The Millionaires Club - Saving $$ challenge!

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Boonie, we do keep some cash at home, but it's nothing like our savings vehicles. The downside is that cash at hand does not earn interest & those that are tempted to spend money freely are always temped by dipping into the kitty. DH & I had a discussion about this the other day & we're actually going to reduce our cash stores in half and invest the rest.

I think most people in this challenge are focused on trying to get out of debt, so the idea of extra cash just lying around is not a feasible one. If the financial institutions were to crash, most people and businesses would be hurting for money. In the worst case scenario, cash wouldn't mean a thing anymore. We'd probably resort to bartering or something. Who knows?? I think it's one of the reasons why the WTC were targeted. Both towers held mostly financial centers.

Rich--yeah, we get those 0% transfer offers in the US, but some come with a catch, so watch out.

[higgies]

Re: The Millionaires Club - Saving $$ challenge!

That's primarily what I have done. I used the balance transfer checks for cash to pay for things like that wher eI got fairly low rates for the term of the debt, instead of 0% for say 6 months. Worked out better that way.

To be honest, it would make me feel better to pay the debts off now and build back my savings, but I also LOVE seeing a nice balance in my savings account! Ahhh...what to do?! LOL!

Ok, so I guess we'll make this as simple a decision as possible. Let's say "hypothetically" one has $12,500 in cash accounts, but owes $8,000 to credit cards. Is it a no-brainer to just use the cash to pay it off now??

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

I would say that it's a no-brainer to pay off the credit cards. Hypothetically, you'd have $4500 left in the bank, and that's a nice cushion in case the car's transmission failed, air conditioner or furnance broke in your home, etc. There are very few "emergencies" that's gonna cost more than that at once, e.g. uninsured medical costs.

[higgies]

Re: The Millionaires Club - Saving $$ challenge!

Thanks Biogeek! Any other opinions?

[Richt]

Re: The Millionaires Club - Saving $$ challenge!

Ok, so I guess we'll make this as simple a decision as possible. Let's say "hypothetically" one has $12,500 in cash accounts, but owes $8,000 to credit cards. Is it a no-brainer to just use the cash to pay it off now??

I would say its a no brainer also. The interest you will be saving alone could quickly add back up to that $12,000

[Lyssie]

Re: The Millionaires Club - Saving $$ challenge!

I would pay off the card... I believe there aren't many things that would use up the 4500 as an emergency situation as well... and wouldn't it be nice to know that your savings is all savings, not that you have this debt hanging over your head??

[boonie stomper]

Re: The Millionaires Club - Saving $$ challenge!

Mom always kept $5000 cash while she was raising all us yung-uns to use if needed to post bail for one of us naughties. But of course, we're all angels here, so $4500 sounds like plenty to keep on hand. Perhaps in case of a market disaster, it's also a good idea to keep stocked up on food, water and other emergency necessities. Things that cost $1 can jump in price 500% or more in a matter of hours after a disaster.

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Boonie, that's how much we currently stash away, but when we reduce it by half & put it in our savings at 5% interest...that's $125 a year extra we'll be earning.

A well-stocked pantry is peace of mind, IMO.

[higgies]

Re: The Millionaires Club - Saving $$ challenge!

Thanks guys. I've set it all up. So...I guess I'll be out of debt officially on March 1st! LOL! Although then comes the balance for the honeymoon in August. It never ends does it?

[boonie stomper]

Re: The Millionaires Club - Saving $$ challenge!

OK - just did a workup of receipts for Nov - Dec, before I started using cash instead of the debit card for most purchases. It doesn't give me exact spending figures, as I did use some cash, but I sorted the spreadsheet by type of puchase for all the receipts, and there's a real good indication where I can cut back expenses. 1. Driving around too much 2. My "champagne appetite" for fine beverages. Of course, those 2 months give a bit of a lopsided spending profile due to the holidays. But still, if I don't go off so far to take nature hikes, and don't dig clams or hunt mushrooms this spring, and stick to el cheapo lite beer (if I gotta have anything) it is bound to make a positive difference.

And with summer camp prices soaring and DS's therapy doubled, it's already spent....

[sadie147]

Re: The Millionaires Club - Saving $$ challenge!

Boonie I wish I kept receipts! I am from now forward, but never have in the past besides gifts, that might break or need to be returned.

American Express called me today to let me know they are lowering my % on new purchases to 14.9% (it's currently 16.9)..I was happy to hear that. That was a first for me from a cc company!

I've managed to keep my $200 in my savings so far. did not manage to save any this pay since i forgot to put my oncall hours in ...but I will be able to make up for it next pay.

I got my T4 gov't income slip, and did my taxes on line right away. I'm getting back about $1600!! so hopefully that will arrive in the next week or two since I did my taxes so early..there won't be much backlog there. I'm going to pay off my credit card with that (it's only $900) and put some away.

One big problem this week is there is a severe gas shortage here due to a refinery fire, so not only is it hard to find gas, but the prices are starting to skyrocked . That's gonna hurt my wallet.

About preparing for an emergency. I was recently thinking I should go thru my cupboards andput away some of the canned stuff that we don't really eat alot of, and non perishable things and bottled water. I may do that this weekend actually, my cupboards could use a good going over, i'm sure there is alot in there, like beans etc, i can put away (i tend to buy things because they're on sale and not use them).

We had an outbreak of SARS here a couple of years ago that was very scary. My work had all depts working in shifts as did most companies, if we had to go in, the entire dept was not allowed to go in at the same time, that way if someone was sick, the entire dept wouldn't catch it...only half. We all ended up working from home (well i do full time anyway). Having lived through the scare of that..and believe me it was scary, I don't doubt anything is possible, especially with the threat of the bird flu.

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

Jen, that's fantastic that you'll be able to pay off that credit card soon!!

Can't wait to see how everyone faired in the challenge this month.

[sadie147]

Re: The Millionaires Club - Saving $$ challenge!

Thanks bio I cant wait! (oh and sorry if you see more in my post now..i posted it before i was done so i edited it while you were responding )

[biogeek]

Re: The Millionaires Club - Saving $$ challenge!

No problemo, Jen!

I hadn't heard of a refinery fire in the news? Where was it at???

Good idea about going through the cupboards and having an emergency stash.

[sadie147]

Re: The Millionaires Club - Saving $$ challenge!

It was here in southern Ontario in a town called Nanticoke. I hadn't heard about it either to be honest, until all the gas stations started closing, that's when it became top story news LOL. Problem is there is a rail strike as well so that is holding up gas coming in from around the country i guess. There are over 100 stations closed now and others are rationing gas. My husband is going to leave his pickup at home for a few days at least, and take my jeep which takes less gas. I'm hoping this ends soon.