Are You Financially Ready for an Emergency?

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by Celeste Lohrenz

By nature, personal finances are those monetary concerns that keep us, individually, up at night. We all adopt our own tactics and tricks to keep on top of our bills, rent/mortgage payments and other expenses, but some of us have more complicated assets than others and may need professional guidance from time to time. If you’re at the point where your personal wealth management has not led to the rewards you were anticipating, consider collaborating with our in-house financial advisors, John Kuehnle.

Regardless of the condition of your personal finances, John Kuehnle can help you get them in shape. After all, you never know when a situation may arise that requires someone besides yourself to sort through your personal finances on your behalf.

To avoid a worst-case scenario—where your assets are inaccessible due to outdated paperwork or ineffective management—follow these quick tips:

• Consolidate and back up: There is nothing wrong with keeping paper records as many of us do, but if you decide to go this route it is a good idea to keep them all in one organized, central and secure location. By doing so, you can easily share the information with trusted family, In Case of Emergency (ICE) contacts and financial advisors/attorneys. You may also want to make duplicate digital copies as a backup. Given how easy it is to back up your files up to a cloud server these days, taking this extra precaution may be wise. Files can be encrypted for security purposes and the cloud will keep them safe in case of a fire or destruction of your hard copies.

• Make a plan: It’s never fun to think about worst-case scenarios, but doing so ahead of time may save you many headaches down the road. It is a good idea to create a financial plan for common emergencies like serious illness, property destruction, natural disasters and any other scenario that could leave you unable to handle your own personal finances. Then, share that plan with the appropriate parties, make sure they understand how you would want your finances handled and, again, store these plans in a secure and central location for easy access.

• Continue to update: Having a budget is a smart financial decision, but many people create that budget for a designated time frame, file it away and never look at it again. It is a good idea to continually updating your budget, whether that means once a month or every six months. Having a sound financial plan that outlines when bills are due, for example, can aid others who are helping to keep you on top of your finances when you can’t do so yourself.

• Create an emergency savings account: While your personal finances should be accessible in case of an emergency, as discussed above, it is also helpful to start an emergency savings account. One that you can add to on a regular basis and has a low or no minimum balance requirement is preferred so it can be deeply tapped in case of emergency without penalty.
Personal finances can be complicated, but once you’ve gotten on top of them, they can be a piece of cake to manage. If you need help getting to a good place with your assets, reach out to us at 203-783-5700.

Three Ways to Save Energy This Fall

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by Lynn Viesti Berube

With Labor Day in the rear view mirror, we’re now into fall and, with it, colder weather. After the winter Connecticut experienced in 2014, it’s safe to say that we’re all holding tightly to these last few days of warm weather. While you may not have turned on the furnace just yet, you might want to plan for the colder months sooner rather than later when it comes to financing your warm home.

To help you cut heating costs this fall and winter, here are three ways to conserve energy:

• Eliminate the cracks: You may not pay them much attention, but those tiny cracks below your door and around your windows are sucking the money right out of your home. These cracks allow conditioned air within your home to escape and cold air to seep in. By investing in inexpensive draft stoppers and by shrink-wrapping your windows, you can keep the warm air in, the cold air out and save big on your monthly energy bill.

• Optimize your heating system: One major way we waste energy and run up electric bills during the colder months is by overworking inefficient heating systems. Instead, optimize your heating system with a few at-home solutions that shouldn’t break the bank. First, consider placing area rugs in high-occupancy rooms (such as your family room) where you may otherwise have bare floors. Doing so will help retain heat and keep your feet feeling cozy. Second, change the filters in your heating system on a monthly basis to ensure you’re not forcing your system to work harder than it needs to. Finally, make sure heating vents aren’t being blocked by furniture—it may keep the couch nice and warm, but the furniture will draw the heat out of the air and keep the temperature in the room down.

• Opt for electronics with batteries: It’s no secret that during the colder months many of us prefer to wrap ourselves in a warm blanket and watch Netflix, rather than bundle up and brave the elements. However, the extra time we spend in our homes can have a major effect on our electric bills, based on our increased use of electronics alone. Instead of turning on the TV, or heading to your desktop computer this season, opt for electronics with batteries, such as laptops, tablets and other mobile devices. These devices often cost less to charge and, as long as you unplug the charger after you’re all juiced up, will save you big bucks over the course of the next few months.

As the holidays approach, don’t let good tidings be overcome by high electricity bills! These three steps will help you save on your monthly bill while staying warm. And, if you ever have a question of what to do with your new-found savings, consider a Milford Bank savings account!

