Are you doing all you can to assure that your finances are in order? Do you need some help learning tips on safe money-handling to rest assured, knowing you’re financially in the right spot? Well, most of us need a little help in that area, so we talked to local finance experts and they’ve agreed to share some knowledge. Use their smarts and a little bit of your own to get your money lined up so you can breathe easy and spend wisely.
Simple money management technique can help you track every dollar
WORDS: SAWYER HOFFThrough TikTok and YouTube, the Cash Envelope Money system created by radio host and financial guru Dave Ramsey has become increasingly popular over the last year or so. After discovering it on YouTube, I decided to give it a try, and it helped me save $300 in three months.
Credit and debit cards make spending money very easy. The enve lope method involves using a limited amount of cash, so you have to be more restrained in your spending. The method works by assigning every dollar in your paycheck to a certain category.
The first thing to do is list all of your monthly bills and how much they cost (if you get paid biweekly you’d split the bill in half since you get roughly two paychecks a month). Once you’ve made the list and added up the total, you subtract it from your whole paycheck. Since it’s
likely that most (if not all) of these bills are paid online, you don’t need to take out any cash for them.
Next, you’ll want to decide on what your budget categories are for and how much you’ll need in each. This is stuff you’ll need to pay for every pay period such as groceries, gas, etc. Each of these categories will get an envelope, and you’ll put your chosen amount of cash in each envelope. You then can carry these envelopes with you! These cash to tals should last you until your next payday and should stay relatively consistent each time you budget. Once those cash totals are added up, subtract that amount from what was left of your paycheck after you’ve paid your bills.
Lastly, the rest of your paycheck will go into your sinking funds.
These are things that are savings goals or stuff you pay for occa sionally, whether that’s saving for vacation, buying beauty products, setting aside fun money, or saving for medical expenses or an emer gency. Based on what you’re doing between paychecks, the amount each envelope can vary and can change from paycheck to paycheck. Take out that amount in cash and divvy it up in envelopes. This way you know what each dollar is for and you prevent yourself from using it for other things.
Sometimes we’re in a bind and have to pay for things with our credit or debit card, even if there is a corresponding cash envelope for it. For this, I like to have a $100 to $200 buffer in my bank account. If I don’t end up using all of the cash from each envelope, I’ll just take that cash out and either save it for the next budgeting period or put it back into the bank.
Sticking with this method over time can be super helpful in saving for future expenses and managing your budget. It is also really nice to see your savings grow physically and know that every single dollar in your paycheck has its own purpose.
Staying financially fit is just as important as eating right and exercising! Being aware of your finances and planning for what happens next is an important step in creating a future for yourself that is fun, fit, and fabulous! From building your savings to creating goals for the future, here are some easy ways to set yourself up for financial success.
When your paycheck is deposited into your checking account, it’s easy to focus on the imme diate future: paying bills, buying groceries, or going to the movies on Friday night. But before any of that happens, it’s important to pay your future self first by setting money aside in sav ings.
By paying yourself and your savings first, you are planning for the future and building a safety net. Savings are important for making future goals possible, like buying a car or a house, or taking a vacation. You can even create multiple savings accounts for different goals, and track your saving progress using tools like online banking or a mobile app. Having money set aside in savings can also make it easier to deal with unexpected expenses, like an urgent car repair or a surprise medical bill. You can even have part of your paycheck automatically deposited into your different savings accounts, making it easy to pay yourself first.
If you’re thinking about opening a new cred it card, buying a house, purchasing a vehicle, or opening a personal or business checking or sav
ings account, it’s important to look for the best interest rate. Finding a lower rate on a loan can save you from paying unnecessary interest and lower your monthly payments. A higher inter est rate on savings and checking accounts also means your money earns more in interest.
Watching the interest rate is especially important when opening a new credit card. Store charge cards and even mainstream rewards credit cards can come with a high interest rate, and some have costly annual fees. A local financial institution like a credit union may offer a credit card with a lower interest rates and few or no fees that can help save you money over time. Be sure to read the fine print whenever opening a new account or taking on a new loan so you understand if the rate could change over time.
Credit scores help lenders determine your interest rate when purchasing a home or vehi cle. Your credit score may also be reviewed when you apply for rental housing or certain job positions. Knowing your credit score can help you make accurate loan payment estimates. You’ll also be able to take measures to keep your score healthy. Many financial institutions, including credit unions, banks, and credit card companies, share your credit score with you for free as part of their online banking service. You’re also able to request a copy of your credit score from each of the three credit reporting agencies (Experian, TransUnion, and Equifax) up to once a week for free through the end of 2022 without it impacting your credit.
