008 | Avoid Bank Fees at All Cost

how to avoid bank fees

 

Bank Fees and fees generally are the financial equivalent of death by a thousand cuts. AVOID THEM – Here's how

  • Don’t piss off the accountant: Bank Fees
  • Americans spent $32 Billion in overdraft fees in 2016
  • Bank accounts and credit cards should be financial tools you use for free
  • Overdraft fees mean you have no money and the bank is loaning you money for $35 at a time
  • If you don’t have $1,000 in savings you have an emergency
  • Jonathan had one overdraft in 2016 but his system for putting it on a credit card avoided a fee
  • One fee leads to another. Come up with an action plan to avoid them
  • If you get hit with a fee, call your bank to ask them to waive it
  • If you threaten to leave your bank over a fee, they will almost always waive it
  • Determine if you need a local branch for your bank to save more money
  • If you’re getting hit with any fees, you need to sit down with your banker to come up with a plan

Links from the show:

007 | America’s Food Obsession | How to Crush Your Grocery Bill

Why you need to take a hard look at your Grocery Bill, and Restaurant Budget and how to to crush it

  • America’s food obsession: We’re fat and broke
  • How Brad’s family saves money on food
    • Being smart with ingredients. Buy in season
    • How often does Brad’s family go out to eat?
    • Go out for lunch instead of dinner
    • Emergency meals in extra freezer
    • Being efficient shopping at one store. Cut down on business
    • Plan out the 2-3 meals you want to cook for the week
    • Index of Top 50 recipes (A++ recipes) to cook
    • Getting five nights of dinner out of cooking two meals
  • Jonathan’s plan: cook for multiple nights and don’t waste food
    • The waistline test and the fridge test
    • Food budget programs
    • Making food prep psychologically easy. Simplicity is key
    • The Ultimate Costco Meal Plan and 10 items Jonathan buys
      • 31 loaves of bread from one 25-pound bag of flour, 18 cents per loaf
    • Find out your price per unit on your staple foods
    • Jonathan doesn’t eat out at restaurants where he needs to leave a tip (goes to Chipotle and Panera)
    • Health consequences – don’t overeat
    • To cut down on portions, plan for leftovers
  • Take willpower out of decision-making
  • Small tweaks to make your life better over years
  • Healthy lifestyle saves money on healthcare

Links from the show:

006 | The Power of Partnerships | ChooseFI Origin Story

Find a Partner and Start a Business

We share the origin story of ChooseFI. The how and why we decided to partner on this

  • The Power of Partnerships
  • How Brad and Jonathan met
  • Our decision to partner up on Choose FI
  • The importance of taking action
  • The value of personal relationships in an online world
  • What to look for in a partner
  • Complementary skills and how it can help beat the learning curve
  • How to find a partner in your niche
  • Find people you connect with and meet in person if possible
  • Split up the duties in the partnership to create an effective partnership
  • Partnerships likely aren’t going to be 50%/50% in time spent, but you can still add value
  • Have an understanding from the outset what the partnership will entail to avoid problems down the road

Links from the show:

005 | Why Everyone Needs Dave Ramsey and Why You Should Ignore Him

Dave Ramsey Baby Steps ChooseFI

We discuss where ChooseFI and Dave Ramsey agree and disagree.

  • Dave Ramsey and Jonathan’s history following him
  • Dave’s unyielding stance on debt: don’t do it
  • Review and evaluate Dave’s teaching philosophies
  • Baby Step 1: Get an emergency fund of $1,000
  • Baby Step 2: Pay off all your debt except for your mortgage
  • Explanation of the Debt Snowball
  • Our hybrid approach to the Debt Snowball vs. Debt Avalanche
  • Advice isn’t “one size fits all.”  You need to figure out what works for you!
  • The 4% rule explained and the impact on financial independence
  • Dave Ramsey says to not take advantage of 401k match if you’re paying off debt
  • The math of personal finance vs. the psychology of personal finance
  • Baby Step 3: Get 3-6 months of expenses in savings
  • Our personal emergency fund strategies
  • Baby Step 4: Invest 15% of household income into Roth IRAs and pre-tax retirement funds
  • Baby Step 5: College funding for children
  • Baby Step 6: Pay off your home mortgage early
  • Baby Step 7: Build wealth and give
  • Please leave us a written review on Itunes to help the podcast grow

Corrections from the show

Roth's do not require any seasoning period. You can withdraw your initial contributions tax free at any time for any reason. It does not have to season for five years. Practically this makes the Roth even more powerful as a possible savings vehicle during your teens and college years when your tax rate is very low

Links from the show:

Books Mentioned in the Show: