Just Married: What to do with your finances?

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by Chaz Gaines

Congratulations on tying the knot!

You and your spouse might find yourselves fortunate enough to wonder what to do with your newfound resources.

In either case, do you say “I do” to merging your savings and checking accounts or do you keep it all separate?

Years ago, it might have seemed like a no-brainer for newlyweds to merge their accounts. But today, it’s much more likely that both spouses have their own sources of income prior to getting married.

Either way, the answer varies on a case-by-case basis.

When it comes to your finances, you’ve got three options:

  • Completely merged accounts. There is certainly a level of comfort that comes with combining your savings and checking accounts. Both you and your spouse will know the current state of your finances, and every bill—from utilities to mortgages to groceries—can be paid from the same account. It’s important to keep in mind, that each of you will be supporting the other’s purchases.
  • Partially merged accounts. Is keeping some of your finances separate and merging others the best of both worlds? Couples can consider sharing some of their money while keeping personal accounts to use as they choose. But you still have to consider how you are going to fund that shared account. For example, will the higher earner contribute more?
  • Completely separate accounts. For couples who have both achieved financial independence prior to marriage, keeping completely separate accounts might make the most sense. But keeping finances completely separate still requires you to consider how certain bills are going to be split, for example.

Money is an important aspect of life, but the level of its importance varies from person to person. At the end of the day, it is critical you remember that no matter which option you choose, you should talk openly about your finances. The more conversation that occurs, the more likely your financial objectives will be the same.

Hidden Ways to Save Money Each Month

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By Lynn Viesti Berube

Today’s difficult economic climate has affected many individual’s finances. And it certainly doesn’t help that the prices of everything—from gasoline (did you know gas costs consumers 5 percent more this year than last year at this time?!) to electricity to food—seem to be increasing.

At The Milford Bank, we understand harsh realities inherent in today’s economy. We also value each and every one of our customers and want nothing more than to see all of their savings accounts grow every month.
While we might not be able to control your rising expenses, we can offer some advice as to how you can save more money. In this ongoing series, we’ll highlight a few tips that we hope will help:

• Shop your car insurance. We’ve all heard the commercials, but how many of us actually shop car insurance? The truth of the matter is that, with the chaos and rush of day-to-day life, we’d rather let our policies automatically renew simply because it’s easier. But there are so many insurance companies out there, and they all want your business. Who knows how much money you stand to save annually by switching insurers?

• Consider who produces your electricity. More than a decade ago, Connecticut deregulated the electricity market, allowing small energy producers to send their electricity over infrastructure owned by the utility companies. Did you know that you’re able to shop around and choose who produces the electricity that powers your home? It’s likely that you can find cheaper rates and switch providers at no cost.

• Cook more meals. Sure, going out is fun. It’s nice not to have to cook, and perhaps even more so not to have to clean. But let’s say you spend $50 every time you go out to dinner, and you go out twice a week—that adds up to a hefty $5,200 a year. You can certainly reduce that expense by cooking more meals at home. And there’s a good chance it will be healthier for you, too.

Is it time for you to refinance your mortgage or home equity loans?

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By Bob Russo

Buying a house is a major decision for anyone. But over time, that decision—no matter how complex—pays dividends as your house becomes your home.

For many Americans, home ownership is most likely the greatest expense they will undertake during their lives. Although the market has shown vast improvement—recent research shows that although only 4 percent of homeowners are behind on their mortgages—there is still room for progress. For instance, some homeowners may have all their money tied up in the walls, meaning they are stuck when it comes to figuring out how to pay for life’s other great expenses such as college tuition, vacations, and that new car, to name a few.

A number of situations may mean that it’s time for you to consider refinancing your mortgage, or replacing your current mortgage with a new one. After all, the last thing you want is to risk losing your home or be unable to fund your daughter’s wedding. But before you take that next step, you should know precisely what it means to refinance so that you end up in a better position financially when all is said and done.

Refinancing is the process of replacing a current mortgage in order to reduce monthly payments by obtaining lower interest rates. Nobody likes paying more than they have to for anything, and lower rates usually translate to lower monthly payments. For example, if you took out a $100,000 loan with a 6.75 percent interest rate, you’d have a monthly principal and interest payment of $649. If you were to refinance that loan at 4.5 percent, your monthly payment would shrink to $507.

The price of your home may increase in value over time, generally speaking. If you’re about to send the kids off to college or want to pay for that long-awaited retirement trip, for example, you may be able to take out a home equity loan while refinancing as well.

Would you like to lower your monthly payment? Are your interest rates too high? Is it time for you to take some equity out of your home?

We at The Milford Bank will answer all of your questions regarding mortgages and home equity loans and help you get the financial security you and your family deserve. Click here to meet our mortgage specialists or to access our free pre-qualification form.