SSB Blog

minus plus

Financial Commandments for Your 30s

Posted on October 23rd, 2013 in General, Savings by SSBblogger | No Comments

Our last blog post highlighted “financial commandments” for 20-somethings to help them get on track for a successful financial life. But what about your 30s? So much can happen at this time in your life: you can get married, have kids, change jobs, buy a house and so on. So how can you be sure that your finances will hold up?

Your 30s are the time to be sure you have insurance protection in place to protect the people and things most important to you.

Security State Bank has a few more “commandments” for you to live by for a happier, more enjoyable financial life during your 30s:

Continue to invest in yourself- more financial obligations means the need for higher income. You won’t nab that promotion or higher paying job by sitting around twiddling your thumbs.

Pay off nonmortgage debt- free up money for your mortgage by paying off the rest of your student loans or any auto loans you may have taken out.

Keep paying “debts”- let’s say you make your final $300 student loan payment. Your budget is already set up to handle that $300, so what should you do with it next month? Pay yourself by putting it in your savings account!

Crank up for retirement- you saved what little you had in your 20s, but now it’s time to really start investing in your retirement. Time and compound interest are huge factors that are on your side, so use them!

Protect your assets- life’s what-ifs require preparation, so having the right homeowners or renter’s insurance, health insurance and disability insurance is vital. You should also have an emergency fund of three to six months of expenses saved up just in case.

Live simply- you are not your neighbors, family or friends, so trying to keep up with them is useless. Delayed gratification may not feel good at the time, but it beats being in debt later.

Get a will- they aren’t just for rich or old people. Nobody wants to think about the worst actually happening, but it still can. Make sure you’re prepared.

Find life insurance- again, this is added protection for your family should anything happen to you.

Be charitable- besides being rewarding, it does have financial advantages as well. Plus, it’s just the right thing to do.

Just because your 30s can be a hectic time of great change in your life doesn’t mean you can’t be financially prepared. It will help reduce stress and allow you to focus on the more important things in life. If you need any help getting your finances organized, simply call your local Security State Bank branch for assistance!

 

Tags: ,

Financial Commandments for Your 20s

Posted on October 9th, 2013 in General, Savings by SSBblogger | No Comments

It’s no secret that finances have been rough for many people in the past couple of years, but perhaps no group has been more affected than the 20-somethings. Students who graduated from college in 2013 had an average of $28,000 in student loan debt. Coupled with a tough job market and increasing credit card debt, more and more 20-29-year olds in the United States find themselves in tough financial situations.

By being smart with your money and continually investing in yourself, the road to financial freedom becomes much easier.

However, there are ways to break the cycle and live successfully in post-college life. What follows are “financial commandments” for your 20s, borrowed from financial resource Kiplinger.com. They can help you live a happier life without the stress of debt hanging over you.

Invest in yourself- your best asset for success is yourself, and your twenties are the best time to learn the job skills you need to market yourself to earn a better living. You have to increase your earning power now to help achieve your financial goals.

Plan ahead- think about the short term (less than five years), medium term (5-10 years) and long term (20+ years); where do you want to be at these points? Planning and budgeting can help you achieve the goals you set for yourself.

Live within your means- it’s easier said than done. By learning how to borrow only when necessary (think things with lasting impact – education, a home, etc.) and spend smartly, you’ll save yourself thousands in the long run.

Create an obsession for saving- ten percent of every paycheck should go directly into your savings account. It goes a long way for peace of mind and financial security.

Get rid of credit card debt- make it a goal to have eliminated credit card debt by the time you turn 30.

Start saving for the long term- we’re talking IRAs or 401(k)s. The sooner you start putting money into an account every month, the quicker that money will grow with compound interest.

Cut the cord- if you have your own apartment and your paycheck, you need to be in charge of your finances. Doing it on your own is the only way you’ll learn to do it right and be self-sufficient.

What all of these commandments have in common is that you are taking a more hands-on approach to your financial life. Your 20s are a great time in your life for personal growth, and being financially independent and responsible is part of that.

