Tag Archives: Money Management

4 Essential Summer Activities

Looking to get away this summer without going too far? The city of Louisville has several attractions that can keep the whole family entertained. Here are 4 outdoor summer activities you don’t want to skip in Louisville:

  1. The Walking Bridge

This one is a no-brainer. The Walking Bridge is a great outdoor activity with the best views of downtown Louisville. Walk over to Jeffersonville and cool off inside various restaurants and shops.

  1. Nulu

Nulu (New Louisville) is an up-and-coming area in downtown Louisville in the East Market District. There is always something different happening, and summer weekends often involve local fairs, festivals, and flea markets.

  1. The Louisville Zoo

This Louisville classic is a wonderful place to enjoy a beautiful summer day. The Louisville Zoo is a great place for families to get up close and personal with various wild animals. Be sure to cool off at the Zoo’s recent addition of Splash Park.

  1. Falls of the Ohio

Discover the “largest, naturally exposed, Devonian fossil beds in the world” at the banks of the Ohio River. Located in Clarksville, Indiana, this quick trip involves hands-on learning that is sure to excite the family.

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5 Important Questions When Choosing Your First Home

Moving into your own place can be exciting and frightening at the same time. Stock Yards Bank & Trust suggests considering the following questions when choosing your own home.

1. How much money do you have saved up?

Start with an evaluation of your financial health. Figure out how much money you have for a down payment or deposit on a rental. Down payments are typically 5 to 20 percent of the price of the home. Security deposits on rentals are usually about one month of rent and more if you have a pet. But be sure to keep enough in savings for an emergency fund. It’s a good idea to have three to six months of living expenses to cover unexpected costs.

2. How much debt do you have?

Consider all of your current and expected financial obligations like your car payment and insurance, credit card debt and student loans. Make sure you will be able to make all the payments in addition to the cost of your new home. Aim to keep total rent or mortgage payments plus utilities to less than 25 to 30 percent of your gross monthly income. Recent regulatory changes limit debt to income (DTI) ratio on most loans to 43 percent.

 3. What is your credit score?

A high credit score indicates strong creditworthiness. Both renters and homebuyers can expect to have their credit history examined. A low credit score can keep you from qualifying for the rental you want or a low interest rate on your mortgage loan. If your credit score is low, you may want to delay moving into a new home and take steps to raise your score. For tips on improving your credit score, visit aba.com/consumers.

4. Have you factored in all the costs? Create a hypothetical budget for your new home.

Find the average cost of utilities in your area, factor in gas, electricity, water and cable. Find out if you will have to pay for parking or trash pickup. Consider the cost of yard maintenance and other basic maintenance costs like replacing the air filter every three months. If you are planning to buy a home, factor in real estate taxes, mortgage insurance and possibly a home owner association fee. Renters should consider the cost of rental insurance.

 5. How long will you stay?

Generally, the longer you plan to live someplace, the more it makes sense to buy. Over time, you can build equity in your home. On the other hand, renters have greater flexibility to move and fewer maintenance costs. Carefully consider your current life and work situation and think about how long you want to stay in your new home.

Stock Yards Bank & Trust offers a wide variety of mortgage services for new and repeat home buyers. Visit our website for more information or contact us at (502) 582-2571. 

 

Resource Information Provided by the American Bankers Association

5 Tips to Spring Clean Your Finances

For many Americans, spring is a time to clean, sort and tidy up around the house.  As you dust your shelves and rid your home of clutter, consider setting aside some time to organize your finances.

“The arrival of spring motivates people to renew their surroundings, and what better way to focus that momentum than to check off everything on your financial to-do list?” asked Corey Carlisle, executive director of the ABA Foundation. “Taking stock of your finances and planting the seeds of new saving habits today will go a long way toward alleviating pressures on your pocket throughout the year.”

