It often concerns me when people don’t seem to understand something they should have learned about in high school such as writing a check, balancing a personal budget, and major differences between a bank and a credit union. Sarah Silverman explains why she left her bank for a credit union in a video for NowThis. Just when you thought you couldn’t politicize much more in America, the credit union has now fallen victim to it. There’s a lot of benefits to a credit union. I even advocate switching to them! There’s just one big problem: I don’t think Sarah Silverman or NowThis understand credit unions very well. Before we get too far ahead of ourselves, here’s the video so you can see what I’m talking about.
Recently, I wrote an article about how much is really enough to have in our savings accounts. After thinking about it, I thought to myself, “How much should we have in our checking accounts?” After talking with some people about it, it’s become apparent to me that many people think it should be similar to the minimuim they keep for their savings account.
If you read my last article, you know that your minimum savings should be equal to all of your living expenses plus necessity expenses for each month that it usually takes you to find another job. This is a bit much to require yourself to have in your checking account as well. If you can do it, more power to you. For the rest of us, the idea revolves around purchasing power.
Now that tax season is upon us, I’d like to ask you something: If you’re able to, do you currently have a plan for saving money? Whether or not you do, have you ever considered how much you should have in your savings account? There’s the 50/30/20 rule for budgeting as well as the 10% rule for retirement, but we’re not talking about methods for saving money. Instead of thinking how to save it, I want to get you thinking more about how much you should save.
If you’re a reader of mine, you most likely have a bank account. If this is the first article of mine you’ve read, it’s still very likely that you have a bank account. There’s this other side of banking that people usually don’t notice unless they’ve explored their bank’s website. They see all of these other types of accounts and services, but they’re too confused to go exploring it. Let’s clear up that confusion. You might actually find that some of these accounts are much better to have than a regular savings account.
It’s that time of year again: Tax season! Many of us will receive tax refunds and spend it right away. However, there’s more to what you can do with your tax refund than just go shopping. Maybe you would like to go on a mini vacation or pay down debt. Maybe you would like to invest it in something. Today, I’m making some recommendations as to what I would do with my tax refund.
We’ve all been there. You get mistreated by your bank (Wells Fargo, for example) and you say, “Ugh! I want out of this horrible bank!” But then you realize that you’re with that big bank because you like having branches and ATMs without fees wherever you go. If you bank with Wells Fargo, you think to yourself, “I’ve got access to more than 12,500 ATMs and approximately 6,200 retail locations. I can’t give that up!” You think that there isn’t a better way.
I’ve got news for you: There is a better way. You don’t have to stay with Wells Fargo or whichever big bank you’re currently at. Plus, you can find much better interest rates. What’s my secret? It’s really not a secret at all. It’s the power of credit unions.