By Grant J. Goering, AIF,^® AVP, Portfolio Manager, RCB Bank

There is a growing trend in investing — sustainable, responsible and impact investing (SRI)— that blends personal values and principles with investment choices.

Aligning investments with values.

Sustainable investors consciously choose to invest in companies that contribute to advancements in environmental, social and corporate governance (ESG) practices, e.g., clean tech, labor and human rights, anti-corruption policies.

Sustainable investing has grown 33 percent in the U.S. since 2014. That equates to $8.72 trillion. SRI now accounts for more than one out of every five dollars under professional management, according to the latest SRI trends report, published by The Forum for Sustainable and Responsible Investment Foundation (US SIF).

Sustainable investing performs in line with traditional investing.

Research also reveals a positive correlation between SRI strategies and corporate financial performance. A 2017 study conducted by Nuveen TIAA Investments found that investing in SRI strategies did not lead to a decrease in performance or an increase in risk.

The MSCI KLD 400 Social Index, one of the first socially responsible investing indexes, has performed right in line with the S&P 500.

In fact, during the February 2018 market downturn, SRI funds actually outperformed the broad market, according to Morningstar investment research company.

Wondering what impact your investments are making?

Ask your financial advisor for a portfolio review to see if your current investments include SRI companies.

Learn more about SRI at ussif.org, or speak with a financial advisor.

We offer free portfolio reviews at no cost, no obligation. We’d be happy to take a look at your current portfolio and offer a second opinion to ensure you’re getting the most out of your investments.

Connect with an RCB Bank Trust Wealth Advisor in your area.

Invest in your values. RCBbank.com/GetFit

Investment products are Not insured by the FDIC or any government agency, Not a deposit, Not a bank guarantee, subject to risks and may lose value.

If you feel like homeownership may be out of reach because you don’t have a large down payment, look into the U.S. Department of Agriculture Rural Development loan (RD) program, which provides up to 100 percent financing to qualified households in eligible areas.

Fun fact: Rural America includes 72 percent of the nation’s land mass, according to the USDA RD 2017 Performance Report.

Rural Development Loan Advantages

100% financing

Rural Development loans may only require you to pay closing costs. The majority of other loan programs may require at least 3 percent down.

Lower Interest Rate

Because Rural Development loans are backed by the government, they typically are lower interest rate loans than most conventional loans.

Keep in mind, interest rates vary daily and depend on a number of factors, such as loan amount, credit score and rate lock.

Seller Concessions

Rural Development loans allow the seller to contribute up to 6 percent of your closing costs, which may cover your out of pocket needs entirely.

Mortgage Insurance Reduction

Most loans require mortgage insurance (PMI) if you pay less than a 20 percent down payment. PMI covers the loan in case of default and may require an upfront fee and/or is included in your monthly loan payment. With a Rural Development loan you may be able to finance the upfront portion and receive a discounted rate on the monthly fee.

Talk to a lender to explore your options, and to find out if you qualify for a Rural Development loan.

Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

Opinions expressed above are the personal opinions of Alex Penny and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB, RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151. Alex Penny NMLS #1535836.

Source: USDA, https://www.rd.usda.gov/

By Brent Carroll, RCB Bank Lending

New cars can quickly depreciate in value causing your auto insurance to pay less than what you owe on your car loan. What happens when an accident totals your car? Who pays the difference between the insurance settlement and your outstanding loan balance? You do. Or, maybe not.

Get$Fit Tip: Protect your assets.

It may be worth buying Guaranteed Asset Protection (GAP) coverage to help you avoid the risk of negative equity and having to continue making principal payments after a total loss. Depending on your loan term, GAP adds on average an estimated $7-$11¹ to your monthly loan payment, but it potentially could save you thousands of dollars in the event of loss.

When GAP may benefit you:

• You make a small or no down payment on a new car
• You agree to a loan term longer than 48 months

Talk to a lender for details to see if GAP is right for you.

Our lenders are happy to answer your questions, even if you are not an RCB Bank customer. Connect with a lender in your area.

