Financial Tips

As the sun rises on January 1, many people will start their NEW YEAR fitness plans.  What about SHAPING up your FINANCES?!?!

Let our Legence Bank team create a financial fitness plan that works for YOU!  We can help you set attainable goals, taking small steps in the right direction to money management.  If you are planning to get in FINANCIAL SHAPE for the new year, check out our financial tips to get you FIT for 2023!

Making the decision to change your financial habits in the New Year is a smart, healthy move, but attempting to tackle it all isn’t the best plan.  Focus on the things you can easily and quickly change and prioritize your Financial Fitness Plan based on what you want to see for yourself in the future.

New Year’s resolutions are not for everyone, but setting financial goals for yourself, your family and your business is an essential part of leading a healthy life.  Think about your priorities when it comes to your money and then implement the strategies listed above.   Taking one small step toward a healthy financial life can make a huge difference for the next year and beyond.

Weekly Financial Tips

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Financial Tip #1- WORK ON YOUR BUDGET

In January, many people will start their NEW YEAR fitness plans.  What about SHAPING up your FINANCES?!?!

Let our Legence Bank team create a financial fitness plan that works for YOU!  We can help you set attainable goals, taking small steps in the right direction to money management.  If you are planning to get in FINANCIAL SHAPE for the new year, check out our financial tips to get you FIT for 2023!

One of the most important financial moves you can make in 2023 is committing to your budget.  Figuring out what money is coming in and where it is going every month can be an eye opener!  If you notice you don’t have as much as you would like to set aside for retirement, investments, or savings, looking at your budget can reveal where you may be able to cut back or reallocate some of your spending. 

We have a great TOOL in our FREE Legence Bank App and Online Banking called Go!Focus.  This amazing money management/budgeting tool helps you set budgets, and manage all your finances in one location!  Our team is ready to show you how to get a jump start with your financial fitness plan.

Financial Tip #2 - EVALUATE YOUR DEBT

As some of you continue on with your NEW YEAR fitness plans. We are here to help you SHAPE up your FINANCES!!!

Let our Legence Bank team create a financial fitness plan that works for YOU! We can help you set attainable goals, taking small steps in the right direction to money management. If you are planning to get in FINANCIAL SHAPE for the new year, check out our financial tips to get you FIT for 2023!

Another important financial move you can make in 2023 is to evaluate your debt. First things first – make a list of all your outstanding debts, determine which ones are causing you the most financial pain. Work toward paying down what you currently owe before adding any new debt. Avoid any unnecessary purchases. Adding more debt by making unnecessary purchases when you still have debt to repay will make managing your debt more difficult. Pay your bills on time, check your bills to make sure everything is accurate, know your debt -to-income ratio and look for opportunities to consolidate your debt.

If you have multiple loans and multiple credit cards, a PERSONAL LOAN can help YOU! Our team can help you consolidate your debt into one loan at Legence Bank. Rolling your monthly bills into a single payment with a PERSONAL LOAN for debt consolidation can be a good way to simplify your financial life, keep your credit strong and make it easier to repay what you owe each month.

Our team is ready to show you how to get a jump start with your financial fitness plan.

Financial Tip #3 - BOOST YOUR CREDIT SCORE

Let’s continue to SHAPE up your FINANCES!!!  It’s week 3 with tips for your financial fitness plan!

Boosting your credit score is another important financial move you can make this year. Building good credit is like building a house.  You start with a foundation – which is your current credit score – and build from there.  It is all about how you spend the money you earn and how much debt you incur. 

The better your credit score, the more likely a creditor will trust that you will pay them back. Your credit score can affect where you qualify for a loan, as well as the type of loan and loan terms.  A higher score can help you unlock savings and benefits through better interest rates and more favorable loan terms.

As you set your foundation for building good credit, know it may take time, but it’s never too late to start.  You can start building your credit by setting small, achievable goals.  One way to do this is by applying for a Personal Loan at Legence Bank.  Use your credit cards in moderation and make payments on time.  Showing consistent on time payments will help you establish your credit history, strengthen your score, and achieve your financial goals.