Want more tips on energy efficiency and saving money on your power bills? Visit our Green Fair on November 14th!

Green-Fair-postcard

 

Three Things You Need to Know About Your Credit Score

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by Trish Townsend

If you have aspirations of one day owning a home, leasing a car or paying for college (either for you or your children) then you know the road to obtaining these goals leads directly through your credit score. Your credit score is the numerical evaluation of your lending history, and it is often the determining factor when lenders accept or deny your loan request. With a good credit score the sky is the limit; however, a poor score can make a task as simple as applying for a credit card become nearly impossible.

Considering how important a credit score is to an individual’s future, it’s surprising to discover that nearly 60 percent of adults haven’t checked their score within the last year. In the spirit of educating our account holders, here are three things you may not know about your credit score:

• Payment history: The largest chunk of your credit score—35 percent in fact—is based on your payment history. This should not be confused with your history of repaying loans, but rather it includes bill payments of any kind. That means if you still have that library book from high school in the back of your closet that’s rung up unimaginable late fees, it is possible that it could end up on your credit score and negatively affect it. Likewise, medical bills, parking tickets and even a late cable bill can be factored in to your credit score.

• Free reports: Your credit report—detailing your credit score and how it was calculated—can be freely obtained three times a year; one each from the three major credit-reporting agencies: Equifax, Experian and TransUnion. While you can contact the credit-reporting agencies individually, they can more easily be obtained through annualcreditreport.com, the only website explicitly directed by Federal law to provide credit reports. Knowing your score is the first step to improving it, and it’s a great way to monitor against identity theft.

• Constant change: Your credit score is alive, and it’s changing almost every single day. Many people are unaware of how a change in their credit score actually occurs, so having this knowledge will be helpful when seeking loans. As a best practice, check your credit score by using one of your free reports as soon to applying for a loan as possible. Doing so will allow you to address any glaring inaccuracies, as well as will offer you a better picture of how much money you’ll be allowed to borrow.

Your credit score can be your best friend or your biggest foe, but you’ll never know until you find out more.

Three Tools for Teaching Cent$ible Kid$ Personal Finance

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by Becky Tudor

Americans today are having a difficult time saving money for the future. In fact, the independent research firm NextAdvisor recently found that nearly one in every four Americans has no savings at all. With recent history showing how unstable economies can become, parents today would be well-advised to educate their children about the importance of personal finance.

As of now, only 17 states have personal finance classes as a high school graduation requirement. If you live in one of the 33 states that doesn’t have this requirement (Connecticut is one of them) it might be wise to find other means of educating your children in this area.

Here are three tools the Milford Banks Cent$ible Kid$ Program employs to help teach your children personal finance:

1. Games: Yes, kids love games and, oftentimes, parents worry they might love them too much. But when games are educational, research shows it helps children learn. Computer games, like “Cash Puzzler” and “Road Trip in Savings” available through The Milford Bank’s program, entertain kids while teaching them lessons about money and spending.

2. Savings account: Cent$ible Kid$ operates by giving children their own savings accounts. Along with responsibility for this important personal finance tool comes a chance for these young owners to develop their own plan for savings.

3. Newsletter: Visual learning is important to children. Their young minds are receiving educational stimuli when they read our Cent$ible Kid$ newsletter. To get a taste of our children-friendly newsletters, that provides children with visual learning materials, check out the latest here.

Today’s Youth Grade Themselves ‘C’ or Below When It Comes to Managing Finances

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by Cortney Meng

Despite the fact that today’s youth have grown up in the era of mobile banking, digital wallets and financial services platforms—from Venmo to Splitwise—a number of millennials feel ill-equipped to handle their finances. In fact, according to a survey of 1,640 college students, as part of U.S. Bank’s 2015 U.S. Bank Students and Personal Finance Study, 50 percent of coeds would give themselves a “C” or below when it comes to how successful they are in managing their money.

What’s more, the survey found that:
• More than 60 percent of college students have little to no knowledge of investments or retirement savings.
• Twenty-one percent of students are barely keeping up on day-to-day expenses, with only 5 percent prepared for unexpected expenses.
• Only 39 percent of students correctly know that paying off a delinquent loan or credit card balance is not enough to remove it from a credit report.

So how can today’s millennials start better preparing for their financial future? To begin, young adults can get a good handle on their current financial situation by asking themselves questions like:
• Am I currently in debt? If so, if I continue down the same payment rate, at what point will my debt be paid off?
• Do I have any major financial decisions ahead that I need to start prepping for today, e.g., buying a new car, saving for a house or merging accounts with a soon-to-be spouse?
• How am I currently saving for retirement? Have I started a 401k investment? Am I investing in stock? Do I have an IRA?

