5 Smart Financial Resolutions
New Year’s Financial Resolutions
Short-term goals (within one year) generally take one year or less to achieve, based on the date the task is needed, the total estimated cost, and the required savings.
Medium-term goals (1-5 years) are the type of goals that can’t be executed overnight but might not take many years to accomplish.
Examples might include purchasing/replacing a car, getting an education or certification, or paying off your debts like credit cards etc. (depending on the amount).
Long-term goals (over 5 years) are those things that won’t happen overnight, no matter how hard you work to achieve them.
Examples of long-term goals might include college education for a child, retirement plan or purchasing a home.
Whatever the case, these goals generally require longer commitments and often more money in the end.
Julie Vetter, SVP Retail Banking Community Bank Mankato
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“Manage finances wisely” is a popular New Year’s resolution. But it can be tough to stick to a goal this vague. Often, people will also be general by trying to “spend less” or “save more”. While these are both good places to start – they aren’t a magic bullet.
Before deciding on a New Year’s resolution, take these two steps:
Identify and write down your financial goals. Whether it’s saving to send your kids to college, buy a new car, or save a down payment for a new home - write down everything you would like to do.
Prioritize your list. Break your goals down into three separate time categories. By placing a time frame on your goals you are motivating yourself to get started and helping to allow you the chance to succeed. Just remember that you can adjust the time frame whenever you want to. Suggested categories are short-term goals (less than 1 year), medium-term goals (1 to 3 years) and long-term goals (5 years or more). This will make the process easier. After you have your list prioritized, here are some specific ways to help you be money-smart in 2017.
If saving more is your priority - many financial experts recommend having three to six months’ worth of living expenses in a liquid savings account. Set up an automatic transfer from your checking to your savings account to help make saving easy and automatic. By paying yourself first – when something unexpected happens, you’ll be better positioned to use your emergency savings instead of a high rate credit card. Begin by taking 5%-10% out of each pay check and put it in a savings account.
If your resolution is to save for retirement - consider making regular contributions to an employer-sponsored retirement plan or an individual retirement account (IRA). This can make a big difference when you reach your retirement years. Automatic paycheck transfers, if available, can help you stick to this resolution. A Financial Industry Regulatory Authority (FINRA) retirement calculator allows you to plug in various assumptions to determine whether you’ll meet your goal. Visit www.finra.org/ investor and search for “retirement calculator.
If you want to pay off debt - focus on whittling down debt by paying more than the required minimum amount. If you have various credit cards, pay the extra payments on the card with the highest rate. Once that card is paid off, re-direct that monthly payment in full to the next credit card. Keep at it month after month and over time, you’ll find yourself with less debt. Also, consider refinancing to a lower interest rate on your home or car loan to help you pay down debt faster.
If your goal is to build great credit - make it a priority to pay your bills on time. Handling credit responsibly will raise your credit score. Your credit score plays a big factor on everything from mortgage loans and insurance rates. In some cases, credit scores can impact getting a job or renting that new apartment.
Thinking about updating your estate plan? It’s not the most fun topic to think about, but it is important for your family’s future. If this is on your list, make it a goal to talk with aging parents and/or your spouse to help you make decisions and form a plan.
Review your progress monthly, quarterly, or at any other interval you feel comfortable with to determine if your program is working. Remember that most behavioral changes can involve a few setbacks. If you anticipate setbacks and view them as temporary, you’ll increase your chances of success. If you’re not making a satisfactory amount of progress on a particular goal, re-evaluate your approach and make changes as necessary.
Looking for some help to get started? It can be hard to get started. Remember – as with physical health, the road to strong and sound finances is more like a marathon than a sprint. Review your finances regularly and don’t hesitate to ask for help when needed.
