“No institution – except the church – does more good for people than credit unions.” -Wright Pattman

Many people are often looking for easy ways to save money, but there is one category that is often overlooked.  And that is banking with a credit union versus a traditional bank. 

A couple of weeks ago, I participated in the comments of an article written by J. Money over at Budgets Are Sexy.  The topic was Top 6 Mindless Money Wasters.  The money wasters were general such as convenience stores, cell phone plans, unnecessary bank fees, magazine subscriptions and annual credit card fees. 

The answer that J. Money found most interesting from me was in reference to the “unnecessary bank fees”.  My answer?  “I’m part of a credit union.  They pay me to use my money.”  He loved the response so much that he actually sent out a tweet about it (see below).

I’ve been banking with a credit union for so long that I guess I’ve taken for granted the benefits of being a member.

I made the switch from a major bank to a credit union when I was in my early 20’s.  The fees back then were astronomical (to me).    I was charged $12 per month ($144 per year) to have a checking account plus a few other fees that I could possibly avoid, but had to be careful.  I felt like I was always trying fit inside this little box to avoid being charged additional fees.  Keep in mind, I was fresh out of college so I wasn’t exactly bringing home a bucket load of money to start with.

The Eye Opener

My husband (boyfriend at the time) mentioned that he was part of a credit union and that he didn’t have to pay a service charge every month.  He went on to say that they actually paid him interest on his money monthly depending on his average daily balance.  I was in shock.  No service fee AND they paid interest on the funds in the account?

Of course, I wanted to immediately transfer my funds, but he informed me that in order to join, you had to be a family member of a current member.  I didn’t have a family member that was a part of his credit union so, I found the next best alternative.  A credit union which was part of my mother’s employer. 

Their checking account services and fees ($2 per month) weren’t as good as what my husband had, BUT it was better than the $12 I was paying per month to the bank.  I immediately transferred my funds from the bank to the credit union (against the advise of my Mom).  She was a die-hard bank fan.  Me? I hold no loyalties when it comes to my money especially when the service and confidentiality are comparable.

My husband and I married a couple of years later and you can only guess what I did first.  Yep,  I opened a checking and a savings account with his credit union.  At that point, I was able to save the $24 per year ($2 per month) I was paying as a service fee.  Laugh if you want, but a savings is a savings, if you ask me.

Have I regretted the switch?  Not at all.  It’s probably one of the best financial decisions I’ve every made as far as handling my daily finances.  And since my credit union is a part of the Credit Union Service Center Network, I can bank with any other credit union within the network (anywhere in the country) – free of charge.

In the End

So if you’re up to doing a some research, you could probably save a few dollars as well earn a little bit of interest by banking with a credit union.  Of course, it’s still definitely a matter of personal preference.

So what do you say?  Feel free to agree or disagree with my logic in the comments.  Share your approach to banking.

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Hello Everyone,

Yesterday marked the one month anniversary of the “Official Launch” of this site, YEAH!!!!  I must say that I am pleased, excited and grateful for the support that you all have shown.  Thank you so much for subscribing, reading and commenting.  It’s becoming a success because of you!

Today was a power packed day (school luncheons and volunteering), but I carved out some time to reflect on a purchase I made earlier this year that I thought you’d find interesting.  Don’t forget to share in the comments to let me know you were here.  Thanks for stopping by!

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I have to sing the praises of technology when it comes to comparison shopping.   After this experience, I now wonder if there is anything that CAN’T be purchased online.  This has absolutely been my weirdest online purchase (so far).

The Idea

Earlier this year, I was looking to purchase new tires for my truck.  I called around my city and got some general prices of what the cost would be.  During my search, a thought came to me.  Since the internet was so powerful, was there a way to purchase tires online? 

I did a Google search for discount tires and got a few results.  I clicked on the first result, but no match was there for the type of tires that were already on my truck.  Within the next few results, I found discounttires.com (see below) and there were plenty styles for my tire size AND the prices were significantly different from the local quotes.

What was the difference in price?  About $60 per tire ($60×4=$240).  This has got to be a scam…right?  There is no way this can be correct pricing.  I placed a call to customer service, asked a few questions about the process and was extremely satisfied with the answers I received.  I even called my dealership to verify that if I brought in my own tires, they would install them for me.  This was too good to be true!!!

The Result

I entered my order online and got an estimate of the shipping costs which were about $55, got my confirmation and started tracking the next day.  There was no rush, so I opted for the regular 3-4 day ground delivery. 

