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News for YOU!

News for YOU! is a free, monthly newsletter provided by KS StateBank that offers tips and other information to help you make wise financial choices. Please feel free to sign up now to receive new editions of our newsletters each month, as well as other updates. You can also subscribe to our business newsletter, News for YOU! Business Edition.



March 2024

Take Charge of Your Money
Your relationship with money can get very complicated, especially when you feel like you don’t have enough. Things can get even more complicated if you are not mindful about your behaviors, like spending money impulsively, living beyond your means, and racking up costly debt.

Rest assured, though, your relationship with money doesn’t have to be complicated if you take control of it. Here are some quick tips to help you accomplish that:  

  1. Face your money challenges head on. If you’re struggling with managing money, it could be that you’ve avoided dealing with your finances. Take an honest assessment of your financial life to see where you’re struggling. Do you have any savings? Or are you living paycheck to paycheck? Do you have debt that’s straining your budget?
  1. Start budgeting to take charge of your spending. To create your budget, record all your monthly expenses, such as your rent/mortgage, car payments, and living expenses. Then, deduct the total amount of those expenses from your monthly income. If your expenses exceed your income, cut them. Start by categorizing expenses by “needs” (like food, utilities, housing) and “wants” (like subscription services and dining out) and start eliminating/reducing those wants.
  1. Avoid debt. With soaring interest rates, credit card debt can be a budget killer. Take stock of your debt and the interest rates charged, and pay off the balances with the highest rates first. Use your credit cards only for things you can afford and pay the full balance each cycle to avoid costly interest fees.
  1. Save, save, save. If you were given a piggy bank at some point in your youth, it was for a good reason: to teach you the importance of saving. Saving is easy if you make it a habit. You can do that by setting aside money each month to save and putting it in a separate account that you only access for emergencies or planned goals.
  1. Set short-and long-term goals. Think about what you want in your financial life. It may be to buy a home, retire early, or to get rid of student loan debt. Once you know your goals, determine the steps you can take to make them happen. For example, if you want to buy a home, plan to save so much money a month or to use tax return money to help boost your down payment savings.
With a little focus and effort, you can achieve the financial success and independence you deserve. Any way you look at it, that’s a big win.


The Couple That Invests Together...
How to achieve financial compromise in your relationship
Making investment decisions is challenging for anyone. However, when you're part of a couple, the challenge is even greater. Though you and your partner may share the same dreams and goals for your life, you may not share the same investment approach to meeting them. For example, one of you may be an aggressive investor while the other may prefer a more conservative approach. One of you may be actively involved in managing finances, while the other may prefer not to be involved.
 
The challenge lies in finding a way to compromise. Here are some strategies that could help:

  • Talk about it. Open communication is key to the health and long-term success of a relationship. It's also helpful when it comes to your joint finances. Carve out some quiet time to talk about your individual financial goals and dreams for the future.
  • Find a middle ground. It's likely that you and your spouse will share a lot of the same goals. There may, however, be differences in how you approach them. For example, one of you may dream about early retirement, while the other may want to continue working for as long as they can. Try to find a middle ground.
  • Prioritize and budget for your goals. Once you have a list of goals, determine which are the most important to you both. Then, think about how much you will need to achieve those goals. If you each want to save for college for a child, estimate tuition costs in the future. If you're planning for retirement, you'll have to really think about what kind of retirement you each want and make an estimate of what you need.
  • Understand your current investments. It's not uncommon for one partner to take a more active role in financial management. While that may work well for your relationship, it's still important that the financially passive partner have a basic understanding of your finances, accounts, holdings, insurance policies, providers, and contact information. This will ease the burden if something were to happen to the financial manager.
  • Understand each other's risk tolerance. Though one partner may be more actively involved in money management, you should be aware of the other's feelings about risk — and work to compromise on how investment decisions are made. If, for example, you're an aggressive investor and your partner is more conservative, you need to work out your differences before investing. You could compromise by investing in mutual funds or exchange-traded funds or by investing smaller amounts.
  • Consult with a neutral third-party. In some circumstances, it may benefit you and your partner to sit down with a neutral financial professional who can help you make decisions to manage your individual preferences.
By taking these steps and making your finances a priority, you and your partner can get to where you want to be...together.




February 2024

Starting Small Can Lead to Big Savings
Do you have accumulated debt, perhaps from student loans, credit cards or car loans? Do you want to set aside savings for future needs? There are simple strategies for gradually building small savings into large sums. Here are some ways to help you begin to save or build up your savings.
 
Save for specific goals
You should have a savings plan for future expenses that you anticipate — perhaps education costs, a home or car purchase, starting a small business, or preparing for retirement (whether that may be a few years or several decades away).
 
