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Financial Resources
Guiding Arkansans toward financial success.Unlock tips for saving, investing, and managing debt!
Homebuying 101
Buying a home is an exciting milestone but comes with important considerations.
Review your credit report for accuracy. Mistakes in your credit history can impact your loan terms. Request a free report at AnnualCreditReport.com and resolve any errors before applying.
Understand your debt-to-income ratio (DTI). Lenders use your DTI to evaluate your financial health. Lowering it before applying can help you secure better loan terms.
Save strategically for your down payment. A larger down payment lowers monthly costs, reduces interest rates, and avoids private mortgage insurance (PMI) at 20%.
Budget beyond the purchase price. Factor in costs like property taxes, homeowners insurance, HOA fees, and maintenance to avoid surprises in your monthly expenses.
Get pre-approved, but spend wisely. A pre-approval letter strengthens your buying position, but avoid stretching to the top of your approval amount to ensure you don’t become house-poor.
Lock in your interest rate early. Once your loan is approved, ask your lender about locking in your rate to protect against unexpected market changes.
Key Financial Milestones by Age
Your 20s: Start building an emergency fund
and pay off high-interest debt.
Your 30s: Maximize contributions to employer-sponsored retirement plans and save for a home.
Your 40s: Diversify your investment portfolio and focus on retirement savings.
Your 50s: Catch up on retirement contributions and pay off remaining debts.
Your 60s: Finalize retirement plans and ensure a steady income stream.
Building Your Financial Future
Whether saving for retirement or growing your investments, planning for the future is essential.
Build an emergency fund first. Before focusing on long-term investments, set aside three to six months’ expenses as a financial safety net for unexpected costs.
Start saving early and consistently. The sooner you begin, the more time your money has to grow with compound interest. Use the 50/30/20 rule to allocate your income: 50% for needs, 30% for wants, and 20% for savings.
Diversify your portfolio based on your risk tolerance. Spread your investments across stocks, bonds, and other assets to balance risk and reward, choosing options that align with your comfort level.
Leverage tax-efficient accounts and employer benefits. Contribute to IRAs, 401(k)s, or HSAs to lower taxable income and grow your savings. Take full advantage of 401(k) employer matching for free retirement contributions.
Set specific, measurable goals. Whether it’s retiring by a certain age or saving for a big purchase, clear objectives can guide your investment strategy.
Review and adjust regularly. Life circumstances change, so revisit your retirement and investment plans yearly to ensure they align with your goals.
Savings & Loans
Understanding how to manage savings and loans wisely can make a big difference in your financial journey.
Know the difference between APY and APR. APY measures savings growth with compounding interest, while APR reflects borrowing costs. Understanding both helps you make smarter financial decisions.
Take control of debt with strategic consolidation. Combining high-interest debts into a single loan with a lower rate can simplify payments and save money over time.
Strengthen and monitor your credit score. Maintain a mix of credit types, like installment loans and revolving credit, while keeping balances low and making timely payments. Regularly check your score to secure better loan terms and interest rates.
Use windfalls to your advantage. Tax refunds, bonuses, or unexpected income can go toward paying down high-interest loans or boosting your savings, helping you build financial stability faster.
Automate your financial habits. Set up automatic transfers to savings accounts and schedule loan payments to ensure consistent progress without added stress.
Review your savings and loan plans annually. As your financial goals and circumstances change, reassess your strategies to ensure they align with your current needs.
Planning for your financial future doesn’t have to be overwhelming. We’re here to support you every step of the way, offering expert resources and practical tools to help you save, invest, and manage debt with confidence. Whether you’re building a budget, preparing for retirement, or navigating loans, our team is ready to guide you. Have questions? Connect with us for personalized solutions tailored to your goals.
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