The Millionaires Club - Saving $$ challenge!

[Atkid]

Re: The Millionaires Club - Saving $$ challenge!

I never said anything against either one. The cable thing was a matter of having enough money - it was a choice of internet or basic cable, I chose the internet. I travel on the highways every day... like I said, it was a matter of necessity, I didn't mean the comment as a slam or anything like that. It just struck me as ironic.

I didn't take it as a slam so no worries here. Funny since I posted that last post I got a paper in the mail from Charter stating they are going up another $20. or so. It is so pathetic, what a rip off.

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

WOW! Lots of great ideas out there!

Sherry, I'm BIG into color-coding, so I really appreciate your well-organized spreadsheet.

Jen, I couldn't believe my eyes regarding the checkbook! As a money-control freak, I have to know where every single penny went, even if it's for a frivolous item worth $0.52.

[Lyssie]

Re: The Millionaires Club - Saving $$ challenge!

I think Sadie is my long-lost financial sister.

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Lyssie, say it ain't so!! No checkbook balancing for you as well? Oh dear!

[Lyssie]

Re: The Millionaires Club - Saving $$ challenge!

What's the point? I don't only write like, 2 checks a month or something, everything else shows up online pretty instantly.... :P

[boonie stomper]

Re: The Millionaires Club - Saving $$ challenge!

The checkbook balancing bit reminds me of another tip - for those of us who don't balance enough ( )... a healthy buffer in the bottom of the well can save you a chunk of $$ by sparing you bounced check/returned check penalties, ususally stiff, from the bank and recipients both. How? When I do balance, I round up all debits to the next dollar. This makes for easier balancing and "change" falling into the "well". When I moved from NC & closed the local checking account I'd had there for many years, I walked home with over $7000 I didn't know was there. (I don't use my statements to balance, just add/subtract in the register)

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Guess I'm paranoid b/c I have found mistakes on various on-line accounts. One account showed how much interest was generated, but never added it to my balance. Another account added all my debits incorrectly. Computer programs are only as good as the person who wrote it. For me, it's not correct unless I reconcile my account myself.

[Lyssie]

Re: The Millionaires Club - Saving $$ challenge!

Heh. Then I guess you would really freak out to learn I usually don't even open my bank statements that come in the mail.

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Heh. Then I guess you would really freak out to learn I usually don't even open my bank statements that come in the mail.

OMG!!! YES!!!! *faints*

Boonie, I can see where that would be helpful to some, but if those same folks would be willing to follow their money a bit more closely, that extra money could be earning more interest in a CD than from a checking account or paying down a high-interest credit card.

EDIT: meant to say "go toward paying down a high-interest cc." definately pay off those!!

[boonie stomper]

Re: The Millionaires Club - Saving $$ challenge!

That's a very good point. I'll open my statements tonight, LOL!!

I have 2 free checking accounts, 1 gets $100 deducted from the rest of my automatic pay deposit, and serves mainly for savings. I do still have debt I could pay (pay off?) if my buffer has grown enough. Of course, back then I wrote checks for routine purchases unlike now, so there's probably lets see, $5-10/mo "change" going in, x12 x 7...less than $1K. I could use part of it, and still have the buffer, but I also want to have some for emergencies not tied up in a CD. Don't CD's draw less interest than any kind of loan one could get (other than F&F)?

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Yes, that's true. I got a 6-month CD at the end of last month for 5.05%. Loans are gonna be more. So, it'll be better to pay off or pay down those loans/credit cards than getting a CD.

[sadie147]

Re: The Millionaires Club - Saving $$ challenge!

Heh. Then I guess you would really freak out to learn I usually don't even open my bank statements that come in the mail.

Mine go straight into the shredder envelope and all LOL

I figure my first goal, is going to be to pay down my credit cards before i invest. I figure once I pay those cards down, i can start putting money into more 'locked in' investment accounts (i think what you call a CD we call a GIC). I do have $100 a month going into savings bonds, and 3% of my pay to purchase company stock but i didn't start them too long ago so they don't amount to much yet. then maybe any $$ leftover that i used to pay to the card companies, i can start investing? It all sounds good in theory of course..actually doing it is the tough part!

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Jen, that's a good plan. Pay off those credit cards and then start socking money away.

[Erin68]

Re: The Millionaires Club - Saving $$ challenge!

Great ideas all around everyone!

I tend to be alot like bio in this area... I'm very analytical and a number cruncher so... my finances are fairly stable, but there is always room to improve or change habits!!

I'm self employed, so I do my payroll only once a month, which benefits me in alot of ways. First, all my monthly debt is paid in full before the month even starts and any excess income, I know exactly what I have and how much I can spend. I only use 1 credit card, and leave only a $200 balance on it so I don't carry alot of debt other than my house, car, utilities, and cell phone (which uggg.. is bad - I used alot of minutes but I don't have a land line - something I dropped recently because we all have cell phones and it was a waist of $70 a month)

Some other tips or tricks for ya'll........

Don't carry cash. It spends so much faster for some reason If you're a check writer like I am, rather than recording the exact amount of your check written, log it rounding up to the next even number (ie: $25.20 log as $26.00). You'll be amazed at how much extra you have at the end of any month.

With the market as it is these days, savings vs loan rates don't compare. Have a savings for added support and emergencies, but if you have extra funds you're better off paying down debt than putting funds into cd's or savings these days.

By paying even $50 more than your minimum payment due on loans or credit cards, you reduce the 'term' of your loan dramatically. On credit cards, if you simply pay the minimum due, the time it will take to actually pay off the debt is outragious.. if you have the ability to pay more each month, do it!

For anyone who has had trouble with credit in the past.... there are many ways to clean up your credit but it's on you to do it. The creditors are terrible at updating the info sent to the repositories. There are simple steps you need to take to clear it off your reports. After cleaning up bad debt, or filing for bankruptsy, make sure you re-establish some debt... even if its small debt. You'll need to have at least 3 positive trade lines in the future if you want to finance a home. Auto loans, even if past credit problems are atainable, and so are many credit cards. First Premier banks credit card is one I know of off hand that doesn't mandate a savings balance in the account first. Most however do have heavy start up costs and monthly fees to start. Read the fine print and weight out the fees and costs.

Happy financing everyone!!

[Miss Phode]

Re: The Millionaires Club - Saving $$ challenge!

Let me just say that being a victim of identity theft, having to close your bank accounts and open new ones, and having to freeze all lines of credit really limits your spending. What a great way to save money. Especially if the stolen funds are returned to me.