Invest in yourself. RCBbank.com/GetFit

¹GAP insurance costs varies between lenders and loan terms. See your lender for specific questions regarding your personal loan qualifications and overall costs. ²GAP covers the residual value of the loan as of the date of loss. Above example is for generic illustration purposes only, based on 700 credit score. Does not factor in down payments, additional fees or other costs. Subject to credit approval. Rates are accurate as of June 15, 2018, and subject to change without notice. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC and Equal Housing Lender, RCB Bank NMLS #798151.

By Jocelyn Wood, RCB Bank Marketing

1. Bring only what you need.

When planning your next vacation, pack a lighter wallet, suggests RCB Bank Vice President, Security Officer Christy Wild.

“Bring only the amount of cash you will need and maybe one credit card.”

2. Leave your debit card at home.

“Especially if you are traveling internationally,” says Wild. “Debit cards tie directly to your bank account. If fraudulent charges are made, it is possible money may be taken out of your account that day.”

If debit card fraud goes unnoticed for a number of days, thieves may deplete your funds. Credit card fraud is not an immediate financial impact on you.

Under the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA), federal law limits your liability for unauthorized charges, but your protection depends on the type of card and when you report the loss.

After you report fraud, your bank has to investigate and process your claim, which takes time. Rules pertaining to refund timeframes vary between types of fraud. Ask your bank for details.

3. Keep an eye on your account.

“From the time your card leaves your wallet until the time it returns, it is technically at risk,” Wild says. “It is crucial to monitor your accounts.”

Proper monitoring will help you find discrepancies.

Early detection and fast action to alert your credit card company and bank is the key to protecting your money.

Many credit card companies and banks offer text banking. This is a great fraud detection tool as you can set up transaction alerts.

Set an alert to notify you each time a transaction occurs on your account. This will help you spot charges you did not initiate. Text banking message, data rates and fees may apply.

You can also download your bank’s mobile banking app. This is another good tool that allows you to scan your accounts anytime from practically anywhere.

“Do not log in to your account on a public Wi-Fi network,” Wild says. “Fraudsters hack public networks and can watch you from the shadows.”

4. Tell your bank when and where you are going.

Before you hit the road, notify your bank and tell them your travel plans.

“It’s added protection,” Wild says. “It alerts them to keep a closer eye on your account. Plus, it helps to make sure they don’t decline your card when you are making purchases in another state, which to a bank may look like suspicious activity.”

Invest in yourself. RCBbank.com/GetFit.

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

Is a longer-term, lower monthly payment loan saving you money?

Probably not.

Lower monthly payments of longer-term loans often come with higher interest rates, which means you end up paying more money over the life of your loan.

When it comes to borrowing money, it’s wise to consider the total cost of your loan.

If you can afford a higher monthly payment, accepting a shorter-term loan could save you thousands of dollars.

Let’s crunch the numbers on a 48-month (4 year) and 72-month (6 year) auto loan with example an example rate of 2.89% annual percentage rate (APR) for 48 months and 3.89% APR for 72 months for qualified buyers. Rates are for illustration purposes only; See a lender for current rates.

On a $30,000 new car loan, total interest increases from $1,805 for a 48-month term to $3,687 for a 72-month term – a significant cost difference of $1,882.

Focusing on the total loan cost will help you avoid buying more car than you can afford, plus help you avoid owing more on your car than what it is worth.

The longer the financing term, the more susceptible you are to having negative equity and being upside down on your loan.

A typical new car can lose close to 22-percent of its value in the first year, and roughly 12-percent annually in years two through four, according to data from the online car-pricing company Edmumds.com.

If you do go with longer financing, consider buying Guaranteed Asset Protection (GAP) coverage to help mitigate the risk of negative equity and having to make additional principal payments after a total loss. Having GAP can help with the difference between the primary insurance settlement and the outstanding balance on your vehicle on the date of loss. Ask your lender for details.

