Your 20s is the most important decade of your life financially. Really. It is a crucial decade in learing how to manage your money. Unfortunately, many do not learn (or prefer to wait to learn) until their 30's and 40's.
In your 20’s and don’t think that you need to worry about your security later on down the line, right? You can always start saving in your 30's and 40's right? WRONG. Often times, rather than saving, investing, and building a career, many 20-somethings instead use these years to rack up debt and enjoy a lifestyle beyond their means. While there are many things that 20-somethings should focus on, here is a list of five that can get you started:
Oh yea, before we start, you might want to consider this idea: if you begin saving around $1,500 a year, beginning at the age of 25 years old, and you save this for 40 years, by the time you retire you would have $600,000 saved to tack onto your retirement pay. If you wait until you are 40 years old, you would only have $375,000 by the time of retirement. That’s a whopping $225,000 difference!
1. Spending Less Than You Earn
The most important financial habit that a young person can learn is to spend less money than he or she earns.
In order to master this principle quickly, make sure your fixed expenses such as rent are not too high. Then, begin to find ways to keep your spending (entertainment, dinner out, clothes, etc.) in check. Learn to balance your checkbook monthly by using internet banking to keep on top of our accounts. Make whatever adjustments are necessary in order to make sure that you spend less than you earn every single month.
2. Become A Regular Saver
Try to put a little bit into a savings account each month (or each paycheck). Setup your savings account to auto transfer money each month from your checking account into savings — even if it’s only $10 a month. The habit you establish is the important part! Also try to increase the amount that you save each month. Rather than letting your lifestyle grow larger as the years go by, try growing your savings! If you get a raise at work, raise the amount of money you are putting into savings. It's that simple.
3. Become A Regular Investor
After you mastered the art of regular saving, it’s time to become a regular investor. The most common method is through 401(k) participation. If you have a 401(k) offered at work, it’s a great option for you because you can automatically deduct money from your paychecks. If you don’t, then you have to manually move money from your savings to retirement accounts such as an IRA.
A great way to get started in the stock market is by stopping in and visiting with one of our financial advisors at Raymond James Financial. they can help you set up a plan that fits your income and your lifestyle.
4. Build Your Skill Set
Focusing now more towards your career, you need to continue to develop your skill set. Most people learn more in their first few years in the working world than they do in four years of college. Use the opportunities at work to develop skills that will benefit you both today and years from now. Take on unique challenges so that you can gain the experience and the skills they offer. The more experience and range of skills that you develop over time, the more opportunities will be available for you as you progress through your career.
5. Build Your Network
Just as important as your skills, the relationships that you develop will also increase your opportunities exponentially. Networking, especially early in your career can be the difference between a fast track career and a stagnant career. Get to know people in your company, in your industry, and even in other industries. You really never know when a certain relationship will pay off. You may find yourself looking to switch jobs in a few years, and these relationships will be excellent resources to help you reach your objective.
While finances may not sound like a fun part of being 20, think of it as getting a head start on retirement that will pay off big down the line.
Friday, July 9, 2010
Thursday, July 8, 2010
ID TheftSmart Protection
Did you know? As many as 10 million Americans a year are victims of identity theft.
Identity theft is defined as someone using your personally identifying information (like your name, social security number, or credit card information) to pretend to be you. The identity thief does this for his own personal gain at the expense of his victim.
Victims spend from 3 to 5,840 hours repairing damage done by identity theft. This difference is due to the severity of the crime - for example a lost credit card versus the use of your social security number to become your "evil twin." The average number of hours victims spend repairing the damage caused by identity theft is 330 hours.
This is where Reliabank’s new ID TheftSmart™ Protection Plan steps in to help out the victim. As the primary owner of our Ultimate Checking account, you can receive this service free of charge!*
As an ID TheftSmart™ member, you'll have exclusive access to your own experienced, licensed investigator in the event your identity is compromised. He or she will take care of the majority of paperwork and hours of legwork required to reclaim your identity to pre–theft status and regain your financial standing—including areas most people don't even think of as being affected by identity theft.
Contact your Reliabank location for more information.
*A nominal fee of $2/month per person will be charged for all other account holders
Identity theft is defined as someone using your personally identifying information (like your name, social security number, or credit card information) to pretend to be you. The identity thief does this for his own personal gain at the expense of his victim.
Victims spend from 3 to 5,840 hours repairing damage done by identity theft. This difference is due to the severity of the crime - for example a lost credit card versus the use of your social security number to become your "evil twin." The average number of hours victims spend repairing the damage caused by identity theft is 330 hours.
