Banker-approved strategies to streamline your finances

If simplifying your financial life is a goal for 2025, get a jump start with a top private banker's top tips. In this Q&A, Kimbrely Gruidl, Vice President, Wealth Management Private Banker, answers questions about simplifying finances.

Q: Many people want to set and live by a budget as a new year's resolution. What do you think of that approach?

I want people to change the mindset around the word budget. A budget can feel like a diet

Maybe that puts a pit in your stomach—it doesn't have the greatest connotation. Your financial life isn't always about restriction.

Q. What's a better approach than to go on a money diet?

It's about taking more control over your finances versus having your finances control you. Start thinking about cash flow and cash flow management. Take a good and honest look at what your day-to-day life looks like. What's coming in? What's going out? Taking an open and honest look at your finances means you can be proactive instead of reactive.

Q: What can that proactive financial approach look like?

I'll have clients come to me and say they need a loan because they've maxed out their credit cards — maybe even missed a payment. The best time to get a line of credit is before you need one!

When you're saving, have a great job, and have equity in your home, it's time to set up other systems so they're in place.

It sets you up so that you’re ready if you have an unexpected illness, a job loss or for when you need funds for your child's education. It was a hard lesson for many from COVID — to build safety nets before they're needed.

Q: What might people not realize a banker can do?

Long-term financial planning is important, but people don't know where to start. They go straight to a financial planner, but a banker may be the right first step. Before a financial planner can do what they do best, a banker can help you assess your cash flow management.

Q: What might you talk about with someone during those conversations?

Let's get your reserves going, start with your 401k — do you have a match? Are you matching it?

Next, we’ll take a look at your accounts and savings. Do you have money in your checking account that could work harder for you somewhere else? Maybe it's time to set up some CDs and money markets. Let's have some of those reserves working for you where you still have access to them.

What's more, at Fremont Bank, your banker can see the whole picture. When you’re a business client and a consumer client a Private Banker is uniquely situated to consider that.

We'll take a hard look at debt — credit cards, car loans, or leases. What are the various interest rates on various credit cards? Which one makes sense to pay down first? People get overwhelmed and don't want to think about it. This is where I step in – I help them think about it.

As a private banker, my role is to help uncover your goals and plans and think about the direction you need to go.

Q: What might surprise people that you recommend?

I've had some people come up and we look at their current bank accounts, and I can tell they're having no fun! They've got savings, the house, everything set up, and everything is tidy. So I'll ask, "When did you last go out to dinner? Take a vacation? That needs to be included in the plan, too. We need to plan to live."

People think of banks as places where their checking accounts, debit cards, and credit are, not places where they can go to find out how to make their money work for them. That's where developing a relationship with a bank and a banker comes in!

Q: What are your fast financial do's and dont’s for 2025

Do stay consistent. It's simple to stay consistent on paper, but it's not easy in action! There's no magic fix and no easy money.

Do live below your means and avoid lifestyle creep – where once luxuries get reframed as necessities.

Don't borrow against your 401(k) or take lines of credit on your investments. Set it and forget it when it comes to savings.

Don't go into unnecessary debt. The opportunity for debt is advertised everywhere. I always tell my kids, "It's easy to get into debt and hard to get out of it."

Do reevaluate your credit cards every now and then. What's the interest rate? What are the points, and can you take better advantage of them?

DYK: Fremont Bank has credit cards with a range of points programs.

Q: What two tools should people consider that might not be on their radars?

For everyone, get your life insurance in place. Consider a separate policy even if you have life insurance through your employer. When young people or couples are just starting out, they assume it's unnecessary. They're young and healthy! But that's when it's most affordable. And if you have young children, it's when it's most important. It's most affordable when you're healthier and younger. When you get diagnosed with a condition, approval becomes more complex and costs more.

For higher net individuals who own property, start planning long-term—that is where our trust services^* come into play. In California, many homeowners will hit the probate minimum and should consider a trust. Having a corporate trustee is a huge benefit. An unbiased professional can help remove emotion and keep the family dynamic intact.

Fremont Bank's financial advisors and trust services can discuss life insurance**, trusts, and other products and money management strategies.

* Fremont Bank and its representatives do not provide tax or legal advice. Each individual’s tax and financial situation is unique. Consult your tax advisor for advice and information concerning your particular situation.

Deposit products offered by Fremont Bank, Member FDIC.

** The financial consultants at FB Investments Services are registered representatives with, and Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker dealer (member FINRA/SIPC). Insurance products are offered through LPL Financial or its licensed affiliates. Fremont Bank and FB Investment Services, a Division of Fremont Bank are not registered as a broker/dealer or investment advisor. Registered representatives of LPL who offer products and services using FB Investment Services, are also employees of Fremont Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Fremont Bank or FB Investment Services.

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