Hello again, Spring!
In this issue of our newsletter, we are going to talk about connection. Specifically, how we connect with you and how you connect with us – and how that can be done better! We’ll look at global and regional pricing; hitting your utility bills again this year.
We’re also going to talk about money, saving money and what you might want to consider doing with that extra cash. After all, “saving” isn’t the only thing we do here!
A Letter From Our CEO – Let’s stay connected!
I am at a peculiar age. I am definitely a proud Gen X baby.
I actually played outside and drank from a hose and have lived to tell the tales. We had Atari, Nintendo, Sega Genesis, and PlayStation (the original), Cabbage Patch Dolls, Garbage Pail Cards, and watched someone get slimed on Nickelodeon’s Double Dare.
My Generation was also raised at a time when the internet was just starting on my college campus. I remember everyone going to their mailboxes and bringing back AOL CDs to dial into this crazy new invention.
Technology has truly revolutionized my world as I took a front seat to many of the most amazing innovations of the past 30 years. While I acknowledge how far we have come as a society; and I really do not want to go back; I am also just technology adverse enough that I am not “all in”.
Oh I am glued to my iPhone, but I don’t like the watch… I prefer ones with hands. I love to text, but I am still able to carry on a conversation with people directly in front of me. I use Google 100 times a day, and if I didn’t have “Maps”, I may not be able to get from one side of town to the other, but I prefer not to ask Siri too many questions. I will look it up myself… stop listening to all my conversations. I wasn’t calling you, I said “surely”.
My team and I have been reviewing new and exciting products and features to deliver to our members. Some truly remarkable and (financial) life-altering technologies that we hope to bring you in stages over the coming months and years.
While we are still early in the vetting process and not ready to reveal any of the incredible things that we will be unveiling, they promise to revolutionize how our members do banking.
Even though these amazing things will be at our fingertips, we are not ready to remove the “soul” of what we do and how we provide them. We are having honest and frank discussions about what we are as a company and who we want to be for the next 5, 10, 15, 25 years and beyond.
What we have determined is that we want to be who we are…just better.
We feel that our single greatest advantage is that we are people with a mindset to serve people. We are genuinely human and care about our equally human members.
Sometimes humanity is messy. We make mistakes and we have to sincerely apologize for them. Sometimes our humanity limits us. While we have grown a significant amount, we are never going to be in 10 States and have an asset size that rivals a small 3rd world Country. Not because those things are bad, but because it is not who we are. We never want to remove the human element of what we do.
We think there is a real advantage to knowing the people that are waiting on you, and us knowing a little bit about you. We equally think we are pretty good at our jobs and can deliver meaningful advice and assistance to the financial well-being of our members. We are not “down” on banks or other financials. We know that they are staffed with people too, but we just think we have an advantage because our focus on service has proven that it can withstand the test of time. Technology is our assistant, not our crutch… and not our replacement.
I can’t wait to enhance the lives of our members with the new advancements we will bring you as we continue to strive to be your primary financial institution. One thing has become crystal clear to me during this process.
We will never sacrifice our humanity for the sake of progress.
We will continue to endeavor to be your First Choice for banking.
Let’s Talk About A Problem – Are your utility bills a little crazy?
So I don’t know about you, but I was really trying to figure out how many blankets I could put on top of my bed this winter. Making an evaluation of how much I like heat was never something I thought I would have to do as an adult.
Just like that (ok… this is the interactive portion of the newsletter… please snap your fingers now) my air conditioning unit needs uncovered. What are those electric bills going to bring?
Here are a couple of things to think about as we head into the warmer months of the year…
Call in the Experts
Have your HVAC system professionally inspected. Cooling your house more efficiently sometimes needs a tune up. If that seems a little pricey, you can do some of this yourself. Make sure those filters are replaced so you maximize airflow and cut down on some dusting housework.
Break out the Pyrex
Using glass pans in the oven helps to retain heat better and can shorten cooking time.
Get Smart
Consider using smart technology to keep your home cool and your costs down. Connecting your thermostat to a mobile device will enable you to control it from a distance and avoid cooling an empty house. You can also use that same technology to set a schedule that matches your family’s needs. While we are at it, avoid placing TVs, lamps, or anything that creates heat right next to your thermostat.
Wash the right way
HE washers are awesome to help use less water, but consider washing only full loads. When possible, wash with cold water. This not only will preserve your clothes a little longer, but will also be more energy efficient in the process. In the same vein, only run your dishwasher when it is full (or it starts to smell).
