First Bank of the Lake: February 2017

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065

(573) 348-2265

Wednesday, February 22, 2017

5 Money "Tips" You Can Ignore

Magazines, blogs, books, pamphlets, news sources, websites, social media resources... there are countless resources that provide advice on how to manage your finances. These resources offer hundreds (if not thousands) of different tips, and wading through all of the advice can be a little daunting. With so many different resources saying different things, how can you be confident which tips are worth listening to?

First Bank of the Lake is here to help clear up any confusion. This week, we're using our blog to identify some common money "tips" you can ignore.

#1: "Buy All Your Groceries In Bulk."
The general suggestion to buy your groceries in bulk stems from the assumption that many grocery stores offer discounts if you purchase large quantities of a particular item at one time. While this is often true, it is still best to be selective about which items you buy in bulk. If you buy extra and half of it goes unused, you will have wasted money on food that ended up needing to be thrown away.

#2: "You Should Never Go Into Debt."
Some sources claim that you should never take out a loan or go into debt of any kind, since you'll have to pay interest and put potentially yourself at risk for falling into a hole you may never be able to climb out of. While avoiding unnecessary debt is certainly smart, some types of debt may be able to help put you ahead in the long run. Business loans, new car loans, and mortgage loans are a few examples of what is often simply referred to as "good debt." "Bad debt," such as credit card debt, is the type you want to avoid.

#3: "Use Credit Cards To Tide You Over."

If you're like many people, you may pull out the plastic without giving it a second thought. If you don't have enough cash, your credit card may seem like an obvious alternative. However, it's important to realize that when you use your credit card, you will still have to make the payment eventually - with added interest. The moral of the story is, if you cannot afford to make a purchase without using your credit card, you shouldn't make the purchase.

#4: "If Money Is Tight This Month, Just Pay The Minimum Balance On Your Credit Cards."
Credit card statements often include three numbers: the total outstanding balance, the total amount of your current statement, and the minimum payment due. Even if your statement is several hundred dollars, the minimum payment required is often exceedingly low (such as $25). Making the minimum payment can be tempting, but it will end up costing you more in the long run because of interest and potential late fees.

#5: "Buying A House Is Always A Good Investment."
This tip is tricky, because in certain situations, homes are can prove to be incredibly valuable investments that can substantially increase household wealth. The "always," part of the statement can be a bit misleading, however. If you buy a house when you are not financially stable, you may find yourself in a compromising situation. The consequences from defaulting on a mortgage loan can be severe and long-lasting. We encourage you to buy a home, but only when you are confident you will be able to meet the financial obligations of homeownership.

We're Here For You
At our community bank at the Lake of the Ozarks, your success is our success. We are proud to provide the resources our clients need to manage their finances wisely. We offer savings accounts and checking accounts at the Lake of the Ozarks to help you address your day-to-day financing needs. For more information about our financial services in the Lake Area, visit our website at www.FirstBankLake.com or call us at 573-348-2265.

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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, February 14, 2017

Applying for an SBA Loan: 3 Tips

Starting your own business is a thrilling (not to mention a little nerve-wracking) process. Endless possibilities and opportunities lie ahead - all you have to do is go out and get them!

Of course, finding the funds to start your own business can be a little challenging. Fortunately, SBA loans are designed specifically for aspiring entrepreneurs who need a little boost to help them get started.

Preparing for an SBA Loan Application

If you are thinking about starting your own business at the Lake of the Ozarks, consider taking out an SBA loan from First Bank of the Lake. Here are a few tips to help you prepare.

1. Draft A Business Plan
If you plan to take out a loan, having a business plan will likely be non-negotiable. Your business plan will demonstrate to your lender how you to plan to handle various aspects of your business, from allocating your start-up costs to managing your cash flow (and everything in between). It could take some time to build a thorough and comprehensive business plan, so it may be wise to begin the process sooner than later.

2. Clean Up Your Credit Report
As a brand new business, your company won't have financial history for the lenders to review. As a result, they'll likely examine your own financial background instead. It may be worth taking the time to order a copy of your own credit report first, so you can examine it and identify any problem areas. If anything is reported incorrectly, fixing it before you officially submit your loan application may ward off unnecessary complications.