To help build and maintain good credit, you should set a budget.  Track your spending by using Legence Bank’s FREE Go!Focus Budget Management Tool in our mobile app and online banking.  Set a plan to pay off existing debt.  One way to help is consolidating debt and our team at Legence Bank can help you!   A personal loan can serve as a great option to consolidate debt and help build your credit.

TIPS TO IMPROVE YOUR SCORE:

1. Lower credit card balances
2. Pay your bills on time
3. Open a savings or checking account
4. Keep the number of credit cards to a minimum
5. Try not to cancel or close your credit cards as that could impact the total amount of credit you have available and how much you have used.

Your credit report includes items such as: payment history, amount owed to creditors, available credit, types of accounts, and how long the accounts have been open. You can request these reports from each of the three primary credit reporting bureaus every 12 months for no charge as a way to track your score.

If you want to rebuild your credit and get on a healthy financial track, consider a Personal Loan with Legence Bank and our Budget Management Tool.

Our team is ready to help with your financial fitness plan.

Financial Tip #4 - INCREASE YOUR SAVINGS

Let’s continue to SHAPE up your FINANCES!!! 

Increase your savings and reach your targets without breaking a sweat. Saving and budgeting can seem stressful at first, but having a fixed goal can actually be a source of calm. It can help you visualize an exciting future in which you’ve bought your first house, started a family or even just splurged on something nice for yourself.

So, if you’re wondering how to save money here are a few suggestions on how to boost your bank balance.

1. The most important tip for saving money is simple - Learn to Budget and understand your finances.  If you are in control of your budget, you are in control of your finances.
2. Before you can start saving each month, you need to come to grips with your cash flow.  This means understanding ALL of your incoming and outgoing revenue streams, including any debt repayments, monthly bills and savings contributions.
3. Before you can start saving, you need to pay down your debt – consider the budgeting method such as the 50/30/20 budget.
   1. Use 50% of your income on your needs, i.e. your fixed costs such as rent and utility bills.
   2. Use 30% of your income on your wants, i.e. your variable costs such as dining out and subscription services.
   3. Save 20% of your income. So, if you make $2500 a month after taxes, this would mean you can put aside $500 a month. In just a year, you could have paid off $6000 worth of debt.
4. Create a designated Savings Account – this helps separate the money you spend on daily needs from the money you to intend to save.
5. Automate your savings – if you have a fixed monthly income, consider automating your savings contributions each month.  Our team at Legence Bank can help you set up an automated transfer from your checking account to your savings account each month.
6. Automate your bills – BILL PAY is a great took we provide FREE at Legence Bank within your online banking and mobile app.  You can help alleviate late fees by paying bills prior to your due date with Bill Pay.
7. Track your spending by using Legence Bank’s FREE Go!Focus Budget Management Tool in our mobile app and online banking.  This tool provides alerts, let’s you pull ALL accounts into ONE location.  This is a great resource to help you get on a healthy financial track, consider one of our SAVINGS ACCOUNTS with Legence Bank and our Budget Management Tool.

Our team is ready to help with your financial fitness plan.

Financial Tip #5 - BUILD AN EMERGENCY FUND

Let’s continue to SHAPE up your FINANCES!!! 

BUILDING AN EMERGENCY FUND is essential to your financial fitness plan!  An emergency fund is a cash reserve that is specifically set aside for unplanned expenses or financial emergencies, such as car repairs, home repairs, medical bills, or a loss of income. This fund is not part of your routine monthly expenses or spending. This fund should typically cover three – six months’ worth of expenses, but saving that amount takes time and you can set small goals to make it happen.

Setting up a dedicated savings account for your emergency fund is one essential way to protect yourself, and it is a great first step you can take to start saving.  There are different strategies to start building your emergency fund and start saving.  We are slowly approaching tax season, if you receive a tax refund, you can set aside a portion into savings to start building your fund.  Even the smallest amount each week or month will help you start to grow your savings.