When you imagine yourself in the future, do you know how your financials will factor in? Creating focused and achievable goals can help make your ambitions a reality. Taking a look at your different expenses for the month is a great place to start identifying goals. Determine what you’re spending your money on, decide whether it contributes to your future goals, and adjust your spending from there.
When setting goals, making them realis tic is the key to success. If you know that you spend $200 on restaurants and fast food each month, setting a goal of spending only $50 may make it difficult to stick to your budget. Start small and be sure to celebrate even the little wins!
A key part of staying financially fit is simply being aware of your transactions and balances. By looking over your monthly state ments, you’ll be able to see your spending for the month, verify charges, and watch any loan balances go down as payments are made. Staying on top of your monthly charges also reminds you of recurring costs, such as stream ing services or subscriptions, that you may no longer need. By cancelling unnecessary subscriptions, you can save money and work toward reaching your goals even faster.
Try picking a couple of the suggestions above to start next month and work your way up to incorporating all five into your life. Before you know it, you’ll be feeling financially fit and ready for success!
Looking for more tips and tricks to help you along the way? Visit rcu.org/FinEd.
It’s no secret that Social Securi ty benefits are drying up. Experts project that the fund’s reserves will run out by 2034. It’s looking grim for those of us born after 1980.
But there’s good news! We can play an active role in saving for our retirement—and a comfortable re tirement at that. However, we must start now. One of the simplest ways to do this is to set aside whatever we can when we can. For $5 and just 5 minutes of your time, you can start saving for retirement from the com fort of your phone with one or all of these apps.
Disclaimer: I use an iPhone. I am not a li censed financial planner. I am not affiliated with any of the companies that develop these apps. Yes, I actually use all three. And, these opinions are my own and based on personal experience.
At the very top of my list is Acorns. Its retirement ac count has most of the bells and whistles that Digit and Stash have, but it feels easier (and more pleasant) to use. Maybe it’s the bright green theme. Or perhaps it’s the Milestones sec tion that celebrates even the small est achievement on your financial journey. Either way, you can begin investing through Acorns Later with just $5 and a monthly fee of $3.
I think Stash is better than Digit because it allows you to choose the
companies and ETFs you want to invest in. You can invest in fractional shares of stocks and funds with as little as one penny! Some of my go-to stocks and ETFs include Starbucks, Amazon, and Up & Com ing. But if doing this doesn’t sound like your cup of tea, Stash will in vest for you with a Smart Portfolio.
While it is free to download and only $5 to open a retirement portfo lio, you will pay a monthly fee of $3 or $9 depending on your financial goals. But there’s a bonus! Stash helps you grow your knowledge quickly right in the app with market news and educational articles.
Of these three apps, Digit feels the most official and the least fun. But it’s quite smart! Digit learns your spending habits, bills, and goals to calculate how much you should invest and creates a balanced portfolio of exchange-traded funds (ETFs) based on your risk level. Then, it does the investing for you each month. Your first investment happens 30 days after you set up your account and then on the same date every month after that. Make sure to plan ahead, though! After the end of your 30-day free trial, a Digit membership is $5 a month.
Used cars are in high demand, and scammers know it. Con artists are taking advantage of shoppers who turn to online platforms in search of a reasonably priced used vehicle. Be wary of this latest twist and too-good-to-be-true prices.
You are shopping for a used vehicle on Craigslist, Facebook Marketplace, eBay, or another online platform. You find the make and model you want at an excellent price. Amazing!
However, when you contact the seller, you find out that the vehicle is in another city. Fortunately, the seller knows a transport company that can deliver it to you. All you need to do is pay the transport company, which will hold the funds in escrow until the vehicle is de livered. Many scammers will add a sad story meant to tug on your heartstrings. For example, they may claim the car belonged to a relative who has passed away.
In one example recent report, the scammer claimed to be selling a car on behalf of their aunt, who inherited it from her recently de ceased father. “The ‘Auntie’ claimed she was a nurse and worked shifts, and that my daughter’s original email had fallen into her junk folder. The ‘Auntie’ had moved to another province thousands of miles from us. But if my daughter wanted to purchase the car for the stated price (which was well under the going price for a vehicle of this type, year and mileage), the Auntie had a contract with an automotive
Once you’ve paid the third-party company, usually by a wire transfer or prepaid debit card, your vehicle won’t be delivered. The sale was a scam, and the con artist was in cahoots with the third-party trans port company. Unfortunately, your money is gone for good.
• Watch out for prices that are too good to be true. It’s probably a scam. Scammers know that used cars are in high demand, and they will tempt shoppers with great deals.