The American Bankers Association recommends these five tips to help you refresh your finances:

  • Evaluate and pay down debt. Take a look at how much you owe and what you are paying in interest. If there are better rates available now, consider requesting a lower credit card interest rate or refinancing your mortgage. Begin paying off existing debt, whether that’s by chipping away at loans with the highest interest rates or eliminating smaller debt first.
  • Review your budget. A lot can change in a year. If you’ve been promoted, had a child, or become a new homeowner or renter, be sure to update your budget. Determine what expenses demand the most money and identify areas where you can realistically cut back. Develop a strategy for spending and saving and stick to it.
  • Check your credit report. Every year, you are guaranteed one free credit report from each of the three bureaus. Take advantage of these free reports and check them for any possible errors. Mistakes can drag down your score and prevent you from getting a loan, or cause you to pay a higher than necessary interest rate.
  • Sign up for e-statements, paperless billing and text alerts. Converting to paperless billing will help keep your house—physical and financial—more clean and organized, and will help protect you from fraud.
  • Set up automatic bill pay. By signing up for automatic bill pay, you’ll never have to worry about a missed payment impacting your credit score. You can set it so that money is withdrawn from your checking account on the same day each month.

 

Resource information provided by the American Bankers Association 

Holiday Giving: How to Become a Savvy Charitable Giver

It’s hard to believe there are only 8 days left until Christmas! For many people, it is important to take time during the holiday season to give to those who are in need.  Donating to your favorite cause can be fulfilling, but it’s important to ensure that your gift reaches the intended source. Follow these tips to become a savvy charitable giver this holiday season:

  • Give To an Established Charity
    Unfortunately, there are fraudulent charities that will take advantage of your goodwill.  To avoid this situation, ask for written information about the charity, including name, address and telephone number. A legitimate charity will give you information about their mission, how your donation will be used and proof that your contribution is tax deductible. Find a charity with a proven track record for providing aid.
  • Designate Your Gift
    Some charities allow you to specify exactly where your gift is headed, either to a specific orphanage, to purchase school supplies or to a geographic area in need of relief.  By designating or earmarking your gift, you control where your donation goes and whom it helps.
  • A Proactive Giver is a Smart Giver
    Wise givers don’t give on an impulse or to the first organization that comes along.  Smart givers take time to identify the causes important to them.  Contact a charitable organization, find out their mission and what type of aid and programs they offer.  Work with charities that have targeted outcomes for their giving.
  • Benefits to You
    A donor’s primary motivation may be altruism, but everyone knows there are great tax benefits for those who give. A donation to a qualified organization may entitle you to a charitable contribution deduction.  Remember a contribution to a qualified charity is deductible only in the year in which it is paid, and all charities do not qualify for a charitable contribution deduction.  Always ask for a receipt and save them for tax time.
  • Consider Giving Your Time
    Four out of five charities report using volunteers.  Volunteers are the foundation of many charitable organizations. If you can’t afford to donate money, consider donating your time.  Common volunteer duties include: stuffing envelopes, feeding animals, tutoring, building homes, serving as a museum docent, counseling those in crisis, selling tickets or answering phone calls.

Visit these other sites to find out more on charitable giving:

Resource information provided by the American Bankers Association

8 Money Tips Every College Freshman Should Know

With Labor Day behind us, most colleges are underway with the fall semester. The American Bankers Association encourages college students to get an early start on securing their financial future. Check out these eight tips on how to avoid expenses now and reduce financial burden upon graduation.

  • Create a budget.  You’re an adult now and are responsible for managing your own finances. The first step is to create a realistic budget or plan and stick to it.
  • Watch spending. Keep receipts and track spending in a notebook or a mobile app.  Pace spending and increase saving by cutting unnecessary expenses like eating out or shopping so that your money can last throughout the semester.
  • Use credit wisely. Understand the responsibilities and benefits of credit.  Use it, but don’t abuse it.  How you handle your credit in college could affect you well after graduation.  Shop around for a card that best suits your needs.
  • Lookout for money. There’s a lot of money available for students — you just have to look for it. Apply for scholarships, and look for student discounts or other deals. Many national retailers offer significant discounts for those with a valid student ID.
  • Buy used.  Consider buying used books or ordering them online.  Buying books can become expensive and often used books are in just as good of shape as new ones.  Dedicate some time and research to see what deals you can find.
  • Entertain on a budget. Limit your “hanging out” fund.  There are lots of fun activities to keep you busy in college and many are free for students. Use your meal plan or sample new recipes instead of eating out. If you do go out, take advantage of special offers that occur during the week, like discount movie ticket days or weekly restaurant specials.
  • Expect the unexpected.  Things happen, and it’s important that you are financially prepared when your car or computer breaks down or you have to buy an unexpected ticket home.  You should start putting some money away immediately, no matter how small the amount.
  • Ask. This is a learning experience, so if you need help, ask.  Your parents or your bank are a good place to start, and remember—the sooner the better.

