As it turns out, whether you’re selling your home or you just want to improve it, one of the best places to start is the kitchen, because kitchen remodels often have the highest return on investment, whether you’re selling or just wanting to make a change.

There are a variety of relatively simple do-it-yourself kitchen improvement projects. I found the following budget-friendly ideas that would have been good to know before I started:

• Do your homework first. It will likely save you time, money, and a headache or backache.
• Replacing kitchen cabinets can be an unnecessary expense. Painting, refinishing or refacing cabinets can cost a quarter of what new ones may cost. New cabinet hardware is also a great way to add life and personality to old cabinets.
• Replacing your countertops is second on the list of major expenses. Prices have come down considerably for granite and other popular stone finishes, so do your homework and get competing bids. You may even consider using granite tiles and installing them yourself. Laminates have also improved in quality and they are generally more economical.
• Give your kitchen a polished look with a backsplash. You can purchase a sheet of stainless steel and create a modern look, or you can tile your backsplash yourself. It’s much more affordable than having a designer do it and it adds color or a nice design element.
• Stainless appliances are nice but pricey. Consider replacing old appliances with basic white or black. You may even be able to use inserts from the manufacturer to make your existing appliances match.
• Update your lighting. Just like cabinet hardware, new light fixtures can add a nice designer touch without much expense. If you like your current fixtures but wish they were a different color, paint them. There are heat-resistant paints that cover just about any surface.
• One of the most economical ways to add new life to an old kitchen is with a can of quality paint. Semi-gloss or gloss is recommended for kitchens because it cleans up well.  Take the time to do the necessary prep work and masking to protect cabinets, counters, and appliances from spills or splatter.
• Add small touches. Something as simple as a piece of art, a bulletin board or a towel rack hung in the right location can add a personal touch as well as a designer look and feel.

Remember to be wise in your budgeting and spending for the project, too. Added debt can easily negate any added value. Consider doing a portion at a time in order to maintain fincancial strength and to avoid unecessary debt.

            Teller: Hello, how can I help you?

            Customer: I need to make a withdrawal from my savings account.

            Teller: What is your account number?

            Customer: Hmm, you know, I don’t use this account much; I’m not sure.

            Teller: Hold on.

And the transaction continues until you finally get your cash and leave the bank, without an ounce of personal banking or real customer service.

On the other hand…

            Teller: Hi Kate, how are you today?

            Customer: I’m fine; thanks.

            Teller: Hey, how was your recent trip to St. George?

            Customer: Oh, it was great. We enjoyed the wonderful weather and saw a few new sites down there and just had a great time together.

            Teller: That’s great; are the kids still doing well?

            Customer: Yes, they are. Ben is getting ready for baseball tryouts, Kimberly has a piano recital tomorrow night, and Joey just loves preschool.

The discussion and ensuing transaction continue, and Kate leaves feeling important, remembered, and looks forward to the next visit.

The latter scenario does exist at banks, even in today’s seemingly customer-service-challenged environment. And, not surprisingly, it is most often found in safe, reliable community banks like Western Community Bank.

In fact, last August, Kiplinger’s Personal Finance magazine highlighted community banks in the article, “Banks That Put You First”.  The report notes that for one customer, “The icing on the cake was the personal service: The bank’s account executives took the time to answer all of his questions. And they helped him refinance his mortgage…”

 The article also cites that “Community banks appeal to customers…because they have close ties to local residents and tend to offer more personal assistance than the big money-center banks. ‘Community banks are in the relationship-building business,’ says Karen Tyson, senior vice-president of the Independent Community Bankers of America. They tend to have fewer—and lower—fees than major banks. And they generally offer lower rates on loans and higher yields on savings.”

 There are many options to bank with great a community bank in Utah Valley. A number of these banks are within a short drive, and some are so good at delivering customer service that it’s worth taking a littler longer drive.

 So if you’re tired of being treated like “just another customer” instead of a person, or you want the peace of mind that comes from keeping your money working for the local economy, visit a local community bank like Western Community Bank. Chances are you’ll feel the difference the moment you walk in the door.

As a bank customer, I’m aware of the feeling that it’s a chore because going to the bank is usually an item on a to-do list.  (Personal side note: my wife is constantly amazed that I don’t carry any cash, even though most of my waking hours are spent in a bank.  So when we need cash, visiting the bank on the weekend or taking a trip to the ATM becomes a to-do item.)   

But there’s more to the studies.  Several indicate that consumers actually consider banking in the same light as going to the dentist!  That’s remarkable.  Do you share this opinion?  Why or why not?  Is going to the bank like getting a routine cleaning, more like a root canal, or like something more enjoyable?

As one with marketing responsibilities for the bank and concerned about improving the experience for every customer, I’m curious to know why this perception exists, and what can be done to improve if not abolish it.  Consequently, I’ve been doing a lot of reading lately.  In fact, in the last three months I’ve read almost as many books and articles and papers as I did during my last year of college.

