Why Is It So Hard To Talk About This Stuff?

We have had several discussions over the past few weeks about getting people excited to increase their financial Wellbeing. We find ourselves often comparing and envying the success of the fitness center here at the Gallup riverfront office. There has really been a grassroots enthusiasm about getting physically fit here on campus.

There are many similarities between financial fitness and physical fitness. Things like creating accountability, routine, discipline etc. But one thing that does not cross over is the cultural stigma associated with talking about personal finances.

It’s pretty easy to notice someone who has lost a few pounds and say “Hey, you look great!” It’s not so easy to notice someone who is getting their finances in order.

People are more than willing to talk about how they have “fallen off the wagon” on their diet over the past few days,  but it’s not so easy to talk about blowing a couple hundred dollars on credit cards at the mall last weekend. There is just something taboo about discussing your finances. The truth is that just like exercising with a partner, you are far more likely to be successful if you have a partner keeping you accountable with your finances. And you know what? - It feels pretty darn good to have someone notice your success and pay a compliment.

How can we encourage this type of community? Ronny and I love being accountability partners with people and we have several relationships just like that. But we are only two guys, think about how powerful it will be when folks take it upon themselves to have financial accountability relationships with their friends and those friends have relationships with their friends, and on and on.

Getting inspired and equipped are the first steps to starting this trend.

We know a guy – Dave Ramsey, who has put together an inspiring and equipping class that can help get you started. It’s called Financial Peace University and we are going to offer it here. If you have a desire to go from good to great, get back on the path to financial freedom, or be an accountability partner you should sign up for this class.

It’s thirteen weeks, two hours one time a week, and costs $99. Here is a video preview of the class:

If you are interested contact us by sending an e-mail to credit_union@gallup.com or call us 402-938-6800.

“How do we know a corporate hero when we see one?”

One of my corporate heroes is Arkadi Kuhlmann, founder of ING Direct, so I like to keep an eye out for mentions of ING or Kuhlmann. As I have mentioned before, I also love Harvard Business Review. So when Kuhlmann was mentioned in a HBR article I just had to share!

Where Have all the Business Heroes Gone?

Who are your corporate heroes? What have they done to earn your admiration or respect? 

 

The Best Audience In Weeks

I have been at speaking engagements all around Lincoln and Omaha over the last few weeks but none was better than the presentation today.

Today Ronny and I had the opportunity to speak to a group of 60 junior high students at the annual Gallup Kid’s Day. Our topic was of course, Financial Wellbeing but we took a refreshing approach from the usual content meant for adults.

We covered the 3 S’s and the importance of the order that the mnemonic translates to:

• Saving
• Sharing
• Spending

The kids guessed the saving and spending pieces of the 3 S’s right away. The sharing “S” was quite a bit harder to prompt the kids to guess. We also talked about saving first and foremost as well as making sure to take every dollar that you earn and decide where the money will be allocated t0 among the three options before doing anything else.

The best part was when I talked about the power of compound interest. I used a story of a girl who saved every month from the time she was 20 until she was 65. When I told the kids how much money she ended with, over 2 Million, one girl threw her pen in surprise and another boy burst out “No way! Is this for Real!?”

Guys, I had a chance to share a secret today - I had the  opportunity to spread the good news I learned way back in high school. Watching the eyes of the kids light up today when they heard about the power of compounding interest felt like I was watching them take their first steps toward financial freedom.

Albert Einstein called the compounding power of interest “The eighth wonder of the world” – I couldn’t agree more.

Check Out Our Free Member Appreciation Event!

Member Appreciation Day at Rosenblatt.

Date:  Saturday, July 24th
Time:  Tailgate open from 3:00 PM to 7:30 PM.  First pitch at 5:35 PM.
Where: Rosenblatt Stadium
Who: Omaha Royals vs New Orleans Zephyrs (double header)

Please RSVP to credit_union@gallup.com

Yes, Sometimes Fees Are For Being Naughty

Nobody likes to pay fees, especially not to the bank. After all, you are giving them your hard earned money. All they have to do is keep it safe! Right? Well, yes… but we also have to try to do more. For example, here at the credit union we are not too terribly concerned with turning huge profits. We prefer to use the money we earn to add valuable services for our membership. These services also take some money.

Traditionally we have tried to keep our fees to a minimum and attempt to make money the old fashioned way – through interest rate spread. This is the difference between what we pay you on your deposit and what we earn on a loan. If you want to know more about that, read a post I wrote last year called “The Fundamental Benefits of a Credit Union”. The truth is most financial institutions don’t operate this way any more.

Banking dates back to the Roman Empire and for the first time in its history, most banks do not make their money with the traditional interest rate spread model. They now make their profit through fees.

As I have said before, I hate fees - most of the fees being charged are useless and downright dirty.

There are fees that have to be charged – I call these the “Naughty Fees”. Unfortunately, these fees are a necessary part of doing business. Naughty Fees include NSF fees, stop payment fees, deposit item return fees, etc.

Believe it or not, I have conversations with people almost daily explaining why we have to charge a fee for these types of things. What it comes down to is that  if you do choose to be naughty (by abusing your account) we have to give you an incentive to stop. However, we also know that sometimes mistakes happen. If our member rarely has a problem with their account we will often work with them to help get their account back on track.

We don’t just charge Naughty Fees because we like being big brother or some other wild reason. If you think in very black and white terms, when you overdraw your account, you are taking money that is not yours. You wouldn’t take a few dollars out of the cash drawer at McDonalds would you?  - No  way!

Friends, if you are paying NSF fees, please change your ways.

Not only for the moral reasons I mentioned above but more so because it is literally making you poor. The credit union recently conducted an audit of the fees we have collected and we found that some folks are paying in excess of $2000 per year in Naughty Fees! That takes my breath away! That’s an extreme example, but think about it, if your salary was $40,000 last year now it is only $38,000 – for no reason other that bad financial management.

If you need to get back on the path to financial independence, sometimes it takes some help. If you are ready to change, we are ready to help. Please contact us and we will sit down with you to put together a plan.

Go Check Out This Book!

Dr. Thomas J Stanley wrote a book back in 1996 called The Millionaire Next Door - an earth shattering research study on America’s wealthy. Stanley performs an intriguing analysis on how wealth is built in this country – not with inheritance or advanced degrees. If you like this blog, you have got to read this book!

Dr. Stanley authored a new book last year called “Stop Acting Rich: And Start Living like a Real Millionaire”. It is a fantastic read that describes keeping up with the Joneses like you would not believe. I think Stanley’s writing is extremely refreshing, perhaps because rather than simply sharing his opinion he uses research to deliver the message.

Check out this review from The Washington Post and go pick up a copy tonight!