Become Your Own Banker


GOAL: Become your own banker “Neither a lender nor a borrower be,” advised William Shakespeare in Hamlet, one of his most famous plays. Loans between family members or acquaintances ruined relationships back in his days. Borrowing money can still kill friendships and crush families today. One solution: Become your own banker. Save enough cash so you rarely need to depend on others for money.

Sometimes, borrowing from banks makes sense. Few, if any, of us would own a home without the option of taking out a loan to pay for it over time. Making monthly payments on big-ticket items like property (likely to increase in value by the time it’s paid in full) can be financially sound. Smaller things bought    on credit wreak havoc in households. Save relationships – and stress. Start a fund to tap into as needed.

 Using credit cards can be a reckless way to borrow money

Most people don’t think of relying on credit cards as borrowing money, but that’s exactly what they’re doing when they pull out that piece of plastic to purchase everything from groceries to garden hoses. It’s not so bad if they can pay off every credit card bill at the end of each month, avoiding any interest. In that case, credit cards can be a nice convenience.

However, charging only as much as they can afford to repay each month does not appear to be reality for most credit card users. It’s so simple to slip that little card into a slot. Many people use it for everything; and, then, can only cover a portion of each monthly bill. They are forced to borrow the rest from banks or other companies that issue credit at high rates of interest. As their leftover balances add up, buyers find themselves paying anywhere from 10 – 30 percent more for many of their purchases, including:

  • Coffee, lunch or dining out
  • Entertainment, movies, sports events, or music
  • Shoes, socks, shirts, skirts, and other items of clothing
  • Doctors, dentists, over-the-counter and prescription drugs


Save first . . . then, borrow from yourself.


A smarter strategy would be to save some of your money until you have enough to be your own bank or credit card company. Once a nice nest egg accumulates, along with compound interest and other earnings that savings reap, you can borrow from yourself.


Take that tactic a step further and pay yourself back ­­– with interest. You’ll get much further ahead in the financial game. Interest you pay yourself, vs. others, continues to grow. So . . . why not start building your own bank? Become your own lender and borrower. Stop paying steep loan rates to someone else.


Manage Your Money . . . financial facts for a brighter future provided by Advancd Asset Management LLC                           Follow our blog:                  Ronald Van Surksum, CFP                          4555 Wilson Ave SW – Suite 2               Grandville, MI 49418                                                                 Phone: (616) 531-5220                                          Cell: (616) 450-8439

, , ,

Comments are closed.

Advanced Asset Management
4555 Wilson Ave SW, Suite 2
Grandville, MI 49418

Phone: (616) 531-5220