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Improving your financial health is similar to maintaining your physical and mental health — It takes time and effort. Sure, you may feel fine now, but what about 10, 20, or 50 years later?

To that end, you must treat your finances like you should treat your body. You need to make decisions that maximize long-term benefit over short-term interest.

Here’s the good news — with time, effort, and persistence, there are real steps you can take to maximize your financial health. Here’s a look at seven specific steps and strategies to ensure you are planning for your long-term financial health. As you can see, many of these steps involve research and understanding your financial situation. Once you have this information, you can begin to take action to improve your financial health.

1. Know where you are at

You only know your physical health by taking necessary tests and metrics, including your blood pressure, cholesterol levels, weight, and more. Likewise, judging your financial health without understanding your current financial situation is impossible. So, you will need to know the answers to the following questions.

• How much money do you have in your checking and savings account?
• How much have you saved up for retirement? Are you on track to meet your needed financial goals?
• How much debt do you have? How much total debt do you owe, and what is the interest rate?
• What are your regular expenses and sources of income?

This information lets you determine how close you are to meeting your financial goals. It also lets you know if you have any serious financial problems and where those problems may exist.

2. Create a budget

Your budget is your financial guideline. It will allow you to make financial decisions to ensure you can save and spend responsibly.

Creating a budget is relatively simple. First, you track your sources of income and expenses. Once you know how much you make and spend, you can build realistic goals in each spending category. Having a budget gives you a broader perspective about where you are spending money. It may also help you identify and eliminate specific spending items you didn’t realize you had.

Maintaining that requires regular updating to know where your money is going. You can certainly create a manual budget through paper or a spreadsheet. However, this is often error-prone and time-consuming. You can use computer programs like Quicken to update your bank and credit cards. With regular updates, these programs show you where you spend your money and help you categorize these expenses.

3. Check your credit report

Your credit is so much more than a three-digit score. It is the base of your financial health. With a positive credit score, you are more likely to get loans for critical personal milestones — such as a mortgage or a car loan — and ensure those loans have a reasonable interest rate.

A variety of factors determine your credit score. These include:

• Payment history
• Amount owed
• Length of credit history
• Credit mix
• New credit checks

The first two items — payment history and amount owed — comprise 65% of your total score. You can maintain a positive credit score by paying your bills on time and not over-utilizing credit cards. Furthermore, remember that three different agencies track your credit score: Equifax, Experian, and TransUnion.

A low credit score means you are more likely to be denied loans or pay higher interest rates. Fortunately, there are ways to rebuild your credit. However, this process is impossible if you don’t know your credit score. Checking your credit score comes with numerous advantages:

• It allows you to know where you have financial problems.
• You may identify bills you haven’t paid.
• You may also be able to find and dispute charges that you didn’t know existed.
• It allows you to see what the lenders see. Once you identify the data they have, you can better understand what steps you need to take to improve your financial health.

4. Create a debt-reduction strategy

If you have followed these steps in order, you now know your overall financial situation. This should include all of your debt. Most people have debt, which is not bad, as debt is usually necessary to make significant purchases, such as a house, car, or other expensive item. The problem becomes when we have too much debt and cannot manage it. Furthermore, the interest payment on that debt will be financially suffocating and make it impossible to ever get out of debt.

If this sounds familiar, you need to develop a debt reduction strategy.

The first step you take is to list all of your debt. This list should include who you owe, what you owe for, and the financial details of that loan. Information needed here includes the total owed, the minimum monthly payments, and the interest rate on the debt.

Armed with this information, you can begin to take the necessary steps to eliminate this debt:

• Many debt relief agencies can help you identify programs and strategies to reduce debt. In exchange for a fee or a piece of the payments you make, these agencies can call your debtors, find programs, and identify specific methods to reduce your debt. Selecting the right agency can be difficult. As such, you must do your research to find an appropriate partner.
• You can also refinance your debt. Refinancing debt may lower your payment and interest rate. Remember that some refinancing also lengthens the time it takes to pay off your debt. In this scenario, you will reduce your monthly payment but pay more over the length of the loan.
• Finally, you can use two different methods to apply extra money towards debt repayment. In the Snowball method, you pay off your lowest balance as quickly as possible, using the extra money to pay off the next lowest balance. In the Avalanche method, you pay off the highest interest rate first. Both methods can be highly useful, provided you have the discipline to stick to them.

5. Create an emergency savings fund

“Saving for a rainy day” is more than just an expression: It must be a financial reality. You never know when you will lose your job or have to manage a major financial expense.

How much you put away into your emergency savings fund depends on you. Most financial experts recommend saving between 3-6 months of living expenses. You need to calculate this number based on the expenses you need to live, including expenses like your rent, utility bills, and groceries. This shouldn’t include any optional luxuries, as you’d have to eliminate them while unemployed.