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Employee Graduates from Leadership Development Academy
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Eric Boelter & Robert Beadell were awarded a diploma on August 11, 2017, at commencement exercises during the 73rd annual session of the prestigious Graduate School of Banking at the University of Wisconsin-Madison. The School, sponsored by state bankers associations from across the central United States, as well as the University of Wisconsin-Madison, was established in 1945 to provide bankers with an opportunity for advanced study and research in banking, economics and leadership. Instruction at the Graduate School of Banking takes place during two-week resident sessions for three consecutive summers, along with comprehensive study between summer resident sessions. The curriculum focuses on the management of strategic issues faced by banking executives and financial services industry professionals. The Graduate School of Banking enrolls approximately 600 US and international professionals each year. More than 85 esteemed academicians, economists, government officials, and industry professionals comprise the School’s faculty. Eric & Robert both work at Community Bank Mankato. Eric is Vice President of Commercial Lending / Branch Manager and Robert is AVP of Commercial Lending and Assistant Branch Manager. As the landscape of banking changes, Community Bank Mankato remains loyal to the core values stated in its mission of serving our customers and the community in a warm and friendly hometown fashion. Congratulations Eric & Robert and your incredible achievement!
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Financial Safety Tips for Holiday Shopping
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Safeguard your cash, credit cards, debit cards and personal information while shopping for the holidays. With identity theft and fraud on the rise, here are a few tips for financial safety.
- Reconcile your statements each month and check for unauthorized transactions.
- Report any suspicious inquiries or unauthorized transactions to your bank immediately.
- Never give out your checking account or credit card account number unless you initiated the call.
- Don't enter your credit card number on an Internet site unless it is a secured site with a lock symbol on the browser status bar and "https" in the address. These safeguards are not guarantees, but if they are missing, the site is definitely not secure.
- Tear up or shred pre-approved credit offers, receipts and other personal information that link your name to account numbers.
- Get copies of your credit report from the three major credit bureaus each year. Check that everything is accurate, the accounts are yours and that closed accounts are marked closed.
When using a debit card or the automated teller machine (ATM), use these safety tips:
- Have your card ready and be prepared to use the ATM immediately.
- Watch for any unusual "add-on" devices at ATM or point-of-sale locations. Crooks can use these skimming devices to steal account information. Do not use any card reader that look bogus and report the machine to your bank.
- Be careful and mindful of who is around you at ATMs. "Shoulder surfers" can get your PIN number and gain access to your account, so shield the screen and keyboard.
- Put your cash away immediately and always take your receipt with you.
- If you must go alone, choose a well-lit area that is free of obstruction when using the ATM at night.
- If your card is lost or stolen, contact Community Bank as soon as possible. Never carry your PIN number in your wallet and never write your PIN number on your ATM card.
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Do your kids know the value of a dollar?
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It’s never too early to teach children how to handle money.
Learning money management doesn’t need to be difficult – it can even be fun. By involving children in enjoyable teaching moments, you’ll bring a sense of satisfaction and accomplishment to learning a valuable skill. Make it fun!
Ages 3-5
• Seeing is believing. Divide money equally into three jars for saving, spending and sharing. Then let them choose how to use it to see the levels change when they save, buy small items or give money to those who need it.
• Reaching a goal. Teach children about saving by helping them choose an item they want, helping them understand the cost. Then, show them how to put money away to purchase it.
Ages 6-10
• Involve kids in daily financial activities. A good way to start is at the grocery store. Show them that different brands have different prices. Ask which they’d choose and why.
• Exercise restraint. Earning an allowance for doing chores can teach how money comes to us. But, the thrill of saving that money for something important and then buying it is a lesson they will remember.
Ages 11-13
• Compound interest. Help adolescents understand their savings can grow faster with compound interest. Then help them begin saving with interest.
• Filing system. Make a file to store receipts and statements for your children to keep track of where the money came from and how much they spend.
Teens
• Set up a bank account. A teen checking account puts them in control, but also names you as joint holder, allowing you to monitor the activity and guide them.
• Put them in charge. Give kids a set amount of money a couple of times a year to pay for essentials such as gas, clothing and other basics. Let them know the money needs to last until the next payday.
At Community Bank we can help you teach your children about savings and checking accounts and more.
