Refinancing your mortgage can be a tempting option for homeowners looking to lower their monthly payments or take advantage of lower interest rates. However, like any financial decision, there are pros and cons to consider before making the leap.

One of the biggest advantages of refinancing your mortgage is the potential to save money. If you can secure a lower interest rate than what you currently have, you could significantly reduce your monthly mortgage payments. This can free up extra cash that can be used for other expenses or savings. Additionally, refinancing can also allow you to switch from an adjustable-rate mortgage to a fixed-rate mortgage, providing stability and predictability in your monthly payments.

Another benefit of refinancing is the opportunity to tap into your home’s equity. If you’ve built up equity over time, refinancing can allow you to access that money for home improvements, debt consolidation, or other financial needs. This can be especially useful if you have high-interest debt that you want to consolidate into a lower-interest mortgage.

On the flip side, there are also some drawbacks to consider when refinancing your mortgage. One of the main cons is the cost associated with refinancing. Closing costs, appraisal fees, and other expenses can add up, making refinancing a costly endeavor. It’s important to carefully calculate whether the potential savings outweigh the upfront costs.

Another potential downside is the extended loan term that often comes with refinancing. While this can lower your monthly payments, it also means that you’ll be paying off your mortgage for a longer period of time. This can result in paying more interest over the life of the loan, even if you secure a lower interest rate.

Lastly, refinancing may not be an option for everyone. Lenders typically require a certain credit score and income level to qualify for refinancing. If your financial situation has changed since you initially obtained your mortgage, you may not meet the necessary criteria to refinance.

To summarize, refinancing your mortgage can offer significant benefits such as lower monthly payments, access to home equity, and financial flexibility. However, it’s important to carefully weigh the potential savings against the upfront costs and extended loan terms. Additionally, not everyone may qualify for refinancing, so it’s crucial to assess your financial situation and consult with a mortgage professional before making a decision.

Sources:

Campisi, N. (2022, June 24). Should I refinance my mortgage?. Forbes. https://www.forbes.com/advisor/mortgages/refinance/when-should-you-refinance-a-home/

Brown, J. (2021, June 8). Scanning…… Fox Business. https://www.foxbusiness.com/money/why-refinance-your-mortgage-pros-and-cons

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender, NMLS #798151 and Member FDIC.

In today’s digital age, technology has become an integral part of our lives, revolutionizing the way we work, communicate and even manage our finances. From mobile banking apps to budgeting tools and investment platforms, technology offers a plethora of opportunities to enhance our financial well-being.

Embrace Mobile Banking

Gone are the days of standing in long queues at the bank. RCB Bank mobile banking has made it incredibly convenient to manage your finances on the go. With just a few taps on your smartphone, you can check your account balance, transfer funds (RCB Bank’s OneWayPay, Bank to Bank Transfers), pay bills and even deposit checks. It not only saves time but also allows you to keep a close eye on your transactions, ensuring better financial control and security.

Harness the Power of Budgeting Apps

Budgeting is a crucial aspect of financial fitness and technology has made it easier than ever. Along with RCB Bank’s myCardswap, and other numerous budgeting apps, such as Mint and YNAB (You Need a Budget), are available to help you track your expenses, set savings goals, and monitor your progress. These apps provide visual representations of your spending habits, offer personalized insights, and send alerts to help you stay within your budget. By using these tools, you can make smarter financial decisions and achieve your financial goals faster.

Automate Your Savings

Saving money consistently can be challenging, especially when it requires manual effort. However, technology has introduced automated savings tools that make the process effortless. Automatic transfers to savings with RCB Bank’s myClickSwitch as well as apps such as Mint and YNAB analyze your spending patterns. By leveraging this technology, you can effortlessly build an emergency fund, build investment and save for long-term goals without even realizing it.