This is where Reliabank’s new ID TheftSmart™ Protection Plan steps in to help out the victim. As the primary owner of our Ultimate Checking account, you can receive this service free of charge!*
As an ID TheftSmart™ member, you'll have exclusive access to your own experienced, licensed investigator in the event your identity is compromised. He or she will take care of the majority of paperwork and hours of legwork required to reclaim your identity to pre–theft status and regain your financial standing—including areas most people don't even think of as being affected by identity theft.
Contact your Reliabank location for more information.
*A nominal fee of $2/month per person will be charged for all other account holders
Thursday, July 1, 2010
We Have Your Passport to Win!
Announcing the new SHAZAM debit card promo that offers you the chance to win a $500 travel card!
This summer during the Passport to Explore campaign you can go where you want to go and do what you want to do when you use your Reliabank debit card to pay for purchases. Every time you use your debit card to make a purchase between July 1 and September 30, 2010, you’re automatically entered for a chance to win some great prizes in the Passport to Explore campaign!
*Grand Prize $500 travel card
*First Place Prize GPS system, valued at $300.00
*Monthly Winners Bushnell® Imageview® binoculars, valued at $50.00
A debit card is your passport to a world of possibilities! The more you use your debit card, the more chances you have to win! If you don’t have a debit card, apply for one today.
Reliabank has joined with Shazam to offer one lucky Reliabank customer a $50 gift each month during this promotion.
No purchase is necessary to win. A purchase will not increase your chance of winning. Void where prohibited. Promotion period starts 07/1/10 and ends 09/30/10.
Visit www.shazam.net/rules_passporttoexplore.html for official rules and complete contest details.
This summer during the Passport to Explore campaign you can go where you want to go and do what you want to do when you use your Reliabank debit card to pay for purchases. Every time you use your debit card to make a purchase between July 1 and September 30, 2010, you’re automatically entered for a chance to win some great prizes in the Passport to Explore campaign!
*Grand Prize $500 travel card
*First Place Prize GPS system, valued at $300.00
*Monthly Winners Bushnell® Imageview® binoculars, valued at $50.00
A debit card is your passport to a world of possibilities! The more you use your debit card, the more chances you have to win! If you don’t have a debit card, apply for one today.
Reliabank has joined with Shazam to offer one lucky Reliabank customer a $50 gift each month during this promotion.
No purchase is necessary to win. A purchase will not increase your chance of winning. Void where prohibited. Promotion period starts 07/1/10 and ends 09/30/10.
Visit www.shazam.net/rules_passporttoexplore.html for official rules and complete contest details.
Friday, June 25, 2010
Is Your Child Money Savvy?
It's a known fact: kids learn from parents behavior. Ask yourself, are you a saver or a spender? This article offers easy ways to help your child (and maybe even yourself) be more money savvy!
- Teach your child to make a pros/cons list before spending money on an expensive item.
- Ask your kid to think about something he recently bought that he really wanted. What were his feelings about the item before he bought it, and what his your feelings two weeks later? Was it worth the money?
- Ask your kids what interests them about money? What bores them about handling, saving, or spending money?
- Discuss an emergency fund of money and the reasons it's important. How could kids benefit from starting an emergency fund of money ?
- Have regular conversations about money skills and financial literacy – what is it, why do we need it, how do we get it, where do we keep it, how does it relate to the things that are important to us?
- Ask your kids...does a free kitten come with hidden expenses? If so, what are they?
- Make financial literacy fun by teaching money trivia along with money skills! For instance, the dollar bill lasts 21 months before it wears out. The five dollar bill has the shortest life, at 16 months.
- As an incentive to save money, match your child's savings dollar for dollar...or fifty cents for each dollar saved.
- What is your best money habit? Share it with your kids.
- Discuss with your kids some things money can't buy.
- Discuss with your kids which is more important...buying a video game or paying back lunch money borrowed from a friend.
- Discuss with your kids the advantages and disadvantages of saving money.
Teach your tween/teen how to fill out a check by having them write the next one.
Give your 6-8 yr old $2 and your 9-13 yr old $5. If your 6-8 yr old still has it after a week and your 9-13 has it after two weeks, double their money. Great delayed gratification practice!
Discuss needs versus wants with your kids.
We recommend bringing your child to the bank with you, teach them how to fill out their own deposit slip and make the transaction themselves. Your child will take great pride in his/her ability to do things on his/her own. Help you child sets goals of dollar amounts ie: how long till I have a $100.? He is now at almost $300 Get them excited about SAVING!
