I Went to a Financial Audit... At a Bank

This is an unedited post from two years ago. I wasn't too happy by their tactics. All about selling credit cards and savings accounts to me.

They never asked me how much money I was making or how much I had in the bank. I even had a balance on my credit card which she didn’t even bring up. The payment was due in two weeks and the balance was very low but still, she didn’t even care. I figured if it was a true financial audit, they would do more but sadly it was basically a commercial for a high yield savings account.

They did ask about my 401(k) contributions which was disheartening to report that I wasn’t using the match to my advantage. I was contributing but nowhere near the match offered. It really woke me up to move some money around to be able to accept free money, I was turning away 100% automatic returns so I would be able to go out to eat more. Very stupid and short-sighted view there. I can make temporary sacrifices and not sacrifice my financial future for a safe retirement. That is one of the most important things in my life now. Save for the future and still have a good time now but have some restrictions.

After the brief conversation about me not utilizing the company match effectively, we went into a conversation about an emergency savings account. One thing I didn’t have at the particular bank. They suggested their bank account that had an interest rate of just under 3%. My high interest savings account at another bank gives me 3.5% but I caved and opened on up at this bank too. What’s the harm in it? I transferred my $1,000 to get started funding another emergency fund. Not a problem to have too many emergency funds, they did say to have $1,000 for an emergency and then 3-6 months living expenses separate. $1000 could be used for new tires for your vehicle if they need changing. It can cover a cheap medical emergency, hopefully you have good insurance and that $1000 could cover something more. I used to know people who lived on their own who had a wipe board that said at least have $300 in savings. This is a dangerous way to live if shit ever hit the fan. This $300 would not travel far and that was for two people living in the same house. $300 between two people could barely cover a week of expenses even if your rent/mortgage was prorated by the week. I actually saw a commercial last night, one of the first times I’ve watched cable in at least five years. Sad to report they still have commercials, but this commercial was offering speedy loans with no credit check necessary! WOW! What a deal! They made no mention of the terms and conditions during the commercial. As the finance crazed nut, I am I decided to look it up. They were offering $500 that must be paid off in two weeks. At an annual interest rate of TWO HUNDRED AND FIFTY PERCENT! The final total IF you pay on time within the two-week period would be $553. If you can’t pay it for a year, which I bet they are hoping for. The final cost of that huge mistake would be $1250. A $750 increase to the original loan in just a year’s time. DANGEROUS. Speedy loans wreck you with their interest rates.

Alright I am going to end this blog here before I go off on another tangent of bashing financial institutions that are trying to “help” you. Please shop around for the right financial advisor because if you don’t trust them completely you won’t give them the tools necessary to actually help your situation. You will withhold information which doesn’t help anyone. Find a good financial advisor to help out. Not a bank. Also try not to get a payday loan, and finally please please PLEASE have an emergency fund. Life gets really scary when shit hits the fan, and your money runs short.