Most of the reading I’ve done is business related—marketing, branding, leadership, efficiency enhancement, and the like.  And one common theme is emerging: the ability to actively engage customers, staff, management, peers, and prospective clients in meaningful positive ways is a key driver (if not the key driver) to improving the customer experience, the performance of staff members, and peer perception.

So I pose these questions (very transparently seeking to engage those willing or wanting to voice an opinion or participate in the conversation): In what way do you want your bank to actively engage with you?  What kind of interaction do you value?  What are your expectations? Is banking really just a chore?

There’s a lot of discussion about change in the banking industry right now.  Business plans have been turned on their ears.  Once solid and seemingly safe ways to make loans are now being questioned.  It’s getting more difficult for financial institutions to provide distinguishing products and services.  It’s even getting hard to tell what a bank is or is not anymore.

What an incredible opportunity this presents for all of us!  This shifting is creating an environment where it has never been a better time for consumers to make their voices heard, and for bankers (at least the smart and successful ones) to be taking the time to seriously consider every customer comment, complaint, note of praise, or suggestion.

I’m going to let you in on a little secret…this is not a totally new concept to community-based financial institutions.  I’m not talking about the big guys claiming to be community banks, I’m talking about the true community-centered banks that take the time to look a customer in the eye, who may have had to eat some crow now and then, and who have tried to adjust to their customers’ needs and wants in order to stay alive in a highly-regulated and viciously-competitive marketplace.  For these smaller institutions, listening and adapting to your needs is something they try very hard to do.

Now, in the interest of full disclosure, not every small bank or credit union fits this description, but generally they try.  They at least try harder and are more capable of faster change than the giant institutions that care more about making money off of your money than they do about earning your trust, providing you honest services at a reasonable rate, and investing in your future as a partner–whether you have $5 or $5,000,000.

So here’s a chance for you to make your voice heard.  Whether you’re a customer of Western Community Bank or not, comment on this post.  If you’re reading this on our blog, comment below.  If you’re an email subscriber, visit http://smartbankingtips.com/ and leave us your thoughts.  Help us transform banking to be better for you.  Help us strengthen our communities.  Help us better understand your needs so we can better serve you. 

Our ears are open.  We’re a little nervous.  But we want to hear from you.  The platform is now yours…

Here’s where I see some of the greatest opportunities for individuals, families, and businesses: 

• Improved lending standards. Though they will remain tighter than what we’ve seen in the last few years, lending standards will be different in good ways. It seems that everyone is internalizing the benefits of the sound, fair, and more responsible versions of standards from the last 15 years. These fresh standards will be better because the economy is forcing all of us to be more responsible and accountable. Sound standards are good for the economy and everyone participating.
• Customer service matters, but doesn’t replace technology. This one is a paradox. I argued in part one that technology matters but doesn’t replace customer service. In fact, both are true. In 2010 we’ll see an increase in the adoption of technologies designed specifically to assist the customer–technologies that do what people can’t. So while it’s critically important for banks to give you the attention you deserve, when your bank chooses to become IT savvy and makes sound business IT investment decisions, they’re going a long way to invest in your  financial success and future needs.
• New regulations will require more accountability from everyone. The Federal Reserve has stated: “Our goal is to ensure that consumers receive the information they need“.  Combined with other things I have read in trade publications, regulators are working to require the banking industry and the consumers who use the products to be more responsible for their actions.  Or in the words of  economist Merton Finkler, “In a highly leveraged economy, fiscal and monetary policies are not enough. We have to make changes in lending behavior.  Excessive debt accumulation, whether it be by the government, banks, corporations or consumers, poses greater systemic risks.”  In our ever-shrinking world, the actions of individuals matter more than ever.
• Banking really is no longer a service, but a commodity (like just about everything else). From Wikipedia: “A commodity is some good for which there is demand, but which is supplied without qualitative differentiation across a market. It is fungible, i.e. the same no matter who produces it…Commoditization occurs as a goods or services market loses differentiation across its supply base…As such, goods that formerly carried premium margins for market participants have become commodities…” It hurts me to say this, but that’s a pretty good definition of banking, no matter where you choose to put your money.  The winners in 2010 and beyond (and the banks you should be looking to do business with) will no longer be determined by their products or services, but rather by how well they deliver on their promises and by their willingness to give back to the people and communities they serve.  This is especially true for the smaller “Main Street” banks that are more in touch with the local economies and communites they serve.

What are your thoughts?  What changes do you want to see?  What would you adjust?

“The annual holiday shopping season is a peak time for identity theft, so it’s critical that consumers be on high alert and educate themselves in order to help reduce the risk of becoming victims,” said Adam Levin, chairman, Identity Theft 911, which offers ID theft resolution services.

His company offered these tips for safer holiday shopping:

• When shopping online, look for a small “padlock” icon in the browser, which means the site has been verified to be secure.
• Use credit cards instead of debit cards.
• Keep credit card numbers secret. Don’t store credit card and personal information in any online accounts
• Check bank and credit card statements and accounts every day to make sure each transaction is legitimate. Remember that shopping Web sites have no reason to ask for Social Security numbers or passwords, so never provide them.
• Never send payment information via e-mail.
• Don’t use automated teller machines that are in secluded areas. They are more likely to be equipped with card readers than an ATM in or near a bank.