The answers to these questions can help guide them down a specific financial path. Youth who are in debt can begin to set budgets and reduce their lines of credit to make payments more expediently. What’s more, they can create a detailed document listing the interest rate, balance and minimum monthly payment of all their debts to stay on track of payments.

In addition, young adults may want to consider consulting with a reputable financial advisor, either formally or informally. For instance, a lot of banks can pair members with financial coaches and advisors who specialize in everything from wealth and asset management to retirement planning. Here at The Milford Bank, for instance, our resident expert John Kuehnle is always on hand to make recommendations and provide financial direction based on the information provided to him.

Millennials can also spend more time discussing their finances with their parents, especially since the survey found that 91 percent of students learn about money from their parents, either directly or by example. Moreover, 55 percent of students identified their parents as the No. 1 influence on their financial habits, as well as their go-to source for financial advice.

Are you a millennial just starting out on his or her career? Are you looking for additional financial resources? Be sure to check out our learning center, where you can pick up tips and tricks on everything from how to pay for college to how to employ basic investing strategies.

How to Save on Back to School Supplies

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by Lynn Viesti Berube

It’s officially August, and that means parents are getting their kids ready for the new school year. And while the first bell is rapidly approaching, there is still one last obstacle for many people to overcome before students are back in the classroom… back to school shopping.

Anyone sending their kids back to school this fall knows just how expensive back to school shopping can be, but did you know it’s the second-largest seasonal shopping period of the year? That’s the word according to Statista, which ranks back to school shopping as No. 2, just ahead of Mother’s Day and Valentine’s Day. In fact, Statista estimates that $74.9 billion will be spent this year alone on back to school needs.

Here are a few ways you can save during this seasonal shopping period:

• Shop from Aug. 16-22: That is Connecticut’s tax free week. During this tax holiday, consumers can shop for clothing and footwear, tax free, on purchases up to $300.
• Buy in bulk: Not only will you be able to get a lot of items you need for the entire year by shopping in bulk, but leftovers can be used the next year as well, which can help save you some money a year from now.
• Check your inventory: If you already shop in bulk, or even if you don’t, chances are you have school supplies left over from the year before. Check your inventory and decide what can be reused and what needs to be replaced.
• Buy from dollar stores: It’s amazing that pens, pencils, markers and notebooks can be as expensive as they are, but they can also all be found at dollar stores. Consider forgoing the name brands for their dollar store counterparts to get the most bang for your buck.

Being strategic in your back to school shopping can net you big savings. Once you’ve done so, consider depositing your savings into a Milford Bank savings account for your future graduate.

Five Ways to Grow Your Savings Accounts

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by Becky Tudor

We get it… allocating a set amount of your income each month for your savings accounts may seem all but impossible. But it’s important to put money aside for a rainy day; you never know when emergencies (or even retirement) will creep up.

Here are five suggestions to help you save money:

1. Keep Track of Your Spending: To figure out how much you can put aside each month, pinpoint how much you are spending. Tally your monthly expenditures. Hold on to every receipt—no matter if you pay with cash or credit—so at the end of the month you can perform an audit. Take a look how much you spend on recurring items (think rent, cable and electric) as well as one-offs like lunches, movie ticket, and sporting events. Once you’ve aggregated this data, you can set a target for how much money you can put into your savings accounts.

2. Pay Your Savings Account: The best way to save is to make it automatic. For instance, when you receive your regular paycheck, schedule a portion of it to be automatically deposited into your dedicated savings account or 401K—instead of waiting until the end of the month to move it over. In other words, pretend as if that money is not there. When that money is not available, you cannot spend it and, thus, your savings accounts can flourish.

3. Be Careful With Your Credit Cards: All too often, individuals end up paying down the interest on loans, debts and credit instead of paying the actual sum of money borrowed. You may be able to avoid paying interest if you pay off the entire balance each month.

4. Get Creative With Your Social Events: While limiting your entertainment budget is a surefire way to pad your savings accounts, it is incredibly important to find ways to satiate your quest for social gatherings while doing so on a budget. So instead of limiting your social events, get creative with them. Consider going for hikes, playing board games or inviting friends over for a pot luck dinner rather than suggesting pricier social gatherings. Just swapping even one concert night for a karaoke night could save you hundreds of dollars in one month.

There are so many great money saving tips out there, so we want to hear from you! How do you suggest padding your savings accounts each month?