CREATE A SAVINGS HABIT:

• Set a Goal. This will help you stay motivated to build your emergency fund.  You can use our FREE Go!Focus Money Management Tool at Legence Bank to help track your savings.
• Create a system for making consistent contributions.  Our team can help you set up automatic savings transfers for a specific amount each week or each pay period. Aim to make it something you can afford and watch your savings GROW!
• Regularly monitor your progress. Our Legence Bank Mobile App makes it easy to monitor your savings anytime, anywhere!
• Celebrate your successes. If you are sticking with your savings habit, recognize your accomplishments and treat yourself!

If you are ready to begin building your emergency fund – let our team at Legence Bank help YOU with one more step in your financial fitness plan.

Financial Tip #6 - SET BILL PAYMENTS TO AUTOPAY

Let’s continue to SHAPE up your FINANCES!!! 

BILL PAY is an amazing tool and a smart way to protect your credit rating by ensuring you are never late with a payment.  Online Bill Pay with Legence Bank can be used to pay nearly any bill, and the bank sends payments either electronically or by check using funds from your account. If you are not using the Online Bill Pay service you are missing out on so many benefits, including saving time, saving money, decreasing clutter, and improving your financial management.

Let’s talk about these benefits!

SAVING TIME – setting up a payment through Online Bill Pay with Legence Bank is quick and easy. You can easily search for a biller and simply add a payment for them. This alleviates going to numerous websites with separate logins – with ONLINE BILL PAY you save time by paying all of your bills from one website when you login to our online banking or via the Legence Bank App.

SAVING MONEY with online bill pay by eliminating the checks and stamps associated with traditional bill payments.

DECREASING CLUTTER – you can also receive an estimated arrival when you initiate payment through online bill pay, and alleviate paper with eStatements. 

IMPROVING YOUR FINANCIAL MANAGEMENT is a big part of your financial fitness plan – Online Bill Pay will put you in control of your finances.  You decide when your money leaves your account and you can set up recurring payments giving you the peace of mind that your bills will be paid on time. 

Sign up for ONLINE BILL PAY with Legence Bank today and save time, money, decrease clutter and improve your financial management.

Financial Tip #7 - MAXIMIZE YOUR CASH FLOW

Let’s continue to SHAPE up your FINANCES!!! 

Your cash flow is easy to track and having a better understanding will yield tremendous benefits. Knowing the details of your cash flow will assist you in setting up a budget. It will also increase your personal satisfaction as you become more aware of where you are spending your hard-earned money. While cash flow management is a broad topic, let’s discuss how to work on this financial goal.

• It is best to begin by making a budget that captures all your income and expenses. Our team is ready to help you and our Go!Focus Management Tool within Online Banking and our FREE Legence Bank App, is an excellent tool that helps you create a budget by analyzing your transactions!
• When you create your budget, it is time to make sure you stay disciplined and within your allotted allowances. If you find that you are experiencing a shortfall, adjust the budget to make it more attainable. You’ll know it’s right when you no longer see negative numbers.
• Along the way, make sure the budget stays relevant to you and what you want to accomplish, such as saving for a vacation or a house.
• Finally, understanding your cash flow should help you determine how long it will take you to achieve your financial and personal goals in a timely manner.

It is crucial to understand your cash flow – the movement of money in and out of your accounts.  Determine where the money is going and how much you spend on a monthly and annual basis, then conduct an analysis.  Determine which costs are essential and which are discretionary.  You will often find room for improvement.  Our Legence Bank team is ready to help YOU maximize your cash flow and reach your financial fitness goals!

 

Financial Tip #8 - USE S.M.A.R.T GOALS

As we continue talking about shaping up your finances for 2023, studies have shown that when individuals take the time to write out their goals they are 50% more likely to achieve them. However, only 3% of adults actually put pen to paper and write down their goals.

The first step in any goal setting process is to establish Specific Measurable Achievable Relevant Time-Bound (SMART) goals.

By applying the SMART parameters, you define the specific goal.  The next step would be to measure your current financial position, including assets and liabilities, current income, expenses, and savings.  Next, make some reasonable forward-looking assumptions to project how achievable it is to reach your goal during your time frame. 

