Don’t Let Finances Wreck Your Relationship

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By Cortney Meng

Anybody in a relationship knows that love and money will invariably intersect. Relationships are partnerships, and managing finances simply comes with the territory. But the results of a recent survey conducted by SunTrust Bank revealed that finances are the primary culprit for many couples’ relationship stress. According to the survey, 35 percent of respondents cited financial management as the biggest cause of friction with their partner—ten percent higher than second place finisher, annoying habits.

The issue is much bigger than figuring out whether or not to split a restaurant bill. Financial management underlies most of the big decisions that couples will make together, from marriage, having children, purchasing a home, to taking a vacation or planning for retirement. Without developing a stress-free financial planning strategy, couples may end up overwhelmed, stressed out and never attain the goals they set for themselves.

In order to make sure that you and your partner don’t let finances become a bone of contention in your relationship, consider adopting some of these practices for managing your money together.

Set your budget around shared financial goals. If only one partner in a relationship is concerned about reaching a financial benchmark, your finances are likely to become a stressor. To make sure you and your partner are saving in synch, set a series of short, medium and long-term goals which you both aspire to achieve. That way, you’ll be able to stay on track and budget accordingly to reach the carrot dangling in front of you.

Leave room in your budget for separate spending too. Nearly half of respondents to SunTrust’s survey reported that they had different spending habits than their partners. Disproportionate spending is a breeding ground for resentment, so be sure when you’re planning your monthly budget to allocate an equal amount for each partner to use as they see fit, no questions asked. That way, an individual inclined to save more will have that chance, while someone inclined to spend more won’t need to ask permission. And because there’s a set cap on personal spending, the couples’ finances won’t get out of control.

Seek the services of a financial planner. Managing finances within the context of a relationship can be stressful because it is difficult to take the emotions out of a purely mathematical process. In such cases, consider consulting with a financial planner. You’ll receive an objective third-party opinion from an individual that can give you a clear path to meet your goals, as well as investing strategies that will be best suited for your lifestyle needs and wants.

Stop by any office of The Milford Bank to learn about the products you need to achieve your goals. You can also check out more information on our Learning Center here.

Calculating Your Net Worth: Five Common Questions

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by Mark Attanasio

Even if you never actually see your paycheck and it is automatically transferred to your bank account each week, you may still know how much you’re making—maybe even down to the penny. Most people are fully aware of their income. But when it comes to net worth, the story is entirely different.

This is problematic because, unlike your income, net worth encompasses all your assets and debts. Calculating your net worth can provide you with a true measure of your financial well being, as well as providing you the information you need to improve your fiscal standing.

To help you figure out what you need to know about net worth, here are some of the questions others are asking too.

What, exactly, is net worth?

There is a simple formula that easily defines net worth. Add up all your assets—income, savings, investments and property. Then subtract all your existing debts. The total is your net worth.

When will I need to know my net worth?

While you won’t need to keep track of your net worth on a day to day basis, there are critical moments when it’s a good idea to have a firm grasp of your true value. You may want to understand the long-term trends for your net worth (how quickly you’re making or losing value) when planning your retirement or your estate. You may need it when looking to secure a mortgage or apply for student loans on behalf of your children.

I can’t touch my retirement accounts for 30 years. Do they count?

Your liquid assets are only one part of the net worth equation. Even if you don’t receive a distribution from your 401(k) or IRA accounts now, they’re still considered a part of your net worth.

Do I have the same net worth as my spouse?

Depending on how you and your spouse manage your household finances, your net worth may be identical or it could be drastically different. If you’re both listed as co-owners of your home, share a credit card or car, those assets will be attributed to both of you. If you both purchased vehicles separately, only the vehicle to your name will be considered for your calculation. However, if you add your partner’s net worth to yours, you’ll know your household net worth, which itself is important to track.

How do you account for outstanding car loans and mortgage payments?

When incorporating existing loans into your net worth calculation, you cannot truly consider houses or vehicles as assets until they’ve been paid for in full. So if you took out a $100,000 mortgage and have paid off $99,000, your home is still considered a $1,000 liability. But once you’ve made your last payment your home becomes a $100,000 asset.

Now that you have a better grasp on your net worth, stop by any office of The Milford Bank to see how you can continue to improve your financial standing today. You can also learn more at our online Learning Center or check out more financial calculators here.

