6 Ways to Save More Money in the New Year

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Even if saving has never been your thing and money is tight, the coming of a new year is an opportunity to change old financial habits. Here are some ways to become a more efficient saver.

1. Budget

Budgeting helps you organize your finances so you have money left over to save each month. It may seem laborious, but budgeting doesn’t have to be hard. Mobile apps cut a lot of the work and can help you track spending throughout the month.

2. Pay yourself first

Firmly commit to making a savings deposit monthly, even if you can only afford a small amount. Do this before paying your other bills.

3. Automate

If you’re not confident your resolution will stick or you want to simplify the process, automate your savings deposits. That way, a portion of your paycheck will automatically go to your savings account, or an amount you choose will be transferred from your checking to savings account each month. You won’t miss money that was never in your hands in the first place.

4. Make your money work harder

Compound interest is the interest paid on the interest your money earns in an account, and it allows your principal balance to grow faster. To fully benefit from compound interest, consider opening a high-yield savings account or a certificate of deposit that offers higher rates than the average savings account.

5. Plug up cash drains

It’s not always the big expenses that sabotage saving efforts; small expenses can add up and be a huge cash drain. To rein in spending and increase your cash surplus:

-Shop around for the lowest possible rates on utilities, insurance, TV, internet and mobile plans. Also, make sure you get discounts you may be entitled to.
-Check bank account statements for less obvious fees such as those for account maintenance, ATM use or having a low balance. If your accounts come with several fees, it may be time to find a financial institution that    costs less.
-Monitor daily spending and cut back on extras like lunches out, donut runs or fancy coffee.
-Explore free and low-cost entertainment options, including parks, beaches and hiking trails, as well as local concerts, theater and sporting events.

6. Bring in extra bucks

When trimming expenses doesn’t do the trick, the only way to create enough free cash for saving is to increase what’s coming in. You can:

-Sell unwanted items online or at a yard sale.
-Cash in credit or debit card reward points.
-Ask for a raise or for extra hours at work.
-Take on an additional part-time job or turn your hobbies or skills into dollars through tutoring, yard maintenance, dog walking, writing, crafting, musical performance or handyman work.

The benefits of saving kick in very quickly and only get better with time. A solid cushion in the bank protects you during emergencies and provides the means to travel, buy a home, get an advanced degree, or pursue whatever other dreams you may have.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

 

How to Avoid the Busy Holiday Scamming Season

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You're not the only one joyfully anticipating the holiday season. Cyber criminals are all aflutter, too, as they look forward to the killing they'll make ripping off innocent shoppers like you. Here are some of the most common ways these thieves operate, because awareness can help you avoid becoming yet another victim.

Antisocial media

Beware those enticing ads that turn up on Facebook and other social media sites offering vouchers, gift cards and deep discounts, as well as the online surveys these ads often link to. These offers are often only empty promises designed to steal your personal information.

Additionally, if you receive concert, theater or sporting event tickets as a gift, never post pictures of them online. Cyber thieves spend lots of time monitoring social media, just waiting for the opportunity to create phony tickets they can resell from your barcode image. If your ticket is resold, you might just find yourself out of a seat on the night of your event. It's also unwise to post live from an event that gives criminals a heads-up that your home is empty and ripe for picking. Better to wait until the next day to post about the wonderful time you had.

Pandora's inbox

It may be a mystery to you how cyber thieves got your private email address, but it's chillingly clear they're up to no good. Your inbox may fill up with all kinds of legitimate-looking product offers and delivery notices this holiday season, but clicking on links of bogus ones or entering personal information on the linked sites can provide criminals with the opportunity to steal your identity.

Apps are far from immune

With mobile apps available for just about everything, it's a sad sign of the times that certain free mobile apps (often disguised as games) have been specifically designed to steal personal information from your phone. This is a particularly scary development since many people use their phones to secure their cars and homes. For this reason, only install apps from familiar companies and, at the very least, find a third-party review from a trusted site if you're interested in an app from an unfamiliar source.

USB Trojan horses

Lots of people use portable USB drives, which makes it all the more important to avoid those being distributed as giveaways this holiday season unless they're from a trusted source. These innocent-looking devices are often used as a method of introducing malware to computers.

Gifts that keep on giving … to criminals

A spirit of generosity is traditional at holiday time, but if you're not careful, your donations may never make it to the needy. Fake charities that skillfully tug at your heartstrings abound at this time of year, just waiting for you to willingly give your hard-earned cash to scammers. Before donating, be sure to check out charities thoroughly, to make sure that they're not only legitimate, but also that they allocate the bulk of funds toward their causes rather than “administrative costs.”