• SPECIFIC: From the list above, pull out your goals and make them as specific as possible. For example, don’t just put “invest more”. Instead try, “I want to increase what I put in my company 401(k) by 10% every paycheck and invest 5% of my monthly income to a brokerage account to save for my children’s college fund.” 

• MEASUREABLE: This aspect of SMART goals should be pretty easy when it comes to financial goals because most goals will have percentages or dollar amounts associated with them. Using the example from above, you could check in with yourself in 3 months to ensure the 10% and 5% are still flowing into your investment accounts and that it’s sustainable. 

• ACHIEVABLE: Speaking of sustainability, you want to make sure your goals are achievable given your income, lifestyle, cost of living, and other factors. If you have a big family to feed, it’s probably not achievable to invest 90% of your income. You can still set goals that make you stretch or even make you a little uncomfortable but don’t be unrealistic. 

• RELEVANT: Make sure your money and financial goals are relevant to your life. Don’t set goals that don’t apply or belong to different areas of your life. 

• TIMELY: Assign a deadline to each of your financial goals, with smaller deadlines along the way. For example, “I want to save for our family vacation in 2024.” Smaller deadlines could include, “By the end of June, I will have half the money saved” and “By the end of November, I will have the full amount saved.” 

A few additional tips to help you accomplish your 2023 money goals include: 

• Automate: Set it and forget it! Consider automating savings, investing, and debt payments. You can do all of this in your Legence Bank Mobile App and Online Banking!

• Don’t do it alone: Our Legence Bank team can provide you with the necessary tools and encouragement to reach your financial goals. Their expertise and experience can help guide you with clear action steps, security, peace of mind, confidence, education, and accountability. 

Our Legence Bank team is ready to help YOU set your S.M.A.R.T financial fitness goals!

Financial Tip #9 - PARTNER WITH A FINANCIAL PLANNER

Together we can create a realistic financial fitness plan that works for YOU!  Long term priorities like saving for college education, emergency reserves,  and retirement are best planned with a financial partner to help you focus and tackle these goals efficiently.

Most of us find it difficult to lose weight in the New Year and change habits.  The same goes for your financial physique.  Changing behaviors is a process that takes time and commitment.  You are much less likely to give up on your goals if you have someone on your team to motivate you and hold you accountable. Our financial advisors at Legence Investment Services are ready to help you create a plan and reach your goals!

In the rush of our daily lives, planning for anything more than a few days in advance can seem like a headache.  It is your life and your wealth and it is always a good time to plan for your financial future! 

1. A written financial plan increases confidence with measureable goals to work toward.  You can track your progress and make adjustments to help overcome your obstacles that could derail you.
2. A financial plan can jumpstart savings, even with a small amount invested.  A financial plan can help everyone improve their saving and budgeting habits.
3. A financial plan can help you create an investment portfolio.  Setting aside money for short term and long term goals will help you reach your financial goals. Our financial advisors with Legence Investment Services can help you create a plan with investment options to suit your needs.
4. A financial plan can lead to better habits.  It is so much more than investing, it is about security and quality of life.  You will have peace of mind with an emergency fund and retirement plan.
5. Planning can be tailored to every person and family.  Research shows that households working with a financial advisor were more likely to make better financial decisions than those without a planner.  Our team at Legence Investment Services is ready to help you SHAPE UP YOUR FINANCES!

Financial Tip #10 - PROTECT YOURSELF FROM FRAUD

 

1. Take extra precautions for logging into bank and other financial accounts.  These measures include using “strong” user IDs and passwords that are long, unique, by choosing combinations of upper- and lower- case letters, numbers, and symbols that are hard for a hacker to guess. Keep your user IDs and passwords secret, and change them regularly and always log out of financial accounts when you complete your transactions or walk away from your computer.
2. Think before you click.  Never click on links or open attachments in suspicious emails, or text messages.  This could result in installation of malicious software or a virus onto your computer or mobile device. Phishing emails happen often and some hackers are very crafty at making messages look like they are coming from someone you know, but in reality is another fraudulent attempt to access your information.
3. Enable Multi-Factor Authentication (MFA).  This is known as a two-factor or two-step authentication which makes you significantly less likely to get hacked.  It is another precautionary step to help protect yourself.  Update your software to ensure you have the latest protection from vulnerabilities. This goes for mobile phones, tablets and laptops, along with updating applications and web browers!
4. Monitor your accounts for unusual activity. Online and mobile banking services at Legence Bank provide a safe and quick way to turn your debit card off if you are worried about fraud or possibly misplaced the card.  You can then go back into mobile banking and turn your card back on with one quick click.