Get$Fit Tip: Before car shopping, get pre-qualified for financing so you know your numbers. Then, stick to your budget.

Our lenders are happy to answer your questions, even if you are not an RCB Bank customer. Connect with a lender in your area.

Invest in yourself
RCBbank.com/GetFit

RCB Bank Learning Center articles are for education purposes only. Opinions expressed above are the personal opinions of the author and meant for generic illustration. Scenarios, terms and rates shown are only examples as of May 2018 and are subject to change without notice.  Member FDIC and Equal Housing Lender, RCB Bank NMLS #798151. Brad Ward, NMLS #536616.

When it comes to buying a second home, understanding how to define the property will help you better understand your mortgage options.

Let’s go over the basic home types defined by Fannie Mae.

Principle Residence, a property the borrower occupies as his or her primary residence.

Second Home, a property that must be occupied by the borrower for some part of the year, restricted to residences suitable for year-round occupancy. Borrower must have exclusive control of the property, must not be rental property or timeshare, and cannot be subject to any agreements that give management firm control over the occupancy of the property.

Investment Property, a property owned but not occupied by the borrower.

The property types seem straightforward, but here are a couple examples of when it gets tricky.

College homes

Many parents planning to purchase a home for their kids while they attend college will often apply for a second home mortgage.

If a home is considered as someone’s primary residence, regardless if that person (or student) is obligated or not on the loan, the home cannot be someone else’s secondary. In this case, the college home is an investment property.

Vacation homes

Another area of confusion are timeshares or homes managed by a management group, e.g., rental company. Most often, these do not qualify for conventional financing.

Your vacation home may qualify as a second home if it is in your full control and not generating income.
Remember, second homes are a second residence for the borrower to enjoy or use when not occupying their primary residence.

If you plan to rent the property while you are not using it, it may not qualify as a second home.

If you’re planning to purchase a vacation home or second property speak to a lender before you start the mortgage process.

The more you know about your loan options and your individual qualifications, the more satisfying your homebuying experience is.

By RCB Bank Fraud Department, 877.361.0814

Wiring money is a way to send and receive money fast. It’s also a prime target for fraud.

Wire fraud often happens when dishonest people convince you to willingly send funds under false pretenses.

Because money moves fast in a wire transfer, it is nearly impossible to get it back.

Banks are required by law to make deposited check funds available within days, but it may take weeks to uncover a fake check.

You are liable if you deposit fraudulent funds into your bank account. If a check you deposit turns out to be a fake, you are responsible for repaying the bank.

Don’t be fooled. Before sending or accepting money, ask yourself these questions.

Do I really know this person?

Is the person a new acquaintance? A new romance? Scammers often use social media, email or phone to target victims. They will do whatever it takes to develop a seemingly real relationship with you, which may include meeting you in person. Be on guard for romance scams.

Is this person claiming to be a family member in trouble?

It’s called a grandparent scam. A criminal pretends to be a relative who needs money, e.g., they’re in trouble, had an accident or need bail money. They ask you to send money fast via gift cards or wire transfer, and beg you not to tell anyone. Always call the person at a known number (not the caller ID number) to confirm their story.

Is this person claiming to be a government agent, police officer or banker investigating a series of fraud cases and needs my help?

Scammers spoof caller ID and email addresses to look as if it is a trusted company or friend calling. Do your research, check the facts and talk to your bank about the transaction before sending money.

Is this person offering a get-rich deal. Am I asked to keep it secret?

Do not pay upfront for a promise to make money fast. Watch out for prize and inheritance scams that require you to pay taxes in advance.

Did this person come to my door or are they offering me an advance-payment service?

“No thanks.” Do not pay for services in advance. This also goes for things like debt relief, loan offers, online purchases or jobs. Watch out for services that require payment through electronic transfer to a home office or to another individual who they claim to be the boss.

Are you feeling pressured to send money?

Be suspicious of urgent money requests. Scammers want you to act fast and use threats and emotional ploys. STOP. Slow down and check the facts. Discuss the transaction with your bank, the police or a friend before sending money.