Explore Investment Platforms

Investing was once considered a complex and intimidating task, but technology has democratized the investment landscape. Online investment platforms offer easy access to various investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). With user-friendly interfaces, educational resources, and automated portfolio management, these platforms have made investing more accessible and transparent, empowering individuals to grow their wealth.

Leverage Online Marketplaces

If you have unused items lying around, technology has made it effortless to declutter and make some extra money. Online marketplaces such as eBay, Amazon, and Facebook Marketplace provide platforms for selling used goods. You can easily create listings, reach a wide audience, and receive payments securely. By selling items you no longer need, you not only declutter your living space but also generate additional income.

Utilize Comparison Websites

Whether you’re looking for insurance or credit cards technology has simplified the process of comparing various financial products and services.

In an era defined by technological advancements, it is crucial to embrace the tools and platforms available to enhance our financial fitness. By leveraging mobile banking, budgeting apps, automated savings tools, investment platforms, online marketplaces and comparison websites, we can optimize our financial management, save time, increase our savings and make smarter financial decisions. However, it’s important to remember that while technology can be a powerful ally in achieving financial fitness, it should be used responsibly. Stay vigilant about online security, keep your personal information secure, always research and verify the credibility of the apps and platforms you choose to use.

Dive in and harness the power of technology to gain better control over your finances. By doing so, you’ll be well on your way to achieving your financial goals and securing a brighter future.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

FinanceBuzz. (2023, May 4). Best budgeting apps [2023]. FinanceBuzz. https://financebuzz.com/budgeting-apps

Sabatier, G. (2023, January 2). Ynab vs. Mint: Which budgeting app should you use?. Millennial Money. https://millennialmoney.com/ynab-vs-mint/

Scheithe, E. (2020, May 5). Online and mobile banking tips for Beginners. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/about-us/blog/online-mobile-banking-tips-beginners/

Tepper, T. (2023, July 5). 5 best investment apps of July 2023. Forbes. https://www.forbes.com/advisor/investing/best-investment-apps/

In the journey toward financial fitness, it’s important to recognize that everyone makes mistakes. We’ve all had our share of financial ups and downs, and dwelling on past financial problems can hinder our progress. The key to achieving true financial well-being lies in embracing a ‘forgive and forget’ mindset. By learning from our past mistakes and letting go of any lingering guilt or regret, we open the door to a brighter future. In this article, we explore the transformative power of ‘forgive and forget’ when it comes to our personal finances.

Embrace Forgiveness

Forgiving yourself for past financial missteps is crucial for your mental and emotional well-being. Self-sabotaging thoughts about your financial past will prevent you from moving forward. Accept that mistakes happen and understand that they are opportunities for growth. Embrace the mindset that forgiveness is not about excusing your actions but about releasing yourself from the burdens of guilt and shame.

Remember that you are not alone in experiencing financial challenges. Many successful individuals have faced similar struggles and managed to bounce back. Oprah Winfrey, one of the world’s most influential women, encountered numerous financial setbacks in her early career but persevered and achieved remarkable success. Learn from these stories and realize that forgiveness paves the way for a fresh start.

Learn from Your Mistakes

While it’s important to forgive, learning from your past financial mistakes is equally crucial. Take the time to reflect on what went wrong and identify the factors that contributed to your financial difficulties. By understanding the root causes, you can develop strategies to avoid repeating those same mistakes in the future.

Consider seeking financial education and guidance to enhance your knowledge and skills. Learn about budgeting, investing and other essential financial concepts. The more you educate yourself, the better equipped you’ll be to make informed decisions and mitigate future financial risks.

Letting Go of Regret

Forgiving yourself also means letting go of regret. Regretting past financial decisions only consumes your energy and prevents you from moving forward. Instead, focus on the present moment and the steps you can take to improve your financial situation. Create a realistic plan to address your current financial goals and commit to it with determination and discipline.