For many, saving up this amount of money can be extremely challenging. Fortunately, there are many ways to build your savings. This can include setting realistic goals, automating your savings, and finding the highest possible interest rates. You should keep your emergency savings in a low-risk bank account. You don’t want to risk losing your emergency savings at a time when you may need them.

6. Build a retirement strategy

No one wants to work forever. As such, you’ll need to build a retirement strategy that suits your needs. Preparing for your retirement can mean different things for different people. Are you:

• Taking advantage of your employer’s 401k match or pension program?
• Actively creating savings goals based on your projected financial means, then sticking to those goals?
• Consulting with a financial expert to determine your retirement needs or using retirement calculators to estimate those needs?

Everyone has different retirement needs. The key is to understand what your needs are. From there, you can create a retirement plan that fulfills your financial goals and protects your long-term financial position.

7. Maximize your tax benefits

In most cases, taxes are the largest expense we will have in a year. Fortunately, the right strategies can reduce the significant burden that taxes create.

Everyone has a different tax situation, but you can use plenty of methods to ensure you pay the right taxes. These include:

• Invest as much as possible in tax-reduction vehicles. This includes a 529 plan for college or your 401k.
• Open a Flexible Savings Account (FSA) if your employer offers it.
• Consider a Health Savings Account (HSA) to help reduce taxable income.
• Avoid overpaying your taxes so you get a lump sum at the end of the year. Instead, adjust your withholding so you overpay as little as possible. Use that money to invest in your retirement funds. Doing so lets you plan for retirement and further reduces your tax burden.

Consider using a CPA to develop a tax reduction strategy.

Get the right financial partners

Improving your financial health is possible in any financial situation. Researching your current financial situation and making responsible decisions can help you get there. However, improving your finances means finding the right financial partners.

At Village Bank, we’re here to help. With locations throughout central Virginia, we’re here to meet your needs and ensure you can make positive long-term financial decisions. We offer many services and banking products – including savings, loan refinancing, and mortgages – to help you improve your financial health. Ready to learn more? Contact us today.

Have you ever looked at your bank account to see if you can afford another purchase, only to discover that the grocery bills, gas, and energy costs have destroyed your balance? You’re not alone. The current economic moment is challenging and harder than ever to stretch your budget. Inflation is – thankfully – coming down, but it remains high, with prices higher than they have been in almost a decade. As a result, purchasing ordinary items is still more expensive than in years past. This financial reality pressures most Americans to do whatever they can to reduce expenses.

You may have already tried more well-known options to reduce your expenditure, like cutting subscriptions you don’t use, making more purchases in bulk, or checking out online coupons. Maybe that’s enough for you to manage your monthly budget … or maybe not.

Here’s a look at ten unique ways to cut expenses and save more hard-earned cash.

1. Plan, plan, plan

Creating and sticking to a budget is one of the best ways to limit expenses. A budget lets you see what and where you spend your money. From there, you can identify ways to reduce expenses.

However, more planning can help you save money. For example, you can plan your grocery shopping to reduce impulse purchases and ensure you only buy things you plan on using.

This idea also applies to larger purchases, like clothing. With some forethought, you can probably grasp how much clothing you will need to get you through a season. From there, you can buy that number and then not worry about buying anything else. Lastly, consider planning what you need versus what you want.

This distinction is critical and will enable you to better focus your expenses on what you need and what you can afford.

2. Keep a price book

Most of us have many stores that we shop at, using various combinations of department stores, small businesses, and online retailers to get the things we need. Ask yourself this question: Where can you save the most?

There’s only one way to answer this question: You must do the work.

The next time you purchase, grab the receipt and enter it into a spreadsheet that tracks the price of what you buy and where you buy it from. This is your personal price book, enabling you to monitor your purchase, where you made it, and how much it cost. From there, you can compare how many items are and where things are the cheapest. This information lets you know where to shop to save the most.

This strategy also has a secondary benefit: You can better track your spending by manually entering all your transactions. As such, you can better grasp where you are spending your money and potentially find ways to save by not buying certain items. You can also keep track of all prices in your budget. By doing so, you can get a comprehensive view of all of your expenses.

3. Ask your creditors or services for help

There’s a hidden secret regarding saving money: In many cases, it’s as easy as a phone call. You can call many places if you are looking for ways to reduce your debt. Credit card companies sometimes give you lower interest rates if you ask for alternatives. They may also set up programs that will enable you to reduce payments or save money. The same can often be said for utilities, like your phone or electric company.

