Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
I'm starting to get tired of throwing money into a savings account and getting very little in return.
I really added to this one account because it was for emergency funds. Well, I now have 16 months in funds for this purpose. I'm still going to add to it, just not as radically as I have been.
Now the majority of my savings will go to an on-line account. It is amazing what on-line accounts pay. Right now, my physical bank pays me 0.05% quarterly. On-line pays me 0.75% monthly.
I have three and a half times less money in an on-line account, yet make four times the amount in interest...
Using simple numbers. Let's say my on-line account has $200... so my physical bank would have $700 (3 and a half times more.)
Again, just for explaining this using simple numbers and in no way representative to actual interest on these accounts... the physical bank will pay me ten cents interest for a quarter... while the on-line bank will pay me forty cents interest for one month.
It is a substantial difference and one I'm going to start making better use of.
AND my checking account. For four plus years I've babied it and helped it grow and now have maintained a healthy balance in it for over two years. It's time to turn it into an interest bearing account, which means I can't go below a certain minimum... I'm already staying well above this amount so it's time to have this money earning me something... even if it ain't much it's better then nothing.
And finally, still the biggest savings for me... no interest. No interest paid on credit cards. I use them sparingly and when I do I know it will be paid before the interest starts.
So a couple of ways for interest to make me money and one way for no interest to save me money...
I really added to this one account because it was for emergency funds. Well, I now have 16 months in funds for this purpose. I'm still going to add to it, just not as radically as I have been.
Now the majority of my savings will go to an on-line account. It is amazing what on-line accounts pay. Right now, my physical bank pays me 0.05% quarterly. On-line pays me 0.75% monthly.
I have three and a half times less money in an on-line account, yet make four times the amount in interest...
Using simple numbers. Let's say my on-line account has $200... so my physical bank would have $700 (3 and a half times more.)
Again, just for explaining this using simple numbers and in no way representative to actual interest on these accounts... the physical bank will pay me ten cents interest for a quarter... while the on-line bank will pay me forty cents interest for one month.
It is a substantial difference and one I'm going to start making better use of.
AND my checking account. For four plus years I've babied it and helped it grow and now have maintained a healthy balance in it for over two years. It's time to turn it into an interest bearing account, which means I can't go below a certain minimum... I'm already staying well above this amount so it's time to have this money earning me something... even if it ain't much it's better then nothing.
And finally, still the biggest savings for me... no interest. No interest paid on credit cards. I use them sparingly and when I do I know it will be paid before the interest starts.
So a couple of ways for interest to make me money and one way for no interest to save me money...
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I invited Bill to have dinner with me last Sunday. He wasn't willing to drive 7 hours to mid Michigan and teased me with his beautiful ribs!!! So, of course I ate alone and had cedar salmon
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check out that smoke ring. It tasted really good. I smothered it with Maulls BBQ sauce which is Local to St. Louis and one of the best I ever had.....
Friday is payday. And after two weeks I'm super excited to check the changes made. I know it won't be instantly seen but the ground work is in place.
Today (Thursday) I spent the last of my two week allowance. Three donuts which cost me $2.60... since I don't spend change or dollar bills that means more money for savings.
I give myself $40 cash for two weeks just to blow on what I want. Well, today along with my regular savings deposit - 18 dollar bills will be added to it. So that meant, for two weeks I spent $22... less the change, it worked out to $19.
I also called and got my checking account changed to an interest bearing account. Since I'm over 55, it only takes me to maintain a $300 balance in the account to have interest added.
I'm three and a half times above that... so my new goal will be to get the balance four times over that... then five and so on...
I need to see if I can do that with my other checking account... I mean regular savings don't pay a lot in interest but it is better then nothing, so why not be getting something with all my accounts.
Today I also start attacking my on-line savings account.
It's a goal I never really had... maybe a milestone is a better word for it.
When I started my program to get out of debt starting in 2010, to where I hope to be in June... it will be a one hundred thousand dollar swing... from where my debt was, to where (God willing) my savings will be - is a $100,000 swing....
NOW that is what God is doing for me that I couldn't do for myself...
This also includes contributions to some long term investments... like a 401K. And the interest it is receiving. Last half of 2013, this had a return of 30% and reaching this milestone is basing it on having at least a 10% return...
The total change is in net worth more then actual dollars and cents...
If it is that "open" for everyone, then just post it on a thread instead of all the secrecy...
To me, it's just another give me money and I'll make you wealthy threads... well, we'll make you wealthy at least...
Congratulations on your goals, and also on setting the record straight. There is no such thing as a free lunch. Someone pays for it one way or the other. Hard work and sacrifice, real sacrifice, is full of self satisfaction and gets result.
Also, it is you that is changing lives with your excellent posts and I admire your honesty when you give us your opinions.
Thank you so very much. I always look forward to reading what you have to say.
Toty
That word is offensive to many people, especially me.
Thanks for your consideration.