Six Things You May Not Know About Labor Day

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by Pat White

With Labor Day coming up on September 5—the first Monday of the month—many of us will be taking advantage of the impending three day weekend. Whether you’re using the chance to take one last weekend getaway to the beach before the end of summer, hosting a backyard party with your friends and family, or heading out to the mall to take advantage of Labor Day sales, we all have one thing in common—we’re grateful to have a little extra time for ourselves.

However you choose to spend your Labor Day, be sure to take a few moments to remember the meaning behind the holiday. We wouldn’t have the wages, benefits or time off that we enjoy today without the activism of our ancestors.

Here are five things you may not know about Labor Day to better educate you on the origins of the holiday.

  1. The idea for Labor Day is believed to have begun in Canada in 1872—22 years before it became a national holiday in the United States! In a show of solidarity for striking workers, 1,500 citizens from Hamilton, Ontario demonstrated in the streets. Their aim? A nine hour work day.
  2. Even though Labor Day became a national holiday in 1894, it was first celebrated in New York City by the Central Labor Union in 1882. Over the following 12 years, 23 states marked their own celebration before the Federal government opted to make it a universally recognized holiday.
  3. Congress voted unanimously to make Labor Day a national holiday in 1894, just six days after the conclusion of the Pullman Strike. During the strike, 125,000 railroad workers walked off the job to protest wage cuts without a corresponding decrease in rent and utility costs in their company-owned housing. During the strike 30 workers were killed, 57 were wounded and property damage exceeded $80 million.
  4. The average wage for a laborer during the 1890’s was 15 cents per hour. A skilled worker, such as a carpenter, would still expect to bring home an average of only 32 cents per hour.
  5. President Cleveland, though he supported the establishment of the Labor Day holiday, was fearful that empowering workers would give rise to strikes, riots and strengthen socialist and anarchist movements.
  6. The first minimum wage law was passed in New Zealand the same year that Labor Day was established as a national holiday.

Ultimately, we should not celebrate Labor Day without forgetting the activism and difficult conditions that workers endured in our recent past. Because those individuals were willing to stand up and fight for their rights, we now enjoy the fruits of rising wages, shorter work hours and better benefits.

All offices of The Milford Bank offices will be closed in observance of Memorial Day. Be sure to download our mobile application though, and you’ll be able to conduct your banking conveniently without having to stop at one of our locations. You can download the application here.

Financial Independence is the New Retirement

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By Mark Attanasio

When thinking about the path to retirement, we tend to assume a typical trajectory: go to school, get a job and then work tirelessly for the next 40 years. But in reality, there are many different paths to the same destination. Today, many people are opting to find alternate ways to retirement, opting out of the traditional decades-long grind.

Putting an early end to the punching of time cards used to be considered the luxury of Powerball winners. But these days, there are many options for people with the desire to cash out early.

For instance, many people are opting to change the language of work altogether. Instead of going into retirement, many are seeking instead to achieve financial independence—being in a position of having sufficient personal wealth to live without having to actively work for basic necessities.

So how can you achieve financial independence? Here are a few ways to get started.

Put your money to work for you: You may need to work tirelessly early on to amass enough money to start investing. But once you do, make investments that will provide you with supplemental income. For instance, if you opt to invest in stocks, aim for companies that pay shareholder dividends. If you’re going to invest in real-estate, consider a multi-family unit or in-law apartment that you can rent to cover your own mortgage.

If you’re interested in owning your own home but aren’t interested in making it part of your investment strategy, consider joining the tiny house movement. Ranging from 100-400 square feet, tiny houses provide many of the creature comforts of a home—but on a much smaller scale. Ideal for those who simply need a place to hang their hat at the end of a busy day, tiny houses are optimal for anyone willing to go to unusual lengths to achieve financial independence.

Transform passion projects into side jobs: How would you spend your time if you didn’t have to work? If you love to create art, there’s likely a market for your work. If you like to travel, consider becoming a contributor for a travel blog. No matter what your passion project happens to be, there’s likely a way you can capitalize on the hobbies you’re already enjoying.