The following tips can help you manage your account wisely to avoid overdraft situations.

• Keep an eye on your account balance prior to writing a check or using your debit card. Prevention is your best medicine.
  • Review your transactions on an ongoing basis.
  • Use services, such as online banking, your bank may provide to help you keep up-to-date with your balance.
  • Remember to record and deduct checks, automatic recurring payments and debit card transactions and to add any deposits that have not yet been posted to your account.
  • Do not use your debit card like you use your credit card. Your debit card is like an electronic check and the funds are automatically deducted from your account.
• Ask your bank about all of its overdraft services. Community banks generally offer three types of overdraft services: overdraft lines of credit, transfers or sweeps from a savings account or another checking account, and overdraft coverage.
  • Overdraft lines of credit charge interest but provide a safety net. They may also have a transaction and/or annual fee. If needed, disbursements can be repaid over a period of time.
  • Transfer or sweep arrangements allow customers to cover overdrafts using their own funds for a small transaction fee.
  • Many times a bank will choose to pay an overdraft for a fee to avoid consumers having the inconvenience of returned transactions – embarrassment, fees and hassles from merchants.
  • Talk to your community banker about the best choice(s) for you.

During these challenging economic times, consumers are making tough financial choices–more so than they have ever had to do in the past. We want to be sure that consumers manage their accounts wisely. Most community banks provide some form of overdraft services, and do so in a way that best meets the needs of their customers. Remember that community bankers are there to help you.

Relationships One of my peers recently reminded me that while we’re working hard to handle the pressures of the economy on the bank and the daily duties we face, that we can’t forget we have families and relationships to strengthen. As one blogger effectively said it: “The regular companionship and camaraderie of people you care about and share interests with is continually life-affirming. [Relationships] don’t revolve around the things you have or the activities you can afford – they revolve around people and shared experiences.”

Gratitude I find that the more I’m focused on the things I do have, rather than focusing on that which I do not, that I am more cheerful and giving. I become more positive in my thoughts and speech. I become more content to work harder to reach my goals. I have more purpose in my daily actions and interactions. Cicero said “Gratitude is not only the greatest of virtues, but the parent of all the others.”

Service Helen Keller said, “Happiness cannot come from without. It must come from within. It is not what we see and touch or that which others do for us which makes us happy; it is that which we think and feel and do, first for the other fellow and then for ourselves.” It is in the act of helping others that many receive a great deal of personal joy and satisfaction – something that cannot be replaced by any sort of material item.

What really matters to you? What do you value most?

Wife:  “When you retire I think it would be fun to go to culinary school together and consider opening a restaurant.  We have so much fun in the kitchen talking and cooking.” 

Me:  “Yeah.  That would be fun.  It would be a lot of work, but it would be fun.  But what I would really like to do when I retire is be Donald Duck.”

Wife:  “You want to do what?!?”

 Me:  “I want to be Donald Duck at Disneyland or Disney World.  I think it would be fun seeing all those happy kids everyday.  Don’t you?”

Wife:  “I guess, weirdo.  But wouldn’t it be easier and more fun being with me doing something we both enjoy?”

At that point I knew she had issued a checkmate, and I had best think about my plans more as our plans to stay out of trouble.  It was also apparent that both ideas carried financial implications we have never discussed.  Culinary school and funding a business are not cheap, nor is relocating to Anaheim or Orlando.

Consequently, a study from Fidelity Investments indicates this type of discussion is not entirely unusual.  It finds we are not doing a very good job talking about our long-term financial goals with our significant others.

The study reports that only 45% of couples regularly discuss finances.  And when it comes to retirement plans, 60% of couples don’t agree when they’ll retire, and 42% are like me and my wife–they don’t agree on what kind of life they’ll lead after they retire.

Does your significant other know your financial goals?  Do you know his or hers?

Moreover, in their search for financial safety and security over the past year, consumers have actively redistributed their financial resources. Encouraging this trend and seeking to help stabilize the economy, the FDIC has extended its increase in insurance limits to $250,000 to the end of 2013.

This news should come as no surprise to anyone.

Much of the opposition to the economic stimulus plan centered on concerns that the stimulus money would be saved, and therefore not provide the hoped for stimulus.  The BEA report illustrates the fulfillment of the basic concepts that people are going to hold on to their money when, 1) money is getting harder to come by, 2) people are afraid to spend in an unstable economy, and 3) the smart spenders know that if they hold out long enough they can get a better deal than if they spend the moment they have a little money.

Note this simple definition from Wikipedia: “Saving is the conservation of money…Saving also includes reducing expenditures, such as recurring costs.  In terms of personal finance, saving specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher.”  It’s not rocket science–in a down economy, people save.

So, at the risk of sounding like a punk kid, I respectfully say to the Bureau of Economic Analysis and all politicians who thought the stimulus should have had a different effect: “Duh!”