Developing a positive mindset is essential in your financial journey. Surround yourself with supportive individuals who believe in your ability to achieve financial success. Engage in activities that bring you joy and reinforce your sense of self-worth. By cultivating a positive outlook, you’ll be better equipped to face future challenges and make sound financial choices.

Create a Fresh Financial Narrative

Forgiveness and forgetting your past financial problems allow you to create a fresh narrative for yourself. Rather than defining yourself by past mistakes, focus on the future and the potential for growth and success. Visualize your desired financial future, set clear goals and take actionable steps to achieve them.

Remember that building financial fitness takes time. Stay committed and celebrate each small victory along the way. By cultivating resilience and determination, you’ll be well on your way to financial well-being.

In the quest for financial fitness, forgiving yourself and forgetting your past financial problems are essential steps toward creating a brighter future. Embrace forgiveness, learn from your mistakes and let go of regret. By doing so, you will develop a positive mindset and create a new narrative that focuses on growth, resilience and success. Remember, your past does not define you. Your ability to forgive and move forward will shape your financial well-being and lead you toward a prosperous future.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

Hanke, S. (2018, August 14). Council post: Three steps to overcoming resistance. Forbes. https://www.forbes.com/sites/forbescoachescouncil/2018/08/14/three-steps-to-overcoming-resistance/?sh=3b729b535eae

McIntosh, D. (2020, July 8). Oprah’s financial advice for building a fortune | moneywise. https://moneywise.com/managing-money/how-to-earn-money/what-oprah-can-teach-you-about-money

Marter, J. (2022, September 5). 5 strategies to overcome financial self-sabotage. Psychology Today. https://www.psychologytoday.com/us/blog/mental-wealth/202209/5-strategies-overcome-financial-self-sabotage

Osmond, S. (2017, October 26). The secret of the setback. LinkedIn. https://www.linkedin.com/pulse/secret-setback-sophia-osmond-1

Elder financial abuse is a growing concern that affects our society’s most vulnerable members. These crimes can devastate older adults’ financial well-being and emotional stability, leading to long-lasting consequences. While elder financial abuse is a year-round issue, recent data and trends indicate a concerning surge in incidents during the month of June.

Understanding Elder Financial Abuse

Elder financial abuse involves the unauthorized or illegal use of an elderly person’s funds, assets, or property. This form of abuse can take various forms, such as scams, identity theft, coercion or even misappropriation of funds by trusted individuals, including family members or caregivers. The toughest financial abuse happens within families and can be an alarming distressing situation. In such cases, family members, who are expected to provide care and support, instead exploit their position of trust to manipulate and control the elderly person’s finances for their own gain. It often goes unnoticed and unreported, as family members and the victim may feel ashamed, embarrassed or fearful of retaliation.

The Surge in June

While elder financial abuse occurs throughout the year, studies have revealed a notable increase in incidents during the month of June. Several factors contribute to this concerning trend:

1. Loneliness and Isolation: Many older adults experience increased feelings of loneliness during June, particularly if they have limited social connections or have lost loved ones. Scammers and abusers prey on these vulnerabilities, seeking to exploit the emotional state of isolated seniors.
2. Seasonal Scams: The arrival of summer, particularly the month of June, brings with it a surge in seasonal scams targeting seniors. These scams may involve fraudulent vacation offers, home improvement scams or even fraudulent charities soliciting donations.
3. Financial Events: June marks several significant financial events for older adults, such as the receipt of Social Security or pension payments, tax refunds or dividends from investments. These events provide opportunities for abusers to gain unauthorized access to funds or manipulate financial transactions.