Live below your means: This is ultimately the lynchpin of financial independence. No matter how much income you have coming in, you’ve got to be willing to keep growing your savings. You never know when an unexpected expense might arise. If you remain disciplined about your spending, you won’t have to start filling out job applications every time you need to bring your car into the mechanic or buy a new hot water heater.

To set out on your own path to financial independence, stop in to a Milford Bank branch location and speak with one of our team members about setting up a strategy that will work for you.

Thinking About Adding a Dog to the Family? Read This First!

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by Lynn Viesti Berube

There’re reasons dogs are considered man’s best friend: They give their owners unconditional love, are intelligent, provide countless hours of entertainment and are highly loyal. If you’re thinking about adding a puppy to your family unit, consider all these charming attributes. But also think about whether you can afford to own a dog. According to Pet Education, out-of-pocket expenses for just the first year of your puppy’s life can be as high as $6,600.

Certain costs, such as for services provided by a veterinarian—from vaccines to heartworm shots, to spaying or neutering—are unavoidable. Yet, you can mitigate other costs by taking the following measures:

Find an alternative to pet stores: Buying a puppy from a pet store could cost you $1,000. For a dog with a lower price tag, explore alternative options like animal rescue shelters or adoption clinics. Have a specific breed in mind? Consider contacting a rescue group. All pedigrees are available in shelters and foster homes. Adoptions are usually low cost or free.

Double your dinner recipe: Purchasing food for your dog isn’t cheap. The good news is that you can add some of the common foods you already cook—rice, vegetables and meat, for example—into their diet for a healthy and cost-effective solution. Be sure to consult with your veterinarian first, though, to make sure the ingredients you use are dog-friendly and offer enough nutrition.  

Invest in proper training: Taking the time to properly train your dog will have long-lasting positive effects for all of you. Don’t think of spending money on training as an expense, but rather, an investment. If your dog isn’t taught to respect you and your property, it might behave in unfriendly, even dangerous, ways. Dog’s have lots of energy and need to learn how to channel it appropriately so they don’t do damage when you’re not around. In addition, dogs in new surroundings often experience anxiety and might express their feelings by chewing on furniture, or behaving in other destructive ways. In other words, a well-trained dog is less likely to require frequent shopping trips to IKEA.

Make your own toys: Trekking through the aisles of a pet store, you’ll see a multitude of expensive dog toys made from common household items. Instead of spending money on a piece of rope, for example, check your garage for a similar “toy” first. Another tip: Purchase out of season toys at the pet store. Your dog does not care if you give him/her a snowman toy in the summer.

Be proactive about healthcare: Just as you do for yourself, take a proactive approach to your dog’s healthcare. Regular check-ups can prevent illness from impacting your dog’s quality of life, and help you avoid more-expensive medical treatments. A balanced, nutritious diet and daily exercise will also go a long way toward keeping your pet in top shape. Also be sure to brush your dog’s teeth, administer heartworm and tick prevention medications, and strictly follow any recommendations made by your veterinarian.

These measures will ensure that adding a dog to your family won’t upend your financial stability, and will allow you to enjoy your new pet for a long time. For more ideas on managing your money as you go through life, check out the Milford Bank Learning Center.

Is a Community Bank Right for Your Family?

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By Jorge Santiago

While there are countless banks you can choose to protect and grow your wealth, the simple truth is that there are many differences between the global megabanks you might be more familiar with and locally-focused community banks.

The question you’ve got to ask yourself is this: which type of bank will meet the needs of you and your family?

You already know all about the megabanks. They’ve got stadiums named after them. They’ve got expensive commercials featuring famous actors and actresses. The odds are, you know all about what the megabanks can offer.

So here’s a closer look at what a community bank can provide:

  • The same services as bigger banks. A smaller bank doesn’t equate to smaller financial service offerings. Community banks can provide everything you’ve come to expect: investment vehicles, insurance, business loans, mortgages, financial consultation, retirement accounts and more.
  • You can get to know every employee.
  • Your success is their success. The deposits made at community banks are redistributed in the form of business loans and mortgages to other members of the local economy. That means community bankers have a vested interest in your financial well-being.
  • Greater investment in community events. We’re also renowned for spurring greater attention to local community events. Raising money for local causes helps bring the community together and draws on the spirit of what community banking is all about.
  • You aren’t just another number.  Community bankers can take the time to get the whole picture about who you are as an individual, and take that into account when working with you.
  • Streamlined financial processes. You won’t have to jump through hoops when you do your banking locally. You’ll be able to work with just a handful of individuals and take the time to build a relationship.

