Monthly Archives: June 2017

5 Affordable Summer Vacations

Summer Vacations

One of the best things summer brings, aside from the beautiful weather, is time to enjoy with your family. Whether that’s planning a fun weekend adventure, or carving out a week to go exploring, your kids are sure to remember these getaways for decades to come. After years of trial and error, we’ve discovered some ideal destinations where you can stay in budget while enjoying all the perks of your family’s time away.

Wisconsin Dells, USA

This Midwestern hot spot is filled with many of the nation’s premier water parks. With options at every price range, many resorts include park passes and discounts on other area activities. For those looking to save some extra funds, we recommend finding accommodations with a kitchenette. This added feature allows your family to cook meals instead of having to eat out at pricier restaurants, plus the kids will appreciate the extra time in the pool!

Tamarindo, Costa Rica

One of the most difficult parts of organizing a vacation is finding all the activities for you and your family to enjoy. At GO Adventures in Tamarindo, they have a bit of everything for your little ones to experience. Back at the hotel, they can run across award winning beaches, and spend the day relaxing in the sand. For those days you want to venture out, there is always an endless supply of options, and not to mention delicious food!

New Orleans, USA

This city is filled with a rich and vibrant history perfect for family vacations. With countless historical tours, you and your little ones can learn about the history of the South while enjoying some truly decadent dishes! Exciting excursions such as airboat tours and crocodile encounters will give your kiddos stories they’ll be anxious to share back home! For added savings, we recommend booking a home rental to avoid costly hotel fees and save some extra money by trying out your own creole recipes.  

Vancouver, Canada

This vibrant town, just north of the border, is filled with fun and flavor! Enjoy all the best bites and adventures alongside your family at the Granville Island Public Market, and then take a walk through the Vancouver Aquarium, to watch your children learn all about Canada’s sea creatures. No matter what you and your family decide to do, you’ll be warmly greeted throughout one of the happiest cities in the world. Just be sure to remember your passport!

Austin & Waco, USA

These two sister towns are separated by just over 100 miles, but offer fun-filled activities in both locations. By combining the two cities for this memorable trip, your family can step on the set of Magnolia Market and savor the mouth-watering taste of Franklin Barbecue, all in one fell swoop. Austin will provide an endless list of new restaurants and tours, while Waco can set the tone for the ride home with classic family-fun that the whole clan can enjoy.

Wherever your summertime travels take you, Putnam Bank is here to help safeguard you and your finances while you’re away.

Why Checking Your Credit Score Matters

Personal Finance

Across television ads, online banners, and even chit-chat among relatives, the phrase, “Check your credit score,” seems to be popping up. If something so important needs constant reminders, why does it have such a key importance in your personal finances? Well, the truth is that it doesn’t, your financial actions do.

A credit score is comprised of five different measures which indicate how you as an individual are perceived in terms of repayment and risk. Individuals who pay their bills on time, have been utilizing loans and credit cards, and don’t maintain too much debt, typically have a higher score. While the score itself is seen by potential lenders as a positive or a negative, the true meaning it portrays is to showcase whether you as an individual are a promising person to repay any funds you are lent. This score can be changed for the better or the worse depending on the actions you take.

This is why checking the report itself can be beneficial for your personal financial reputation. By reviewing your history on a recurring basis you can quickly identify any mistakes or missed payments that need correcting and do so in a timely manner.

For those who do not check their score, scenarios like the following could occur:

Say you accept a job in another town, and after moving, you realize you still need to forward your mail. After a week or two in the new place, you go online and make the switch. However, unbeknownst to you, there was one last utility bill that was mailed to your prior address after you moved away. Weeks go by, even months, only now you’re connected with a new utility company, and you have new bills to pay. Behind the scenes, your credit score could be declining because that one last bill has now been reported to collections. Your credit history will now note that a payment has been missed, and the longer it is missed the more it could damage your credit score.

Situations like this happen to many Americans, and while sometimes they can’t be prevented, the damage they cause can be minimized by checking your credit score on a monthly basis. Instead of allowing a payment like this to retain a balance for over 120 days, you can catch it in under 90 and minimize any potential negative effect on your score.

This is just one example in how checking your credit score can impact your financial health for the better. Other benefits include fraud prevention, better financial negotiation, and more accurate personal financial records.