Three Tools for Teaching Cent$ible Kid$ Personal Finance

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by Pam Reiss

Americans today are having a difficult time saving money for the future. In fact, the independent research firm NextAdvisor recently found that nearly one in every four Americans has no savings at all. With recent history showing how unstable economies can become, parents today would be well-advised to educate their children about the importance of personal finance.

As of now, only 17 states have personal finance classes as a high school graduation requirement. If you live in one of the 33 states that doesn’t have this requirement (Connecticut is one of them) it might be wise to find other means of educating your children in this area.

Here are three tools the Milford Banks Cent$ible Kid$ Program employs to help teach your children personal finance:

1. Games: Yes, kids love games and, oftentimes, parents worry they might love them too much. But when games are educational, research shows it helps children learn. Computer games, like “Cash Puzzler” and “Road Trip in Savings” available through The Milford Bank’s program, entertain kids while teaching them lessons about money and spending.

2. Savings account: Cent$ible Kid$ operates by giving children their own savings accounts. Along with responsibility for this important personal finance tool comes a chance for these young owners to develop their own plan for savings.

3. Newsletter: Visual learning is important to children. Their young minds are receiving educational stimuli when they read our Cent$ible Kid$ newsletter. To get a taste of our children-friendly newsletters, that provides children with visual learning materials, check out the latest here.

Make Your Business Truly Mobile With SpotPay

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by Pam Reiss

These days, smartphones and mobile devices have empowered us to stay connected no matter where we happen to be. Armed with these tools, we’re able to access the same wealth of information whether we’re watching the kids play soccer, putting the last minute touches on a project at the office or waiting for departure at the airport.

In other words, today’s world is an increasingly mobile one. As a business owner, you know full well how your customers are always on the go. Now, thanks to SpotPay, your business can cater to today’s mobile world without a hitch.

SpotPay, which is proudly offered by The Milford Bank, allows your business to accept charge card transactions no matter where you happen to be. All you need is a mobile device and an Internet connection and, voilà, your business can be wherever you want it to be.

By registering with SpotPay through The Milford Bank, all of your card and check transactions will be securely deposited in your business or personal account. As a result, you’ll be able to access your funds quicker.

With SpotPay, you can provide receipts and refunds as well as void transactions right from your mobile device. What’s more, the secure mobile point-of-sale system makes it so that sensitive customer data is not stored on your device.

In addition to the ability to accept charges on mobile devices, SpotPay also has plans to add remote check deposit functionality, mobile balance inquiries and transfers and more, so you’ll be able to better accommodate your customers in the future.

SpotPay costs $8.95 per month in addition to a 1.99-percent fee on most transactions. But that pales in comparison to the untold fortunes the technology can bring to your business. Click here to learn more.

How to Improve Your Credit Score

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by JoAnn Sabas

A good credit score is what each of us aspires to. After all, a credit score is one of the important determining factors when it comes to borrowing money for a home.

Mortgage lenders look at your credit score as one of the essential elements when determining whether or not to approve your mortgage application. A higher score reflects a strong credit history.

So how can you give your credit a boost to improve your chances of getting the lowest possible mortgage rate? Let’s take a look:
• Begin by getting your credit score: You have to know where you stand in order to improve. Get started by running your credit reports. By law, you’re allowed one free credit report from each of the three major credit reporting bureaus every 12 months. The reports will explain how your score was determined. For instance, your FICO score—which many lenders use to assess an applicant’s credit risk—is calculated using both positive and negative information in your report. That information is broken down into five main categories: payment history, amounts owed, length of credit history, new credit, and types of credit used.

• Fix errors on your credit report: This is a crucial step that can dramatically improve your score. If you find errors on any of your reports, dispute them immediately with the appropriate bureau. The first step is to inform the responsible credit bureau of the inaccurate information. Next, do the same with the creditor or information provider, and explain why you’re disputing the item.

• Pay down your debts and pay bills on time: Keeping your loan balances low can have a positive impact on your FICO score because your “amounts owed” category accounts for around 30 percent of your FICO score. If you can swing it, paying down your credit card debt balances to 30 percent of your total limit is an easy way to give your score a bump. Also, late payments and collections leave major blemishes on your credit report; paying your bills on time and avoiding late payment is the only way to keep a positive payment history. In addition to bankruptcy, foreclosure and judgments, collections and habitual late payments are the worst things to see on a credit report.

Undeniably, it’s important to go into the mortgage process with the best potential credit position. Just make sure to give yourself ample time to find and correct credit report errors. What’s more, doing this clean-up in advance will also speed up the mortgage process.

If you have questions about how to read your credit report, whether you might be eligible for a mortgage or any financial products or services, please contact us. We’re here to help!