 

 

 

You already knew about what the megabanks were all about. Now you know what community banks can do for your family. If banking local sounds like the right choice for you and your family stop by the nearest Milford Bank branch location to you. Click here to find out more.

 

Homebuyers: How to Prepare for a Major Household Repair

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By JoAnn Sabas

After the purchase of your new home, you’ll likely experience an adjustment period during which you learn how to alter your budget and lifestyle to accommodate the new expenses in your life, such as mortgage payments and property taxes. One thing you’re probably not counting on, however, is a major household repair.

But even if you purchased a move-in ready house that doesn’t need any immediate repairs, the truth is that a major unexpected expense could surprise you at any time. For instance, a brand new furnace can malfunction just after the warrantee expires. A storm can do structural damage that your insurance company will only partially cover. In truth, there are many expenses waiting for you when you purchase a new home. If you prepare, you’ll be ready when they happen.

Here are three ways your family can be ready for a major household repair when it happens to you.

  • Add repairs into your monthly budget proactively. There are two popular schools of thought for budgeting for home repairs. Some say that you should sock away 1 percent of the cost of your home each year to prepare for maintenance (if your home cost $200,000, put aside $2,000 each year). Others say you should save $1 per square foot each year (so if your home is 1,500 square feet, you should save $1,500). You may not always use the full amount, but that just means you’ll be better prepared the following year.
  • Get at least three quotes on any work you contract. ’re handy around the house, doing your own repairs can come back to haunt you down the road. If you plan to resell your home soon, there’s a good chance you’ll need to verify the work was done to code by a licensed professional. When you do reach out to have work done, be sure to get at least three quotes. This will help you get a truer sense of how much your repairs actually cost, and give you leverage to negotiate the cost of the job.
  • Purchase your own parts. If you let a contractor do the shopping for you, you might end up with a more expensive furnace than your house really needs. When possible, purchase your own parts so your expenses end up going primarily to labor. You can often find better deals for used goods online, wholesale supply stores, or even outlets, where a brand new, fully functioning appliance may be marked down drastically simply because it was returned.

While there are many benefits to owning your own home, the responsibility of maintenance is certainly not one of them. But as long as you prepare for the inevitable, and respond responsibly when something goes wrong, you won’t put yourself, or your family, at risk of having to sacrifice your quality of life.

New Changes to Our Mobile App Makes Banking More Convenient Than Ever!

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By Kristine Rodriguez

If you’re among the 72 percent of Americans with a smartphone, we’ve got great news for you: Managing your finances with The Milford Bank has never been more convenient. Thanks to recent upgrades to our mobile banking application, our customers can now complete financial transactions whenever and wherever they choose. We provide this functionality for iOS and Android smartphone and tablet users alike. We’ve even got you covered if you use one of Amazon’s Fire tablets.

With Milford Bank’s mobile app you can:

  • Check your account balances.
  • Review recent account activity.
  • Transfer funds among your Milford Bank accounts.
  • Pay a bill or set up automatic payments.
  • Make changes to pending payments.
  • Find the nearest ATM or branch location.
  • Make deposits.

But that’s not all. We recently added a feature that should evoke an even more positive experience for our customers: Instant Balance!

Have you ever needed to determine your account balance quickly, but your cellular signal wasn’t strong enough to open your applications or connect you to the Internet? Or perhaps you forgot your login information for the Milford Bank mobile application. You’ve got to make a purchase but are hesitant to do so without knowing your balance for fear that you might drain your account.

With the Instant Balance feature, you can tap an icon right on the logon page and a pop-up box will provide the balances for all your Milford Bank accounts. For security, the pop-up box will not reveal your account numbers in full, nor will you be able to use this feature for any other banking function.

You’ll have instantaneous access to your account balances, giving you the flexibility to complete transactions, and the peace of mind from knowing exactly how much money you’ve got to spare. You won’t hold up the line at the grocery store, and you’ll greatly reduce the risk of bouncing checks.