Our team at Putnam Bank would be happy to walk you through your credit report and is always available to answer any questions you may have.

 

Who Says You Can’t Make a Snowball in the Spring?

Pay Down Debt

While the weather can be as predictable as the lottery, one thing you can always count on through the seasons is your ability to snowball anytime you want. However, before you start creating snowmen out of ice shavings, let’s first cover what a snowball is. Typically in financial terms, snowballing is an action in which you structure your debt payment to decrease the overall time and cost associated with any accounts payable you have.

Here’s how it works: To begin a snowball, you first need to know what debt(s) you have on the table. By creating a list of your known debts, and also checking your credit report for any unknown ones, you can ensure you have all your bases covered. Then, using that information, prioritize your debts by amount from smallest to largest. Once you have them organized you can begin to set-up or continue minimum payments across all installments.

For the next step, you’ll want to look through your current spending and earning to see if there are ways you can allocate additional funds each month to pay off your debt. Whether it’s an extra $50 or an extra $500, every penny matters!

These additional funds can then be assigned to the debt you indicated at the lowest amount. Each month you’ll have a little extra money to help pay off that expense even sooner. Once the balance reaches zero, the snowball officially begins! Now that you have eliminated one payment, you can utilize all the funds that were going towards that expenditure and push them towards the debt with the next lowest amount.

Continue to do this process until each unwanted debt is paid off. Debts such as your mortgage are a great thing to pay off early, but may not be necessary to include in your debt snowball. Our helpful mortgage lenders can always assist in restructuring your payments if you are truly passionate about eliminating all debt.

If you’re ready to get started, we have some great money saving tips to help you find those extra dollars!

  • Switch to a Discount Grocer: You could reduce your monthly grocery bill by up to half when you shop at a bulk or discount grocer instead of a brand-oriented chain.
  • Bring Your Coffee and Lunch: Both of these items could be costing you more than you think! The typical American lunch runs approximately $12.00 and an average latte could cost you $3.50 a day. By bringing both food and beverages from home you can drastically decrease your monthly expenditure for dining.
  • Take Advantage of Apps: New technology based tools like Mint, Honey, and RetailMeNot, offer continuous and unique ways to save and manage your personal finances. By taking advantage you can not only save on unexpected items but better visualize your budget through tracked spending categories.

At Putnam Bank, we are excited to help you succeed on your journey toward financial success. If you’d like to set-up automatic payments, or monthly transfers, our Online Banking can help! Visit our website to get started today.

 

 

The Latte Factor 101

Money Management

Making your way through the drive every morning with a coffee may give you a refreshing start to your day, but at what cost? The ideology that coffee shops and other retailers capitalize on is the notion that these small expenditures add a little excitement to your day without a hefty bill. However, when you enjoy perks like these on a daily basis, they add up, quickly!

Financial author, David Bach, is the mastermind behind the Latte Factor. This helpful calculator enables shoppers to see not only the cost of an individual purchase but the lost value it could cause for further investment as well.

For example:

If you purchase a $4.45 latte from Starbucks every weekday for the next thirty years, the total cost of your daily coffee is $34,710.00. However, if you had put that weekly $22.25 expenditure into an investment with an average earnings rate of eight percent or more, you could have made $108,985.49 in earned interest during that time. This showcases the true cost of a daily latte as the overall product expense ($34,710.00) + the lost interest ($108,985.49) = ($143,695.49)

While less than $5.00 a day may seem like chump change, compounding these expenses on a long-term level can showcase helpful savings opportunities to maximize your retirement savings efforts and limit unnecessary spending.

This equation doesn’t work just for coffee either! If you find yourself splurging for a fast-food lunch break, buying extra sodas at work, or even paying for a magazine you hardly read, you’ll soon find that all of those little expenses can make a big impact.

To help break some common splurging habits Putnam Bank recommends the following:

  • Before making a purchase, ask yourself, “Should I spend these funds or should I invest them?”
  • Use free services like our Online Banking or Mint to visualize spending and see areas where you can cut excess.
  • Remember the rule of 7. On average, invested funds will double every seven years, without any added contributions.
  • Utilize accounts like IRAs, HSAs, and 401(k)s to maximize the dollars you invest and save.

If you have any questions on how to get started, or want to learn more about how to make your money work for you, stop by or drop us a line to set-up an appointment today.