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Ten Ways to Reduce Costs Now
Money management, especially when times are tight, takes focus and discipline. Sometimes, it also requires a bit of creativity. By creativity, we mean efficient ways to stretch your dollars without changing your daily life. This article will not promise to wipe out your debt nor make you a millionaire by working from home. Instead, the objective here is to spark your financial creativity. While many of your daily challenges are beyond your control, your money is manageable. Here are several simple strategies you can start using today to increase your cash flow. Use our ATMs and ATM Access.At $2 to $3 per withdrawal, surcharge fees do add up. One withdrawal per week can cost approximately $100-150 per year. There are more than 800 ATMs in Wisconsin and Minnesota that you can use surcharge-free as a customer of the Bank. Maximize debit card rewards points.Get points every time you buy something with your debit card. Building points becomes a rewarding habit. With only a few thousand points, you can get a cash-value gift card. When making a purchase with your debit card, make sure to choose the "Credit" option. Consolidate high interest loans with a HELOC*.
Consolidating multiple loans into a HELOC allows you to reduce your total monthly payments, provides tax deductible interest and leaves you with only one payment each month. Finance large purchases with a HELOC*.Take advantage of low home equity line of credit rates and tax deductible interest for large purchases, such as cars, equipment, home remodeling or the cost of starting a new business. Refinance debt into a lower interest rate.While mortgages are the first place to start, they aren't the only loans with attractive interest rates right now. At no cost, you can have a personal banker review your current credit report and determine if there's a way to reduce your interest expense. Use Bill Pay and ACH service.Set up payments online or via auto pay and have them sent electronically from your account. This will help prevent late payment penalties and save you postage. Balance your checking account regularly.Finding time can be difficult. Unfortunately, time often means money. In this case, not finding time can incur overdraft fees. Also, routinely balancing your account can keep you looking for the creative ways to shave costs.
Use Online Banking to monitor account activity.Why wait for your statement to arrive? Again, time is money. Check your balance routinely before going to work or before heading home. With Mobile Banking, you can even check your balance while waiting for your oil change or dentist appointment! Pay additional principal on loans.If possible, try to make additional payments on loans to reduce debt faster, which in turn reduces the total interest you will pay over the life of the loan. Start with the highest interest loans first. By paying now, you save money later. Manage your money with discipline.Remember the lessons of our parents and grandparents. Live within your financial means. If it can't be purchased with cash, you probably don't need it. If you had to pick two of these ideas, which ones would you choose? Be creative, find a few strategies and start implementing them today. Stay positive, stay focused and manage your money with care and respect. Please call us if you wish to set an appointment to review your credit profile and look for areas to improve your monthly cash flow. *Please consult your tax advisor to determine if interest paid on your HELOC is tax deductible. |
 Tax Credit for Home Buyers Ends December
For those of you currently considering purchasing your first home, you have until December 1st to utilize the $8,000 federal tax credit for first-time home buyers. According to regulation, a "first-time home buyer" is any buyer who has not owned a principal residence for three years prior to the new purchase. If you own a vacation home or rental property not used as your principal residence, you can still qualify as a first-time home buyer. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. Here are answers to commonly asked questions: How is the amount of the tax credit determined?The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000. Is a tax credit the same as a tax deduction?No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS. A tax deduction is subtracted from the amount of income that is taxed. Are there any income limits for claiming the tax credit?There is an income limit for the credit. This is determined by your modified adjusted gross income (MAGI). How is this home buyer tax credit different than the 2008 version?The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply. What paperwork is required to claim the tax credit?Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications, forms or pre-approval for the credit are necessary. What types of homes will qualify for the tax credit?Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes (like townhouses and condominiums), manufactured homes (also known as mobile homes) and houseboats. It is important to note that you cannot purchase a home from your immediate family members, including parents, grandparents, children or your spouse. Please consult with your tax advisor for more information. Before making an offer, make sure you call one of our mortgage lenders for a quick, accurate loan pre-approval. |
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More Free ATMs Now Available
 The ATM Access network, an array of surcharge-free ATMs across Wisconsin, has expanded into Minnesota. Because the Bank is a member of ATM Access, you can use your ATM or debit card at more than 800 ATMs in Wisconsin and Minnesota without paying a fee.
By knowing where to find surcharge-free ATMs, you can save at least a few bucks nearly every time you need cash. These additional fees add up without your realizing it. Visit our website and click on the ATM Access icon to search. There are several surcharge-free ATMs available in the area including:
24 in Madison
6 in Middleton
8 in Verona
Search for the ATM Access location nearest you.