Also, consider setting a goal to build up an “emergency” fund that would cover at least six months of living expenses to help get through a difficult time, such as a job loss, major car repairs, or unexpected medical expenses not covered by insurance.
 
Commit to saving money regularly
If specific goals seems out of reach for you, any amount you can put in savings will help provide a cushion against future financial hard times or big purchases. This is important for everyone, but especially if you are supporting yourself financially. Even if you do not make a big salary or have a steady source of income, the combination of consistently adding to savings and the compounding of interest can bring dramatic results over time.
 
Aim to save a minimum percentage of your paycheck and over time, try to increase the amount you put aside as you pay down other debts. Putting aside a set amount on an ongoing basis is known as “paying yourself first,” because you are saving before you are tempted to spend. If you cannot afford to save a specific percent of your earnings, begin with any amount you can afford, no matter how small. Once you see that you can manage your expenses while also saving, try to increase the amount you contribute to your savings at every opportunity.
 
Put your savings on autopilot
Make saving money quick and easy by having your employer direct-deposit part or all of your paycheck into an FDIC-insured savings account. Your employer or your financial institution may be able to set this up for you. As you pay off debt, switch to making those monthly “payments” to yourself.
 
Make use of tax-advantaged retirement accounts and matching funds
Look into your retirement savings options at work, which may come with matching contributions from your employer. It is possible that allocating part of your paycheck to your retirement account will not reduce your take-home pay significantly, particularly when you consider what you may save in income taxes. In addition, the sooner you start saving money in a retirement account, the more you can take advantage of compound interest. If you have contributed the maximum at work or if your employer does not have a retirement savings program, consider establishing your own IRA (Individual Retirement Account) with a financial institution and make regular transfers into it. Remember that you can set up an automatic transfer from a checking account into a regular savings account or an IRA savings account (or both).
 
Separating savings for certain purposes
Consider keeping emergency savings in a separate FDIC-insured savings account instead of a checking account, so that you can better resist the urge to raid the funds for everyday expenses. Be sure to develop a plan to replenish any withdrawals from your emergency fund. For large purchases that you hope to make years from now, consider certificates of deposit or U.S. Savings Bonds. These generally earn more interest than a basic savings account, because you agree to keep the funds untouched for a period of time.
 
For future college expenses, look into 529 plans, which provide an easy way to save for college expenses and may offer tax benefits.
 
For healthcare expenses, find out whether you are eligible for a “health savings account,” a tax-advantaged way for people enrolled in high-deductible health insurance plans to save for medical expenses.
 
Think about ways to cut your expenses
For your financial services, research lower-cost checking accounts at your bank and some competitors. More broadly, look at your monthly expenses for everything from food to phones and think about ways to save. If you are spending more than your means, read an earlier FDIC Consumer News article “Time to Take a New Look at Your Money Habits.”
 
Even if you find yourself with very little savings for immediate needs, starting small can move you toward your savings goals. These simple strategies can help you gradually build your savings into large sums.
 
This article was provided by FDIC Consumer News.
 
 
The IRS Doesn't Send Tax Refunds by Email or Text
The Federal Trade Commission is warning consumers about tax refund scams. Read more from their recent consumer alert.

Got an email or text message about a tax refund? It’s a scam.

IRS impersonators are at it again. This time, the scammers are sending messages about your “tax refund” or “tax refund e-statement.” It might look legit, but it’s an email or text fake, trying to trick you into clicking on links so they can steal from you. How? They tell you to click a link — supposedly to check on your “tax refund e-statement” or “fill out a form to get your refund.” But it’s a scam and if you click that link, the scammer might steal your identity or put malware on your phone or computer.

If someone contacts you unexpectedly about a tax refund, the most important thing to know is that the real IRS won’t contact you by email, text message, or social media to get your personal or financial information. Only scammers will.
 
If someone does reach out, here’s what to do:

  • Never click on any links, which can put malware on your computer or phone, letting scammers steal from you.
  • Check the status of any pending refund on the IRS official website. Visit Where’s My Refund to see if you’re really getting a refund.
  • Share what you know. By telling your friends and family members about the scam, you can help protect your community.
If you clicked on a link in one of these messages, or you shared personal or financial information, report it at IdentityTheft.gov to get a free, customized recovery plan.

If you see this or any other a scam, even if you didn’t lose money, report it to the FTC at ReportFraud@ftc.gov.
 
This article was provided by the Federal Trade Commission.
 