Alternatively, ask yourself this question: What am I willing to cut? Call to cancel once you have identified services you can get rid of. The service in question may reduce your price to entice you to stay. A quick Google search (“Does service X give discounts if I try to cancel online?”) may also reveal insightful results.

4. Use website extensions for your online shopping

Most Americans spend extensively on online shopping throughout the year. Fortunately, if used properly, you can use the internet for significant savings.

Various websites available today – including Ratuken, Klarna, Honey, and more – will allow you to save money when shopping online. The specifics of each website vary, but generally speaking, they allow you to achieve savings or automatically check for online coupons. As such, these website extensions can help you save money relatively passively.

5. Unsubscribe from emails

Sometimes, the temptation to avoid shopping online can be too strong. Reducing this temptation can be the real-world equivalent of avoiding those end-caps at grocery stores: You can remove the chance to spend by removing options.

Unsubscribing from marketing emails can be a great way of accomplishing this goal. Not only can unsubscribing reduce the threat of impulse buying, but it can clean up your inbox and help you get out of a mindset where you feel as if there is a constant barrage of marketing meant to separate you from your hard-earned cash.

Unsubscribing is usually easy enough: Scroll to the bottom of an email and click unsubscribe. Alternatively, some email services – like Google – allow you to click an “unsubscribe” button without even having to scroll.

6. Automate what you can

Many online retailers, such as Amazon, allow you to get automatic deliveries of commonly used items. These regular deliveries often come at a discount. As such, you can save money by signing up for a regular delivery of a product that you will use. Remember that these services require maintenance to ensure you don’t order more than you need.

7. Purchase reduced-price gift cards

Everyone loves gift cards. Fortunately, there are ways that you can buy gift cards at a discount. Websites like Raise, CardCrazy, and CardCash allow you to purchase digital or physical copies of cards from hundreds of stores throughout the country. By purchasing one of these cards, you can save money on purchases you plan to make.

8. Spend more money

Wait, what?

Ultimately, there are times when spending more money will put more money back in your pocket. This will allow you to build your savings and have more money later in the month.

Those cheap shoes that you bought wore out pretty quickly, right? This meant you had to buy another pair of shoes relatively soon after buying the first one. You might not have needed the second if you spent more money on the first pair of shoes. The quality of a good often means that you can get more life out of it, thus saving money in the long term.

Generally speaking, this pricing strategy applies to items you will use extensively or over a long period. Spending less money on short-term purchases than long-term ones is usually better.

9. Find an accountability buddy

You may have friends or family members looking to save money but struggling, just like you. If that’s the case, you may be able to help each other.

The concept behind an “accountability buddy” is simple: You and your friend can work together to keep each other to a spending plan. Specifics of this program can include:

• Regular check-ins to discuss how you are doing in your money-saving goals.
• Weekly “reviews” of your budget, spending, and overall struggles.
• Open, honest conversations about the difficulty associated with spending money.

Depending on your closeness with the friend in question, you can even go so far as to share budgets. Doing so will allow you to get another set of eyes on your budgeting documents, ensuring that other people can potentially give you advice and feedback on saving money.

10. Move or reassess your living situation

Is it extreme? Maybe. But, in this era of remote work, people often simply don’t have to live as close to their office as they used to. Have you considered moving into a lower cost of living space if nothing else ties you down to an area?

Inflation has rocked much of the country but not in an event way. According to the latest statistics, inflation is worst in Washington, D.C., Colorado, Utah, Arizona and Nevada. Interestingly, Virginia is 17th on this list. States where inflation is the lowest are largely located in New England.

Furthermore, some areas are less expensive to begin with. This includes places with lower cost of living, rent, and grocery prices. Generally speaking, rural areas are less expensive than urban or suburban ones. If cost matters to you and you want to move, keep this strategy in mind.

Moving isn’t viable for everyone. If that’s the case for you, there may be ways to reassess how you live. Are you able to move into your home? Find roommates to help you reduce your costs? Move to a smaller apartment or one in a different neighborhood? All of these present viable options that may help you reduce your expenses.

Get help from the professionals

We’re deeply proud of our commitment to our customers at Village Bank. We offer an array of locations around Greater Richmond and Williamsburg that are staffed with friendly, knowledgeable experts who understand money and how to save it. With nine retail branches that offer personal and commercial banking services, we’re here to help. Contact us today for more on how we can help you.

Reflect on the simplicity of the Baby Boomer generation, when buying a home on a single salary was just part of everyday life. Leap to the present, where achieving homeownership appears significantly more challenging without a hefty inheritance or a substantial income.

Don’t lose hope. Whether your heart is set on a charming suburban residence, a private cabin in the woods, or a chic urban apartment, possibilities still exist. Adapting your financial approach to align with your distinct lifestyle is key. Remember, managing personal finances is inherently individual. It involves finding strategies that resonate with you and align with your objectives.

