Hi there, Mrs. 1500 today, asking about your banking habits. Do you use a large, nation-wide chain bank, or do you use a local bank? And what are your reasons for choosing?
But first, let’s talk about your finance book recommendations from last week.
Normally, I would open up my computer at the end of the day and respond to all my comments, but I didn’t really know what to say last week. Thanks, 30 times, seemed silly.
So thank you all who commented.
Reader Lucas had a great point, “…jumping right to a strict “budget” book would not be the most effective means of helping her change her thinking and motivations (which then would leave to effective budgeting, etc. . ). I would say you are looking for something that helps her understand her values, how much of what she spends doesn’t help her achieve those and how to be aware of your priorities in life (and how you need to consciously pursue them, not just assume you will achieve everything without effort/sacrifice). …”
He then goes on to suggest “Your Money or Your Life” by Vicki Robin and Joe Dominguez. I have to admit to not having read this book yet, but I think I am going to make a library list and put this at the top. The title suggests it would be a great read.
He also suggests “Smart Couples Finish Rich” – by David Bach and couldn’t remember if she was married. She isn’t married, and is currently in a relationship with an incredible loser, so I am not going to share this title with her, but I will share it with you.
He rounds up his suggestions with “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko. Mr. 1500 owns this book, and has read it and gives it to all couples for a wedding present. Sounds like we need to send this to his sister, too. Thanks for taking the time to answer, Lucas.
Allie from Allie’s Everyday Adventures, Chris from Flipping a Dollar (which is about taking garage sale items and reselling online for a profit – I can’t wait to read this whole site!) Brian from Debt Discipline and Bryan from Income Surfer recommend Dave Ramsey’s Total Money Makeover.
Reader Hannah also casts a vote for Total Money Makeover, as well as Your Money or Your Life. Another idea is You Need A Budget. I don’t know much about this, but Mr. 1500 has recommended I look into it.
She finishes her suggestions with a possible session with a money coach. I Think this is the way the sister would choose to go, because someone else is doing the work for her. I would happily help her out if she would make the changes, but she would have to make an enormous effort before I would drop any serious cash.
Mrs. PoP from Planting your Pennies throws another vote in for “The Millionaire Next Door” and added “Nice Girls Don’t Get Rich” by Lois P. Frankel.
Reader Cadence recommends “All the Money in the World” by Laura Vanderkam. She says it takes a softer tone, less accusing of past mistakes and more encouraging for future success. This could be a very good book for my sister in law. Thanks!
Reader Jenni suggests “All Your Worth: The Ultimate Lifetime Money Plan” by Elizabeth Warren and Amelia Warren Tyagi. And then seconds and thirds Dave Ramsey and Your Money or Your Life.
My Dividend Pipeline suggests “The Richest Man in Babylon” by George S. Clason. Which was then seconded and thirded by Reader Andrew and Reader B-Ride. And then Reader Alaska49 provided us with a link to a free copy from Mr. Money Mustache. Thanks, Alaska!
Adam over at AdamChudy suggested “Millennial Money” by Patrick O’Shaughnessy, which gives a great overview of compound interest. He says, “It’s a good starting place for any under 30 person…” This would be a great suggestion to Mr. 1500’s youngest sister, but the sister who is asking is pushing 40 pretty hard. Compound interest can still work in your favor, but not nearly so much as at age 30. (Oh, we could be batrillionaires if I had paid attention to this principal. I started following BRKA before there was a BRKB, back when it was only $29K a share. Sigh…)
Even Steven suggests “You’re So Money” by Farnoosh Torabi or “I Will Teach You to Be Rich” by Rahmit Sethi.
Tawcan offers up “Raising Financial Confident Kids” by Mary Hunt, and gives another vote for Your Money or Your Life.
Reader Patrik says “Only one book is needed: – the Complete Tight Wad Gazette compilation” which is by Amy Dacyczyn.
Reader Sue likes J.D. Roth’s Your Money – The Missing Manual because “it’s a bit of a comeback story – he admits to all his mistakes and shows/tells how he turned things around.”
Reader Girish suggested The Coffee House Investor by Bill Schultheis. He was an investment advisor who took his 13 years of experience and turned it into a book for people who are overwhelmed by the stock market.
Reader Wade suggested “The Mindful Investor” by Maria Gonzalez and Graham Byron.
Reader Zugzug casts another vote for The Millionaire Next Door.
Reader Nate has a whole list: Two Income Trap – Warren, Rich Dad, Poor Dad – Kiyosaki, Millionaire Next Door – Stanley, A Random Walk Down Wall Street – Malkiel, The Signal and the Noise – Silver, Black Swan – Taleb, Early Retirement Extreme – Fisker. Thanks Nate!
Reader Heather M likes “Millionaire Teacher” by Andrew Hallam, because he does a great job of explaining in non-technical terms.
And last is MP of Mustachian Post who throws another vote for Your Money or Your Life and A Random Walk Down Wall Street.
And now on to today’s question about banking.
Mr. 1500’s work situation has changed ever so slightly. He still works for the same place, doing the exact same thing, but now, instead of being an employee, he has to go corp-to-corp, which means he has to form his own corporation. It works out to our advantage, but there are some things we need to get into place. One of the many tasks is to open a business banking account so we can get paid.
We use a large, nationwide chain bank for our personal banking. We both happened to have an account at the same regional bank when it got swallowed up by first one national bank then another. We stay not because of stellar customer service, but rather because of their nationwide network of ATMs and because we have already set up automatic bill pay for most of our bills. It would be a huge hassle to change.
But for business banking, we had a choice. So I visited the local branch of the giant chain that we currently bank with, as well as the closest branch of our local credit union. Both offer business accounts, and that is pretty much where the similarities end.
The local credit union charges for absolutely everything. 150 transactions are included in their non-waivable monthly fee. But if you bring in 10 checks, then need cash back, that is 11 transactions. WTF?!? (Remember that here on our family-friendly [most of the time] blog WTF means What The Fee?) The large chain bank, where we have been banking since the early 90’s, charges $10 per month, but that fee is waived if you have a $1,500 balance. Kind of a no brainer. Since we already bank there, we know their online system fairly well.
I see local banks everywhere. I want to give my business to the mom-and-pops of the banking world, but when it is going to cost me so much more to use them, it doesn’t seem worth it to me.
So, do you bank local? What benefits do you see? Any local bankers out there? I would LOVE to hear from you. Maybe I am just missing something…
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