My friend started a family bank – you can too!

Ever thought about starting your own bank? No? Me either, until a few years ago, when I learned that one of my friends started a family bank to meet the needs of his family without having to deal with a traditional bank and their traditional banking rules and policies. Starting a bank is not as complicated as you may think, but it does require transparency, trust, and ”members” that have a similar mindset and goals for the bank. I challenge you to think about ways you can build a legacy for your family beyond the typical things we think about – saving, paying off debt, etc. What else could you do to leave a lasting legacy?

If you need a financial coach to help you organize your finances, email me at I also do speaking engagements on personal finance.

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I am a financial coach that focuses on improving personal finance behavior. I do not sell investment products or manage investments.

What’s up everyone thank you for Stopping by the achieve financial Coaching channel where we believe in Breaking the chains of debt and talking About all things related to personal Finance Today’s video is a little bit different I want to start Having conversations with everyday People who have backgrounds like many of Us who didn’t start for much But are trying to do some extraordinary Things to leave a legacy And secure their financial future today I’m talking to a good friend of mine who I played ball with back in the day His name is roosevelt noble and what he Decided was that him and his family Wanted to start a family bank And so when they had financial needs That they could go inside of the family Instead of taking their business Outside of the family to somewhere else Or just going to you know some of the Everyday banks that we use So i want to have this conversation Because i want this to inspire you to Start thinking about some of the things You may want to do yourself Or with your family you’re only limited By your ideas and your willingness to Put in the work To get these things done so take a Listen to this conversation it’s a very

Good conversation may give you some Great ideas Subscribe to the channel like the video Leave a comment and share this with Friends Thanks for stopping by so dr roosevelt Noble thank you for joining me uh here At achieve financial coaching for Today’s Talk so if you could could you tell us A little bit about your background uh Financially did you come from money was Your family well off just give us a Little bit Of information there uh yes thank you For having me um I am dr roosevelt noble uh i am Originally from kankakee illinois which Is a small town about 45 minutes Straight south of chicago Um did not come from from financial Wealth or A silver spoon by any means uh my family My mom and dad actually have started Their family relatively young So if you can imagine um by the time my Mom was 21 she had four kids So that doesn’t that doesn’t kind of set You up for a very successful profile Uh so we didn’t necessarily come from Money uh but we did come from A tremendous amount of love uh i would Say In in that love the residual impact of

That love is what really allowed us to Be able to kind of Walk into this this family savings group That actually Kind of has grown into our own personal Bank kind of thing so that is awesome Man You know hey good foundation at least From a love standpoint but Not necessarily on the money tip right So let’s get into this man Um so why did you decide to do the Family bank uh rosie and how was that Idea Received when you first put it out there So what started this What started it for me was coming to the Realization that um I was the first person in the family to Graduate from college And and you graduate from vanderbilt and That’s like that’s that good school That’s right and and everybody kind of You know expects you to have that good Job And and you become the kind of the Person that people can come to When they need financial assistance for Anything And we had a series of um incidents that Happened In in quick succession um back in like April of 2002 and It just kind of hit me as like this this

Will not be sustainable it will not be Sustainable for me to be the one that Kind of is helping people out all the Time i love my family and love to help Them But i thought back to the you know the Adage of give a person a fish you feed Them for a day teach them how to fish You feed it for a lifetime And so um back in april of 2002 is when I first again just came up with the idea Of like we have we need to have some A family emergency fund set aside and That’s all it was initially supposed to Be like a family emergency fund Uh and so i spent some time kind of Doing some research um And pitched the idea to my family in September 2002 And everybody was on board with it from Jump um And we started in september 2002 with The basic premise of Let’s save a small amount of money and We had we had We set some initial goals and some Initial policies and rules around How we would use it but the goal was to Save a small amount of money we want to Increase what we saved every year by a Certain amount And it was very well received and i Think part of a part of why it was well Received was because

Like i said going back to that Foundation of love and that foundation Of trust Yeah um they they my family trusted me My family put up had a lot of Belief in me and and again as the one Who went to this good school i they Presume that i knew what i was talking About Um and so that that was it wasn’t a hard Sell at all it was a relatively easy Sale to get people on board and once we Started in september 2002 It’s been turning ever since and we’re Coming up on uh it’ll be 20 years on September 2022 So wow so 20 years in this game now so i Imagine you’ve worked some things out so Let’s just go back a little bit rosie Just so Um just a few questions i want to make Sure that my listeners get so How is this bank this family bank Organized like so how do you all receive Deposits How do you withdraw money how does that Work with this this family bank Okay so there’s a couple of different uh Ways in which people submit their Payments Uh when we first started i would Actually send Monthly statements just like you get Your cell phone bill electric bill

