- Live within your means. Supporting yourself can be expensive, and you can quickly find yourself struggling financially if you don’t take time to create a budget. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.
- Pay bills on time. Missed payments can hurt your credit history for up to seven years and can affect your ability to get loans, the interest rates you pay and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills. Take advantage of any reminders or notification features. You can also contact creditors and lenders to request a different monthly due date from the one provided by default (e.g., switching from the 1st of the month to the 15th).
- Avoid racking up too much debt. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly.
- Plan for retirement. It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to retirement accounts like a Roth IRA or your employer’s 401(k), especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money that adds up to a significant chunk of change over the years. Automatic retirement contributions quickly become part of your financial lifestyle without having to think about it.
- Prepare for emergencies. Hardships can happen in a split second. Start an emergency fund and do your best to set aside the equivalent of three to six months’ worth of living expenses. Start saving immediately, no matter how small the amount. Make saving a part of your lifestyle with automatic payroll deductions or automatic transfers from checking to savings. Put your tax refund toward saving instead of an impulse buy.
- Get free help from your bank. Many banks offer personalized financial checkups to help you identify and meet your financial goals. You can also take advantage of their free digital banking tools that let you check balances, pay bills, deposit checks, monitor transaction history and track your budget.
Monday, July 2, 2018
More than 70 percent of college graduates began their career owing more than $37,000 in student loans in 2017. Considering the additional living expenses they’ll soon face, new college graduates would be wise to focus on their financial future right now, says McHenry Savings Bank. McHenry Savings Bank (“MSB”) has highlighted six smart financial decisions college graduates should consider to position themselves for financial success as they embark on their next phase of life.
“The habits new graduates develop right now will have a big effect on their financial future,” said Jim Zak, Vice President of Retail and Small Business. “Living expenses add up quickly once you’re out on your own, and many young adults who didn’t plan ahead are delaying major milestones like getting married or buying a home because of their financial situation. The good news is that you can have a bright financial future if you think strategically about money right out of the gate.”
McHenry Savings Bank recommends the following financial tips for new college graduates:
Learn more about how McHenry Savings Bank can assist you in meeting your financial goals by visiting the website or call a Customer Service Representative to learn more at 815-385-3000.
Monday, June 25, 2018
Right now, all around the world, there are people who want to use your personal information, sometimes in devastating ways. You may ask yourself, “Why me?” and it may have to do with how safe your information is online. By taking the five simple steps below, you can increase your online safety and not worry about possible headaches down the road.
- Change Your Passwords: you should change your passwords often when it comes to your online accounts. Change them to something you’ll remember, such as an important day, place, or event that happened. Many sites even let you use spaces in your passwords, so you can strengthen your new one even more by making it a sentence. You should also avoid using the same password for multiple sites; once a hacker has one password, they can easily figure out if it’s being used for multiple accounts.
- Use Two-Factor Authentication Whenever Possible: most people are aware of two-factor authentication, even if you’re not sure what it’s called. This is when you enter your password and are then directed to a page that asks you an additional question, such as “What was the name of the street you grew up on?” or “What was the name of your first pet?” This type of authentication adds another layer of defense against hackers who want your personal information.
- Delete Old Accounts: if you have accounts on sites that you no longer use, make sure to deactivate your account. These old accounts can contain valuable personal data, even if you barely used them, so it’s important to delete your account as soon as possible.
- Do An Information Check: Taking steps in protecting your information is crucial, however, what if some of your information has already been stolen? There are certain security websites you can use, like www.ftc.gov to get more information on the status of certain accounts, and lets you know if there are any breaches you should be worried about.
- Start Encrypting All of Your Messages: you can add encryption to email accounts to increase security on your personal messages. Adding encryption will scramble all of your messages so that no one but the intended receiver will be able to read them.
It’s important to keep all of your online information as safe as you possibly can, however, if you have questions about your banking security, McHenry Savings Bank would love to answer any of your questions. And if you have an MSB debit card, please download the FREE SecurLOCK app for mobile devices to set up alerts for transactions on your card. You will also have the ability to turn off or turn on your card right from your mobile device. Learn more about SecurLOCK at this link: https://mchenrysavings.com/msb-securlock.html Contact us today at 815-385-3000 or visit our website to learn more about our services.
Friday, May 11, 2018
The History of Military Appreciation Month
In 1999, Senator John McCain decided to introduce legislation to designate an entire month to honor the military in the United States. Following this, the House of Representatives and the Senate then started new resolutions to celebrate and honor those in and out of the military. According to Military.com, “May was chosen because it has many individual days marked to note our military's achievements,” and also includes days of recognition for the Armed Forces, as well as Military Spouse Appreciation Day.
Below is a full list of different military appreciation days recognized throughout the month:
- Loyalty Day: Celebrated on May 1st, Loyalty Day kicks off Military Appreciation Month.