Below are seven inventive approaches to accumulating funds for a down payment.

1. Split Your Paycheck

Diving into the digital age of saving, have you considered asking your employer to split your paycheck into different accounts? It’s like cash stuffing but swaps out the envelopes for bank accounts and comes with the sweet perk of automation.

Every payday, a portion of your check automatically lands in a special savings account dedicated solely to your home deposit dream. No manual transfers, no forgetting to set aside the money—it’s all done for you.

This method is a game-changer for anyone looking to save without constantly moving money around. It’s the set-it-and-forget-it approach to building your nest egg, ensuring that part of your earnings is always working toward your goal of homeownership.

Why not have a chat with your HR department? It could make your path to purchasing a home a lot smoother by letting technology do the heavy lifting for your savings plan.

2. Coffee at Home

It’s evident that the costs of going out for coffee can quickly tally up. A simple “DIY coffee recipes” search on platforms like TikTok uncovers a plethora of step-by-step guides to recreate the coffee giant’s famed beverages right in your own kitchen—and for considerably less than what you’d pay at the cafe.

Picture the joy of mastering your very own caramel macchiato or pumpkin spice latte with just a few basic pantry items and a bit of online assistance. Crafting these drinks yourself offers a sense of personal achievement with each creation (regardless of the time of day) and leads to noticeable savings over time.

Choosing to brew at home instead of purchasing from a cafe means more money in your “Home Deposit” jar. Plus, personalizing these concoctions allows you to perfect them to your taste, possibly even outdoing the original versions.

The next time you’re tempted to step out for a coffee treat, consider the potential of your own kitchen to serve as a budget-friendly, custom coffee shop that brings you one step closer to achieving your homeownership dreams.

3. Join a Personal Finance Community

Joining an online personal finance community means finding your financial kin in the dense forest of budgeting and investing. These digital gatherings—be they on Facebook, Reddit, or niche websites—are thriving ecosystems of knowledge and support where individuals exchange advice, experiences, and victories in the realm of personal finance.

Consider, for example, the FIRE (Financial Independence, Retire Early) community, which champions the art of economical living and intelligent investment strategies to secure financial liberty well before the conventional age. Immersing yourself in this group means you’re not just passively absorbing information; you’re actively participating in vibrant exchanges, distributing advice on saving money, and commemorating financial achievements alongside fellow members familiar with the path.

4. Buy Secondhand Clothes

With the rising cost of living, it’s no wonder that snagging stylish finds at thrift stores or online secondhand platforms has become more than just a trend—it’s a savvy financial move.

According to a report by OfferUp, a staggering 82% of Americans are already on board, diving into the world of pre-loved clothes, accessories, and more, driven largely by the desire to combat inflation’s pinch.

The resale market isn’t just a treasure trove of unique, personality-packed items; it’s a goldmine for savings, especially when Depop reports an average saving of 25% per thrifted item.

Redirect those savings straight into your home deposit fund. It’s like giving your savings a turbo boost without having to sacrifice your style or consumer habits.

5. Think Before You Buy

Pause before you click ‘Buy Now’ and give that item a day to sit in your cart. Use the timeout to think: does this really fit with my big picture, like saving up for a house? More often than not, you’ll wake up the next day and that must-have feeling might have cooled off.

This 24-hour wait rule is more than just playing hard to get with your purchases. It’s a smart way to make sure your savings stay safe, making sure every dollar goes either toward something you truly need or toward that home deposit.

6. Educate Yourself About Finance

Educating yourself about finance is another great way to save for a home deposit. Find a finance podcaster or writer whose story resonates with you.

Ideas for people to follow include:

• Ramit Sethi, founder of I Will Teach You To Be Rich
• Tori Dunlap, founder of Her First 100K

7. Talk to the Experts

Whether your aim is to build a robust savings account, invest wisely, or navigate the complexities of purchasing a home, a financial expert can show you paths you may not have considered. They can also introduce you to tools and techniques to maximize your financial health, and help you avoid common pitfalls.

Their guidance is about more than reaching immediate milestones. They’ll help you craft a comprehensive strategy that aligns with your long-term aspirations. This ensures that each step you take brings you closer to your ultimate financial goals.

We encourage you to harness the comprehensive advice and personalized support our experts are keen to provide. This ensures that your venture into homeownership is as informed and strategic as possible, reflecting both your personal desires and financial goals.

Talk to us today.

Imagine growing your money not just by the initial interest rate but also by the interest you’ve already earned. That’s the magic of compound interest, often called “interest on interest.” It might sound complex, but it’s not difficult to understand. Once you know the power of compound interest, it’s easy to see how it can be a game-changer for your finances.