Yeah i would send a month please Statements with a self-addressed stamp And envelope say hey send this back to Me Uh it’s due on the 19th the 19th has Always been our due date for 20 almost 20 years right Okay um we’ve graduated from that to Where people don’t need me to send Send them these reminders anymore Because now There are some people that i have a Brother-in-law who does Their payment through military allotment Um My my brother is a zell payment uh my Sister who’s also in the military There’s this her bank cuts me a check Okay mom mom is old school mom would Just leave me a stack of checks for the Year and say deposit this one on the First September department on the first person The bank has some flexibility Yeah i’m going to have payments coming In flexibility And um and as far as like money’s going Out Um we have you know various loan Programs Uh various emergency assistance programs Various retirement programs for example There’s a short term loan Which is 30 to 60 days we have long term

Loans which is 24 to 18 to 12 to 24 months um we have um Small business loans that we’ve done for Each other Um we have um kind of like Almost like a retirement fund set up to Where we we contribute Money to take care of our parents uh for Example i love that piece Yeah yeah so we have what we call like Our uh Longevity fund where uh right now for Example my mom and dad and my Mother-in-law Like my wife and i we put money aside Every month to be able to take care of Them Uh you know when they reach that age of Either long-term care Uh or being able to help them out Financially you know after they’re Completely retiring as an income Assessment Income uh increase or Addition to their normal retirement Income right so we have that program Longevity but we also have sunset which Is a program that like Uh like my dad is currently in for Example he he’s put into the group for 20 some Almost 20 years whereas now that he’s Retired he’s he’s Gradually starting to withdraw his money

Out and say monthly allotments Uh so it’s kind of like you know social Security income or whatever but this is That he saved in the group’s account That he’s now walking slowly back out so There’s There’s a number of different ways in Which people can access their money to Kind of Come out or borrow it or use it um as As well as all the ways that it comes in There’s multiple ways in which it goes Out and there’s policies Rules processes around how all of that Stuff happens so you’ve structured all Of that and so it sounds like there are People within varying needs right like Someone that’s our age rosie because you And i are closer in age even though i Got a couple of years on you Um so you know we’re in the growth phase Like i want my money to grow your dad Right as he’s sunsetting he has some Needs like look I don’t want my money to be invested Aggressively so Talk to me about how you’ve organized The funds that either save or invest In your family banks yeah so yeah There’s there’s two different Primary fund sides in terms of uh we Have what we call geo Which is guaranteed investment options And then there’s rio which is risk

Investment options On the geo side uh that money primarily Sits in like some online bank platforms Yeah uh ally and uh capital one 360. Uh some of these accounts you know you Get the rate is the interest rate is Going to be higher than a normal brick And mortar Uh we may do some things like uh cd Investments uh certificates of deposit Very conservative sort of on that side Yeah guaranteed option very concern yeah Whereas on the rio side uh the real side Is where You are exploring things like the stock Market there’s real estate We purchased land my grandmother for Example was selling some land that she Had and we Collectively kind of decided hey we’re Going to buy that land as opposed to Letting somebody else buy it So there are certain things that are Where on the rio side And and there’s different risk profiles Because some people you know may be a Little bit more conservative from others As you mentioned like my dad and mom They’re older so Their their their risk tolerance is not As high as say my niece and nephew who’s 24 and 22. And so the geo side is where um we’re We’re building that back up

Um and and right now the plan on the g On the rio side rather is to have Everybody um Of the funds that we don’t have Allocated and say real estate and other Purposes On the investment side it’ll probably be A robo-advising kind of platform say Not to kind of shameless plug anybody But a betterment or a wealthfront kind Of An environment to where um you know you Can manage you can set your risk Tolerance level and Basically set it and forget it and just Basically start making these monthly Payments Um but with the idea and with the Intention of that you know that’s money That You could potentially lose because it Depends on how the stock market goes and Things like that but you can set your Profile and you can set a tolerance Level to mitigate and minimize some of That so Absolutely all right man so so just talk To me like you mentioned the land I heard the land purchase just just give Me an idea just a couple more questions Rosa here What are some of the things you all have Used the money for i know there was the Purchase of the land but like

What are some other things like where The family came in like look i need a Loan from the family bank i’m not going To Bank of america i’m coming to the family Bank Uh one example my mom has a catering Business and so when she was first Growing her catering business And she wanted to get a van uh so There’s a van like right now parked at My parents house that has deb’s kitchen On it now that van was purchased she Took out a small business loan she had To make a Full-fledged business presentation as if She was going into the bank The family voted and she she got that Loan i’m a professional photographer as Well And at one point in time i want to Upgrade my cameras um and so instead of Me You know borrowing money from any other Place i did the same thing i had to make A presentation before the family where i Had to say this is a gourmet for Photography in the national area This is how long i think it would take Me to make this money back and all of That and i ended up basically upgrading My equipment uh using money from the Family most recently my sister Uh i wanted to purchase a cart for my

Nephew And and she wasn’t trying to buy him Anything fancy a little ten thousand Dollar car something to get it from a to B Um but instead of her borrowing that Money from the bank Or so basically she contacted me because He’s at fort campbell he’s in the Military Uh she said hey i’m i’m gonna take out a Loan he’s gonna come to nashville You take you go with him to the Dealership we’re paying for this car in Cash Yeah to the dealership but then we’re Going to pay it back to the family In the monthly installment so her look She 653.75 Is what she sends me every month okay It’s the gun To cover the loan but the car is paid For kind of thing so That’s awesome man all right so to wrap This thing up this is Sounds like this has really been a Blessing to the family i’m sure there Have been some growing pains so now that You’ve been at this For almost 20 years you were a young cat When you started this thing man like So what are some things you would talk To people about if they want to do this So tips