Tags: ,

Be in the Know: Common Mortgage Terms

Posted on September 24th, 2013 in Mortgages by SSBblogger | No Comments

Mortgages are an important part of your financial life, but a misunderstanding or lack of knowledge about them can have negative financial results. A survey conducted by real estate website giant Zillow.com showed that even though there are more homebuyers entering the market, a scary amount of them don’t know much of the basic terminology.

Make sure you know what your mortgage says by studying these common mortgage terms before you sign on the dotted line.

So, Security State Bank is providing a little definition session to help out. It’s time to break out the flashcards and get studying!

Adjustable-rate mortgage (ARM)- a mortgage in which the initial interest rate is normally fixed for a period of time after which it is reset periodically, often every month. The interest rate paid by the borrower will be based on a benchmark plus an additional spread, called an ARM margin.

Fixed-rate mortgage- a mortgage that has a fixed interest rate for the entire term of the loan. The homeowner will not have to contend with varying loan payment amounts that fluctuate with interest rate movements.

Annual percentage yield (APR)- the annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction; a credit card company might charge 1% a month, but the APR is 1% x 12 months = 12%.

Pre-approval- the process by which a lender determines whether you are qualified for a loan and the maximum amount you are eligible for.

Closing costs- expenses incurred during the transaction to buy your home, often shared between buyer and seller; can include loan origination fees, escrow payments, title insurance, attorney fees and other items.

There are of course other terms and mortgage aspects you need to know, but a Security State Bank mortgage lender can help you understand everything related to your mortgage. The last thing we want to do is have you sign a mortgage you don’t fully understand.

If you have any further questions about mortgage terms or wish to speak with an SSB mortgage lender, just give any of our locations a call today!

Tags: , ,

Getting Your Budget Back on Track

Posted on August 27th, 2013 in General by SSBblogger | No Comments

As summer comes to a close soon, it may be time to get your personal or family budget back on track. Summer and all of its events, vacations and other entertainment options can be fun, but they can also put your budget out of whack. That, or you may have slacked a little when it came to setting your budget.

After summer, it may be necessary to rebuild your budget to get back on track.

Either way, Security State Bank is here to help you right your financial ship and help you get settled for the fall.

Start with income- very basic, but knowing all the money coming in every month is the first stepping stone to getting back to your budget.

Subtract known expenses- these include monthly mortgage payments, student loans, insurance payments and other recurring payments. You can also budget in what you think you’ll spend on groceries, gas and other weekly expenses.

Build in a buffer- we all know life is unpredictable, and unexpected expenses pop up every so often, so be prepared. If you don’t end up using that money, then you have…

Excess funds- Income – Expenses = Extra Cash. This should be distributed to your savings account, savings goals, etc. If you have no excess funds or a deficit, you need to readjust your expenses and find ways to spend less.

Review weekly- did you come in under budget or over? Did you spend less in one area, but more in another? Reviewing every week allows you to understand your spending habits and create better ones.

We all get off track and off budget at times because of unexpected costs or events. By thinking basic and getting back to your budget, you’ll be able to keep your finances under control. If you need help with this or any other aspect of your banking experience, you can contact any Security State Bank branch and we’ll gladly help!

Tags:

Take Advantage While You Can: Benefits of Refinancing

Posted on August 14th, 2013 in Mortgages by SSBblogger | No Comments

A lot has been made in the past year or so about refinancing your home while rates are low. Well, those rates appear to be heading back up according to trends from the last few months, so if you’ve been wanting to refinance your home, Security State Bankencourages you to visit us sooner rather than later.

Refinancing your mortgage provides a number of benefits, but rates are beginning to increase again.

Now, you may be asking, “Why would I want to refinance my home?” You may remember getting the original mortgage for you home and all the numbers, terms and paperwork that took. But there are a number of great advantages to refinancing your home while interest rates are still low.