 
Presidents Day
All KS StateBank locations will be closed on Monday, February 19 in observance of Presidents Day. We will reopen during regular hours on Tuesday, February 20.
 
 

 

January 2024

Celebrate Financial Wellness Month
It's the start of a fresh and promising new year; the time to take a breath, think about your goals, and focus on your health and well-being, especially after the stress, bustle, and expense of the holiday season. That's the reason the month of January is home to an important event – Financial Wellness Month.   

The annual awareness initiative serves as a helpful reminder about the vital role finances play in our lives and the "healthy" financial habits we can build to manage money today and achieve our goals for the future.  

Here are some ways you can celebrate Financial Wellness Month in 2024 and beyond:  
 
Track/Manage your expenses. Did you create a budget during the year? And if so, did you stay within it? If you didn’t create one, make budgeting part of your plans for the new year. It’s pretty easy. Simply review all your expenses and your income. Then, look for ways to cut costs and save more. Once you build your budget, track it each month and make adjustments as needed.

Create a budget.
After you review your expenses, look at your income and determine how much money you have left over for the things you want to do. If it’s not enough money, go back and cut your expenses or look for ways to increase your income like a part-time job or side hustle.

Make saving part of your monthly budget. You never know the importance of having savings until you get surprised by an unexpected bill or event (such as a job loss). Make saving money a habit every month, even if you can only save a little. To help you save, have the funds direct deposited or automatically transferred to your savings account.

Assess your short- and long-term goals. What are your financial goals for the new year and over the next few years? For example, if you want to buy a home, you’ll need to create a savings plan to help with the down payment. Also, consider your long-term plans like retirement. Are you contributing to your company’s retirement plan? Are you taking advantage of matching contributions if your company offers them?
 
Stay on top of your credit. Credit is essential to helping you reach your financial goals. A good credit score will make it easier for you to qualify for a car loan or mortgage and can help you earn lower rates. To maintain a good credit score, always pay your bills on time, keep your balances to a minimum, and don’t open too many credit accounts.
 
Get rid of high-interest credit card debt. With soaring inflation, it’s very easy to use credit to pay for things you need. Remember that credit cards carry extraordinarily high interest rates on revolving balances. As part of your financial wellness, look closely at your debt and focus on paying it down. You could even consolidate your debt with a lower-interest credit card.
 
Build your financial literacy. The more you know about money, the easier it will be to save, borrow, and plan for the future. Take advantage of the wealth of blogs and financial tools available today to boost your financial literacy.

It’s never too late to improve your financial wellness. Get off to a great start in the new year by making your finances a priority.


What's in Your Wallet?
5 Things to Carry in Your Wallet
It's always by your side; one of those rare and precious things in life that you hold close. Yet, most of us never really know how much we need and appreciate it until it's gone.

It's your wallet.

And if you've ever had the unfortunate experience of losing it, having it stolen, or even temporarily misplacing it, you know how scary that can be, especially if your wallet ended up in the wrong hands.

One of the best ways to protect yourself is to know exactly what you have in your wallet and include only what you need. There are only a few things you actually do need, including:

  1. Driver's License. You need a driver's license to operate a motor vehicle, board a flight, or simply to provide identification, so make sure you have it with you at all times.
  2. Cash. Although it seems like we are moving toward a cashless society, it's important to always have cash with you in case you can't find an ATM or need to purchase something from an establishment that does not accept credit cards.
  3. Debit card. Your debit card allows you to get cash at the ATM, but also can be used to make purchases. Plus, when you carry your debit card, you won't need to carry large amounts of cash in your wallet, which can make you more vulnerable to theft.
  4. Credit card. You may also need a credit card in the event of an emergency or unexpected expense, such as car repairs when you are away from home.
  5. Insurance card. If you experience a medical emergency or even have to go to the doctor, you'll need to present your insurance card.
There are some things you should NEVER carry in your wallet, including:

  1. Social Security card. In the wrong hands, your Social Security number could allow an identity thief to open accounts in your name.
  2. A house key. A thief will not only be able to figure out where your home is, but also get into it.
  3. Blank checks. A thief could forge your signature and steal money from your bank account.
  4. Your debit card PIN or other security passwords. If you have to write this information down, leave it at home in a secure place where others can't see it.
  5. Multiple department store cards. If you have department store credit cards that allow you to save, don't carry them all with you. Bring only the card you need to shop.
Greater security is in your hands.
See what's in your wallet today. It might save you a whole lot of money and aggravation down the road.


Martin Luther King, Jr. Day
All KS StateBank locations be closed on Monday, January 15 in honor of Martin Luther King, Jr. Day. We will reopen during regular hours on Tuesday, January 16.





















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