Um the things you’ve learned over the Years if you want to get this bank thing Started in your family you must do What what are some things to think yeah Yeah one of the first things i would say Is you got to you got to stop Start with a relatively small core group Where there’s a certain level of trust And there’s a certain level of love and Everybody’s kind of the same Mental wavelength meaning that that People are not understanding this is not A get rich quick scheme This is about long-term generational Wealth Uh family stability financial Independence make sure that everybody’s On board with that kind of concept Not i’m putting my money down on tuesday I want it out on thursday Right you got to have that mentality so The mentality is important having a Group of people who have who share that Mentality Uh second you want to also make sure That you’re setting realistic and Obtainable goals Right uh we didn’t say hey we want to Save a million dollars in our first year No that first year we save 1500 Was a goal for what we saved in that First year to know uh so it was a Relatively small obtainable goal that Once you can see

Some level of success people get more And more body and more and more invested When they can see some level of success We didn’t set ourselves up for failure By setting some unrealistic goal um The third thing is you got to have Clearly defined rules structures Policies Um make sure that every and these are All things that everybody has voted on So it’s not like a dictatorship and that This is me saying this is how we’re Going to do this it’s like no let’s Let’s talk about what are the rules Around the small term loans What are the rules around small business Loan what do we what are we expecting From people to be able to do Um you also got to make sure that you Are constantly and continuously kind of Reminding people of the why after you’ve Done the Policies and procedures and you set the Goals you got to keep reminding people Of the why Yeah it’s not like you say it on the Front end and you never come back to it Again you got to constantly keep Reminding them because especially as Life keeps happening That’s going to be part of the why as my Like before i had kids I was invested in it but now that i have Kids like i’m even

Extra invested in because that’s that’s Part of my why because the generational Wealth concept Is about we’re leaving this for them and For their kids on our level at least On the more practical end um setting up A family bank account Um yeah and in a bank account that that Um preferably in one that Is growing faster than say a brick and Mortar so you can kind of maximize the Interest that you’re Accruing um getting the federal ein Number Uh protect me for tax purposes to make Sure that’s something that we didn’t do In the in Immediacy when we first started we Didn’t have it a ein number Not an llc you just have an ein number Yes yeah not an llc just me i am number Um and and probably my most important in All of this Uh if i’m if i’m counting points this Would be like number seven Um is you have to identify a family nerd Um or or nerds in a family i wonder who That is in your face Yeah and they said this is going back to Dave ramsey and and Ramsey would say that every family There’s the free burgers and there’s the Nerds Because you have to have somebody that

Is meticulously kind of Calculating and keeping up with all of This information um And and to make sure that like the money Is where it’s supposed to be everything Is Is all of the all of the dollars and Cents add up um And to that point too i would say Transparency is important uh you want to Make sure it’s part of How you keep and maintain that level of Trust with people is making sure that They see that like the money is always There Uh whether it’s a monthly statement Whether it’s quarterly meetings Uh whatever you want to make sure that People can kind of feel safe about Where the money is how is it grown what It’s invested in And that sort of thing and that they Feel like they have they’re actively Involved in that Actively engaged kind of throughout the Process beyond just i send my money and I have no clue Where it is how it’s doing and so forth You got to kind of actively keep people Engaged under some Awesome it sounds like you have a good Process roseanne over almost 20 years i Imagine that would That would happen but just real quick

This is really the last question i Promised how much time does it take you Every month To collect everyone’s information add it To The system receive payments pay out People that may need Like how much time do you spend with That every month you say it it is a very Minimal actually It’s funny because after i did a Financial session a couple of weeks ago I timed myself last month doing it It takes me about 27 minutes okay And that’s and that’s all i do about 27 Minutes to do All of the stuff that i need to do uh And and most of that is just to be Like sitting at a computer transferring This doing like Doing that because the files themselves After i do the Online transfer and what i need to Transfer uh I’ve just built all of the files i built It like a just elaborate System of excel files where i can change It in one file and it just open the Other file and it’s gonna automatically Do all the stuff i needed to do and then Just save it and Move on to the next one kind of thing so Awesome man awesome well rosie i really Appreciate it man you have been a dear

Friend to me for a long time we played Ball together At vanderbilt and it’s great to see Someone who comes from a background like Not a silver spoon in your mouth A lot of love in the house but you Didn’t you didn’t receive an inheritance And now the things you’re building to Leave that legacy to your family man i Appreciate it So thank you for joining me today sir Appreciate it kenny thank you for having Me man I always always happen to support anger Down no doubt anchor down All right if you enjoyed today’s video Please consider subscribing to the Channel Leaving a comment and sharing this video With some friends Check out some of the other videos we’ve Made as well remember this You can achieve much greater things than Where you are today if you’re willing to Put in the work Conceive it believe it and achieve it I’ll see you on the next video

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