For more tips and resources on a variety of personal finance topics such as mortgages, credit cards, protecting your identity and saving for college, visit aba.com/Consumers.

Budgeting 101

Rainy-day funds, savings for college, or just making your rent payment can all be made easier with a budget. Although a simple and oftentimes overlooked strategy, budgeting your finances will help make the difference in managing your money. Putting together a household budget requires time and effort. Stock Yards offers the following steps to create a budget:

• Be a Spending Sleuth. Track every penny you spend for a month. Keep receipts and write everything down. This will be an eye-opening experience and will help you see where you can cut back.

• Count Your Money. Determine the total amount of money coming in. Include only your take home pay (your salary minus taxes and deductions). Your income may also include tips, investment income, etc.

• Itemize, Categorize, and Organize. Review the records and receipts you’ve been collecting over the last month. Categorize your spending using a budget sheet. You can utilize the free templates in Microsoft Excel to create a budget sheet that is fit for you and your family.

• Achieve Your Goals. Set a realistic financial goal and develop your budget to achieve that goal. Subtract your monthly expenses from your monthly income. Find ways to cut spending and set limits on things like entertainment expenses.

• Save, Save, Save. Make one of your financial goals to save a certain dollar amount each month. Start an emergency fund if you don’t already have one. You never know when you may need it.

• Stick to it. Keep track of your spending every month. Update your budget as expenses or incomes change. Once you achieve your financial goal, set another.

Resource information provided by American Banker’s Association.

Holiday Planning: Make a List and Check it Twice

As the holidays quickly approach, the American Bankers Association is encouraging consumers to plan ahead to avoid excessive debt in the New Year.

“Develop a plan in advance of the holidays, and be sure to check it twice,” said Frank Keating, ABA’s former president and CEO. “Assessing your finances and spreading out your holiday spending are terrific ways to avoid starting the New Year with debt you’ll regret.”

Below are seven holiday spending tips from ABA to help consumers have a financially happy New Year:

  • Plan ahead. Before you start shopping, develop a realistic budget. Consider your income, subtract your normal monthly expenses and then add any savings to whatever cash is left over. If you need to use your credit card, think about what you can afford to pay back in January.
  • Keep track of other costs. Don’t forget costs beyond gifts, like postage, gift wrap, decorations, greeting cards, food, travel and charitable contributions.
  • Make a list and check it twice. Keep your gift list limited to family and close friends, noting how much you want to spend on each.
  • Shop early, spend carefully. Avoid shopping while rushed or under pressure, which can lead to overspending. Make sure to comparison shop online first, or download an app that lets you compare prices before you buy anything in a store. Before you head to the cashier (or online checkout), make sure your purchase is within the budget you set.
  • Avoid traps. Finding a spectacular sale on something you’ve been wanting can easily throw you off course. Stay strong and stick to your budget. And don’t apply for store credit cards you don’t need just to get a one-time discount.
  • Use credit wisely. Limit the use of credit for holiday spending. If you must use credit, use only one card, preferably the one with the lowest interest rate, and leave the rest at home.  Pick a date when you can pay off your holiday credit card bills, and commit to paying off the balance by that time. Be sure to check statements for unauthorized charges and report them immediately.
  • Save your receipts. Not only will you need them for possible returns, you’ll need them to keep track of what you’ve spent and to compare with your credit card statement. Knowing how much you spent will help you plan for next year, too.

Keating noted that banks are committed to helping consumers responsibly handle credit and save for the future.

“Banks offer a wide menu of options to help you save for the holidays and other expenses,” said Keating. “Ask your banker about a customizable savings plan, such as a Christmas account that enables you to set aside money throughout the year for your holiday spending.”

For more information on managing your money – as well as a variety of other personal finance tips and resources – visit aba.com/consumers.

Resource Information: American Banker’s Association