First Bank of the Lake: January 2017

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065

(573) 348-2265

Tuesday, January 17, 2017

Yes - You CAN Save Money In 2017!

Almost everyone makes lofty plans to save money at the start of a New Year, but few people find that they are successful in their goals. Breaking old spending habits is challenging, but with a little bit of focused attention and effort on your part, it is possible. Our Lake of the Ozarks community bank is here to help you meet your goal of saving money in 2017. These quick tips can steer you in the right direction.

Make Plans (And Stick To Them).
In order to keep your spending in check, you need a plan. Without a weekly meal plan, for example, you may end up spending extra money on multiple dinners out or groceries (such as fresh produce) that expire before they are used. At the start of every week, set aside time to make a plan for some of your various expenses for the coming week, such as how many times you will treat yourself to coffee on your way to work or how many times you'll go out to lunch with your coworkers instead of bringing food from home. Making a plan and sticking with it will help you avoid spur-of-the-moment decisions, which typically result in greater spending.

Make Saving Automatic.
One of the easiest ways to save money is to eliminate the decision to save every month. If you haven’t already done so, connect your checking account to a savings account at your Lake of the Ozarks bank or to your retirement account. In most cases, you’ll be able to set up an automatic withdrawal from your bank account to coincide with your payroll deposits. That way, the money is moved out of your checking account and into the appropriate savings account before you ever see it, thus eliminating the temptation to spend it unnecessarily.

Don't Have Money To Save? Review Your Bills.

Just as saving is easier when it’s automatic, spending is also easier when it happens without effort. Many Americans put their monthly expenses on auto-pay via a bank account, credit card or debit card. This saves the monthly hassle of paying bills, but it might also put your relationships with service providers in the “out of sight, out of mind” category. While your monthly payments have been made automatically for phone, cable and other service providers, the initial promotional rates you might have once enjoyed on those accounts have possibly expired.

Take the time to review your expenses in each of these categories, and consider calling your service providers to ask for a better deal. Most service providers don't want to lose you as a customer and may offer you the “new customer” discounts or something similar to get you to stay. Once you successfully reset these relationships, you can add the total amount saved to your automated savings deposits each month.

Still Don't Have Money To Save? Take Control Of Your Expenses.
If you still find that you're running out of money every month without setting anything aside, it may be time to drastically shake up your system so that you can take control of your expenses. Often, impulse purchases are the biggest hurdle that must be overcome in order to get spending in check. Consider the cash envelope system:

Determine how much money you can afford to spend in certain categories every month.
Write the names of the categories on different envelopes.
Withdraw cash from your bank account and put the appropriate of cash for each category in its corresponding envelope.
Make all your purchases with the cash in the envelopes.
Once you run out of money in a certain envelope, stop spending money in that category.

Doing this on a monthly basis can be a valuable way to help you get control of your spending. If you are concerned about carrying cash with you everywhere you go, consider downloading a mobile app (such as Goodbudget) that allows you to track your expenses in a similar way while still using your debit card.

First Bank Of The Lake Is Here To Help!

Saving doesn’t necessarily require a drastic change in your lifestyle. Taking small but doable steps towards a goal is often the best way to achieve success in the long term. If you are looking for a safe place to save money - and get access to several great perks that can put you ahead in the long run - consider opening a bank account at First Bank of the Lake. Ask for Kasasa!

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First Bank of the Lake - Striving For Excellence

Member FDIC. Equal Housing Lender.

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065

(573) 348-2265

Tuesday, January 10, 2017

How Do Rising Interest Rates Impact You?

For the second time in seven years, the Federal Reserve has raised interest rates. The recent raise in December, coupled with the Federal Reserve's hints that it intends to raise rates again in 2017, will have a definite impact on consumers like you. First Bank of the Lake is here to help you learn how you may be impacted and what steps you may want to take to prepare for the rising rates.

How Do Rising Rates Affect My Credit Card?

For many credit cards, the amount of interest you pay on balances carried over from month to month can be variable. This means that if the Federal Reserve raises interest rates, your credit card company may choose to raise its rates right along with them. If it is at all feasible, paying off your remaining credit card debt now is an important way to prevent yourself from racking up increased debt as a result of the new rates.

If paying off your credit all at once is not possible, you may instead want to determine if there are credit card options that offer lower rates or if you qualify for a fixed rate loan at a financial institution

What If I'm Thinking About Buying Or Selling A Home?

If you're thinking about selling your home, rising interest rates may actually be beneficial, as buyers who anticipate rising interest rates may make it a point to purchase a home sooner than later. Of course, the same logic applies to you if you are the one thinking about buying a home - the longer you wait to purchase, the more likely you are to get stuck with a higher interest rate on your mortgage loan. Also, if you've been thinking about refinancing your home but haven't gotten around to it yet, now may be your last chance to take advantage of these historically low interest rates.

What About Student Loans?