  • Lower monthly mortgage payments- by extending a 15-year loan to a 30-year loan, you can actually lower your payments. For example, your monthly payment on a $200,000 mortgage interest rate with a 7 percent interest rate would drop from $1,792 to $1,329.
  • Lower interest payments- if interest rates are lower than when you first got your mortgage, you can save a lot of money over the life of the loan. A $200,000 mortgage reduced from 6 to 5 percent will save you over $45,000 in interest payments. That’s a good chunk of change!
  • Build equity faster- if your income has increased, you may want to consider making a higher payment or switching to a 15- or 20-year mortgage from a 30-year. This allows you to build equity faster without paying out large amounts of money every month.
  • Change loan type- if you started out with an adjustable-rate mortgage, you may want to switch to a fixed-rate mortgage because of the additional security from fluctuating rates.

These are just a few reasons to refinance your home now before mortgage rates continue increasing. The mortgage experts at Security State Bank understand that your situation is unique, so they’ll take the time to understand your situation and your goals.

Get in touch with us at any of our locations to learn how refinancing your home could benefit you!

Tags: , , , ,

Spam the Scam: How to Identify Phish-y Emails

Posted on July 18th, 2013 in General by SSBblogger | No Comments
Click for a larger image

Emails with errors like these should be reported and deleted immediately (click for larger image)

How many times have you gotten an email from someone whose email address you didn’t recognize? Why do you get emails that make absolutely no sense and ask you to click on a link? Most likely these are what are called “phishing scams,” attempts by cyber criminals to access your personal information.

We want you to be aware of these attempts, which is why we at Security State Bank have come up with a checklist for you to follow in spotting these fake emails.

Fake Email Checklist

  • The sender: do you recognize the address, or are there typos in the address? Ex: support@bankofarnerica.com; if you don’t recognize the address or there are typos, it’s probably a fake
  • Recipients: are any of the other email recipients familiar to you? Does it look like a random list of email addresses that all start with the same letter? If you don’t recognize other recipients or it looks like a random list, it is a phishing attempt
  • Time: was this email sent at a bizarre time, like 3:00 a.m.? If so, there’s a higher chance it’s a scammer
  • Email title: was this something that you requested or a response to an email you sent? If not, be wary of the email
  • Email content: after reading through the email, are there typos or easy misspellings throughout the email? Lots of typos are a good indicator of a phishing attempt
  • Links: are there links in the email? If so, when you hover your cursor over them, is the web address that appears relate to anything in the email? DON’T ever click links in a suspicious email, especially ones that link out to long web addresses 

All it takes is one mistake for criminals to gain access to your personal or financial information. If you have even the least bit of doubt about an email, don’t click on anything and delete it immediately.

Security State Bank will never send you an email asking for your personal or financial information. Please contact us immediately if you receive an email from “us” that requests this information, then delete the email.

Please, take the extra minute or so to evaluate your email. It may just end up preventing catastrophe from striking.

Tags: , ,

Welcome to the Real World: Getting Started Post-Graduation

Posted on July 9th, 2013 in Savings by SSBblogger | No Comments

While the new school year will be starting up soon for college students, those who graduated this last spring are now in “the real world.” This is an important time in a young person’s life, whether they’re working, traveling or still trying to find a job.

A couple of months ago you were here, but adjusting to the real world can be a new lesson in finance.

Since most student loans payments don’t kick in until about six months after graduation, there is some time to get finances in order and an account built up to handle these upcoming costs. Well, Security State Bank is here to help with a few tips for recently graduated young adults.

Try to adjust to a new schedule- whether you have a 9-5 job or your hours are a little different, try to get yourself in a rhythm, especially when it comes to your expenses. Try to keep things like grocery shopping or filling up with gas on the same day every week so you can plan your expenses.

Pay yourself first- if you don’t have a savings account, now is the time to open one up. Shoot for saving 8-10 percent of any income to help build up your account.

Establish good credit- a credit card can be used for good. By making your purchases with a credit card then paying the balance every month, you’ll establish a good credit line. This can pay off big time down the road when you try to get loans for cars or a new home, as long as you pay the balance each month.

Stack your debt- when it comes time to pay off any loans, try this strategy: prioritize your loans by interest rate, not by balance. The higher the interest rate, the faster the balance grows, so this helps keep the interest you pay down. Just make sure you aren’t paying this off in substitute of saving; stay balanced.