We understand that our customers don’t want banking to be another item on their to-do lists. We would much rather be helping them cross things off those lists. With the technology available today, the financial services you need should be convenient, seamless and always there, moving as quickly as you do. That’s why we’ve taken the time to provide a mobile application that supports those objectives.

To learn how to bank mobile and download the Milford Bank mobile application, click here.

Starting to Sweat the Cost of Tuition? We Can Help!

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By Patty Gallagher

Even from the time your child enters high school, teachers and advisors are beginning to prepare your children for higher education. The idea that your son or daughter is going to graduate might seem far off then, but by the time he or she enters junior year the prospect starts to get real.

All of a sudden, you start researching the cost of tuition—between $21,000 and $23,000 for one year at Connecticut’s state schools—and wonder how you’ll be able afford higher education. But don’t be alarmed by the sticker shock. There are ample resources available to your family to ensure your child can get a college degree.

Here are just a few ways you ensure your child earns a degree without you having to empty your savings account.

  • Financial assistance: Click here to check out the scholarship finder in the left hand column of the Milford Bank Learning Center. By entering your child’s SAT, ACT and GPA, as well as the state where he or she wants to go to school, you can receive a free customized scholarship report detailing available funding emailed to you directly—and at no cost. You’ll also find educational resources to learn about student loans and grants.
  • Take introductory classes at community college: Many course credits earned at community colleges will satisfy the basic requirements of degrees at more expensive schools. Learn which credits will transfer, have your child complete a semester or two at community college, and then begin applying to other schools.
  • Apply as a commuter: Half the cost of tuition goes to paying to live in dorms on campus. Based on the average state school tuition, your child could commute from home and save your family roughly $900 per month. Even if he or she is adamant about moving out, a $500 per month apartment near campus would still help your bottom line.
  • Make minor lifestyle adjustments: If your student is just entering junior year of high school, that means you have roughly two years before they head off to college. That’s 730 days of expensive lattes, going out to eat instead of dining in, and all the other expenditures that seem trivial until you add up the costs. By making minor lifestyle adjustments—even if just for the next two years—you can give your savings account a sizable padding.
  • Select an investment vehicle: There are many ways to invest your savings. Some accrue interest more quickly than others. Speak with a bank representative about your student’s goals, your timeframe and the amount of money you’re looking to save and you’ll be able to find the right strategy for your family.

The sooner you start planning for your child’s future, the easier time you’ll have when that future becomes the present. Come down to any Milford Bank branch location and start earning your education on saving for college today.

Three Ways You Can Improve Your Credit Score

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By Paul Mulligan

The importance of having good credit cannot be overstated. Having a good credit score—at least 700 on a scale from 300 to 850—can open up a world of possibilities that might otherwise have been unavailable to you. Good credit can help you get approved for a car loan or mortgage. In some cases, employers and landlords will even use credit scores as part of their background checks. A good credit score may also help you qualify for financing and credit cards with lower interest rates.

In general, you’ll find managing your finances and improving your quality of life easier with a first-rate credit score. On the other hand, the lower your credit score drops, the harder time you’ll have qualifying for low interest rates that will help you cut into your debt.

Fortunately, you can establish a good credit score early on and keep it headed in the right direction by following these three steps.

  • Apply for a secured credit card. Building credit is difficult to do without an existing payment history. One of the quickest ways to establish your ability and willingness to pay off debts in a timely manner is by using a credit card. Yet, first you have to qualify for the card, which is also contingent upon a solid history of loan repayment. In this case, a good solution is to procure a secured credit card. The lender assumes no risk with this alternative, as a sum of money equivalent to the total available balance on the card is held in an account and only released after you’ve established a track record for making regular payments.
  • Pay more than the minimum on your credit card(s). Another way to prove that you’re a low-risk customer is to pay down more than the monthly minimum on any of your existing balances. You don’t need to go overboard; paying 10 extra dollars a month can have an impact.
  • Leave repaid debts on your credit history. There is a difference between good and bad debt. If you’ve paid off a loan, don’t make the mistake of trying to erase the evidence that you had debt from your credit score. The fact that you incurred debt and handled it responsibly will help your score.

To learn more about the importance of credit and what you can do to improve your standing, stop by Milford Bank to speak with one of our financial advisors, or check out our Online Learning Center by clicking here.