• Contact the seller by phone. As early as possible, speak to the seller on the phone and ask plenty of questions. If you get very vague answers, if the seller gets defensive or aggressive, or if they can’t con firm their location or the location of the vehicle, you’re probably dealing with a scammer.
• See the car before you buy it. Always make an in-person inspection and take a test drive before you purchase a vehicle.
Don’t give in to threats or pres sure. Resist the urge to act immedi ately. Always take time to consider a purchase, especially if it’s a vehicle that costs thousands of dollars.
• Don’t wire funds for a car. Scammers often ask for wired funds because they are hard to track, and there’s no way to get your money back. It’s best to make large purchases by check or credit card.
For more consumer tips, visit the Better Business Bureau at bbb.org.
We asked Jerry Kuehl, Senior Vice President of Sales and Marketing of Northwestern Bank, what to look for when choosing a bank for your business, Here’s what he said
o you’re starting your own business –congrats! – but where do you start? Most importantly, what place are you going to choose to keep your hard-earned money safe? There is a lot to consider when choosing a bank for your business. First are the questions about their standard banking services, like the types of accounts, fees, etc. Then there are the questions about the bank itself that help you decide if this is the right bank for your business long-term. Jerry Kuehl, Senior Vice President of Sales and Marketing of Northwestern Bank, shared insights into ques tions business owners may have about opening a business account –beyond the standard services.
It’s best to open a business account before you start accepting or spending money as a busi ness. This will make your tax process easier. Common business accounts include checking and savings with online banking access. Many people wonder if they need accounts for their side hus tle. It’s a good idea to open a business banking account for your side hustle as any income over $600 is considered taxable. Good record keeping is key to avoiding penalties and fines and using a business checking account can help you meet that goal.
There are many places to start and you can Google questions to ask. I’d consider a local community bank since they are small business specialists, know the community well, and can help connect with local resources and expertise.
However, make sure that the bank’s location and hours work for your business needs. Then ask other entrepreneurs you know and trust who they bank with and if they are having a positive expe rience.
This will vary depending on your business needs. However, make sure you ask questions beyond what banking services are available. What sets their bank apart from others? This is a long-term relationship that is important to your business’s success. It is important to know your bank’s customer service process. Ask questions about the bank’s communication style and who on the lending or cash management team you have direct access to when questions arise. Another point to consider is do the bank’s values match your business values. If you focus on community involvement ask what your bank does to enhance your community as well.
NB is a local, community bank that started in the Chippewa Valley. We have over a 100-year history of helping local businesses with their banking needs. We still make all our decisions on
loans, lines of credit, and other banking services right here in the Chippewa Valley. This means that decisions can be made more quickly than at larger banks where financial proposals are sent to regional hubs for approval. Also, your business banker has the opportunity to advocate directly with decision-makers for your banking needs.
Our team members are passionate about helping entrepreneurs start on the right foot. We will sit down with each business and learn about their vision, goals, and any challenges they are facing. We are there to answer questions, give banking solution recommendations, and share best cash management practices. Banking is a partnership and we want to see the businesses we work with succeed. It’s not only good for them but for our community to have thriving busi nesses and job opportunities. If you’re not sure where to start we will meet with you to go over your plan, listen to your questions, and give you feedback on how to make the most of available financial options.
To learn more about Northwestern Bank, go to northwesternbank.com.
With nine locations from Phillips to Baraboo, Prevail Bank marks our slice of Wisconsin as its own and does so with genuine pride right here in the Valley. Prevail’s Eau Claire location pro vides that small-town feel: Knowing the names of those who walk through its doors and its employees being familiar faces in town.
Take it from Ryan Ludy, Assistant Vice President and Mortgage Loan Originator at the Eau Claire Prevail, a member of the Valley’s Big Brother Big Sister organization and the Chippewa Valley Homebuilders Association, who recently earned a spot on the United Way of the Greater Chippewa Valley board. For him, Prevail Bank hits all the things a true smalltown bank should, but on a larger scale, better serving our community.
One of Prevail’s customers described the bank as “not your cookie-cutter bank,” and Ludy said that statement hits the nail right on the head.
“We really aren’t your cookie-cutter bank, that holds true,” Ludy said. “We can go that extra mile for first-timers since most of our work is done in-house. We started out as the lit tle guy, and we’re still that smaller bank in a big city, working extra hard.”
Being a true Wisconsin bank, Prevail focuses on building one-on-one, genuine rela tionships, and it has done them well. “It’s very
roof together at Prevail, that knowledge has been grounded in serving the business owner, your neighbor, the first-time homeowner, and every other financial customer under its finan cial umbrella.