- Public Service Recognition Week: From Sunday, May 6th to Saturday, May 12th, and recognizes those who work as our federal, state, and county employees.
- VE Day: Also known as Victory in Europe, this day marks the end of WWII, which happened on May 8th, 1945.
- Military Spouse Appreciation Day: this day was traditionally set to take place before Mother’s Day. This year, it takes place on Friday, May 11th.
- Armed Forces Day: this day is a single day to celebrate all branches of the military, and falls on the third Saturday of May every year.
- Memorial Day: this Federal holiday is celebrated on the last Monday of May, and is a day to remember those who have died while serving our country.
This year during Military Appreciation Month, McHenry Savings Bank would like to personally thank the men and women who sacrifice their lives for our country. McHenry Savings Bank can assist all Veterans with applying for a VA Loan*. Those who currently serve or have served in the United States military may qualify for a VA Loan. If you’re interested learning more about VA loans and would like assistance in the application to qualify for this loan type, give us a call today at 815-385-3000, or visit our website to learn more about the services we offer.
*VA Loan may be brokered.
Tuesday, April 24, 2018
The week of April 29th through May 5th is National Small Business week. Small businesses give back in more ways than one, and because we’re in a community built on small businesses, we’d like to highlight some ways small businesses give back to the community.
- Community Identity: Take the time to walk downtown and you’ll see all the small businesses
that are unique, whether it’s McHenry, Richmond or Johnsburg. From coffee shops
and restaurants, to the unique and varied shops that bring you to the area,
these small businesses help create our local identity and builds community.
- Community Involvement: Small business owners are an integral part of the community and they tend
to be cognizant of how their decisions will impact their neighbors. With this
in mind, local business owners are usually involved in the community. They may
sponsor a local little league team, donate to a homeless shelter, join the
chamber of commerce, participate in community charity events, or donate to
local non-profit organization. McHenry Savings Bank has a long-standing history
of supporting many organization that serve the community.
- Community Health: Local business owners are more likely to build personal relationships with
their customers. Many small business owners form casual relationships with one
another, and can create groups such as a merchant’s associated or one-on-one
counseling or mentoring relationships. These relationships leverage the
expertise of the participants to contribute to the business community’s
long-term success. Networking is a real thing. If one business doesn’t have what
you’re looking for, they may know someone who does.
- Local Jobs: Small
businesses create jobs and most of them are local. Rather than having employees
commute from another city, they have the benefit of working closer to home.
Having these small local businesses also help keep everything local. For
example, employees from one small business can go grab lunch at another small
shop, and vice versa. This keeps money local and further creates a tight-knit
community with stronger economic growth. Instead of the profits going to CEOs
in a different state, your money goes towards paying for the neighbor kid’s
sports equipment or dance lessons.
- Entrepreneurship: Entrepreneurship fuels America’s economic innovation and prosperity, and shows that the business owner is taking control of his or her future. This inspires others who have the same dream of opening a small business.
McHenry Savings Bank is committed to our customers and our community, which is why we’re here to help you with all of your personal and commercial banking needs. Visit our website to learn more about the services we offer at each of our community branches.
Thursday, February 22, 2018
Anybody that remembers the Great Recession of 2008 can really appreciate our current economy, which seems to be humming along. Unemployment is at a 17 year low and the stock market is shattering records.
Despite these great economic times, we come upon some sobering statistics. Approximately 26% of adults have no savings set aside for emergencies. Another 36% of adults have yet to start saving money for retirement. The overall adult savings rate is 4.4%, a steep decline from the 10% rate in 2012.
The last week of February is “America Saves Week” according to the American Bankers Association. This is an event created to encourage people to automatically save. Below are some ways that you can build a savings habit.
- Health Savings Account (“HSA”). Why pays taxes on money that is going towards health expenses? An HSA is an interest bearing, tax deferred account for the purpose of saving for and paying the expenses associated with a High Deductible Health Plan (“HDHP”).
- A key aspect of an HDHP is your ability to set aside money to be used to pay your deductible or qualified medical expenses.
- Contributions to an HSA are tax deductible or, in the case of an employer sponsored plan, made with pre-tax dollars.
- Withdrawals from an HSA used to pay qualified healthcare deductibles and qualified medical expenses are tax and penalty free.
- HSA funds
that are unused at year end are carried forward into future years. Unused
funds can even be used to supplement your retirement income.
Savings Accounts. Start your children on the path to saving and
financial responsibility while they are young. By providing the
financial education and tools for saving now, you're contributing to your
children’s financial freedom later. Parents and guardians can open a minor
account at MSB with as little as $10.
of Deposits (“CD”). A certificate of deposit is a time deposit with
specific terms and Annual Percentage Yield assigned to the length of time
money is placed in the CD. This is a financial product commonly sold in
the United States and elsewhere by banks, thrift institutions, and credit
unions. CDs are similar to savings accounts in that they are insured
"money in the bank" and thus virtually risk free.