3. Think About Collateral

Clay Lindhorst
Vice President & SBA Loan Officer

Not all lenders will ask for collateral, but depending on your loan amount and the percentage you are able to put down, some may require it. As you organize your financial situation, examine your personal assets and determine what you are able/willing to offer as collateral. The type/value of collateral you can provide may impact the down payment required on your loan.

Advantages of an SBA Loan

SBA 7(a) loans offer several benefits that make them attractive options for small business owners:

1. Low Down Payments
The purpose of SBA loans is to provide much-needed funding to help new businesses get up and running. Consequently, SBA loans often offer loan down payment options to make them affordable to their target market.

2. Long Term Financing
Long-term financing options allow loans to be paid off gradually. This improves cash flow by keeping the monthly payments lower. In most cases, SBA loans are for fixed terms and will not have a balloon.

3. Several Different Loan Options
SBA loans are not "one-size-fits-all." In fact, there are several different types of these loans you can choose from. Your SBA lender at the Lake of the Ozarks will be able to help you determine which is best for your situation.

Contact Us for More Information on SBA Loans!

If you are in the process of starting your own business and would like more information about affordable SBA loan options at the Lake of the Ozarks, contact First Bank of the Lake. The Small Business Administration will guarantee part of the loan, but the funding will be provided by our community bank in Osage Beach MO.

With a dedicated SBA lending officer on staff, our local bank is an excellent resource for local entrepreneurs. For more information, visit our website or give us a call 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, February 8, 2017

Protecting Yourself From Cybercrime: 5 Common-Sense Reminders

What is your most valuable possession?

Your home, automobiles, priceless antiques, jewelry or some other expensive item may come to mind when asked this question. While these items certainly do hold significant value, First Bank of the Lake is here to suggest that they are not, in fact, your most valuable possession. Your most valuable possession is not something tangible. In our opinion, the most valuable financial things in your life are your personal information and your identity.

Being Victimized By Cybercrime

Cybercrime is quickly becoming one of the most rampant criminal offenses in the States. Tech-savvy criminals are able to hack into e-commerce websites, email accounts, and protected networks to gain access to sensitive information that they can use for their own personal gain.

Being the victim of cybercrime can turn your life upside down. Depending on the information the hacker stole, he could use it to file an insurance claim under your name, steal your tax return, make unauthorized purchases on your credit card, or perform any number of other criminal activities. While it is possible to recover from identity theft, its effects can be far-reaching and long-lasting.

Protecting Yourself From Cybercrime

Since recovering from cybercrime poses such a challenge, it is wise to do everything you can to prevent your personal information from falling into the wrong hands. Our community bank at the Lake of the Ozarks is here to help you protect your sensitive information with these simple, common-sense reminders.

1. Update Your Passwords Regularly

Remembering your login information for so many online accounts can be frustrating and challenging, but updating your passwords regularly is a smart practice. This way, if someone does get access to your account information, he won't be able to use the information he has for long. It is also wise to use different passwords for each of your different accounts.

2. Avoid Questionable Websites
People who live in big cities know that there are certain areas where crime is more likely to occur, and they wisely avoid those areas as they go about their day-to-day lives. The same logic applies to the internet. Visiting scam websites or sites with adult content or hacker information may put your computer at risk of contracting a virus, so it is best to only visit reputable sites.

3. Verify Requests For Personal Information
Have you ever received an email from your bank, credit card company, or insurance provider asking to confirm certain sensitive information? The truth is that these companies will rarely (if ever) send these types of emails. If you get this type of email, avoid clicking on the links included in the email as they may redirect you to an unsafe website. It is always best to open a new browser and go to your provider's website directly - if the request is legitimate, you will be able to address the issue just as easily by logging in directly.

4. Be Cautious When Shopping Online
Though convenient, shopping online may put your sensitive information at risk. If you enter your credit card information into an unsecured website, you risk it falling into the hands of a cybercriminal. Before entering in your credit card information to make a purchase, make sure your browser displays a symbol of a padlock or an unbroken key to indicate a secure site. The web address for secure sites will also start with "https," instead of simply "http."