Tips to avoid holiday scams

These strategies will also help keep you a step ahead of scammers:

-Only shop online with reputable businesses you trust, using secure websites with an address that begins with https.
-Don't shop or bank over public Wi-Fi.
–Protect your credit card privacy by covering your account number with your hand when shopping in public.
-Don't respond to suspicious unsolicited calls or emails. Only open email attachments from senders you trust, and contact businesses only through their official websites, phone numbers or email addresses.
–Monitor your credit to catch fraud at its earliest stages.

Scammers may be smart, but you can still outsmart them. A little foreknowledge and caution go a long way toward ensuring you'll enjoy a safe and memorable holiday season.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

Best Ways to Save at Thanksgiving

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Thanksgiving is a time to gather with loved ones for a satisfying meal and kick off the holiday season. If you pay current prices for your menu items, though, you could blow a chunk of your holiday budget before you even get to the pumpkin pie. Use these tips to keep your Thanksgiving festive and thrifty.

Get a free turkey

The turkey, which cost an average of about $23 in 2015, is easily the most expensive item on a traditional Thanksgiving table — but you can often get one for free. Many supermarkets offer them as loyalty rewards, and even allow shoppers to select the turkey.

If your local supermarket doesn't participate in this type of rewards program, opt for a frozen bird. It can be significantly cheaper, and odds are your guests won't know the difference.

Choose reusable dinnerware

Disposable cutlery, tablecloths and dinnerware simplify holiday cleanup, but the costs really add up, especially if you spring for higher end items. Save money, reduce waste and create a warm, elegant atmosphere by using cloth napkins and tablecloths as well as real flatware, glassware and dishes.

Make your own sides with store brands

Purchasing prepared gravy, stuffing, cranberry sauce and desserts is convenient, but it's also an  unnecessary expense. Making your own sides, condiments and desserts is cheaper and often a lot tastier, too.

When cooking for a large Thanksgiving crowd, avoid brand name ingredients. You should be able to find substitutes that keep costs down without sacrificing flavor.

Simplify the menu

It's tempting to get ambitious and create a Thanksgiving menu with more courses than your guests could possibly eat in a sitting. But to prevent spending your whole holiday budget on the Thanksgiving meal, skip the saffron, truffles and endless appetizers. Instead, plan a simple menu with a few hearty sides and stick with seasonal produce, such as apples, sweet potatoes, pumpkins and Brussels sprouts. These will be much more reasonably priced than imported fruits and vegetables.

Make smart Black Friday shopping decisions

Thanksgiving has also become a time to start shopping for the ensuing holidays. But Black Friday, Cyber Monday and other Thanksgiving weekend sales tend to inspire a shopping frenzy that doesn't always result in the wisest choices. To keep your cool:

    • Make a list — and a budget — to head off impulse buys.
    • Compare prices online before making purchases.
    • Avoid opening multiple store credit cards at once. This can lower your credit scores and make it easier to overspend.
    • Hold off on buying toys, which tend to be cheaper during December's first two weeks.

Making smarter Thanksgiving spending choices keeps dinner and shopping costs under control without putting a damper on family fun. And when the weekend is over, you'll still have enough cash to make your winter holidays sparkle.

Roberta Pescow, NerdWallet

 

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

How Much 20-Somethings Should Save

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Your 20s may seem like an odd time to think of retirement, but it’s actually the perfect moment to start planning for your later years. That’s because the earlier you start saving, the more time your money has to grow.

Savers who begin setting aside 10% of their earnings at 25, for example, could amass significantly more by retirement age than those who wait just five years to start saving. You can use online calculators to see how much starting saving now can produce once you reach retirement.

Building a nest egg on a starter salary and a shoestring budget can seem daunting, though. Focusing on the incremental savings, rather than the goal, can help your savings objectives feel more manageable.

How Much to Save for Retirement

For those earning around $25,000 a year, the median income for 20 to 24 year olds in 2015, saving the recommended sum of 10% amounts to a little more than $200 a month.

It may seem like a reach, but consider this: If you start saving $100 a month at age 25 and invest it to return 7.7% a year — the average total return of the Standard & Poor’s 500 Index of U.S. stocks over the past decade — you’ll have more than $378,000 available at retirement age. And it could be tax-free.

If you wait until you’re 30 to start and save the same monthly amount at the same rate of return, you’ll wind up with less than $253,000.

Several vehicles can help you build a retirement fund. A 401(k) contributory plan, typically offered by your employer, is often the most convenient and easily accessible of these. Contributions you make usually aren’t taxed, which helps reduce your income tax liability.

