Every stage of life has financial implications—from planning for a new family member, to planning for retirement and everything in between. A strong financial plan, complete with goals and budgeting can set you on the right path toward a healthy financial future.

As your life changes, you might find that plans change too; therefore, you can take the money you were contributing toward a certain goal and shift it toward another. Most importantly, keep your financial plan handy so you can revisit on a regular basis in order to reevaluate and stay focused on what you want to do in life.

Plan your budget.

Budgeting doesn’t have to be tough. At the basic level, it’s making smart decisions about how you manage your income and expenses. The key is to minimize, or better prepare for, unexpected money needs with a solid budgeting strategy that includes building up your savings.

Plan for your family.

First comes love, then comes sharing your finances. Embarking on your new life together is exciting, but often involves reevaluating your financial situation as a family. From planning the wedding to adding new family members in subsequent years, managing your family’s finances is an important part of any plan.

Plan for college.

Whether preparing your little one’s future or planning for yourself, it’s never too early to begin saving for college. One good option is a 529 college savings plan. As an investment, the sooner you start saving, the more you’ll earn with it.

Plan for retirement.

Retirement always seems so far away, but now’s the time to nurture your nest egg so you can enjoy a more financially secure life later. With a myriad of investing options to choose from, the right plan comes down to your personal goals.

Plan for the unexpected.

Even when you have a solid financial plan, the unexpected happens. There’s only so much preparation you can do in life, but planning for those situations early on can save you a major headache down the line.

The most wonderful time of year is right around the corner! Your heart might be ready for all the merrymaking, but is your wallet? Follow these tips to ensure your account balance stays as high as your spirits this special season.

Make a list of holiday expenses.

This can include gifts, cards, wrapping paper, postage, decorations, travel expenses, holiday parties/events and charitable donations.

Decide on how much you can spend.

Make a list of those you wish to buy for. This could include family, teachers, caregivers, friend, co-workers – anyone who you want to acknowledge during this holiday season. Then use budget calculator to help determine how much you should spend.

Bonus Tip: Always add a few extra generic items to your list to cover any surprise gifts that may pop up.

Take advantage of major sales, especially on Black Friday and Cyber Monday.

Be sure to review security tips before making online purchases to help keep your money safe.

Keep track of all purchases and check amounts spent against your budget.

Using our Personal Financial Management tool within Online and Mobile Bankingis an easy way to monitor spending during the holidays, as well as year-round.

Before the holidays hit, cut back on little ‘extras.’

Reducing meals out, coffee drinks or movies can really help cover holiday shopping. ​Better yet, starting to save in January and putting aside a set amount each month helps you stay on budget come November/December.

Every stage of life has financial implications—from planning for a new family member, to planning for retirement and everything in between. A strong financial plan, complete with goals and budgeting can set you on the right path toward a healthy financial future.

As your life changes, you might find that plans change too; therefore, you can take the money you were contributing toward a certain goal and shift it toward another. Most importantly, keep your financial plan handy so you can revisit on a regular basis in order to reevaluate and stay focused on what you want to do in life.

Plan your budget.

Budgeting doesn’t have to be tough. At the basic level, it’s making smart decisions about how you manage your income and expenses. The key is to minimize, or better prepare for, unexpected money needs with a solid budgeting strategy that includes building up your savings.

Plan for your family.

First comes love, then comes sharing your finances. Embarking on your new life together is exciting, but often involves reevaluating your financial situation as a family. From planning the wedding to adding new family members in subsequent years, managing your family’s finances is an important part of any plan.

Plan for college.

Whether preparing your little one’s future or planning for yourself, it’s never too early to begin saving for college. One good option is a 529 college savings plan. As an investment, the sooner you start saving, the more you’ll earn with it.

Plan for retirement.

Retirement always seems so far away, but now’s the time to nurture your nest egg so you can enjoy a more financially secure life later. With a myriad of investing options to choose from, the right plan comes down to your personal goals.

Plan for the unexpected.

Even when you have a solid financial plan, the unexpected happens. There’s only so much preparation you can do in life, but planning for those situations early on can save you a major headache down the line.

Buying a home is a rewarding experience. You derive a great deal of personal satisfaction from owning a home. Homeownership allows you to build up your personal net worth over time. Traditionally, long-term increases in housing prices nationwide make homeownership a relatively attractive investment.