Preventing and Combating June Elder Financial Abuse

Protecting our elders from financial exploitation requires a concerted effort from individuals, communities and authorities. Here are some crucial steps that can be taken to prevent and combat June elder financial abuse:

1. Education and Awareness: Raising awareness about the prevalence and tactics of elder financial abuse is essential. Elderly individuals and their families should be educated about common scams, warning signs and precautionary measures to ensure their financial well-being.
2. Communication and Support: Regular communication with older adults can help detect any signs of financial abuse. Family members, friends and neighbors should maintain open lines of communication and provide a support system to ensure the well-being of older adults.
3. Legal Protections: Governments and legislative bodies should enact and enforce robust legal protections for older adults, including stricter regulations for financial institutions and caregivers. Reporting mechanisms should be streamlined and accessible, making it easier for victims to report incidents of financial abuse.
4. Financial Literacy: Providing older adults with financial literacy programs can empower them to make informed decisions, recognize potential scams and manage their finances more effectively. Workshops, seminars and online resources should be made available to support their financial well-being.
5. Enhanced Security Measures: Financial institutions and service providers should implement enhanced security measures, such as multi-factor authentication and fraud alerts, to protect elderly customers from financial exploitation. Regular reviews of accounts and transactions can help identify suspicious activities promptly.

June elder financial abuse is a distressing phenomenon that demands our attention and action. As society ages, it is crucial that we take concrete steps to protect our elderly population from financial exploitation. By raising awareness, promoting education and implementing robust safeguards, we can create a safer environment for older adults, ensuring their financial security and preserving their dignity. Together, we can combat June elder financial abuse and safeguard the well-being of our cherished elders.

For more information on fraud and scams please visit our Security Center to stay up to date.

Sources:

CFPB. (n.d.). Reporting of suspected elder financial exploitation by financial institutions: An update to the 2016 advisory and recommendations. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/data-research/research-reports/reporting-suspected-elder-financial-exploitation-financial-institutions-update-2016-advisory-and-recommendations/

Keene, V. (2023, March 6). Understanding and reporting elder fraud, abuse and financial scams. www.nolo.com. https://www.nolo.com/legal-encyclopedia/elder-abuse-financial-scams-against-29822.html

NCEA. (2023). World elder abuse awareness day. NCEA. https://ncea.acl.gov/WEAAD.aspx

NCO. (2021, February 23). The National Council on Aging. https://ncoa.org/article/get-the-facts-on-elder-abuse

Department of Housing and Urban Development (HUD) will be implementing a reduction in the Upfront and Annual Loan Guarantee Fees under the Section 184 Indian Home Loan Guarantee Program. Published in the Federal Register Notice (88 FR 28598) on May 4, 2023, effective on July 1, 2023.

Fee Reduction Details

The reduction in the Upfront Loan Guarantee Fee decreased from 1.50 to 1.00 percent, and the Annual Loan Guarantee Fee from 0.25 to 0.00 percent.

Guidelines for the fee reduction:

1. Loans without Firm Commitments as of July 1, 2023: Lenders must apply the reduced loan guarantee fees to all Firm Commitments issued on or after July 1, 2023.
2. Loans with existing Firm Commitments and a closing date scheduled for on or after July 1, 2023: If a Firm Commitment was issued before July 1, 2023, and the loan is scheduled to close on or after that date, lenders must request an updated Firm Commitment reflecting the reduced loan guarantee fees before the closing. Failure to do so will require lenders to refund the difference to the borrower.
   • Upfront Loan Guarantee Fees paid in cash at closing: Lenders must reimburse the difference between the 1.50% fee and the 1.00% fee through a cash reimbursement.
   • Upfront Loan Guarantee Fees financed at closing: Lenders must reimburse the difference between the borrow-financed charge at 1.50% and the revised rate of 1.00% by applying the refund to the outstanding principal balance. The new fee structure requires lenders to amend the Note and amortization schedule or reclose the transaction.
   • Annual Loan Guarantee Fees paid by the borrower: Lenders must refund any payments obtained from the borrower in cash and stop collecting them. Post-closing refund payments, whether cash or applied to the unpaid principal balance, must be made within 90 days. Lenders must record refunds in the borrowers’ loan files.
3. Loans closed prior to July 1, 2023: The fee reduction is not retroactive and will not apply to any loans closed before July 1, 2023.