  • Pre-tax 401(k) accounts make up around 80% of retirement plans offered by employers, according to the American Benefits Council. Roth 401(k) accounts are another option, though these are less widely available, and money contributed to a Roth 401(k) account goes in after it’s taxed. Money withdrawn from this type of account — including earnings — is usually tax-free.
  • Companies that offer a 401(k) plan often match employee contributions, up to a certain percentage. This is essentially free money toward your retirement.
  • If your employer will match your contributions, try to take full advantage and commit a large enough percentage to get the full benefit.
  • Beyond a 401(k), individual retirement accounts, commonly referred to as IRAs, offer another solid option. There are two types: traditional and Roth.
  • Money put into a traditional account is tax-deferred, similar to funds put in a traditional 401(k) plan. That means those funds aren’t taxed until they’re taken out. But typically any earnings you make with the money are also subject to income taxes on withdrawal.
  • Money put into a Roth IRA has already been taxed when you earn it, so there’s no immediate tax benefit. When it’s time to withdraw the cash, however, you usually don’t pay taxes on it. And anything the money earns also can be taken out tax-free.
  • Contributions to both types of IRAs are currently capped at $5,500 a year for those under age 50, and $6,500 for older workers.

How Much to Save for Emergencies

In addition to retirement, it’s also wise to save for a rainy day. Ideally, your emergency fund should be enough to cover three to six months of living expenses.

Some experts suggest setting aside even more for savings and investments: 20%. That’s roughly $415 a month on an annual income of $25,000.

That’s not always feasible, especially if a big chunk of your monthly income goes to student loan and credit card payments. Consider saving what you can, even if it’s just $10 a month.

Making a habit of saving now could serve you well down the road. And, as your income increases, the percentage you save can as well.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

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8 Tips to Protect Your Identity

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Protect Your Identity
Identity theft continues to be one of the fastest growing crimes in the United States. In 2014, there were 12.7 million victims of identity fraud in the U.S., according to Javelin Strategy and Research. F&M Bank recommends following these tips to keep your information – and your money – safe.

Identity theft continues to be one of the fastest growing crimes in the United States. In 2014, there were 12.7 million victims of identity fraud in the U.S., according to Javelin Strategy and Research. F&M Bank recommends following these tips to keep your information – and your money – safe.

1. Don’t share your secrets.

Don’t provide your Social Security number or account information to anyone who contacts you online or over the phone. Protect your PINs and passwords and do not share them with anyone. Use a combination of letters and numbers for your passwords and change them periodically. Do not reveal sensitive or personal information on social networking sites.

2. Shred sensitive papers.

Shred receipts, banks statements and unused credit card offers before throwing them away.

3. Keep an eye out for missing mail.

Fraudsters look for monthly bank or credit card statements or other mail containing your financial information. Consider enrolling in online banking to reduce the likelihood of paper statements being stolen. Also, don’t mail bills from your own mailbox with the flag up.

4. Use online banking to protect yourself.

Monitor your financial accounts regularly for fraudulent transactions. Sign up for text or email alerts from your bank for certain types of transactions, such as online purchases or transactions of more than $500.

5. Monitor your credit report.

Order a free copy of your credit report every four months from one of the three credit reporting agencies at annualcreditreport.com.

6. Protect your computer.

Make sure the virus protection software on your computer is active and up to date. When conducting business online, make sure your browser’s padlock or key icon is active. Also look for an “s” after the “http” to be sure the website is secure.

7. Protect your mobile device.

Use the passcode lock on your smartphone and other devices. This will make it more difficult for thieves to access your information if your device is lost or stolen. Before you donate, sell or trade your mobile device, be sure to wipe it using specialized software or using the manufacturer’s recommended technique. Some software allows you to wipe your device remotely if it is lost or stolen. Use caution when downloading apps, as they may contain malware and avoid opening links and attachments – especially for senders you don’t know.

8. Report any suspected fraud to your bank immediately.

 

5 Ways to Protect Your Small Business from Account Fraud

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Protect Your Small Business from Account Fraud
Corporate account takeover is a type of fraud where thieves gain access to a business’ finances to make unauthorized transactions, including transferring funds from the company, creating and adding new fake employees to payroll, and stealing sensitive customer information that may not be recoverable. F&M Bank recommends following these tips to keep your small business safe.

Corporate account takeover is a type of fraud where thieves gain access to a business’ finances to make unauthorized transactions, including transferring funds from the company, creating and adding new fake employees to payroll, and stealing sensitive customer information that may not be recoverable. F&M Bank recommends following these tips to keep your small business safe.