In short, compound interest makes your money work for you. Here’s what you need to know about compound interest, how it differs from simple interest, and its impact on your financial future.

What is Compound Interest?

Compound interest is a financial concept involving earning interest on the initial principal and any accumulated interest. In simpler terms, it’s “interest on interest.” Unlike simple interest, which only applies to the original amount of money invested or borrowed, compound interest allows your investment to grow exponentially over time.

Basically, compound interest is earning interest on both your initial principal amount and the accumulated interest from previous periods. When applied to money you save or invest, compound interest becomes a serious money-maker. It makes your money grow at an accelerated rate over time — if you understand how it works and how to maximize its impact on your investments.

What’s the Difference Between Simple Interest and Compound Interest?

One of the best ways to understand compound interest (and its potential impact on your finances) is to compare it to simple interest, which is interest that is applied only to the original amount of money borrowed.

As for compound interest, let’s say you invest $1,000 in an account that earns compound interest at an annual rate of 5%. At the end of the first year, you’ll make $50 in interest, bringing your total to $1,050. In the second year, you’ll earn interest not only on your initial $1,000 but also on the $50 you earned in the first year. This snowball effect is what makes compound interest so powerful.

This process of compound interest keeps on compounding, and your investment will become larger and larger each compounding cycle. Finally, compound interest makes wealth grow faster because you keep reinvesting earnings to get more earnings.

The Compound Interest Formula

Many financial calculators and other online tools can calculate compound interest for you. But if you’re interested in seeing how it works, here’s the basic formula that you can use to make the calculations yourself:

A = P (1 + r)^t

In this formula:

• A = Final amount
• P = Initial principal amount
• r = Interest rate (as a decimal)
• t = Period (in years)

The Rule of 72

For more straightforward calculations, especially for estimating purposes, you can use the Rule of 72.

This rule states that you can estimate the number of years it takes for your money to double at a certain interest rate by dividing 72 by the interest rate. For example, if the interest rate is 6%, it would take approximately 12 years (72 / 6) for your money to double.

Examples of Compound Interest in Action

Here are a couple of common examples that show how compound interest works in the real world:

• Savings accounts: Whether in basic savings accounts or retirement accounts like the 401(k) or Roth IRA, compound interest accumulates on the money you invest.
• Debt accumulation: Compound interest can work against you as well. Suppose you carry a credit card balance with a high-interest rate and only pay the minimum amount. In that case, the interest keeps compounding on the remaining balance, leading to a more significant debt burden.

Starting Early to Benefit from Compounding

The key to unlocking the full potential of compound interest lies in starting early. The sooner you begin saving and investing, the longer your money has to compound and grow.

Consider a scenario where you make an initial investment of $5,000, with 5% interest compounded monthly. You will also make a monthly contribution of $100 to the investment account. After ten years, your investment will have grown to $23,763.28. Not bad, right?

Now consider that in the same scenario, your investment will have grown to $105,565.59 after thirty years. That extra twenty years of compound interest, thanks to starting your investments early, made a significant difference.

Reinvesting Dividends and Interest

Another strategy to maximize the power of compound interest is to reinvest dividends and interest earned from your investments. Instead of pocketing these earnings, reinvesting them allows you to take advantage of compounding on your growing account balance.

For example, if you own stocks that pay dividends, you can use those dividends to purchase additional shares of the same stock. Over time, this may significantly boost your investment returns as the reinvested dividends also generate their own dividends, creating a snowball effect of wealth accumulation.

You can also take the interest you earn from investments and make new investments. In essence, you are taking the money that grew from compound interest and making new investments. This is one of compound interest’s more powerful aspects, especially considering your initial investment. In a way, it’s like growing money — if you manage your investments correctly in the right type of accounts.

Maximizing Tax-Advantaged Accounts

As you’ve seen with the examples and hypothetical scenarios so far, compound interest can have a large, positive impact on your savings and investments. In the real world, however, there are often tax implications to consider. Many investment accounts are subject to taxes, but there are also tax-advantaged accounts.

For instance, the 401(k) is a popular tax-advantaged account. If you’re eligible for a 401(k), the IRS allows you to invest tax-free, up to a certain limit each year. For 2024, that limit is $23,000. By gradually increasing your 401(k) contributions over time, you can maximize the power of compound interest tax-free.

Other retirement savings accounts, such as Roth IRAs and health savings accounts (HSAs), are also tax-advantaged. If you’re several years away from retirement, now is the time to look into these types of accounts, as the power of compounding holds the potential for significant returns over time. Tax-advantaged accounts help ensure that you end up with the largest amount of money in the end.