Protect Yourself: If you feel you are a victim of fraud, call your bank immediately.

Get more security tips at:

RCB Bank Security Center
FBI.gov/scams-and-safety

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

It should be no surprise that as a homeowner you are responsible for expenses beyond your mortgage payment, such as property taxes, homeowner insurance and mortgage insurance, to name a few.

Benefit #1: Escrow is a personal payment manager

An escrow account is a service provided by your lender to help you manage and budget home-related costs. A benefit of an escrow is you make one monthly payment that includes your mortgage principle and interest, plus a percentage of your insurance and tax expenses. Your lender takes care of paying the various bills due throughout the year.

Most lenders require escrow accounts on mortgages greater than 80 percent loan-to-value and are set up at closing.

Benefit #2: Escrow lets you spread out annual costs over time.

Another benefit of an escrow is you don’t have to stress to come up with large lump sum payments.

How escrow works

Your lender adds up your additional home-related costs outside your mortgage payment – taxes, homeowners insurance, mortgage insurance, flood insurance, etc. – They divide the total cost of these payments by 12 (months) and add it to your monthly mortgage payment.

Generally, a cushion of 1/6 of the total escrow charges is collected at loan closing to account for any unexpected increase in premiums when it’s time for the lender to make the yearly payment.

Your escrow account builds with each monthly payment. Funds are withdrawn from your escrow to pay for bills as they are due.

Can your escrow payment change over time? 

Yes, if there are changes in insurance costs and taxes, your escrow payment will also change.

Annually, your lender will review your escrow. The review looks at updated taxes and insurance costs to ensure the amount paid into the account is enough to cover costs. If costs have decreased, due to a change in insurance for example, there may be an overage and you would be issued a refund. If costs have increased, you will be required to make up the shortfall.

There are usually two ways to cover a shortfall.

1. Pay the shortfall in one lump sum.

Your full payment covers the past payments and brings your account to balance. An increase in monthly payments is necessary to cover the increased costs for future payments.

2. Divide and pay the amount over the next 12 payments.

Paying back your shortage over time will increase your monthly payment more than paying a lump sum because you are paying the shortage plus the increase in costs over the next year.

It’s important to understand, if insurance costs and taxes increase, your monthly payment will also increase going forward.

Get$Fit Tip: Shop around for insurance.

If you want to keep your monthly payment as close as possible to what you pay now, an annual check on your homeowner policy or other insurance plans may help. It is your responsibility to review your policy and shop around for the best deal, not your lender.

Make sure your policy is in line with current market rates and has not increased more than a few percentages, which is typical for some insurance companies. It’s always a good idea to comparison shop and request quotes. If you find a better deal, contact your lender to update your escrow account information.

Opinions expressed above are the personal opinions of Kenneth Wohl and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB. RCB Bank is an Equal Housing Lender and Member FDIC. RCB Bank NMLS #798151. Kenneth Wohl NMLS #453934.

By Jocelyn Wood, RCB Bank

I challenge you not to accept your financial life as it is. This coming year, aim to get ahead — start an emergency fund, build your retirement savings, pay off your debt or take control of whatever money situation is causing you stress.

The key to getting ahead is to get started. Here are some tips to help you make a financial change.

Invest in you

To build your wealth, start paying yourself first. When you receive money, before you spend a penny, put some of it in your savings account or retirement fund. Set up automatic deposits and watch your savings grow with little effort.

Changing your saving habits may require changing your spending habit, but the payoff – not worrying about paying your bills, taking a trip you’ve been dreaming of and retiring on your terms – is worth it.

Stop throwing money away

Paying late fees is like pulling money out of your wallet and throwing it into the wind. Start paying down debt, beginning with the highest interest debt. Pay your bills on time. If need be, call the company and see if you can adjust your due date. Never hurts to ask and it could save you from paying late fees.

