Occasionally an added expenses or unforeseen purchase is needed or warranted, but overall, you ensure you and your family stay on track with a well thought out financial plan.

 

If most of your answers were [C] then you are a Cautious Creditor: Although much of your financial expertise is based on credit card rewards, and other point benefits, you do care about your money management. While not all your choices are made to help boost your savings, there are certain measures you take on a continual basis to help push your financial goals forward.

 

If most of your answers were [D] then you are a Debt Developer: Often times you spend more than you intend. Between check-out line snacks, and lunch time splurges, your bank account just tries to keep up. Understanding your financials isn’t necessarily first on your list of priorities, but there are certainly some things you know you could improve. You appreciate the things you purchase and genuinely enjoy the experience of shopping.

 

No matter what type of spender you are, Raccoon Valley Bank is here to help you succeed. For everything from setting up savings accounts, to consulting on wealth management, we have everything you need to continue your financial success. Give us a call at (515) 993-4581 or stop by today to get started!

Money Lessons at Every Age

Money Lessons

Money Lessons At Every Age

No matter what your age, there are always exciting new aspects to understand in the realm of money management. This year help your children get a head start on their financial education with these key lessons courtesy of Raccoon Valley Bank.

 

2-5 Years Old: The Three Jars Activity
In your child’s youngest years it is important to give them a basic financial understanding. You can help your little ones comprehend savings, spending, and donating through three simple jars. Each week give your child 50 cents or a dollar, all in quarters. It is then their decision whether they want to save it for a bigger toy or purchase, spend it on something smaller, or donate it to help others in need. This activity works to help create a general thought process of the three common ways to spend or accumulate funds.

 

5-13 Years Old: Budgeting Basics
For everything from buying groceries to new clothes for school, you can help your child learn how to budget by setting a spending limit for your various shopping trips. By allowing your little ones to participate in the purchase process, you can help educate them in the importance of staying on or under budget. Let them help you find bargain deals or clip coupons to reduce cost. When the expenditures come in under the budget, reward their efforts with a small treat.

 

14-18 Years Old: How to Build Your Financial Reputation
Correctly making payments is a pinnacle point in proper money management. Whether it’s purchasing your first car, home, or other personal purchase, learning how to correctly pay off your loan, can be the difference between good and bad credit. Get started on this important lesson with a quick tutorial on how you pay any monthly bills or debts. Show your child your system to give them an introduction into how the process will take place. Once they choose to purchase a car or other item through a personal loan, you can walk them through the payment process online, and help them make a calendar of when installments are due.

 

Whether your little one is two or twenty-two, there is always something new to learn. Stop by Raccoon Valley Bank and see how you and your family can improve your money management skills today!

How to Save $1,000,000 by Retirement

Saving for Retirement

Retirement may seem an eternity away; however, even if it’s a dream 20 years down the road, saving for retirement shouldn’t wait until the goal is in sight. Rule of thumb says you’ll need $1,000,000 in savings to retire comfortably. Our experts at Raccoon Valley Bank recommend taking the following steps to save with the future in mind:

 

  • Determine when you want your $1 million. The typical age of retirement is 65, but you may be shooting for a few years earlier or later. Whatever the age affects how much you need to save each month, so calculate years left to save based on current age and breakdown monthly savings requirements thereafter.
  • Start saving ASAP. Compound interest rewards those that begin saving earlier rather than later. A $10,000 investment at age 25 could yield tens of thousands of dollars more by 65 than if that same $10,000 were invested at 35.
  • Spend less than you save. It’s basic math. You’ll have money left to save only if income exceeds expenses. Buying a home within your range, purchasing cars secondhand, and paying for vacations out of savings and not on credit protects you from dipping into debt.
  • Opt for automatic. Research your employer’s 401k or retirement-based plans and determine what percent you’d like funneled from your paycheck and into your savings. If your employer matches contributions up to a limit, work to reach their maximum to make the most out of your savings.
  • Set-Up an Emergency Fund. Expect the unexpected. A flooded basement or dying car engine can send you spiraling out of your savings plan if you haven’t budgeted for rainy days. Set up a $1,000 emergency fund as soon as possible, and work to expand it to anywhere from 6-12 months of income to protect you from larger surprises, like medical issues or unemployment.

The road to a million takes time and discipline, but it’s exceedingly possible. For further savings strategies, make an appointment today to meet with one of our trained financial experts today.

Auto Financing

AutoAre your searching for the perfect new vehicle for you and your family? Make sure to begin your next auto purchase at Raccoon Valley Bank with affordable auto financing! Find a budget that fits you and your vehicle needs! Try these easy tips to find the characteristics of the ideal vehicle for what you’re searching for!