Being Patient and Consistent

Remember that time is an important factor, no matter how you choose to make compound interest work for you. Patience and consistency are essential virtues if you want to maximize compound interest. You can’t expect to see results overnight; a long-term perspective and disciplined approach are required.

Instead, go into each investment with the right frame of mind. Remember that significant returns take time, and you must keep making contributions to really see your investments grow. Stay committed to your savings and investment goals, even during periods of market volatility or economic uncertainty.

By maintaining a consistent investment strategy and avoiding the temptation to time the market, you can maximize the benefits of compound interest and achieve your financial objectives.

Understanding the Power of Long-Term Growth

Even though it may take some time, you can harness the immense potential of long-term growth with compound interest. While the effects of compounding may seem modest in the early years, they become increasingly powerful over time. Remembering these concepts is the key to understanding the power of long-term growth.

With the right frame of mind, smart investing, and a solid understanding of tax implications, compound interest is a remarkable tool that can turbocharge your efforts to grow your savings and investments.

Perhaps your most important takeaway from these lessons on compound interest is to start early. Start today if you can, and stay committed to your goals for the long haul. With the right strategy, compound interest will reward your perseverance and dedication.

Vacations — like everything else — have gotten a lot more expensive. According to a Nerdwallet analysis, vacation costs went up 9% in 2022 and have increased 20% since 2019. As a result, it can be challenging for families like yours to save enough money to fund their annual summer vacations.

Fortunately, with time and planning, the average family vacation remains well within reach. Here’s a look at ten ways to maximize your vacation planning and ensure you can get the most out of your travel plans.

1. Use Private Browsing

A surprising reality about any effort to book a trip online is that travel engines will have access to a variety of your data. These websites can see what pages you have looked at to explore travel destinations. As a result, your prices may increase based on where you have examined trips.

There’s an easy way around this problem: Use your internet browser’s “private browsing” feature. This is sometimes referred to as “incognito mode.” Doing so will block data, cookies, and previous search histories from travel websites.

Alternatively, you can engage in comparison shopping. Run an identical vacation query on a regular browser and one in private mode to see whether your previous data altered the prices you see.

2. Save Early

A theme of many of these entries is to make sure you know what you are doing in advance (with one exception — more on that later). By giving yourself as much time as possible to plan, you can book within your budget and choose the best recreational options for you and your family.

The same strategy applies to saving. With enough research, you should get a general idea of how much your vacation will cost. From there, you can plan ahead and figure out how much money you need to set aside each month to meet your vacation savings goal.

The right financial institution — like Village Bank — should be able to help you meet your savings goals. You may want to explore various options depending on how much money you want to save and your timeframe. This can include setting up a savings account, money market account, or even a short-term Certificate of Deposit. Alternatively, you may want to earmark a certain amount of dollars every year in your checking account.

3. Use Credit Reward Points

If you have a high enough credit score, you should be able to take advantage of certain perks offered by your credit card company. Many credit card companies offer reward points when you make a purchase. You can then use these points to book your hotel, flight, or more. Doing so can save you hundreds of dollars on your final vacation costs.

Like all other saving aspects for your vacation, this requires planning and homework. You’ll need to know if booking your vacation through one of these sites is financially viable. Getting this information is particularly important, given that the reward points you generate with your credit cards could be more viable elsewhere. As such, comparison shopping is key. You can try booking a vacation component through one of these gateways and then compare the expense against another search.

4. Check Out Social Media

These days, any vacation planning should involve social media. Social media can open your eyes to a variety of attractions that you didn’t know existed.

The next time you plan a vacation, search for your destination in your social media network. You may be surprised by the attractions you didn’t know existed.

Social media can serve as a fantastic equalizer. It can open your eyes to smaller, less expensive attractions you didn’t know about. Furthermore, if you look for information on a particular vacation, you may notice that the paid ads you see in your social media feed have changed. You should take advantage of these ads and see what options are available.

5. Book and Travel on the Right Day

Booking your vacation on the correct day can significantly impact your costs. According to Nerdwallet, Tuesday and Wednesday are typically the best days to fly. Sunday is the most expensive day. The website also found no real difference in when you book a flight. As such, you’ll want to stay vigilant and spend some time hunting for the right deals.

6. Reexamine Food Costs

Food is always one of the largest expenses of any vacation. Given that the cost of food has been one of the hardest-hit areas of inflation, it seems clear that it will eat into a significant portion of your budget. As such, you need to check out ways to save money on vacation when buying food. Ways to do this include:

• Plan ahead by checking out websites like Groupon. Doing so may enable you to find a great deal on eating locally.
• Bring snacks or even your own food so you can make your meals whenever possible.
• Book a hotel with a continental breakfast and take advantage of the free meal.
• Browse websites like Raise that let you buy reduced-cost gift cards.