Section 184 Indian Home Loan Guarantee Program, established under the Housing and Community Development Act of 1992, allows HUD to establish certain loan guarantee fees, and includes the Upfront Loan Guarantee Fee and an Annual Loan Guarantee Fee. The Upfront Loan Guarantee Fee is a percentage of the loan’s principal obligation, and the Annual Loan Guarantee Fee is a percentage of the remaining guaranteed balance.

Source: Section 184 Indian Home Loan Guarantee Program | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

2023-09479.pdf (govinfo.gov)

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

CANEY, Kan. – RCB Bank welcomes Brad Harris as a VP loan officer in Caney, Kansas. Born on a farm in St. Paul, Kansas, and a current farm owner, Harris understands the challenges faced by agriculturalists and desires to help them succeed.

Harris has 11 years of lending experience with an emphasis on small business, commercial real estate and agricultural loans. Driven towards growth and personal development, Harris seeks to elevate his ability to serve his clients, community, and expand his impact within the banking industry. “I’m always continuing my education via the Graduate Schools of Banking,” said Harris. He received his degree from Pittsburg State University and later graduated from the Kansas Bankers Association Schools of Banking.

His No. 1 piece of financial advice is “Save, save, save. Everyone needs a financial nest egg to count on in hard times.”

Harris has served on the St. Paul USD 505 school board since 2020 and the Economic Development Committee in Erie, Kansas since 2015. He is an active supporter of Neosho County’s 4-H and the Saint Paul FFA.

When not working, you’re likely to find Harris in the woods, chasing ducks and deer. Together with his wife, Alden, they actively manage their small farm for row crop production and waterfowl habitat. In addition, they have several horses that are shown in team roping futurities and Ranch Horse Versatility shows across the Midwest.

RCB Bank is a community bank with locations across Oklahoma and Kansas. Founded in 1936, RCB Bank is committed to serving its communities with conservative banking practices and progressive banking products. Learn more at RCBbank.bank or give us a call at 855.226.5722. Member FDIC, Equal Housing Lender, NMLS #798151.

Maintaining a balanced account is crucial for financial stability and peace of mind. For customers who utilize overdraft protection and primarily rely on debit card transactions, reconciling your account balance becomes even more essential. This article aims to guide you through the process of reconciling your account balance effectively, providing useful tips and insights along the way. Whether you use a checkbook or online banking, these strategies will help you regain control over your finances.

Understanding the Basics:

Account reconciliation involves comparing your records of financial transactions with the bank’s records to ensure they match. This process allows you to identify any discrepancies and take appropriate action. While traditional checkbooks are less common nowadays, the principles of reconciliation apply regardless of the transaction method.

Online Banking: Pending vs. Posted Transactions

In today’s digital era, online banking has become increasingly popular. When reconciling your account balance through online banking, it is essential to understand the distinction between pending and posted transactions.

Pending transactions:

These are transactions that have been authorized but have not yet been deducted from your account balance. They include recent purchases, transfers, or any other financial activity that is awaiting final processing by the merchant or financial institution. Pending transactions may take some time to be posted, and the amount may change or even be canceled before final processing.

Posted transactions:

These are transactions that have been completed and officially deducted from your account balance. Once a pending transaction is processed and finalized, it becomes posted. Reviewing pending and posted transactions during the reconciliation process is important to ensure accuracy.