TIP: Kwik Trip ATM machines are surcharge-free with your Rewards Debit Card from The Peoples Community Bank. |
 Don't Let the Media Lead Your Investment Strategy
You have numerous choices about how you invest your money. Typically, your investment strategy starts with research that undoubtedly includes online reports, magazine articles, television programs and even a book or two. It is important to remember that in the world of media, hype is a powerful sales tool. Before making firm investments, please be cautious when you hear or read the following:
"Money is pouring into the stock market." What this really means is that the demand for the investment outweighs the supply. When money flows into the market, it simultaneously flows out. Every stock sold has a buyer at the same price, thus the inflow and outflow of money are always equal.
"The Dow Jones is up." When people talk about the "Dow," they are referring to the Dow Jones Industrials Average, an index consisting of only 30 companies. Although these 30 companies are among the strongest in the world, other stocks may not perform as well. Therefore, the Dow frequently misrepresents the direction the rest of the market is heading.
"Gains and losses described in percentages can be misleading." Consider this example: An asset that increases in value by 300 percent will be worth less than its original value if it drops by 80 percent. More specifically, if a stock worth $100 increases 300 percent, it will be worth $400. But, if it drops by 80 percent, it will be worth only $80.
"The market has found a bottom." Numerous national media outlets made this claim in October of 2007 before the market began its near 50 percent decline. No one has a crystal ball. Hindsight is the only way to know when a bottom has occurred. Thus, by the time you know, it's way too late to make the right investment moves.
Most of the financial television networks report on stock prices by the hour. During volatile periods, this can cause foresight to turn on a dime. A solid way to avoid diverting your investment strategy is to stay focused on your long-term plan. Consider your individual goals and the required time horizon to achieve them. Don't let media hype entice you into making investment decisions that carry you off course. |
Safe Haven for Your Money Traditionally, gold has been considered a safe haven for your money, a hedge against a poor economy. But, before you invest your important savings into gold, make sure you assess less risky options available to you. History has shown that gold and other commodities are sound investments to own during periods of inflation. While the appearance of inflation looms in our economic future, it is unclear as to when and to what extent this will happen. However, commodities can lose value just as quickly. Your deposits with the bank, on the other hand, are FDIC insured, will not lose value as the markets bounce around, and offer a guaranteed rate for a specified term. Since last year, the Federal Deposit Insurance Corporation (FDIC) has increased coverage limits on your bank deposits and has created new programs that The Peoples Community Bank has participated in for otherwise uninsured deposits. A personal banker at any of our five locations can provide details. The right investment strategy is one that helps you fulfill your goals. If your goals are to ensure that your principal is protected and to have cash readily available when you need it, accounts with the bank are your safe havens. |
How to Reduce Unwanted Junk Mail
How much of your mail becomes garbage? According to Hennepin County Environmental Services, 16 percent of trash every day consists of newspaper and junk mail. Furthermore, the average American household receives more than 500 pieces of advertising mail each year. Do you want to reduce your pile of mail? Here are three simple actions you can take today.
Reduce incoming junk mail by registering with the Direct Marketing Association's Mail Preference Service. Send a postcard with your full name, address and signature. Include a statement requesting to be listed in the "delete" file. Send the letter to: PO Box 9008, Farmingdale, NY 11735-9008. For more information, visit www.the-dma.org.
Cut down on unwanted credit card offers by calling 1-888-5-OPT-OUT. Your name will be removed from credit card solicitation lists at the major consumer credit bureaus, including Equifax, Experian and Trans Union.
Take control of your exposure. Each time you send a registration form or catalog order, you provide marketers permission to add your name to their own mailing lists and possibly trade or sell your name to other marketers. So, when you fill out these forms, add a privacy statement such as, "In an effort to reduce waste, please do not pass my name to others through mail list sales or trades. Thank you." Please remember that recycling junk mail is okay. However, it would be better to attack the problem at its source. Minimizing the flow of junk mail will save you time and reduce what ends up in landfills. | |
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THE PEOPLES COMMUNITY BANK - 222 W. Commercial St., Mazomanie, WI 53560 Toll free: 800-795-2151 Phone: 608-795-2120 Fax: 608-795-2133 www.thepeoplescommunitybank.com This newsletter does not constitute tax, legal, accounting or other professional advice. We attempt to be accurate, but neither we nor any other party shall be held liable for loss or damages resulting from reliance upon or use of this material.
© 2009 The Peoples Community Bank | |
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