Wednesday, June 16, 2010
Money Saving Tips
Now days everyone is looking to save money - whether it be by not eating out as often, walking instead of driving, or staying home more - all of these can add up to some big savings in a year.
Here are a few money saving tips we have gathered from friends and family:
The average person spends $6.60 on lunch away from home. Bring your midday meal just twice this week and save $13. Do it eight times this month and save $52.
Rather than buy individual hand soaps just buy a large, inexpensive bottle of shampoo. Fill a pump container with half water and half shampoo and use as hand soap.
Extend the life of your kitchen sponge by tossing it in with a load of dishes in the dishwasher every couple of days or so. This will sanitize it and give you several additional weeks' use.
Repurposing old T-shirts and cloth diapers as dishrags and cleaning cloths cuts down on waste, so it's better for the environment. (just like our PAPERLESS Ultimate checking account that pays you top interest!) The average American family uses 1 1/2 rolls of paper towels per week, so cutting down to just one a month could save you roughly $45 a year.
After your dishwasher's final rinse, open the door and pull out the racks. Let the dishes air-dry to save electricity.
Did you know coffee grounds can keep your refrigerator smelling nice and fresh? Rather than wasting a whole box of baking soda, place the grounds, new or used, in a bowl and remember to replace them every month or two.
Spend less by avoiding the dollar bins. How many of those items do you actually need? Probably none. Steer clear of this impulse zone, which is often placed near the front of the store to catch your eye as you walk in.
Keeping your fridge and freezer colder than necessary can boost your energy consumption--and your bills. Your fridge should be set between 37°F and 40°F, the freezer between 0° and 5°F.
Trees and shrubs are great for beautifying your yard. But did you know they also shield your home from sun and wind? You could save up to 30 percent in home heating and air conditioning costs by planting some natural protection. (Open any new checking account or loan at Reliabank during our summer promo and we'll give you a nice little potted spruce tree to add to your landscaping!)
Make your own cleaners - mix 1 cup each of white vinegar and water in a spray bottle. Use it to clean counters, soap scum in the shower and toilets. Try baking soda to clean bathroom surfaces, stainless steel appliances, sinks and stove tops. Lightly wet the surface, sprinkle baking soda on top, scrub with a sponge and rinse.
With the $$ you save you can add to your Reliabank savings account or your Ultimate Checking account! Earn money by saving money!
Here are a few money saving tips we have gathered from friends and family:
The average person spends $6.60 on lunch away from home. Bring your midday meal just twice this week and save $13. Do it eight times this month and save $52.
Rather than buy individual hand soaps just buy a large, inexpensive bottle of shampoo. Fill a pump container with half water and half shampoo and use as hand soap.
Extend the life of your kitchen sponge by tossing it in with a load of dishes in the dishwasher every couple of days or so. This will sanitize it and give you several additional weeks' use.
Repurposing old T-shirts and cloth diapers as dishrags and cleaning cloths cuts down on waste, so it's better for the environment. (just like our PAPERLESS Ultimate checking account that pays you top interest!) The average American family uses 1 1/2 rolls of paper towels per week, so cutting down to just one a month could save you roughly $45 a year.
After your dishwasher's final rinse, open the door and pull out the racks. Let the dishes air-dry to save electricity.
Did you know coffee grounds can keep your refrigerator smelling nice and fresh? Rather than wasting a whole box of baking soda, place the grounds, new or used, in a bowl and remember to replace them every month or two.
Spend less by avoiding the dollar bins. How many of those items do you actually need? Probably none. Steer clear of this impulse zone, which is often placed near the front of the store to catch your eye as you walk in.
Keeping your fridge and freezer colder than necessary can boost your energy consumption--and your bills. Your fridge should be set between 37°F and 40°F, the freezer between 0° and 5°F.
Trees and shrubs are great for beautifying your yard. But did you know they also shield your home from sun and wind? You could save up to 30 percent in home heating and air conditioning costs by planting some natural protection. (Open any new checking account or loan at Reliabank during our summer promo and we'll give you a nice little potted spruce tree to add to your landscaping!)
Make your own cleaners - mix 1 cup each of white vinegar and water in a spray bottle. Use it to clean counters, soap scum in the shower and toilets. Try baking soda to clean bathroom surfaces, stainless steel appliances, sinks and stove tops. Lightly wet the surface, sprinkle baking soda on top, scrub with a sponge and rinse.
With the $$ you save you can add to your Reliabank savings account or your Ultimate Checking account! Earn money by saving money!