Try the 50/30/20 budget plan

Harvard bankruptcy expert Elizabeth Warren suggests splitting your monthly income into three categories:

1. Fixed expenses – survival needs – should total no more than 50 percent of your income.
2. Non-essentials – wants like TV, morning coffee, hair appointments – should total no more than 30 percent.
3. Savings – emergency fund, retirement – should be 20 percent or more.

Match your spending

Have a hard time sticking to a budget? Try this. Before you spend money on something you want, first put the same amount of money in a savings jar.  You will be able to see exactly how much money you are spending, or how much you could be saving or using to pay off your debt. If you cannot afford to match your spending, you cannot afford whatever it is you want to purchase.

Live within your means

Rich people stay rich by living like they are broke. It is a matter of what you value more, instant gratification or freedom from debt and having money when you really need it.

You work hard for your money. Do not waste it on things you do not really need.

50/30/20 Plan: Elizabeth Warren and Amelia Warren Tyagi. All Your Worth: The Ultimate Lifetime Money Plan. Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, member FDIC.

You found your dream home, made an offer and it was accepted. You’re pre-approved for a loan and feeling good. Your mind is now focused on moving. Hold on. A pre-approval is not a loan guarantee. To ensure a smooth mortgage process, avoid these four things during closing.

DO NOT take on new debt.

I realize with a new home comes the desire to purchase new furniture, appliances and sometimes even a shiny new car for the garage. Some stores offer no-money down and zero percent interest credit. It’s tempting to start purchasing.

Taking on new debt may raise your debt ratio (the relationship of income to debt). Banks and mortgage companies weigh this number heavily to determine your credit worthiness. Raising it could cause heartache at the end of your transaction. Loan officers run another credit check a few days before closing to verify no new debt has been obtained.

DO NOT Change Jobs.

The stability of your job and income are essential to your loan approval. Your capability of repayment is ultimately what the lender needs to see. Changing jobs during the purchase process could complicate things. For example, if switching from a W-2 salaried status to a contractor or full commission job would most likely disqualify you (that income typically needs two years of income for calculation). A bank typically needs to see 30 days on the job, at least one pay stub and time to verify employment. Verification of income is sent to the employer to make sure the income matches the paystub and that you are still employed, as well as a verbal verification a day or so before closing.

DO NOT stop paying your bills.

A new home purchase can become expensive when you are out closing costs that aren’t part of your typical monthly obligations. You have additional costs like movers. Even if money gets tight, pay your bills. Remember, loan officers will re-pull credit at the end of the transaction.

DO NOT pack up important papers.

You’re stoked about moving. Maybe you’ve already started packing. Make sure you don’t pack up tax documents, bank statements, paystubs or any other important documents that might be requested by your loan officer. The quicker you can respond to the processing requests of your loan, the quicker it will be approved. Delaying the response can delay closing.

Buying a home is exciting, but until you sign the papers at closing, your mortgage isn’t final. Loan officers issue a pre-qualification based on the documentation you provide. The final approval is issued on documents retrieved between signing the contract and loan closing. The final underwriting decision is made on a final credit review, tax transcripts, verification of employment and verification of deposit, NOT the initial credit, tax returns, paystubs and bank statements.

Loan officers are here to make this process as smooth and as simple as possible. Be open with your loan officer and make sure they completely understand your situation and that one of the above doesn’t become a gotcha moment.

Lenders at RCB Bank are happy to help answer questions even if you are not a customer. Give us a call or visit our online Mortgage Center.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only.  RCB Bank is an Equal Housing Lender and member FDIC. RCB Bank NMLS #798151. Kenneth Wohl NMLS #453934. 

Is this the year you have resolved to start your own business?

First, I suggest you get to know four people:

• A banker
• A CPA
• An insurance agent
• An attorney

Building good relationships with these invaluable resources will help you and your business succeed.

Now, let’s talk about applying for your business loan.

Prepare a solid business plan

Before you apply for a business loan, you need to have a good business plan. A lender’s main concern: are you going to be able to repay the loan?  You need to be clear on how you plan to build and sustain your business.