Steps to Reconcile Your Account Balance:

1. Review your records: Gather all receipts, statements, and transaction records, whether physical or digital. This includes records of purchases, ATM withdrawals, online transfers, and any other financial activities.
2. Access your online banking: Login to your online banking platform to view your account details. Take note of the current balance, pending transactions, and posted transactions.
3. Compare transactions: Start comparing the transactions on your records with the transactions displayed in your online banking. Focus on posted transactions, as these have already affected your account balance.
4. Identify discrepancies: Look for any inconsistencies or discrepancies between your records and the bank’s records. Common discrepancies may include missing transactions, incorrect amounts, or duplicate entries. Be meticulous during this step, as even minor errors can lead to larger problems down the line.
5. Investigate pending transactions: Pay attention to any pending transactions and ensure they match your records. Be aware that the final amounts may differ from the pending amounts once they are posted. Contact your bank for clarification if you notice any discrepancies or unfamiliar transactions.
6. Update your records: Make the necessary adjustments to your records based on the information provided by your bank. If you find any errors, notify your bank immediately to rectify the situation promptly.
7. Establish a routine: Regularly reconcile your account to prevent any potential problems from escalating. Set aside a specific time each week or month to review your transactions and ensure they align with your records.

Reconciling your account balance is vital to maintaining financial stability, particularly for customers utilizing overdraft protection and primarily using debit cards. By following the steps outlined in this guide, you can take control of your finances and avoid unnecessary fees or complications. Whether you prefer using checkbooks or online banking, understanding the distinction between pending and posted transactions and reviewing your records diligently will help you maintain an accurate account balance. Stay vigilant and make account reconciliation a regular part of your financial routine for long-term financial well-being.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

Bichachi, R. (2022, August 28). Bank reconciliations defined: A definitive guide. Oracle NetSuite. https://www.netsuite.com/portal/resource/articles/accounting/bank-reconciliation.shtml

Birken, E. G. (2022, August 18). How to balance a Checkbook. Forbes. https://www.forbes.com/advisor/banking/checking/how-to-balance-a-checkbook/

It’s easy to get caught up in day-to-day affairs and inadvertently let important dates creep up on you. One critical date to keep aware of is the annual tax filing deadline – which is different this year from the typical due date.

According to the Internal Revenue Service (IRS), the filing deadline to submit 2022 tax returns or an extension to file and pay tax owed is Tuesday, April 18, 2023, for most taxpayers. By law, holidays in Washington, D.C. impact tax deadlines for everyone in the same way as federal holidays. The due date is April 18, instead of April 15, because of the weekend and the District of Columbia’s Emancipation Day holiday, which falls on Monday, April 17.

Taxpayers requesting an extension will have until Monday, October 16, 2023, to file.

The IRS has recommendations to keep in mind during tax season at its website (IRS.gov), including tips on what information you should have ready before filing. The IRS says it anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return.

Source:

https://www.irs.gov/newsroom/irs-sets-january-23-as-official-start-to-2023-tax-filing-season-more-help-available-for-taxpayers-this-year

By now, most people are aware of identity theft, and the importance of keeping your personal information away from those who intend to do harm with it. Many people might even know someone who has been the victim of identity theft, and the ordeal that came with it.

But what should you do if you discover your identity has been compromised? Or, what if you’re not sure, but think someone has gained access to your personal information? Acting quickly is key to avoiding damage to your credit status and avoiding your own personal nightmare.

Fortunately, there are options to help you in the event this happens. You can report identity (ID) theft to the Federal Trade Commission (FTC) online at IdentityTheft.gov or by phone at 1-877-438-4338.

The FTC says that if you report online, you will receive an ID theft report, which will help you prove to businesses that someone stole your identity. You will also get a recovery plan to assist you in fixing problems brought on by identity theft.

The Consumer Financial Protection Bureau (CFPB) says you can place a fraud alert or security freeze on your credit report by contacting the nationwide credit reporting companies: Equifax, Experian and TransUnion. The CFPB adds that when you place a fraud alert at one of those companies, it must notify the others.

Avoiding identity theft in the first place is obviously the goal, and something everyone needs to take seriously. However, if you do find yourself a victim, keep in mind that there are procedures in place to help you.

For more detailed information on how to report identity theft, visit the links below.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

https://www.usa.gov/identity-theft

https://www.consumerfinance.gov/ask-cfpb/what-do-i-do-if-i-think-i-have-been-a-victim-of-identity-theft-en-31/

A lot goes into the decision to buy a house, and so does the decision to take out a mortgage to pay for that home. Having a good understanding of what all your mortgage entails will take some of the mystery out of the process.