The “real world” can be difficult to navigate financially. However, if you come up with a good plan and stay consistent with it, you’ll be able to work through it and enjoy life a lot more. Security State Bank would be glad to help in any way, so please don’t hesitate to contact any of our branches for assistance!

Tags: , , , ,

Advice for First Time Home Buyers: 6 Things to Consider

Posted on June 25th, 2013 in Low interest rates, Mortgages by SSBblogger | No Comments

As we discussed in our first blog post this month, interest rates are at record lows. Not only does it give consumers a lot of choices as far as managing their finances, but it also is great for home buyers, especially first time home buyers. If you fall into that category, here are a few things to keep in mind:

A new first time home buyer

Buying a home for the first time is a huge commitment, so make sure you are ready financially and otherwise!

  • How much loan/home you can afford- this is based on a few factors: the length and interest rate of the loan, what you’re planning to borrow and all of the upfront costs (appraisal, county recording, and initial escrow payment).
  • The terms of your mortgage– most mortgage terms are 10-30 years in length, and how long you intend on living in the home provides different loan options.
  • Considerations for better credit- if you have a credit score that isn’t exactly outstanding, you aren’t sunk. Just pay down debt balances regularly and establish a couple of months of good transaction history. The Iowa Finance Authority and FHA programs can also help you out if your credit is less than stellar.
  • Get down with your down payment- certain loans and programs have limits as to the size of down payment required. For example, FHA loans require as little as 3-3.5 percent down, while VA and rural development loans may require no down payment. HOWEVER, if you are able to make a 20 percent or higher down payment, you will be able to avoid paying for…
  • Private Mortgage Insurance- this is required for loans that are 80 percent or higher of the total value of the home. So, not only are you paying the mortgage on your home, you also have a monthly payment for your PMI.
  • Always be closing- it’s important to keep in mind that closing on a mortgage can take up to 60 days. How can you expedite the process? Have pay stubs, tax returns and bank statements ready to go. 

We know the home buying process can be intimidating and a little scary, especially for first time buyers. If you find yourself needing a helping hand, Security State Bank is ready and willing to assist. Just give any of our branches a call and we’ll help in any way possible!

Tags: , ,

5 Tips for Successfully Navigating Low Interest Rate Periods

Posted on June 12th, 2013 in Low interest rates by SSBblogger | No Comments

We’re in a somewhat unusual time in the United States right now, both financially and economically speaking. While the price of gas and other goods climbs, interest rates are at record lows, meaning that consumers like yourself have plenty of options when it comes to managing your money.

Take advantage of low interest rates

Now may be the time for a larger purchase or consolidating debt since interest rates are so low

Here are a few tips to take advantage of the current low interest rates:

First things first- before you get all crazy applying for loans or new credit cards, make sure you know your credit score. A score of 680 will get you the best of the low interest rates. If your score is lower, reduce your debt, fix errors on your credit report and pay your bills on time to give it a boost!

Consolidate your debt- instead of dealing with multiple interest rates; consolidate your debt into one low-interest loan. Why deal with multiple payments at higher interest rates? Banks have also been relaxing their lending standards, so it may be the right time to apply for a home equity line of credit to make home improvements or consolidate debt.

Be selective- if you’re looking for a new credit card, don’t just accept the first offer you get in the mail. Shop around and do research to find which cards have the lowest interest rates with the best benefits.

Go big- low interest rates make it easy to finance large purchases like TVs, cars and homes. If your credit score is good (and you should know by following our first tip!) you should be able to get great financing terms.

Save, save, save- just because interest rates are low now doesn’t mean they’ll stay that way. We all know how volatile the economy can be, so keep pumping money into your savings account. A Certificate of Deposit that earns higher interest is a great way to lock some money away and let it grow for the future.

Whatever you decide to do with your finances, make sure you think it through and have backup plans. Snap decisions are often wrong ones. If you need assistance, the staff at Security State Bank is more than happy to help. We hope to see you in one of our branches soon!

Tags: , ,