7. Use Public Transportation

There is a reason public transportation is so popular: It is usually safe and affordable. Instead of booking an Uber or Lyft, check out the bus or subway schedule in the areas you visit.

Also, some vacation destinations offer free shuttle services. While these can be less convenient than renting a car, they are always more affordable.

A bonus of using public transportation is that it lets you see the real area you are traveling in. Vacations often provide a sanitized look at a community or region. By using public transportation, you can get a more accurate perspective of what a community is like.

8. Plan Ahead

As a general rule, planning is critical to saving money on your vacation. Ensure you know where you want to go, how much money you want to spend, and how much you will need to save every month. By planning ahead, you can maximize your savings and make sure you have ample time to find the best deals. You can also have the opportunity to do appropriate research into the least expensive trips.

9. Plan at the Last Minute

Wait…what? Sometimes, waiting until the last minute can help you save a lot of money. If a vacation destination has space, it may offer a massive sale, allowing you to vacation in a location that would otherwise be out of your reach.

Major travel websites, such as Expedia and Priceline, offer sections on their website that can help you find these last-minute deals.

Of course, there’s a trade-off here. You may not be able to find a good vacation, and you may not be able to find the deal that you want. However, if you are willing to take the chance and be flexible in your destination, you can have a fantastic family vacation that is otherwise unaffordable.

Check Out Your Financial Options

A vacation is a major financial investment. Fortunately, there are plenty of ways to maximize your budget and take your family on an unforgettable trip. If you are looking for help saving for your vacation — or taking advantage of any number of financial offerings — we’re here to help.

Village Bank offers various personal banking services that can help you and your family protect your financial future. These include reward debit cards and personal banking services that can help you save for a family trip.

Ready to learn more? Contact us today.

Jim Cowell, Consumer Lending Manager at Village Bank, works with all types of consumer lending and loans. He’s a member of a small team at Village Bank that do all the underwriting for all loan products. Jim has an expansive career in both banking and in the mortgage business – so he’s no stranger to the importance of having good credit.

“If you ever want to buy a car or a house, you must have good credit to support that. There are a lot of different factors that go into the underwriting process and decision-making process for different products, like loans or credit cards, but one of the most important is your credit score.” Jim further explains, “Most banks, including us at Village Bank, use the credit score a major indicator of determining who’s an appropriate customer for these products.”

Understanding that the credit score is perhaps the most important thing for securing a loan, Jim offers these ten methods to build better credit.

1. Pay on time.
   “Do not, do not, be late. That is a sure way to drive your credit score down.” This was the first thing that came to Jim’s mind when asked. Late payments are often the most significant and easiest way for one’s credit score to start slipping downward.

2. Limit your balances.
   Jim talks us through an example, “Let’s say you have four or five credit cards, each with a $1,000 balance, for example. And for all of them, you owe about $800-$900. This is essentially capping them out and that in and of itself really drives your credit score down.” Keeping your balances low, in proportion to the credit limit, is a great practice to get into to keep your credit score high.

3. Open accounts that actually report to a credit bureau.
   “Things like a ‘pay-day loan’ or other non-banking products that don’t report to a credit bureau aren’t helping you,” Jim says. If you can, always open accounts that report to a credit bureau. Pay-day loans are often marketed towards those who already have a lower credit score.  However, the rates of these loans are often very high – creating a cycle that’s difficult to get out of.

4. Stay out of foreclosure or bankruptcy.
   Jim warns, “These kinds of events stay on your report for seven to ten years. These are often a disqualifying factor.” There are many ways to help avoid foreclosures or bankruptcy like credit counseling, spending reductions, or debt consolidation.

5. Be prepared to resume paying student loans.
   “The recent student loan forgiveness that we’ve gotten is going away,” Jim explains. The last couple years, some may have gotten used to not having to pay back these loans, but Jim warns to not get too comfortable, because student loan payments are scheduled to return in 2024.

6. Set up automatic payments.
   “This method goes back to just simply paying on time. Some people don’t even know that this is an option, but it completely prevents you from missing payments.” Jim continues, “Mistakes happen, plain and simple, and we understand that at Village Bank. But in today’s crazy world, people get caught up in their own lives and can forget to pay their bills. Automatic payments are great ways to avoid these types of honest mistakes.”

7. Be aware of what you are spending.
   Jim advises, “Check your credit balances and your bank statements regularly, line by line. There is a lot of fraud out there these days. make sure they are transactions you have actually made.” Make sure to dispute anything that is not right or unrecognizable to the credit bureau.