Grill It
Your oven can really heat up that kitchen. Cooking outside can keep your home more comfortable and not have your A/C working overtime.
Unplug it
No matter what it is, appliances draw a small amount of electricity when plugged in. Think about unplugging those small to medium sized appliances when not in use. Do you really need to keep that toaster plugged in all the time? Toast on demand is still pretty easy to achieve. How about the air fryer? Think about anything that doesn’t have a clock… how hard is it to plug it in right before you use it?
The Right Tool for the Right Job
Use appropriately sized pots and pans on your burners. Using the right sized pots helps to reduce heat, water, and mess.
Personally, I am terrible at this. I overfill everything and then have to clean my stove top afterwards. Oh wait, I am just plain terrible in the kitchen.
Saving Rules – 9 Rules for saving money and adding cash in 2025
Rule of 72
Want to get excited about savings? Use the Rule of 72 to quickly calculate how many years it will take to double your money.
Take 72 divided by the interest rate you will earn and that equals the number of years to double your investment.
Example: If your return on investment is 6% it will take you 12 years to double your money.
When can you retire?
This rule states that you can retire as soon as you have 25x your annual expenses. If you need $50,000 per year to live, then you should have $1.25 Million to retire.
Should I buy it?
If the item you want to buy is 1% of your annual gross income… wait 3 days. If you still want the item after 3 days, get it.
Why this works: You’ll often realize you don’t actually want / need that item.
Emergency Fund
Before you invest, make sure you have an emergency fund between 3-6x your monthly income. If you make $4k a month, you will need $12-$24k in an emergency fund. (invested in a liquid or semi-liquid investment… i.e. Money Market or CD.)
If a rainy day comes, you will weather the storm.
Don’t Miss Your Match
Maximize your company’s retirement plan contribution, 401(k)/403(b), up to the highest employer match offered. This is free money and it enters tax free.
Automate
The easiest way to save or invest is to take the money out of your account automatically before it becomes part of your budget.
50/30/20 Budget Rule
Allocate your income this way…
50% Needs
- Food
- Housing
- Insurance
- Basic Utilities
- Transportation
30% Wants
- Travel
- Fashion
- Entertainment
20% Savings
- Emergency Fund
- Debt Paydown
- Investments
- Retirement
What is my max Mortgage
The “Rule of 28” states that your housing costs (mortgage, property tax, and insurance) should be no more than 28% of your gross monthly income.
What is the Goal
Here is a benchmark for how much you should have put away for you by age:
- 30 years old 0.5x Annual Salary
- 45 years old 2.5-4x Salary
- 50 years old 3.5-7.5x Salary
- 55 years old 4.5-10x Salary
- 60 years old 6-14x Salary
- 65 years old 14-25x Salary
The big lift in savings goal should correspond with your Mortgage payoff.
Tax Season – What will YOU do with all that cash?
Tax Season is upon us.
By the time you receive this newsletter (if you still get it by mail) your taxes are nearly due. Approximately 75% of people get a refund. Last year, the IRS returned around $267 BILLION, with the average refund being just under $3,000.
That is not too shabby.
If Uncle Sam is sending you some much needed cash, give some thought as to how to best utilize that money.
Do you need to increase your emergency fund account?
How about storing a little away for retirement?
Do you need to pay down some high-interest debt?
Have you been putting off a bigger purchase than your budget will not allow?
New money does not always mean new stuff. Sometimes the best course of action is to invest a little so that even bigger purchases can be made… or even better yielding investments can be undertaken.
Invest Short-Term
Have you considered a short-term CD? Not all of your return needs to be tied up, but how about putting away a portion of it that is harder to get access to? We have some “best in area” rates that can help. We try and stay pretty aggressive in the short-term investment space.
As of the printing of this document, we have a 9 month 4.00% CD.
That is among the best annualized rate in Lawrence, Mercer, Columbiana, and Trumbull Counties.
Bigger isn’t always better
If you are receiving a HUGE tax return, that may not be the best thing for you. Big refunds often mean you have overpaid the federal government in taxes all year and have lived on a smaller-than-necessary paycheck. Using the federal government as a savings vehicle is not a great plan. The money they are returning to you doesn’t come with interest.
Use a tax estimator on the IRS website to help determine your annual obligation and match your deductions with your expected tax burden.
The result: you will have more cash in your wallet all year long.