Understand what lenders look for

When deciding to loan you money, most lenders look at the five C’s of credit.

1. Credit – Your credit report is a detailed list of your credit history and provides insight on how you manage credit and make payments. Lenders are looking to see if you pay back your creditors.
2. Capacity – Do you have the means to repay your loan? How much debt do you have compared to how much you earn? Lenders want to know if you can comfortably manage your loan payments.
3. Character – Character is tough for a lender to assess in the brief time loans are considered. This is where a good-standing relationship with a banker, who is likely to be your lender, is beneficial. They want to know if you are trustworthy. Will you repay your loan? Lenders will review all available information, such as credit reports and public records, to see if you’ve met past obligations or have a history of legal problems.
4. Conditions – These are economic and other outside circumstances that may affect your ability to repay, like your business industry, the local market and competition to see how your business may fare.
5. Capital – Do you have some of your own assets invested or a financial base to help you weather changes in the marketplace? Trying to start or sustain a business without any owner investment is considered very risky – what’s to keep you from walking away in hard times? Most lenders want to see some financial investment from the business owner.

Build relationships

While you want to score as high as possible on each of the five C’s, all loans are different and not every borrower will have an A+ rating on each category.  Having high scores on some factors may compensate for less-than-perfect scores on others. The key is to be open and honest with your lender.

If you’re interested in starting a small business, check out local resources available to help, such as:

• The SBA Score Program – free mentoring and education for aspiring entrepreneurs and business owners.
• Oklahoma Small Business Development Center – helps you think, start, grow and reinvent your small business.
• Kansas Small Business Development Center – Start, grow and learn about business.
• Technology schools, community colleges, universities – business and industry training services to help you get a better understanding and foundation for business.
  Oklahoma colleges and universities
  Kansas public colleges and universities.

Our lenders and business services representatives are happy to answer your questions, even if you are not an RCB Bank customer. Connect with a lender and/or business services representative in your area.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only.  RCB Bank is an Equal Housing Lender.  RCB Bank NMLS #798151. David Goodwin NMLS#449727. Member FDIC.

Investing is a tool for building wealth.

Legendary investor Warren Buffett defines investing as “… the process of laying out money now to receive more money in the future.”

The key to successful investing is setting clear-cut goals. Know what you want, the cost to get it and how long you have to save.

We all have different comfort levels when it comes to investing our money. We call this risk tolerance. The concept of risk tolerance refers not only to your level of comfort in taking a risk, but also your financial ability to endure the consequences of loss.

Therefore, when it comes to investing, there is no one- size-fits-all strategy.  When I talk about investing with my clients, I like to use a bucket visualization. Imagine investing as three buckets.

Everyone needs to begin with a foundation – bucket one. This is your readily available cash, including your savings, emergency fund and short-term investments.

Once you have bucket one filled, you are ready to toss money into buckets two and three, your mid-term and long-term goals. The amount you invest in each bucket varies by your time horizon and risk tolerance. Bucket two consists of low-risk investments while bucket three is long-term, higher growth risk investments.

As with any plan, it is important to monitor your portfolio to ensure you stay on track with your goals.

If you plan to work with a financial advisor, make sure they are working for you with your best interest in mind. It’s important that you have an open line of communication with your advisor.

I am here to help answer questions you may have about investing even if you are not an RCB Bank customer. Feel free to call me at 918.342.7100 or email mwood@bankrcb.net.

At RCB Bank Trust, we offer professional recommendations at no cost, no obligation.

We provide a conservative approach to growing and preserving wealth tailored to your individual financial needs. Call one of our wealth advisors today and request your free review.

We offer free portfolio reviews at no cost, no obligation. We’d be happy to take a look at your current portfolio and offer a second opinion to ensure you’re getting the most out of your investments. Connect with a wealth advisor in your area.

The bucket concept was originally created by planning guru Harold Evensky. It is one of many approaches to investing.

Investment products are not a deposit. Not insured by the FDIC or any federal government agency. Not guaranteed by the Bank. Subject to risk and may go down in value.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results.

