As you may know by now, Real World Finance attempts to examine personal finance within the bigger picture of real life. A good principle in real life will always translate well to your finances. For example, if you’re on time for work or class, you’re likely to pay bills on time, too.
And now for the big picture. Many years ago I was told a story, and it made such an impact on me that I’ve never forgotten it—or the point it makes. Today I’d like to share it with you.
I have a little holiday present for you, which you can download by clicking here.
Now before you get too excited, let me tell you this is a used gift. Used, as in I’ve used it continuously since around 1992. It’s something I haven’t modified all those years because it’s so simple and it works so well. At the risk of sounding immodest, this could be your best gift. Or at least the most powerful.
This is for young people considering their first job. It’s for parents, too.
Conventional thinking (broadly translated as “non-thinking”) says it doesn’t really matter what your first job is. Just get out there in the workforce and learn the value of a dollar.
This is for people who are comfortable with the idea of banking online. If online banking makes you uneasy, then a brick-and-mortar bank may be what you want.
As mentioned earlier, you’re more likely to find higher savings interest rates online. To make your search easier, try using an unbiased source that compares banks without offering a lot of editorial comment. Then when you find a few interesting prospects, you can visit each website and make a phone call to learn more.
At the risk of shorting out my keyboard, I’m going to write about the sorry state of banking and interest rates today. Regular readers of this blog already know I couldn’t possibly have much more to say about the beating you take whenever you pay interest. See my article on earning vs. paying interest if you need a reminder.
That leaves the topic of how much, or should I say how little, interest you’ll be seeing these days on your bank statement.
