We cannot resist the impression that the attitude of the bank has changed over the years. Once, above all, on the financial market there was no such fragmentation when it comes to bank branches. Therefore, the competition was not as strong as it is now. Now the bank is primarily for the customer.
Secondly, we did not choose a bank that is better. Our choice was most often based on the fact that someone from our family used the given services or we were closest to this institution. Rarely, on their own, before using the services of a given bank, they carried out any research as to whether it is a good choice and the cheapest.
Bank for the customer
Due to high competition, now the bank must solicit the customer, not the other way around. As a result, banks constantly analyze the market and the needs of potential customers. Continuous research, surveys, and analyzes, except that they are caused by the fact that the bank is for the customer , and not the other way around, is also aimed at building a customer base and increasing sales. Going to the bank for any financial service, it cannot happen that it will not meet our expectations. To confirm the words that the bank is for the client , specialized branches are created that only serve a selected sector of the market, such as mortgage or investment banks. All this to tailor your services to the needs of the client.
Changing the attitude of the bank and more
We are starting to feel dominant in relations with the bank. We are aware that the bank is for the customer . We do not have the same fear as before before visiting the bank. We are better informed, we have more knowledge about the finance and banking market, we are better educated, we know our needs and we have expectations. By going to the bank we are not getting lost, on the contrary we set requirements. We know what we want and that we have a chance to get it if we negotiate properly.
A bank for a client is not only a study of his needs but also satisfaction. As well as knowledge about the products that customers expect from the bank, the satisfaction of entities that have used the services of a given bank is important. Thanks to this, banks know what else they need to change and refine to meet their expectations in 100%. Through this, banks also want to build long-term relationships. They strive to keep the client for longer. Selling one-off services is less important, and building lasting relationships comes first. The bank is for the customer , which means it tries to do everything to not only get it but also to stay for longer.
As many of us could see for ourselves, it is not difficult to take a loan. The problem only appears when its repayment time comes. Yes, not always. However, many people find that hasty credit can be a heavy burden for the household budget. While one installment does not spend our sleep at night, each subsequent one is a more significant expense. Not everyone can tell enough when it is not really bad yet. We hope that we can pay back another loan. However, it often happens that we have overestimated our capabilities. Then we start to look for help. Where to start to get out of the credit loop?
First and probably the most important thing we must realize is that we have a problem. Nobody took these loans for us. What’s more, we rarely needed credit for life. After a brief analysis, many of us will find that the money has been spent on pleasures and improving our lives. They were not a necessity at all. To get out of the credit loop, we must start controlling our expenses and stop spending money on stupid things, and only on the things we need to live. Unfortunately, there is no time for pleasure now. If we do not tighten our belt for a long time we will not get out of debt.
Where to start to get out of the credit loop
Saving is not the only thing we have to do. It is also worth looking through things that are unused in our home. You will certainly find lots of items that are new and will never be useful to you. Sell them and give them a new life, and at the same time earn extra money. To get out of the loan loop it is also good to find an extra job that will bring us more income. Another way to get extra money is to take overtime in our current job. If you have other ideas on how to earn extra money, don’t hesitate and start acting today. At the same time, if you do not spend money on unnecessary things, and spend the monthly surplus on repayment of liabilities.
You will pay them all faster.
So if you’re still wondering where to start to get out of the credit loop, there is only one answer. Start by changing your habits and start saving. Also remember to stop taking more loans. Let greater earnings not be a signal that you can afford the next installment. Additional money is to be used to repay current debt.
June is over, I was going to update you on the evolution of the money machine and the month’s stock buy.
The Money Machine June 2018
In June, the stock market went down a bit, although Friday was a solid recovery. This caused the GFIC index to end at -0.82%. Unfortunately, our trend was broken better than the index when we ended June at -1.27%. It ended in 9 months in a row where we beat the index. Now we have to take another look and try to beat it!
Because we have had such a long period where we have indexed, we have outperformed the index when we look at developments for the first half of the year. Our money machine is up 6.64% while index is up 3.92%. We think this feels great and is obviously a result we are happy with.
What did we do in June?
At the risk of becoming crippled, we have not bought more shares this month either, we save for our leave.
Listen and amazed we have actually sold some shares! Not because we believe in a crash or fall in the near future but because we are looking at a real estate investment.
As I mentioned a few times on the blog now, we want to diversify and not be too dependent on the stock market fluctuations. Today, we are quite heavily invested in equities and funds, even though we have already reduced the weight on the stock exchange during 2018. Prior to real estate investing, we had about 10% of our assets in alternative investments and 90% in our money machine on the stock exchange. If we can balance it with other assets, it feels safer for the future. If we get the real estate investment we will have about 75% on the stock exchange and 25% outside.
We want to create stable cash flows that we can live on the day we have reached financial independence. A real estate investment is an asset that generates very (usually) stable cash flow month after month. I hope I can give more information about how things have been going for us within a few months.
How has the first half of the year gone for you?
PS. For those of you who like graphs and study your development a little more carefully. If you use Avanza you can create “portfolio reports”, you get a lovely pdf with graphs, numbers etc. Quite fun to actually look through ? You will find there as shown below. Go to “my pages” and then the “portfolio report” tab. There you can choose which accounts you want to make the report for, the time period and which index you want to compare.