5. Consider Help From An Outside Source
Sometimes, the best strategy is to simply ask for help. Consider seeking assistance from a reputable source. Kasasa Protect® is an affordable, comprehensive solution that offers round-the-clock monitoring of your personal information. If fraud should occur, you will get access to immediate hands-on assistance to help restore your personal information.

Kasasa Protect is available at First Bank of the Lake to anyone who is interested in pursuing different options to protect their personal information. Kasasa account holders get discounted rates on this already affordable product. If you would like more information about Kasasa Protect, visit our website or call us at 573-348-2265. We would be honored to help you protect your information!

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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

Thursday, February 2, 2017

4 Example Budgeting Strategies That Actually Work

When it comes to budgeting, taking the first step is usually the hardest part. If you've never budgeted before, the task can seem overwhelming and confusing. There are so many different ways to go about it - how can you decide which strategy to adopt?

As your trusted community bank at the Lake of the Ozarks, we are here to help you take the first step. We have compiled a few different tried-and-true budgeting strategies for you to consider. There is no need to stress yourself out by trying to reinvent the wheel - feel free to adopt any of these sample strategies.

1. The "Pay Yourself" Method

Some people refer to this as the two-bank method. The premise of this strategy is simple: you direct your employer to deposit your paycheck into an account at a certain bank, and then you essentially pay yourself by directing your bank to transfer a portion of your paycheck into a checking account at a different bank. The key is to not transfer the full amount, leaving something behind ($100-$200 is a good place to start) in the original account.

You then use the money that has been transferred into the new account to support yourself throughout the month. The money that gets left behind gradually accumulates, enabling you to build a comfortable emergency fund. You can use any of the other sample strategies below to determine how to budget the amount that you "pay yourself" - just replace the total income in each of the proposed methods with the amount that you have transferred to your second account.

2. The 50/20/30 Method

Also referred to as "proportional budgeting," this method involves allocating percentages of your income to certain broad categories. Traditionally, people who use this budget allocate 50% of their income towards fixed expenses (utilities, mortgage/rent, groceries, etc). 20% of the their income goes towards their long-term financial goals (emergency fund, retirement accounts, etc). The remaining 30% can be used for discretionary purchases. Depending on your specific needs, you can adjust the percentages slightly or perhaps reallocate them. You can read more about the 50/20/30 rule here.

3. The Basic Subtraction Method

The basic subtraction method is about as simple as it gets. It's perfect for individuals who want to begin budgeting, but who don't want to wrestle with complicated formulas or time-consuming setup. In this method, you take your total monthly income and subtract from it your total monthly bills (or "fixed" payments). Then you subtract from that how much you want to set aside into savings each month (we recommend at least $100-$200). The remaining number is how much you can spend on discretionary purchases throughout the month.

4. The Cash-Envelope Method

Sometimes simply called "cash budgeting" or "envelope budgeting," this is the method that most people are most familiar with. It involves cashing each of your paychecks and physically dividing the dollar and cents into separate envelopes with various categories written on them (gas, groceries, utilities, etc). You then use the cash in those envelopes to make your purchases throughout the month. If you run out of money in a certain envelope, stop making purchases in that category. If a purchase in that category is non-negotiable (such as your electric bill), you can move money over from a different envelope that may be reserved for more discretionary purchases.

Trust First Bank Of The Lake To Help With Your Finances

Budgeting in and of itself isn't particularly difficult - the challenge lies in finding the strategy that works for you. Once you have identified your favorite strategy, you can incorporate it into your daily routine with relative ease. We hope that these suggestions offer you the inspiration you need to successfully incorporate a budget into your financial lifestyle.

If you are looking for a Lake of the Ozarks bank to assist you with the process, consider setting up a checking or savings account in Osage Beach with First Bank of the Lake. Our new Kasasa products can help you further improve your financial situation by earning interest and/or cash back on purchases you make every day. For more information about how Kasasa can help you, visit our website or call us at 573-348-2265.

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First Bank of the Lake - Striving For Excellence

Member FDIC. Equal Housing Lender.