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Protect yourself from tax scams
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As the income tax filing season approaches, the Minnesota Department of Revenue warns you to be aware of scams attempting to steal your personal information.
What do I need to know?
Individuals or organizations may falsely represent themselves as being from the department. Use caution and never provide personal information unless you are sure the situation is legitimate.
When we contact you by phone, mail, or email, we will never:
Demand immediate payment without first mailing a letter. Demand that you pay taxes and not allow you to question or appeal the amount you owe. Require that you pay your taxes a certain way, such as with a prepaid debit card. Threaten to contact police or law enforcement agencies to arrest you for not paying.
What if I receive a suspicious phone call or letter?
If you are concerned about a possibly fraudulent contact from someone claiming to be from the department, call us at 651-296-3781 or 1-800-652-9094 (toll-free). We can determine if the contact you received was legitimate.
What if I receive a suspicious email?
We will never ask you to provide, update, or verify personal information if you did not previously email us. Do not respond to such emails, and contact us with questions or concerns.
Phishing (as in “fishing for information” and “hooking” victims) is a scam involving emails sent to trick you into revealing personal and financial information. When you send scammers this information, they can use it to steal your identity.
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Leadership Development Academy
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On May 16, 2019 Katie Beadell graduated from the Minnesota Bankers Association (MBA) Leadership Development Academy. This year long program, which graduated a total of 19 bankers in 2019, provides in-depth skill-building for bankers preparing for critical leadership roles in their banks. “The MBA Leadership Development Academy requires a significant commitment to professional and personal growth” said Joe Witt, MBA President/CEO. “It is intensive and challenging. Graduates of this program should be very proud of this accomplishment and their determination to grow as individuals and bank leaders.”
The MBA Leadership Development Academy was launched by the MBA to provide additional training for the next generation of Minnesota’s bank leaders. “When we first learned about this program, we immediately saw the potential to help us strengthen our leadership capacity and grow our future leaders,” said Quent Beadell, President and CEO of Community Bank. “We couldn’t be more proud of Katie for completing the program, and we look forward to the positive impact this experience will have on the future of our bank and the community we serve.”
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Scams involving your Social Security Number
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Scams involving your Social Security number and benefits are on the rise.
Have you received a call or voicemail from someone warning that your Social Security number or benefits are suspended due to suspicious activity? Scammers are hoping you’ll be scared into believing their claims. They usually ask you to confirm your Social Security number and pay money to “reactivate” your number, protect it, or restore your benefits.
Social Security scams are on the rise.
Social Security scams now outnumber other types of scams, including Internal Revenue Service (IRS) scams, which were formerly the most common. Pretending to be a representative of the government is a common way for fraudsters to trick people into giving up their money or personal information. Knowing how to tell the difference between a scammer and a genuine call from the federal government is important.
Here are the facts:
- The government will not threaten to take away benefits or ask for money or personal information to protect your Social Security card or benefits.
- Scammers can fake your caller ID, so don’t be fooled if the call seems to be from the Social Security Administration’s (SSA’s) real phone number or the SSA Inspector General’s Fraud Hotline number. You can always call the Social Security Administration directly at (800) 772-1213 to find out if they are really trying to reach you.
- If someone calls you asking for your Social Security number, bank account number, or credit card information, hang up.
Spread the word about Social Security scams and report them.
- We worked with the Social Security Administration and the Federal Trade Commission to create a new fraud prevention placemat to help you avoid Social Security scams. You can order free copies of the placemat to use at a meal site, or to share with friends and family. The placemat is in English on one side and Spanish on the other side.
- Talk about it! You may have heard of IRS scams or other types of scams targeting government benefits, but Social Security scams haven’t been as common until recently. Share the message with others to make them aware of this type of scam.
- Report Social Security scams to the Federal Trade Commission at FTC.gov/complaint and to the SSA Office of Inspector General Fraud Hotline at (800) 269-0271 or oig.ssa.gov/report.
Source: Consumer Financial Protection Bureau
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