There are various costs associated with a mortgage, including:

• Interest rate
• Points (Or discount points; With these you pay more upfront, but receive a lower interest rate and end up paying less over time)
• Fees
• Other charges

There is a cost you will pay each year to borrow the money for your home. According to the Consumer Financial Protection Bureau, that is the interest rate, which is expressed as a percentage. The interest rate only reflects the cost of borrowing the money for your home.

An annual percentage rate (APR) reflects your interest rate, but also includes any points, mortgage broker fees and other charges involved in the cost of the loan. Therefore, your APR is usually higher than your interest rate.

The CFPB advises caution when comparing loan options, and to be sure you understand differences between the terms being offered. As just one example, the APR of a closed-end loan includes fees, but the APR of a home equity line of credit does not.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. With approved credit. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. Some restrictions apply. RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151.

Source:

https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135/

Having an emergency savings fund is considered an essential part of your overall financial wellbeing. But what exactly constitutes an emergency, and when should you use it?

Emergency savings funds are designed to pay for unexpected expenses, or to cover the bills if you have a loss of income. While you can’t control when something unexpected happens, you can control being prepared for the unexpected.

The most common reasons to dip into your emergency savings funds are salary reduction (to help bridge the gap); medical bills; unexpected repairs, such as vehicle or air conditioning/heating units; or replacing appliances.

And because everyone’s definition of an emergency differs, it might be easier to say what you shouldn’t spend your emergency savings fund on. Remember, these funds are designed for emergencies, so dipping into it to help pay for nonessential items like a vacation or concert tickets or other entertainment expenses should not happen.

A good baseline is this: Do you need the item to survive? If you don’t, you definitely should shy away from using the emergency savings fund for the purchase.

Having a reserve fund for financial emergencies can help you avoid relying on other forms of credit or loans that can turn into debt, the Consumer Financial Protection Bureau states. If you use a credit card or take out a loan to pay for these expenses, your one-time emergency expense may grow significantly larger than your original bill because of interest and fees.

The CFPB also says don’t be afraid to use it if you need it, and if you spend down what’s in your emergency savings fund, just work to build it up again.

Practicing your savings skills over time will make this easier.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Sources:

https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/

https://www.federalreserve.gov/publications/2022-economic-well-being-of-us-households-in-2021-executive-summary.htm

Online quizzes sure seem like innocent fun. But before you take that next personality test, quick survey or “find out what type of BLANK you are” quiz, ask yourself: Do I know who’s gathering this information about me – and what do they plan to do with it?

The more information you share on these quizzes, the more you risk that information being misused, the Federal Trade Commission stated earlier this month.

A lot of the times, these quizzes and/or surveys will ask questions similar to the questions that are asked on online account security. Scammers can post a seemingly innocent quiz, then use your quiz answers to try and reset your online accounts, letting them steal your bank and other account information, the FTC warns.

One major way to protect your personal information — in addition to maintaining strong passwords and using multi-factor authentication — is to steer clear of online quizzes … or just don’t answer them truthfully, the FTC advises.

Another type of online quiz to be on the lookout for are quizzes that offer prizes for completion.

These quizzes may look official, giving gift cards as prizes to some of your favorite online establishments. And once you finish the quiz, you’ll be sent to a page where you are to enter your personal information so that the scammers can send you or award you your prize.

Once they have your personal information, coupled with some of the answers that were provided on the quiz, scammers can wreak havoc before you even know what happened.

If you suspect that an online quiz is a phishing scam, tell a friend. Then, report it to the FTC at ReportFraud.ftc.gov.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.

Source:

https://consumer.ftc.gov/consumer-alerts/2023/01/dont-answer-another-online-quiz-question-until-you-read