Determine if you want a new or used vehicle.

Many auto dealers today offer both new and used. While new can offer updated technology and the assurance of no prior owners, choosing a used vehicle can drastically diminish cost and offers a comparable quality with moderate mileage.

Decide on a budget and a timeline.

When choosing the right vehicle to purchase, there are many questions to help you research which may be best on your pocket book in the long run.

-How long do you want to drive this vehicle?

-What does your budget allow you to spend for the down payment and installments?

-When do you need your vehicle by?

-What type of MPG do you need to keep gas costs within your overall budget?

-How long do you want to be paying the loan off? (0-5 years)

With these questions in mind you can better view the credentials needed for the ideal vehicle for you and your family.

Save your down payment.

Speak with one of our lenders to confirm your auto financing needs and decide on an appropriate down payment amount. As a general rule 20% of the final cost of the vehicle is ideal, however depending on your personal finances a lower percentage may be available to you.  Be sure to include any maintenance work, tires, or other repairs a car may need in the overall cost.

Talk to us!

If you have any questions or want to begin the process of auto financing call or stop by today. We’re happy to help, and look forward to making you auto buying dreams a reality.

Practice good car maintenance.

After purchasing your new vehicle you’ll want to keep it prepped and ready for the winter! Try some of these quick tips to keep your car safe and warm this winter.

  1. Warm up your care before you go to work to make scraping ice easier.
  2. Rotate your tires to ensure a stronger tread on tires.
  3. Keep a winter emergency kit in your vehicle, just in case!
  4. Maintain a full gas tank when possible to avoid freezing gas lines.

Purchase your next vehicle with easy auto financing from Raccoon Valley State Bank! Stop by today and learn about our various options tailored to you!

Miracle On Ice

MiracleSometimes there are stories so inspiring they give you chills, make you want to go out and accomplish something spectacular simply because you now know the impossible can occur. Today we start a chapter in the New Year, deciding our goals and what we want to accomplish in the coming months. In the financial realm of 2016 we believe anything is possible, and if you dream it, we want to help you achieve it.  So today if you’re a little short on motivation, enjoy this tale of the incredible feat by the 1980 U.S. Olympic Hockey Team, known as the Miracle on Ice.

In the summer of 1979 U.S. hockey coach Herb Brooks held auditions for the 1980 U.S. Winter Olympic Hockey Team. With a final roster of 20 young men, averaging an age of 21, the U.S. had its youngest team in history. Brooks decided to retain only one player from the prior Olympic team, Buzz Schnieder. Brooks knew that the U.S. was to be considered an underdog, and during the exhibition games he insisted the players learn a more European style of play to build strength and cohesiveness. In their final exhibition game on February 9, the U.S. played their future opponent, the Soviet Union National Team. They lost in an agonizing defeat of 10-3.

Once the Olympic Games began, the Soviet team paved their way to the top, scoring large leads against the majority of their opponents. During their first game, the U.S. team tied Sweden with a 2-2 game, pushing both teams forward. After several close games, the U.S. found themselves in the semi-finals playing against the Soviet Union National Team, which had defeated them less than two weeks prior.

In the first period of the game, the Soviets managed to sink a puck and gain the first lead. The U.S. managed to gain a goal, keeping toe-to-toe with the Soviets after another goal, eventually ending the period in a 2-2 tie with a last second goal by the U.S. In the second period the Soviets again took the lead gaining one culminating goal. After only eight minutes in the final period, the U.S. found its momentum. Through an incredible power play the U.S. earned a goal, and then another only minutes later. The Soviets began to panic, yet Brooks kept his players calm. He continued to keep the U.S. on offense making several other attempts on goal, repeating to his players, “Play your game! Play your game!”

As the seconds of the final period counted down, the sportscaster for ABC, Al Michaels joined in, famously saying, “Do you believe in miracles?! YES!!!!” When the final buzzer rang the field house was filled with exclamations from the U.S. fans as the players stormed the ice, cementing the moment as one of the best sports moments in the 21st Century.

After the game, sports anchor Jim McKay shared a comparison of the game as a group of Canadian college football players defeating the Pittsburgh Steelers.

Against all odds and predictions, the 1980 U.S. Winter Olympic hockey became a real life David and Goliath, knocking down the Soviet Union National Team and making hockey history. The U.S. later went on to defeat Finland in the finals to gain the gold medal.

Anything is possible if you plan and work to achieve your goals. We are happy to share this incredible tale to inspire you to reach for the stars. Share you financial aspirations with us, and we will work to help you do what perhaps you never thought was possible.

 

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