In some cases, renting may be a more attractive option. For example, if you plan to move in a year or two, you are unlikely to recover the closing costs you pay when you buy a home. In addition, finding a home to buy generally takes more time than looking for an apartment to rent.

The following calculator can help you to calculate the trade-off in buying and renting a home:

Am I better off renting?

In addition to building up equity over time, owning a home offers significant tax breaks. The interest expense is tax-deductible for married taxpayers filing jointly of up to $750,000 in home mortgage debt ($1 million for acquisitions prior to December 15, 2017) or up to $375,000 in home mortgage debt for married taxpayers filing separately ($500,000 for acquisitions prior to December 15, 2017).

Your tax savings from the mortgage interest tax deduction is greatest in the early years of a mortgage loan. For example, on a 4%, 30-year fixed rate mortgage loan of $200,000, you pay $7,936 in interest the first year of the loan. If you are in the 22% income tax bracket, your tax savings are $1,746. In Year 16 of the loan, you pay $5,047 in interest, which saves you $1,110 in taxes. In Year 24 of the loan, you pay $2,634 in interest, which saves you $579 in taxes.

When you sell your home, you can exclude up to $500,000 in capital gains if you are married and filing a joint return. (The exclusion limit is $250,000 for other tax filers.) You will need to pass the IRS’ ownership and use tests to show that the home has been your primary residence for at least two of the past five years. In addition to mortgage interest, you can also deduct your local property taxes on your income tax return. However, the Tax Cuts and Jobs Act limits state and local income or property tax deductions for individual taxpayers to $10,000 ($5,000 for married taxpayers filing separately) for tax years 2018 through 2025.

As a homeowner, you can tap the equity in your home in the future with a home equity loan or line of credit. Interest expense that you pay on up to $100,000 in home equity debt is no longer tax-deductible. The Tax Cuts and Jobs Act repealed this provision for tax years 2018 through 2025, unless the loan is used to buy, build or substantially improve the taxpayer’s home that secures the loan.

Yet, renting does have some advantages. For one, renting doesn’t require you to make a down payment, which can easily reach $25,000 or $50,000. A total monthly payment for rent is generally cheaper, too, when you include all the other costs of owning a home. In addition to paying off a loan with interest, homeowners routinely pay homeowner’s insurance and property taxes. They may also be required to buy private mortgage insurance. Finally, homeowners face maintenance and home-improvement costs that renters avoid.

In general, renting has a lower financial burden, requiring smaller monthly outlays. With the extra cash that you save each month, you may be able to invest and earn a rate of return that compensates for missed opportunities of homeownership.

The same calculator factors in your investment rate of return (your savings rate) to calculate the trade-off between buying and renting a home:

What will my refinancing costs be?

Renting may be a wiser course of action if you plan to relocate to another city soon or are in uncertain financial circumstances. For persons fresh out of school or newly divorced, renting may be the only realistic option.

The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a mortgage lender or financial adviser.

What is a credit score and why is it important?

It’s not just three digits: your credit score indicates how well you manage your debt. It’s designed to represent your credit risk: in other words, an at-a-glance indication of how likely you are to pay your bills on time. It’s a pretty important number that lending companies typically use when assessing the amount of money to loan you. A higher credit score generally results in more favorable credit terms, which is a good thing for you.

So what is a good credit score?

Standard credit score range:

• 300-579: Poor—scores in this range are below consumer averages and indicates a borrower may be a risk.
• 580-669: Fair—scores in this range are below consumer averages but many lender will issue loans to borrowers with these scores.
• 670-739: Good—scores in this range are near or slightly above consumer averages and most lenders consider this a good score.
• 740-799: Very Good—scores in this range are above consumer averages and demonostrates that borrower is very dependable.
• 800-850: Excellent—scores in this range are well above consumer averages and indicates a borrower is an exceptionally low risk.

What factors go into calculating credit scores?

Many factors are taken into consideration when calculating your credit score, but some of the most common are:

• Your bill payment history
• How long you’ve had credit
• The types of credit you have (credit cards, auto loans, student loans, mortgages, etc.)
• Your credit limits and how much of those limits you’re using
• How much debt you have
• Hard inquiries on your credit report

But also remember: you actually have more than one credit score. Confusing? We know. Credit scored are calculated using your credit report, and there are a few different models institutions use. However, all the scoring models take into consideration the factors listed above and may include additional factors like work history and income.

