February is often referred to as “frugal February.” Why would your bank want to highlight frugal February? The simple answer – to share tips and tricks for saving, budgeting and finding financial balance.
 

During times of economic uncertainty, a financial cushion can help alleviate stress and offer a safety net for uncertainty. The Independent Community Bankers of America offer 5 suggestions to boost savings:

• Pay yourself first. Many employers offer automatic payroll deduction, which is one of the best ways to start and keep saving. Use those funds to build a retirement fund.
• Create a spending plan. Unlike a strict budget, a spending plan is a guide to help you take control of your finances by tracking where your money goes so you can prioritize your spending.
• Start small. Setting aside just $4.90 a day (the average cost of a daily cup of coffee) for one year can boost your emergency fund by nearly $1,800  annually.

• Build a financial cushion. Strive for an emergency savings of six to nine months of living expenses.

• Put your tax refund to work. Last year, more than three quarters (86 percent) of Americans planned to use their returns for savings or paying off debt.

If you have never put a budget in writing, maybe it’s time to do just that. Adding dollar amounts to your line items and totaling all of your expenditures can do wonders for guiding your understanding of monthly costs and necessities. Are all of your monthly expenses really necessities? Don’t be too hard on yourself but remember the end goal and be prepared to make adjustments.

Frugal means to cut out waste, so challenge yourself to review your monthly habits and find a balance between what you sort-of need, really want and absolutely can’t live without. Look for ways to stretch those dollars – if you want to support local and eat out at your favorite mom-and-pop restaurant, order just a water to drink, skip dessert and maybe choose an entrée that would provide good leftovers for your lunch the next day.

Online shopping can also be a source of unnecessary spending. Be sure to take advantage of free shipping as this validates the gas savings of ordering online versus going in person. Compare prices of continual use items – can you purchase them cheaper at the local store you pass on your way home from work? If you order meals online, either from a local restaurant or a preparation service, commit to your due diligence to justify the expense versus a trip to the local market or a quick drive to a neighborhood restaurant.

Ultimately, our society seems to be starved for convenience, reliant on third party services and spending extra dollars that could be saved. But then again, there was a time when many printing companies printed thousands of telephone books every year…

Community banks can be a great, local resource. Stop into any of our local branches for that personal touch of an actual ‘person’ assisting you with your financial future!