8. Don’t close out old credit cards.
   “Age of credit line is really important,” says Jim. “Don’t close out a card even if you get a new one. You don’t have to use them if you leave them open.” This gives you a longer, more stable credit history that helps improve a score.

9. Pay off your balance every month, if possible.
   “Even if you do not have a card that requires this, getting your credit card balance down to zero every month will really help your credit score.” Creating a simple monthly budget and sticking to it is a great way to achieve this.

Jim acknowledges that there are essentially an endless number of ways to improve a credit score, and that the above nine methods may not be applicable to everyone or every situation. Call your local Village Bank branch to better understand how to manage your credit score.

Christy Quesenbery, Executive VP of Operations at Village Bank, has over forty years of experience in banking. She claims, “I’ve seen tremendous change in the industry. But the thing that has remained is check fraud. Except now, the bad actors’ tools have become much more sophisticated.” Christy’s intention is not to scare the public of the multi-faceted threat that check fraud poses, but to reiterate the importance of safety in banking.

There are four primary types of check fraud – counterfeit checks, forged signatures, check alterations, and account takeovers.

• Counterfeit checks, as the name suggests, is the manual creation of a fake check and MICR line (this is the line on the check with routing and account numbers). With banking technology in a constant state of evolution, this form of check fraud is making it easier to fabricate checks with the purpose of stealing your money.
• A forged signature is an instance of check fraud where the check itself may be legitimate, but the signature has been either completely fabricated or otherwise faked in some way.
• Check alteration is another example of check fraud that takes place on a legitimate check, but the person to whom the check is payable is altered. Everything seems in order from the check payer’s perspective, but of course, the actual check recipient doesn’t receive their payment. “What we find are checks have been stolen from the USPS blue convenience boxes where the criminals have a good check, change the payee and process the check to the new payee” says Christy. Recently, the USPS has alerted the public to criminals stealing from their blue boxes. The Bank advises its customers to use USPS offices or consider online banking bill pay and ACH payments.
• The last main kind of check fraud occurs during an account takeover. Obviously, having one’s banking credentials stolen presents a myriad of other problems. But among them, the ability to create seemingly legitimate checks at will remains one of the biggest threats.

The most common targets of check fraud are businesses, rather than personal accounts. “This relates back to the blue box robberies – businesses that regularly pay expenses with checks this way are often targeted. It doesn’t even have to be big companies that write a lot of checks. Small, local ‘mom and pop’ shops are targeted just as frequently,” says Christy.

The consequences of falling victim to check fraud are serious; Village Bank will always help those who have been affected. Christy continues, “People might be embarrassed to report fraud or that they gave someone their personal information, but they shouldn’t be! It can happen to anyone!” Christy goes on to offer some ways to protect one’s self against check fraud. “Safely and securely store all your personal documents. Don’t leave them in your car. Shred any sensitive documents rather than throwing away. Use ACH – automated electronic transfers – for payments if the opportunity exists to eliminating writing checks.”

Beyond general safeguarding of personal documents, Christy details best practices for safeguarding actual checks. “Only order checks from reputable sources; trusting your check vendor is important.  The Bank will order checks for customers at their request.  Keep your checkbook in a safe secure place and monitor its usage daily. If you have to mail a check, mail them from a USPS office – avoid the blue boxes.”

When writing a check, use the following guideline to deter alterations. “Firstly, use a gel-based or permanent ink pen. These kinds of pen are harder to alter and harder to wash off.” Christy continues, “Write clearly and legibly. Fill out all fields completely and avoid using any abbreviations. If there’s a space between the written dollar amount and written cents amount, draw a long flat line between them. Anything you can do to avoid providing opportunities for alteration.” Most importantly, monitor your accounts.  Report anything suspicious to the Bank.

Shifting into the digital banking space, there are additional precautions Village Bank customers can take to protect themselves against check fraud. When asked about this, Christy responded, “this is what is so great about the current banking industry – online banking! I understand physical checks are the preferred method of payment for many, but Village Bank offers many online tools.” Personal accountholders can enroll in the Credit Manager with Village Bank to monitor and freeze credit. Businesses, too, should utilize online banking and regularly monitor their account activity.  As well, Businesses can enroll in Positive Pay, Village Bank’s solution to deter check fraud.

Lastly, if check fraud is suspected, “Contact Village bank immediately. And always, always file a police report, no matter the amount,” says Christy. Using these precautions and guidelines, customers of Village Bank can feel safe and educated regarding check fraud.

Tucking money away in a savings account is a healthy habit that many people strive for each year. However, the best-laid plans don’t always come to fruition. A recent financial survey found that more than one in five working American adults fail to set aside any of their annual income for savings.More