How do I know what my credit score is?

• Check your credit card or loan statement—some lenders have started providing credit scores for their customers. It may be on your statement or within your online account.
• Purchase credit scores directly from one of the three major credit bureaus or other providers.
• Use a credit score service or free credit scoring site, such as Credit Karma and others.

In addition to checking your credit scores, it’s a good idea to regularly check your credit report to ensure that the information is accurate and complete. You can get a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus—Equifax, Experian and TransUnion—by visiting www.annualcreditreport.com.

Is your credit score not quite where you want it? You’re not alone. Let’s dive into some tips to improve your credit score.

Is your score in need of a boost?

As much as we wish there was a shortcut here, you can’t raise your score overnight. But there are a few things you can start doing now to make a positive impact in just a few months.

Always pay your bill on time.

Late or missed payments will quickly drag down your credit score. Take advantage of payment reminders or online bill pay through Phoenix Offshore Financial Services to make sure yours are paid on time.

If you are unable to make a payment—because life does happen—contact the lender as soon as possible to discuss your options.

Letting an overdue account go to a collections agency, declaring bankruptcy or foreclosing on your home can damage your score for years to come.

Pay down your credit card balances.

The less you owe, the better your credit score will fare. Try to keep your balance below 30% of your credit limit on each card.

If card utilization is high or rising, it’s probably a sign you’re spending above your means. Reevaluate your mindset by building—and sticking to—a budget. Keeping close track of what you’re spending each month can keep you from overspending.

When you do have those credit cards paid off, don’t automatically close unused or paid-down credit cards, especially if you have had them for a long time. Long credit history can positively affect your score.

Review your credit report for errors.

According to a study by the International Trade Commission, one out of five credit reports has an error. Disputing and removing any incorrect information on your report can raise your credit score automatically.

You can get one free credit report every year from each of the three major credit bureaus—Equifax, Experian and TransUnion. These reports won’t show your actual credit score, but they do give you vital insight into the categories that affect that score. To request your free credit report, go to annualcreditreport.com.
Money management isn’t always easy, but by being smart about handling your credit, you’ll set yourself up for financial success in the future.

Tap into your home’s value!

Your biggest investment can do even more for you.

You’ve probably heard it before: your home is one of the biggest investments you’ll make in your lifetime.

And while homeownership may give you a certain feeling of pride and accomplishment, it may also feel like other financial needs take a back seat to your monthly mortgage payment. The chance to see that big investment pay off just might not come soon enough.

Or will it?

With every monthly mortgage payment, you’re gaining more value—or equity—in your property. In reality, you don’t have to wait until you sell your home to access the value you’ve built—whether you want flexible purchasing power, need to build an emergency fund or cover expenses from a remodel.

HELOC to the rescue.

A Home Equity Line of Credit, or a HELOC, is one way to use the value of your home to get the money you need for larger—or unexpected—expenses. A HELOC is a lot like a credit card: you have a certain credit limit available to you that you can use to make purchases when needed. You pay monthly accrued interest on the outstanding balance and repay principal at a later date.

The biggest difference? A credit card is unsecured debt, whereas a HELOC is backed by an asset with value: your home. Because of this, interest rates are typically much lower than a standard credit card.

How much money can you borrow?

The line of credit available depends on the amount of equity in your property. You may need to get your home appraised to find the answer, but generally you can borrow up to 80% of its value, minus what you owe.

For example: your home is worth $150,000 and you still owe $75,000. So, 80% of the appraised value is $120,000. Subtract the amount you owe—$75,000—and you get $45,000. Your HELOC limit could be up to $45,000.

Of course, there are other factors at play, too: your current debt-to-income ratio may mean a smaller line of credit just to ensure you can pay back what you borrow.

​Is a HELOC a good choice for me?

A HELOC might be a good financial decision for you if you’re looking for a way to borrow money at a low interest rate. From emergency expenses to debt consolidation to home renovations and beyond, borrowing against the equity in your home can get you the funds you need without the burden of a high interest rate.

How can I get started?

The best way to take advantage of a HELOC is to find a banker who will listen to your current financial needs and goals and will help determine the best course of action for you. Remember: your home is your biggest investment, and you need a team who will take care to protect it as much as you do.

Our experienced team would love to help.