“I think Prevail Bank stands out in many ways. Our commitment to the community not only through our giving but empowering team
With one-on-one advising and give-back fundraisers in the Valley community, Prevail strives to solidify that personalized experience, especially when tackling financials can seem intimidating to some. “Don’t get me wrong, (Prevail is) that little guy battling to get to the next level, but it’s that type of thing that we do well,” Ludy said. “We’re proud to give back and invest into the Valley as much as we can, as a business and as individuals.”
important to us to hold to our roots,” Ludy said.
Prevail Bank’s 2019 formation came to fruition with the River Cities Bank and Time Federal Savings Bank merger, the two holding more than 100 years of combined commercial loan, business banking, and creative mortgage solutions knowledge. Now sitting under one
members to get involved in organizations they are passionate about,” Commercial Lender Nick White stated. “Prevail Bank is committed to being creative and flexible as well as having local decision making on not only loans and accounts but how we support the organizations in our community.”
Prevail Bank is currently remodeling its Eau Claire branch, which has been in the works since May. The estimated completion is this fall. Remodeling will allow Prevail Bank to better serve its growing clientele, as well as its employees and the community. Swing by Eau Claire’s full-service, community-first Prevail Bank at 2225 Fairfax St. Get to know Prevail: They will help you pursue what’s possible.
Visit Prevail Bank’s website (www.prevail. bank) to get more details about the Eau Claire location and what services they can offer
enjoy my business. I love my farm and my home. I have a few close friends, and money has never been my God.”
Ted Jones, the son of Edward Jones’ found er, said this when he decided not to bring the firm public, which would have made him the richest man in America. This quote is one of the many reasons financial advisor Kelsey Nicolai is sure she joined the right firm with Edward Jones Investments. Their vision aligns exactly with how Kelsey wants to do business.
“My goal in life isn’t to make the most money, my passion and drive have always been in the business of serving people,” Nicolai said. “Edward Jones gives me an avenue to be able to do that in the most meaningful way. The most important thing to me is to be able to serve my community, and to make sure families have their financial house in order.”
Originally from Fall Creek, Wisconsin, Nicolai watched her mother work in the finan cial industry for over 25 and never thought she
“When I get to serve people in the most important and vulnerable times in their life it shows me truly how important my career is,” Nicolai said. “The impact that my career has on my clients’ families is something that I real ly cherish. My job as a financial advisor is so much more than I thought it would be.”
Nicolai enjoys working with people plan ning for retirement, estate considerations, or any specific goals they may have. She is ada mant that it is always a good time to look at your finances, whether you are in college, start ing a family, or planning for retirement.
She also recently completed her Accredited Asset Management (AAMS) designation which
provide more education to others I will take the steps to do so because I believe it’s extremely important in my career.”
Edward Jones has 49,000 Financial Advisors, 7 million clients, and manages 1.6 trillion dol lars in assets under care. In order to have a complete human-centered wealth management team they have an investment policy committee, equity research analysts, economic and market professionals (with frequent appearances on Fox Business, Bloomberg, and CNBC along with Barron’s and The Wall Street Journal), portfolio managers, and insurance, tax, and legal special ists.
would end up in the industry until she heard of a potential career opportunity in Chippewa Falls.
Since working as a financial advisor in Chippewa Falls, she has worked with many dif ferent families in the area of estate planning, retirement planning, brokerage accounts, solu tions for business owners, LTC and life insur ance, custodial and 529 plans, cash and credit, donor advised funds, and much more.
is a course that studies investments and insur ance, as well as tax, retirement, and estate con siderations. Nicolai is committed to continuing her education because the industry is always changing, and clients’ needs are complex.
“I’m always looking for the next way to educate myself and others,” Nicolai said. “Like completing my AAMS, hosting frequent sem inars, coffee clubs, and webinars. If there’s anything I can do to further my knowledge and
When looking for a Financial Advisor Nicolai said the number one thing is to make sure to find someone you can trust and someone you know is going to put in the work for you. You are going to be partnering with this person for many years to come and they will likely be working with your children as well. Picking someone to manage your financial affairs is a big and emotional decision, if you need an advi sor or possibly looking around for a new advisor Nicolai said she is happy to meet with you to show you how she can set herself apart from the other advisors in the area.
To schedule an introductory meeting with Kelsey Nicolai you can contact her Branch Office Administrator Jolene Fuglsang at (715) 723-8588 or Jolene.Fuglsang@edwardjones.com.
