Northeast Security Bankis always looking to give back to our community, whether it’s offering cookies and coffee for our customers or raising money for local organizations through Casual for a Cause. Now we want to also help you with your financial life outside of the normal banking process through a series of blog posts we call “The Best Financial Advice I Ever Received.”
No matter your age or financial status, you can always use solid financial advice!
These posts will feature a member of our staff providing financial wisdom that was handed down to them by their parents, grandparents or other trusted confidantes. The inaugural post in this series focuses on Ann Wedemeier, one of our talented Real Estate Loan Officers, and her advice about saving for retirement and keep more money in your pocket.
“Start saving/investing in retirement as soon as you can. The earlier you start investing, the longer that money has to grow. Put in as much as possible right out of your paycheck. If you start it right away you won’t miss the money from your disposable income,” instructed Ann. Diversified savings and investments are great tools. Savings accounts, IRAs, CDs and 401(k)s all help you save.
“When making loan payments, check to see if the lender allows biweekly payments. The more often you pay down on the principal the less interest you pay over the course of the loan,” Ann added. The less interest you pay over the life of the loan, the more money you save. Pure and simple.
Ann also recommended to “pay your credit card off monthly. Once you let that balance start rolling from month to the month you’re going to have a harder time getting that debt paid off.” Think of debt like a snowball; it’s easier to stop when it’s smaller rather than larger.
Finally, Ann left us with the recommendation to “spend within your means. Make a budget and determine your ‘wants’ from ‘needs.’” Great advice, especially for college students or new graduates. Do you really need a brand new, $400 flat-screen TV? No. Do you need enough groceries to last for two weeks? Yes! Take care of the essentials first, and then take care of wants if you have the money for it.
This was some great advice for people of all ages! Be sure to check back next month when we’ll feature another Northeast Security Bank staff member offering up their fiscal guidance. Until then, remember to save and spend wisely! Tags: budget, CDs, credit card debt, IRAs, Retirement, savings