Club Savings. This is a way to safeguard your money, usually from yourself, so you
have enough funds to spend for gifts or even travel during the holidays.
This is also a way of shielding yourself from a pile of credit card
debt in January.
- Individual Retirement Accounts ("IRA"). If you’re thinking it is time to start saving for retirement, you want to consider an IRA. An IRA is an account in which you sock away money for your future retirement. Depending on the type of IRA you have, you will either have tax-free or tax-deferred growth.
At McHenry Savings Bank (“MSB”), we are a full service financial institution with a complete line of automatic saving products. MSB is a FDIC insured financial institution that provides federally backed insurance up to $250,000 per account owner. Your money is secured and insured. MSB has been serving the banking needs of the residents of McHenry County since 1955. We are local people making local decisions. Call us (815) 385-3000 or visit our website at www.mchenrysavings.com to learn more about saving specials and rates offered.
Wednesday, January 31, 2018
New Year’s Resolutions are easy to make. Publicly claiming “I will eat more kale” might earn you some brownie points with the health gurus, but it doesn’t necessarily mean you’ll go through with it. Or you could start off the year strong, working out daily, and two weeks later you haven’t given the gym a second thought. So when people say “2018 is the year that I’ll save more money,” what are some actual ways of putting their money where their mouth is?
Determine Your Priorities
Drawing a line between necessary expenses and everything else will help you paint a picture of your savings potential. Sitting down and accounting for your monthly payments matched to your income also allows for a bit of spring cleaning and clarity to then grow from there.
Set Specific Goals
Now that you have an idea of the monthly costs that can’t be changed, it’s time to determine what you’re hoping to accomplish. Resolutions that are specific are typically easier to stick with. “I will save more this year” is great, but “I’d like to put $100 into a savings account each month” is a tangible goal that can then be worked out.
Target Areas of Change
Just as important as identifying the spending that can’t be changed is identifying the habits that CAN be changed. This could be something as simple as looking at how often you go out for lunch or dinner; if you go out often after work or on the weekends; tiny things like how often you buy coffee vs. how often you make your own. If saving is important, then frivolous spending, no matter how small, should be considered a habit that can be changed to accommodate a new savings strategy.
Spending $10/day on lunch and coffee? Make coffee in the morning before you leave, or cook meals at home that can make plenty of servings for work lunches. Tallying up how much you spend on buying lunch each day can quickly add up. Doing this exercise gives you an idea of what you’d save with a packed lunch. Buying an afternoon soda to stay awake? Drink more water and go for a brisk walk to perk you up.
Have a Buddy System
Have someone keep you accountable for your habits. It could be your significant other, it could be a family member, friend or coworker, but having a second pair of eyes on those unconscious spending habits can help curb a bad habit.
The above examples are simple suggestions for making changes in your life, but if you are looking for financial advice that you can pair with your New Year’s resolutions, McHenry Savings Bank is here to help. We have been serving the banking needs of the residents of McHenry County since 1955. Call us (815) 385-3000 or stop in at any of our locations.
Sent 21 hours ago
Thursday, December 28, 2017
When we think about investing, it is common to feel anxiety. People are curious about stocks and bonds but they are also concerned about the risk. Money markets can be a happy medium in putting money somewhere and seeing it grow without high risk and with a great deal of safety.
What is a money market?
A money market account is an interest-bearing account that typically pays a higher interest rate than a savings account and which provides the account holder with limited check-writing ability. Money market accounts offer the account holder benefits typical of both savings and checking accounts. This type of account is likely to require a higher balance than a savings account.
Money markets are able to offer higher annual percentage yields than savings accounts. Money market accounts can offer a higher interest rate by requiring a higher minimum balance. These types of investment tools offer higher yields than traditional savings accounts. They also place restrictions on the number of withdrawals the account holder may take over a given stretch of time.
What are money markets fees and minimums?
The minimums to establish an account generally vary among financial institutions. Some banks range anywhere from $100 while other banks require a deposit of $10,000 to open an account. Some accounts require a minimum balance of $500, avoiding a $10 monthly service fee. Other banks require a $50,000 glance to sidestep monthly fees of $50 a month. Shop around. Most institutions offer check writing privileges.
FDIC Insurance. The Federal Deposit Insurance Corporation (FDIC) insures deposits and the interest accrued up to the maximum amount allowed by law- currently $250,000. FDIC insurance protects the money in your money market account the same way it does in regular savings accounts.
Money markets are a great home for emergency savings, something you can access immediately. One way to think of a money market account is to think of it as less liquid than a checking account, but more liquid than bonds or Certificates of Deposits.
At McHenry Savings Bank, we are a full service financial institution with a complete line of deposit and loan products. We have been serving the banking needs of the residents of McHenry County since 1955. We are local people making local decisions. Call us (815) 385-3000.