Federal student loans have fixed interest rates, so they shouldn't be affected by rising interest rates. If you have a private student loan, however, you may want to contact your lender to find out if your interest rate is fixed or variable. Note that the increase in interest rates isn't expected to be immediate or drastic, so even if your rate is variable, you should have a little bit of time to pursue some refinancing options.

What Is The Big Picture Of Rising Interest Rates?

When banks make loans or pay interest for deposits in a savings account, they determine the interest rate by using the Federal Reserve rate as a baseline. Therefore, when the Federal Reserve’s interest rates go up or down, the amount that banks charge for a loan or pay on deposits can go up or down as well.

With interest rates at or near 0% over the last several years, those looking to save money have received very little interest for their savings. Meanwhile, those who have borrowed money have been able to do so relatively inexpensively.

Rising rates will make it more attractive to save money because banks will pay a higher interest rate on savings deposits (although rates will likely stay at historic lows in the short term). Those looking to borrow money should expect to pay more than they have in recent history. Therefore, if you’re looking at financing consumer purchases like automobiles, furniture or appliances, you’ll want to do so soon to get ahead of additional interest rate increases.

Rising Interest Rates Are Good News For The Economy!

While rising interest rates signal an overall positive turn in the economy, they do have definite impacts on consumers. For consumers who have entered the workforce in the last seven years, the shift to a rising rate environment can be hard to understand. But, with a little foresight and planning, you’ll be positioned to insulate yourself from the hardest impacts of rising rates. Hopefully, you’ll be able to enjoy some of their benefits with greater interest on your hard earned savings.

For more information about how the rising interest rates may impact you, or to shop debt consolidation loan options at your local bank at the Lake of the Ozarks, contact us today.

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First Bank of the Lake - Striving For Excellence

Member FDIC. Equal Housing Lender.

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065

(573) 348-2265

Wednesday, January 4, 2017

New Year, New You: How To Take Control Of Your Debt

It is surprisingly - perhaps almost frighteningly - easy to get into debt. Statistics show that 8 out of every 10 Americans are in debt of some kind. Some types of debt are helpful and can help you strengthen your overall financial position (such as mortgage debt), whereas other kinds can be extremely detrimental. Credit card debt is an example of a detrimental debt, as it racks up unnecessarily high fees and interest rates and lowers your credit score.

The New Year is the start of a new chapter. If you are buried under multiple types of detrimental debt (or even if you are only saddled with one kind), it's time to make a plan of action for getting out from underneath it. First Bank of the Lake is here to help you devise a strategy to help you succeed.

Stop Building More Debt
This may seem a bit obvious, but it's the first (and possibly the most important) step you can take. Avoid taking out new loans for big-ticket items for the time being. If credit cards are a problem, switch to paying with cash so you can avoid racking up more debt.

Make A List Of Your Current Debts
The next step is to make a comprehensive list of your current debts. Rather than looking at the total outstanding balances, arrange them in order of the highest interest rate to the lowest. Dedicate your full attention to paying off the debt with the highest interest rate first (though you should still make payments on your other debts in the meantime). Once high-interest debt is satisfied, you can begin putting that extra money towards the debt with the second-highest interest rate.

Build A Budget
Next, it's important to get an accurate understanding of where your money is going. For one month, keep track of every dollar you spend. At the end of the month, total your expenses and divide them into different categories so you can see where most of your spending takes place. This will allow you to see where you have room to cut back, which will give you more money to put towards your debts.

Don't Spend More Than You Earn

The other important benefit of tracking your monthly expenses is that it allows you to see how much you are spending in relation to how much you are earning on a month-to-month basis. If you are spending more than you're bringing in, it's time to change that pattern. Examine your budget carefully so you can determine where you can afford to cut back. Don't be afraid to be ruthless about it!

Boost Your Income
If necessary, you may want to consider options that would enable you to boost your income. If you are having trouble living within your means, you can consider taking a part-time job in addition to your primary position. If you receive money from an additional source, such as a gift or a tax refund, resist the temptation to spend it and instead put the funds towards paying off your debts.

Ask Your Creditors For Lower Interest Rates
If you have been making consistent payments on your debt, you may be able to negotiate lower interest rates with your creditors. They may be willing to negotiate with you if you have a good payment history. Getting a lower interest rate can make a huge difference in the long run - and it never hurts to ask!

Be Patient
Last but certainly not least, be patient with yourself and with the process. Getting out of debt cannot happen overnight. Don't expect to jump straight to the top of the mountain; go slow and take things one step at a time. You'll get there!

First Bank Of The Lake Is Here To Support You
Our local bank at the Lake of the Ozarks is here to encourage and support you along your journey towards a debt-free lifestyle. We offer a variety of services designed to help young adults make the most of their finances so they can be successful. Call us today to learn you can get rewarded for banking basics that you use everyday - ask about Kasasa Banking and how it can work for you!

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First Bank of the Lake - Striving For Excellence

Member FDIC. Equal Housing Lender.