The bank is not your friend

 
Thanks Franco Folini for the above photo.

The bank is not your friend.  It’s always good to remember that a bank is in business for its shareholders, not for you.  You need to be responsible for your interactions with any bank.  Here’s an example of what I mean.

I received a mailer from my home equity line provider today.  I’m going to quote some of what they say and show you the danger in giving their interpretation any authority in your life.

Let’s start with the opening,

“The long, hot days of summer are here, and you deserve to make the most of them!  Whether you decide to take a relaxing vacation, spend time with family and friends or tackle those outdoor projects —BIGBIG Bank is here to help!”

Okay, this is the set up.  They are telling me I deserve to spend a lot of money and have my home projects completed and they will help me by:

a) Giving me the money as a gift

b) Sending their representatives over to build the back fence for me or

c) Loaning me money from the equity line

You guessed it!

Let’s continue:

“It’s never been so easy to take advantage of your available credit line.”  Trust me, it’s easy, they send me checks at least once per month.

“Simpy use the attached checks (up to your available credit limit) to make purchases, consolidate your bills or take that well-deserved vacation.”  Well, they’ve told me twice that I deserve a vacation, hmmm…I wonder if they want me to borrow money from them to take a vacation?  Perhaps they’ll remind me of this soon.

“And for added convenience, we’ve made the first check payable to you for immediate deposit into your checking account.”  I guess their customers are so lazy that they can’t put their own name on a check.

“Just sign it and deposit it, and make your summer an unforgettable one”.  Honey, remember that summer vacation we took seven years ago on credit and are still paying for? How can I forget?  We keep getting a bill for it every month.

“The summer vacation you’ve earned.” BINGO, third time’s a charm!

“The financial freedom you deserve.”  Just how does owing someone money qualify as financial freedom?  Let me say that again, how does owing someone money qualify as financial freedom?  Beats me!

So, if you don’t pay attention, you will begin telling yourself that you deserve an expensive vacation and hey, it’s not a big problem to borrow for it, look they even put my name on the check.  If you are clear on your financial ambition, it is easy to navigate these offers.  If you are not clear, then it is easy to listen to their interpretation, act from it and rack up debts that damage your wealth.  The bank is counting on you being guided by their interpretation of life (spend, spend, spend, you deserve it!) and not by an ambition that builds your financial future (save, save, save, you’ll need it!).

This is a reminder to those of you who are saving for retirement that these offerings are dangerous to one’s financial health.  Beware of the interpretation and offers you listen to and accept.  Be responsible, hold your ambition.