Wednesday, June 9, 2010
June is National Homeownership Month
ICBA Offers Tips for Homebuyers
Washington, D.C. (June 7, 2010)— June is National Homeownership Month, and the Independent Community Bankers of America (ICBA) and the nation’s nearly 8,000 community banks continue to help Americans in communities throughout the country become, and remain, homeowners each year through the personal attention that only a local community bank can provide.
“Community banks take the extra steps necessary to give potential homebuyers the service and attention they need,” said Jim MacPhee, ICBA chairman and CEO of Kalamazoo County State Bank in Schoolcraft, Mich. “They can help their customers evaluate whether the time is right for them to purchase a home, determine the most affordable mortgage options for their situation and provide them with information to help the process go more smoothly.”
We offer the following suggestions for homebuyers:
Contact on of our mortgage experts:
Michelle O'Farrell - Watertown
886-6000
Jeremy Kaiser, Hartford
528-4000
Pat Biederstedt, Hayti
783-2616
Washington, D.C. (June 7, 2010)— June is National Homeownership Month, and the Independent Community Bankers of America (ICBA) and the nation’s nearly 8,000 community banks continue to help Americans in communities throughout the country become, and remain, homeowners each year through the personal attention that only a local community bank can provide.
“Community banks take the extra steps necessary to give potential homebuyers the service and attention they need,” said Jim MacPhee, ICBA chairman and CEO of Kalamazoo County State Bank in Schoolcraft, Mich. “They can help their customers evaluate whether the time is right for them to purchase a home, determine the most affordable mortgage options for their situation and provide them with information to help the process go more smoothly.”
We offer the following suggestions for homebuyers:
- Know all the sources and amounts of your monthly income and know your budget, including how much you spend on rent, utilities, entertainment, clothing, food and transportation.
- Gather and organize paperwork, such as pay stubs, W-2 forms, tax returns and bank and investment statements.
- Check your credit report and bring it to your bank. Credit reporting agencies must give you one free report annually. Access your credit at www.ftc.gov/freereports.
- Work with one of our mortgage lenders to figure out how much you can borrow and which mortgage product is right for you. They will carefully explain the mortgage options of each mortgage product available, including rate adjustments, fees and other loan features, so you aren’t surprised by payment increases down the road.
- Talk to us before you begin looking for a home. We can tell you what current mortgage rates are and help you understand how that translates into monthly mortgage payments. This will help you shop for a home that fits your budget and shows sellers you are an educated homebuyer.
- Learn as much as you can about the home-buying process.
- Check with your local state, city and county government agencies for special first-time-homebuyer loan or grant programs available to assist with down payment and closing costs.
- Once you have spoken to a Reliabank mortgage lender, and know what you can afford, stop by real estate open houses to see what’s available in your price range.
Contact on of our mortgage experts:
Michelle O'Farrell - Watertown
886-6000
Jeremy Kaiser, Hartford
528-4000
Pat Biederstedt, Hayti
783-2616
Tuesday, June 8, 2010
We Could Make You a Winner!
We have partnered with KXLG 99.1fm radio in Watertown as the major cash sponsor in the 99 days of summer promotion! Pick up your window clings at any Reliabank location, put it in the back window of your vehicle and HOPE to get ticketed by KXLG! If you receive a large red ticket on your window, simply fill in the bottom, and drop off at various businesses in Watertown. When you hear your name on KXLG you'll have 99.1 seconds to call in and get your name entered in the big $5,000 drawing to be held downtown Watertown on September 13.
Visit http://www.mykxlg.com/index.php?option=com_content&view=article&id=182&Itemid=69
for more information!
Drop Off Points:
Watertown:Cowboy Country Stores (1,2,3), Cowboy Liquor Stores, Cowboy Bait and Ammo, Sheehan Cycle, Watertown Ford Chrysler and County Fair Foods
Clear Lake: Cowboy Country Store
Milbank: Food-N-Fuel
Ortonville:Cenex Convenience Store
Webster: A&W Restaurant
Visit http://www.mykxlg.com/index.php?option=com_content&view=article&id=182&Itemid=69
for more information!
Drop Off Points:
Watertown:Cowboy Country Stores (1,2,3), Cowboy Liquor Stores, Cowboy Bait and Ammo, Sheehan Cycle, Watertown Ford Chrysler and County Fair Foods
Clear Lake: Cowboy Country Store
Milbank: Food-N-Fuel
Ortonville:Cenex Convenience Store
Webster: A&W Restaurant
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