1.    Educate your employees. You and your employees are the first line of defense against corporate account takeover. A strong security program paired with employee education about the warning signs, safe practices, and responses to a suspected takeover are essential to protecting your company and customers.

2.    Protect your online environment. It is important to protect your cyber environment just as you would your cash and physical location. Do not use unprotected internet connections. Encrypt sensitive data and keep updated virus protections on your computer. Use complex passwords and change them periodically.

3.    Partner with your bank to prevent unauthorized transactions. Talk to your banker about programs that safeguard you from unauthorized transactions. Positive Pay and other services offer call backs, device authentication, multi-person approval processes and batch limits help protect you from fraud.

4.    Pay attention to suspicious activity and react quickly. Look out for unexplained account or network activity, pop ups, and suspicious emails. If detected, immediately contact your financial institution, stop all online activity and remove any systems that may have been compromised. Keep records of what happened.

5.    Understand your responsibilities and liabilities. The account agreement with your bank will detail what commercially reasonable security measures are required in your business. It is critical that you understand and implement the security safeguards in the agreement. If you don’t, you could be liable for losses resulting from a takeover. Talk to your banker if you have any questions about your responsibilities.

For additional information, give us a call or email us; we will be happy to help. You can also visit the following websites to learn more about how to protect your small business:

•    U.S. Chamber of Commerce: Internet Security Essentials for Business
•    Federal Communications Commission: 10 Cybersecurity Strategies for Small Business
•    Better Business Bureau: Data Security Made Simpler 
•    NACHA – The Electronic Payments Association Corporate Account Takeover Resource Center

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7 Ways to Spread Holiday Cheer Without Stretching Your Savings

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The American Bankers’ Association (ABA) offers consumer spending tips for the holiday season

December 11, 2014

The American Bankers’ Association (ABA) offers consumer spending tips for the holiday season

With consumer sentiment the highest it’s been since the recession, shoppers are expected to open their wallets a bit wider this year. Will holiday spending leave shoppers in the red?   Not if they plan wisely and use some common sense tips from the American Bankers Association.

“This is the most festive time of year, but consumers don’t have to end up with a holiday hangover when the bills arrive,” said Gov. Frank Keating, CEO of the American Bankers Association. “Simple planning can make the season more care-free and enjoyable when you know you’re in control of your budget.”

To help consumers spend within their means and enjoy a financially happy New Year, the American Bankers Association offers the following tips:

  • Develop a budget. Before you start shopping, develop a realistic budget. Consider your income, subtract your normal monthly expenses, and then add any savings to whatever cash is left over. If you need to use your credit card, think about what you can afford to pay back in January.  Don’t forget costs beyond gifts, like postage, gift wrap, decorations, greeting cards, food, travel and charitable contributions.
  • Make a list and check it twice. Keep your gift list limited to family and close friends, noting how much you want to spend on each.
  • Spend carefully. Avoid shopping while rushed or under pressure, which can lead to overspending.  Make sure to comparison shop online first, or download an “app” that lets you compare prices before you buy anything in a store.  Before you head to the cashier (or online “checkout”), make sure your purchase is within the budget you set.
  • Avoid traps. Finding a spectacular sale on something you’ve been wanting can easily throw you off course.  Stay strong and stick to your budget.  And don’t apply for store credit cards you don’t need just to get a one-time discount.
  • Use credit wisely. Limit the use of credit for holiday spending.  If you must use credit, use only one card, preferably the one with the lowest interest rate, and leave the rest at home.  Pick a date when you can pay off your holiday credit card bills, and commit to paying off the balance by that time.  Be sure to check statements for unauthorized charges and report them immediately.
  • Save your receipts. Not only will you need them for possible returns, you’ll need them to keep track of what you’ve spent and to compare with your credit card statement.  Knowing how much you spent will help you plan for next year, too.
  • Be creative. Consider simple, hand-made gifts instead of store-bought ones.  Send greeting cards or handwritten notes of appreciation for those outside of your list.  Home-baked goods, simple crafts or hand-made gift certificates for your time or talents are often less expensive and more appreciated that what you would buy at a mall or big-box store.

Banks are committed to helping consumers responsibly handle credit and save for the future.  Many offer savings plans such as F&M Bank’s Christmas Club that let you set aside money throughout the year for your holiday spending.  If you don’t have one already, make it a New Year’s resolution to open a savings account for next year!

The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $14 trillion banking industry and its two million employees.  Learn more at aba.com.