The habits your kids pick up now will follow them throughout life. Guide them to good money habits with these tips.

Get$Fit Tip #1: Pay yourself first.

Did you know the average college debt for the graduating class of 2016 was $37,000?* Are your kids prepared to manage debt and build wealth at the same time? Do they know the secret to keeping car-buying costs as low as possible? What about how to prepare for unexpected expenses?

Get$Fit Tip #2: Take full advantage of your bank.

Teach your kids about money using our Learning Center, which offers uncomplicated money tips to help  build wealth, reduce debt and make money-smart decisions.

Also, help your kids begin building relationships at their bank and gain an understanding of services and resources available to them. Building a relationship with a banker now will help them in the future when it comes time to borrow money, begin investing and buy their first home.

Get$Fit Tip #3: Comparison shop for everything!

Student loans, college text books, rental properties, auto insurance, clothes – make it a habit to compare prices and look for the best deals. A little effort on your part can save you thousands of dollars.

Get$Fit Tip #4: Learn to budget.

Money flows out faster than it flows in. Building wealth is not about how much money you have, it’s about how you manage the money you have. Learn to live below your means. It’s the only way to build wealth.

Get$Fit Tip #5: Watch your credit score.

Your credit score is a history report on how well you manage your money. Pay bills on time and use credit cards carefully. The alternative is long-term debt and financial hardship.

Get$Fit Tip #6: Needs and wants are not the same thing.

There is never enough money to buy everything you want. Choose wisely. Today’s choices will affect your future financial well-being. Is instant gratification more important than a comfortable lifestyle?

Get$Fit Tip #7: Learn the secret to saving.

The easiest way to build wealth is to set up automatic savings. Have a portion of your wages automatically go into a savings and/or retirement account through payroll direct deposit. Invest in yourself.

* Institute of College Access and Success.

The Problem

Buying a car is a major purchase. Budgets are tight. It’s tempting to accept financing based on the lowest monthly payment, but this may prove a costly mistake. Here is why.

Lower monthly payments often mean longer loan terms and higher interest rates. You may be able to obtain 84-month term (7 year) financing and a budget-friendly monthly payment, but you’ll pay more over the life of the loan. You also risk becoming upside down on your loan, owing more money for your car than it is worth.

Don’t be payment-driven. Save up as much as you can and negotiate the sales price down, not the monthly payment.

The Solution

Here are additional tips to help you keep your car buying costs as low as possible.

1. Know your credit score. More importantly, know the details in your report. Your credit score will determine which loan you will qualify for and the interest rate you’ll pay. Start reducing your current debt now to improve your score and financing options.
2. Get pre-approved. Know the exact amount you can spend before you start looking (and stay under that number). Start with your financial institution and shop around. A banker can also access car evaluations to improve your bargaining power with the dealership.
3. Focus on price. Know what the car is worth, not what the dealer tells you it is worth. Do your homework. Check NADA guides. Shop online. Compare dealers. View the car evaluation with your banker. Then go to the dealership and negotiate a fair purchase price for the car, not your loan payment.
4. Decide needs versus wants. You may want a newer model vehicle but do you want — can you honestly afford — the higher purchase price and possible higher interest rate? It’s a matter of choice. I encourage you to save up as much money as possible before you shop so you have more choices.  With a higher down payment, you can borrow less money. You can choose a higher monthly payment with a lower term, which will save you more money over the life of the loan.

Avoid the payment-driven temptation and start saving up now for your next vehicle. In the meantime, explore your financing options and ask your banker what you can do to improve your credit score.

Final piece of advice: Don’t be afraid to walk off the lot.

Don’t rush your decision and accept the first offer. It’s your money and your life. Be good to yourself.

Our lenders are happy to answer your questions, even if you are not an RCB Bank customer. Connect with a lender in your area.

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. Member FDIC and Equal Housing Lender, RCB Bank NMLS #798151. Curtis Bales, NMLS #800411.