For our Legence Bank business customers, we have an amazing product called Positive Pay! This service allows you to easily and quickly verify checks that have cleared your account with Legence Bank, ensuring they are checks you have written. Positive Pay will help you identify and stop fraud in its tracks.

Fraud is on the rise – please use these tips and resources for your protection.  Partner with Legence Bank to help protect YOU and your BUSINESS from fraud with POSITIVE PAY!!!

Online banking makes it easier and faster to monitor your accounts. This is important because the sooner you can detect a problem with a transaction, the easier it should be to fix.

Financial Tip #11 - MAKE YOUR MONEY WORK FOR YOU

If you are looking for a way to grow your savings faster than you could with a traditional savings account, you might want to consider a money market account or a CD (certificate of deposit).  Both accounts could help you earn higher interest rates and save more money.

A money market account may be thought of as a combined savings and checking account.  It is an interest bearing savings product and works like any other bank deposits:  you deposit money and the earn interest on your balance according to the terms of the account.

A CD (certificate of deposit) is a type of savings account that generally pays higher interest rates in exchange for locking your funds for a specified term.  Term lengths can be as short as one month or as long as five years.  You will typically earn a higher rate if you leave your funds in the CD for a longer term period.  The end of the term is called the maturity date, which is when you can access your funds, including deposits and interest.  You may access your money before the maturity date, but you will likely be subject to an early withdrawal penalty.   You will also have the option at maturity to move the funds to a different financial product or renew the CD. 

Money market accounts and CD’s are both types of federally insured deposit accounts that earn interest.  If you are saving for an emergency fund, a tax payment, or a large purchase in the near future, you might need your funds to be liquid.  A CD account might be the right fit for someone close to retirement seeking a safe federally insured place to store their money and earn interest.  CD’s are also great when you are saving for a down payment, college savings, vacation or other long term goals.

Our Legence Bank team can help customize a solution to fit your specific needs whether it is a money market account, CD account or other financial products!

Here is how it works:

• Choose the account you need
• Choose the amount and term - if a CD
• Open your account
• Earn interest at competitive rates

You can open your account at any of our Legence Bank branches!  We look forward to helping YOU put your money to work!

Financial Tip #12 - INVEST, INVEST, INVEST

As we wrap up our Legence Bank - Financial Tip Friday series, we are going to recap a few important tips on how to SAVE, PLAN, and INVEST!!!

Pay Off Credit Card Debt

• Paying off your credit card debt is an important step in becoming financially healthy.  It will also help with your credit score.  We have a PERSONAL LOAN at Legence that will help you consolidate your Credit Card Debt and open the door to saving for your future!

Start A Budget And Track Expenses

• Creating a budget is very important, but sticking to it is even more important.  Tracking all spending through our FREE – Money Management Tool – Go! Focus is an amazing tool to help you SAVE and plan for the future.

Work On Contributing More To Your Retirement And/Or Start A Retirement Plan

• When you are young, saving for retirement is probably not top on your list, but the sooner you start, the more secure you will be when retirement comes.
• You an also talk to our Legence Bank team about IRA options – these are Individual Retirement Accounts.

Make Extra Mortgage Payments

• If you can afford to put extra money towards your mortgage, but don’t, you are missing out on some major savings!  If you pay your mortgage for the life of the original loan, you could end up paying nearly as much in interest as you do for your home itself.
• Example - If you put extra money towards your mortgage loan on a monthly basis, you could potentially shorten your loan by a few years.

 

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SCHEDULE YOUR FINANCIAL FITNESS PLAN TOAY!