On time and in tact, the tires arrived.  My dad was at my house when they came and he called me questioning the delivery.  He was amazed at the idea and the savings I received.

A couple of weeks later, on the day of my appointment, I had my husband to load all the tires in my truck and I headed to the dealership.  The tires were installed with no problems or issues.  I could not believe it…a painless experience AND I saved enough money to do a few summersaults in my backyard. Was it worth the hassle?  Yes.  Would I do it again?  Absolutely!  I actually recommended my Mom do the same.  Her savings?  Approximately $300.  I just love it when I save money!!!

Have you purchased a strange product online that has also saved you money?

Disclosure:  I have not and will not receive any income from the discount tires link shared above.  It’s a true testimonial for the company and the service I received.

This is the first article of a three part series on “How to Create a Financially Balanced Lifestyle” based on what has worked for me AND what I’m still learning.

This is going to be a very important series if you are serious about making a better future for yourself and your family.  Let’s get started…

“All days are not same. Save for a rainy day.  When you don’t work, savings will work for you.”   – M.K. Soni

It’s been very interesting to watch how our economy has changed over the last few years.  When I first entered corporate America, there was so much excitement and opportunity.  Firstly, to make money.  Secondly, trying to choose which job to take which would provide the most income.  Beautiful homes, fancy cars, nice clothes – you name it – we had/have it ALL.  Including the debt trailing behind us, but we were/are maintaining.

Fast forward eight years, the unemployment rate is up and the morale is down (depending on who you talk to).  Ask someone “How’s it going?”, you may get one of two responses:  “Pretty good, just trying to make it” OR “Wonderful, life couldn’t be better.”

Why the different responses between people?

I think it’s based on perception AND preparation.  Could it be that the “life couldn’t be better” responder hasn’t been affected by the economy?  I don’t think that’s the answer.  But let’s dig a little deeper and look at the two different components.

Perception. Perception is defined as a way of conceiving something.  A person with a positive perception sees life through a different set of glasses.  The whole world is their oyster.  They enjoy every moment of their life, but most of the time they balance that enjoyment by way of…

Preparation. Knowing a rainy day will come and they must get ready.

So, is everybody that has a positive attitude prepared for the future?  No, not everyone, but they have conquered half the battle and with a few key concepts could be well on their way to a better financial future.

The Fundamentals Have Not Changed

As I’ve watched the recession unfold over the last year or so, I’ve noticed that the people who are least affected are those that have built their lives on a basic fundamental of money management…

• Building an asset.  And the best asset we can build is saving money for times of emergencies.  It’s not a question of “IF” an emergency will happen, it’s “WHEN?”.

Sounds really simple doesn’t it?  The real truth is that most households don’t have a savings account earmarked just for emergencies.

So What is the Right Way to Build and Asset?

The first thing you need to do is lay the framework to build your fundamental asset:  Pay yourself first.  Kind of like a forced savings plan.  This means to treat savings as the first expenditure after you receive your paycheck.  It becomes a permanent fixture within your budget.

The key point to understand is that though saving is not a glamorous event, it can and will give you a peace of mind and a sense of accomplishment.  Remember the tortoise and the hare?  Slow and steady wins the race.

While there is more to your journey for financial happiness, this is a huge start.  Just remember…perception and preparation are your keys.  The rest is a breeze.

Sometimes we get a little relaxed with our goals and plans because life does happen every single day.  You may have to take a quick step backwards every now and then, but to win the prize you have to keep taking steps forward.  No matter how big or how small.  One foot in front of the other.

Here’s the Goal:

1. Build and maintain an emergency fund sufficient enough to cover at least six months to a years worth of expenses.
2. Use high-interest savings accounts to preserve your emergency fund.  You may find the best rates locally here.
3. Keep your emergency fund in a savings account that is easy to access just in case disaster strikes.
4. If you haven’t already, create a budget (spending plan).  This will help you in achieving your goal.

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Now, don’t be misled to think that I have thousands and thousands of dollars in the bank.  Since my husband and I have paid off our debt, we have been and are continuing to build upon our emergency fund.  This has been a process of continual growth.   An act of taking it one day and one month at a time.  But what we do know is that we are better off today than we were five years ago.  We’ve made substantial progress.  That’s something to be thankful for. 

What are your comments?  I’d love to hear them…

Click here to read on to Part 2 of the series

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