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6 Financial Traps New College Graduates Should Avoid

As college students across the nation graduate and start their careers, financial responsibility should be a top priority. At Pinnacle Bank, we’ve identified six common financial traps that could hinder new college graduates from securing their financial future.

“College graduates can make their future even brighter with an early focus on sound financial planning,” said Jackson McConnell, Pinnacle Bank President. “The financial lifestyle and habits they establish now will go a long way toward deciding their financial future.”

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New college graduates should avoid the following financial traps:

• Not having a budget. Simply put, don’t spend more than you make. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.

• Forgoing an emergency fund. Make it a priority to set aside the equivalent of three to six months’ worth of living expenses. Start putting some money away immediately, no matter how small the amount. A bank savings account is a smart place to stash your cash for a rainy day.

• Paying bills late – or not at all. Each missed payment can hurt your credit history for up to seven years, and can affect your ability to get loans, the interest rates you pay on loans and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills.

• Racking up debt. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. It’s a great tool if you use it responsibly.

• Not thinking about the future. It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to your employer’s 401(k) or similar account, especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money.

• Ignoring help from your bank. Pinnacle Bank offers online, mobile and text banking tools to manage your account night and day. Use these tools to check balances, pay bills, deposit checks, monitor transaction history and track budgets.

Avoid these 6 financial traps and you’ll be well on your way to a solid financial future!

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General News

Celebrating National Ag Day with Financial Tips for Farmers

We’re joining other banks throughout Georgia in celebrating National Ag Day today by providing financial tips to the next generation of America’s farmers and ranchers. Unlike established farmers, young and beginning farmers may need to learn the basics of creating business relationships and what goes into making financial decisions.

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“There are a number of challenges facing today’s young producers. We’re always here to help navigate the financial ones,” said Jackson McConnell, Pinnacle Bank President. “We want to make financial decisions easier so farmers can focus on the farm.”

Top Ten Business Tips for Young Farmers

  1. Sweat the small stuff. Keeping accurate and detailed records encourages both short-term and long-term financial planning. Not only does it help you stay organized and make better management decisions, it makes it easier for your lender to assess your financial situation.
  2. Develop a business and marketing plan. You will work smarter and improve your odds when you focus and organize your goals.
  3. Evaluate your capital investments for profitability and payback. Keeping track of how long it will take to generate enough cash flows from a capital investment to justify the investment will help you make better financial decisions for the future.
  4. Know your costs. When you consider your cost of living and expenditures, including depreciation and family living, you’ll have a better understanding of your overall financial situation. Your local banker can provide guidelines to monitor your financial ratios.
  5. Decide on what type of operation you want to run. New farmers and ranchers should either be very efficient, low-cost producers or should add value that someone else will pay for.
  6. Consider supplementing your operation with off-farm income until your operation is large enough to employ you profitably full-time.
  7. Consider renting farm equipment or custom hiring instead of purchasing.
  8. Shop around. Getting price quotes on supplies such as feed, fertilizer and fuel can uncover lower cost sources. Your research might get you a discount from a local, preferred supplier that gives excellent service. Make sure product quality is part of your evaluation.
  9. Ask Pinnacle Bank how to get access to state and federal credit enhancement programs. We’re happy to help you identify special benefits for first-time Schedule F tax filers.
  10. When in doubt, ask for help and guidance from someone you trust–an experienced farmer or rancher, a trusted adviser or your local branch of Pinnacle Bank. You don’t have to make these important financial decisions alone.

National Ag Day, now in its 42nd year, is organized by the Agriculture Council of America.

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General News

Pinnacle Bank Participates in Jack Frost Jump

Elbert Memorial Hospital Foundation recently sponsored its 4th Annual Jack Frost Jump at the Richard B. Russell State Park Beach Area, and several Pinnacle Bank employees in Elbert County participated.

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Proceeds from this year’s event go to the Elbert Memorial Hospital Charity Care Program assisting the uninsured, the poor, the needy, and the sick with their health care needs in the community, regardless of their ability to pay.

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Foundation Chair Sandra Brown said, “It was amazing to see all the people who came out for the Jack Frost Jump.  It was estimated that about 100 people enthusiastically ran into the chilly waters of Lake Russell, and there were 200 people watching from the beach area!  The air temperature was in the 40s, with a wind chill in the 30s, and the Lake Russell water temperature was 45 degrees.

That water was mighty cold, but the Pinnacle Bank team was proud to brave the chilly temperatures for charity.

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Pinnacle Bank is proud to support local charities in our community, and were thrilled to support the Jack Frost Jump! The event raised over $12,000 for the Elbert Memorial Hospital Charity Care Program .

The Jack Frost Jump also honors the life and memory of Donna Seymour, who enthusiastically spearheaded the first two successful Jack Frost Jump Fundraisers.

Categories
General News

Pinnacle Bank Video: Celebrating 80 Years

For 80 years, Pinnacle Bank has proudly stood by our customers. This video captures where we’ve been together, and where we’ll go for the next 80 years and beyond.

As we reflect on the past 80 years, we are proud of our strong foundation and look forward to continuing to deliver excellence in banking to customers just like you.  Pinnacle Bank is truly the bank that’s built to last.