When you think about the “service industry,” what do you picture? A person working a comfortable office job? Probably not. You probably picture someone with a skill or trade that may be important, even essential, but isn’t necessarily well-compensated. The reality is that service workers work long, often uncomfortable and thankless hours ensuring that the underlying operations of the average American’s day-to-day life runs smoothly.
Chefs, housekeepers, bank tellers, and mechanics are all examples of service industry professionals, and they all deserve a financial plan that recognizes the unique challenges they face and that is designed to set them up for success. In this article, we’ve gathered tips from around the industry on how to do just that.
The Basics
First things first: you’ve got to find a bank that gets you. Many smaller banks, and even some of the big national players, will charge you fees on your checking and savings accounts, try to lure you into high-interest credit cards, or otherwise try to tempt you towards financial products that aren’t right for your situation.
Equity Bank is different. We are a community-first organization, driven by a true passion to see our members reach their full potential and achieve their financial goals. That includes checking accounts with no ATM fees, free digital and mobile banking services, savings accounts that offer a return on your hard earned money, and credit cards with flexible rewards and no annual fees. It’s all right here.
Contact us today and find which financial services are right for you.
You Need a Budget
Many service industry workers are compensated on an hourly basis rather than via salary. This may make estimating your income a bit harder, but with a little investigation (or Equity Bank’s paperless bank statements) you can come to a rough estimate of your monthly take home pay. Once that’s done, deduct your non-negotiable expenses, like a car payment, rent, or other bills, and find out what you’ve got left to work with.
Budgeting is more about fine-tuning your non-essential expenses than making major life changes, so don’t go thinking you need to change apartments or sell your car. Just take a look to see where you can cut down on extra spending. Are you eating out or shopping online a few times a week? Are you paying for services you rarely or never use? These are all great areas to start with, and the cash you save can add up quicker than you think.
If you want to start creating your own personal budget, check out Equity Bank’s online budgeting tools.
If You Haven’t, Start Saving
Experts say you should allocate roughly 10-20% of your monthly earnings to savings and investments. But when we say “saving,” we don’t mean just letting your deposits sit in an account and do nothing. Obviously it’s nice to have a separate account, which helps create a mental barrier against frivolous spending, but what you really want is a savings account that can offer you returns on your hard-earned money.
Equity Bank has a few options for those looking to make the most of their savings.
- Eco Savings: simple, efficient savings account with 2 free withdrawals per month and extra perks for students
- Money Market Accounts: balance saving and investing with 3 distinct tiers including Titanium, a special offer for new Equity Bank members
- CDs – Certificates of Deposit, a longer-term savings solution for those looking to maximize return. Flexible terms from as little as 90 days to as long as 5 years
Find which savings solution is right for you.
Plan to Grow
Whatever your current situation is, it won’t remain that way forever. A budget that doesn’t account for personal and financial growth is bound to fail later down the line, so be sure to account for these types of changes. Factor in both best-case and worst-case scenarios for your financial future. One of the best hedges against uncertainty is a financial nest egg, or a personal retirement account, which will allow you to establish a realistic goal that you can shoot for no matter what life throws your way.
Service industry workers form the backbone of our society, and need a partner who can relate to their needs and offer them financial products suited to their lifestyle. Equity Bank is here to do just that. Visit your local branch today to speak with one of our extraordinary team members about what Equity Bank can offer you.