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Tuesday, June 17, 2008

Keepin' My Money Tuesday

A favorite trick of mine is the 'ol pay yourself trick.

When I get my paycheck the first thing I do is pay God. That is my tithe. There is a lot more to be said about that!

Second, I pay MYSELF. This is easier said than done. Often I would pay a bill or use the money and I would find myself saying over and over...there is just no money to put in savings ... we are just too broke.

Then, I found ING. At first I thought, I just don't know how much I can afford to put in savings. We just don't have ANY extra money. Then I finally committed an amount. Later I even made it a little bit of a larger amount! It doesn't matter - just save SOMETHING!

ING has an online savings account that yields 3.0% (at the time of this post). I use ING because it automatically drafts the money out of my checking account and into my ING savings account. It also had a high yield (in comparison to my local bank). Your local bank can probably do the same thing. I went with ING because I like it being separate from my checking account ...that way I am not so tempted to dip into the funds!

With ING you set it up one time and tell it how much you want to be drafted out and which day every month you want it to be drafted out. For instance, you could set it up to draft $200 every month on the 3rd of the month. I am a teacher so I get paid once a month - at the end of the month. So I have my ING account draft it out on the 5th of the month. That way I know the check will already be deposited into my account and the money is sure to be there.

After you set it up - you don't have to fool with it! If you want to change the amount or the day that the money gets drafted than you can ...but you don't HAVE to.

This really works for me - I don't see it ... I don't miss it. And, now I have a nice little emergency fund, vacation fund, college fund for my kids (you name it) all set up. And you can set up more than one if you want! You could have one for emergencies and one for vacation, etc.

That's how I'm keepin' my money! I am terrible at saving money in the bank, I am always pulling it out for this or that (things that I think are emergencies)! So, this has helped me to just leave it alone!

If you are interested in starting an ING account email me or leave a comment and I will send you a referral - You'll get $25 for signing up with my referral and I'll make a $10 for referring YOU. Then you could refer someone and make yourself a little extra money! (My brother referred me when I got started!).
*You need $250 to start an account.

Last, leave a comment if you have questions or comments about posts you would like to see on "Keepin' My Money Tuesday." - Be it ideas for the next posts like "How do you... " or "What have you found that...." etc. If you have a great idea for how we can "Keep our Money" email me and maybe you could do a guest post! Finally, I will be happy to answer any questions. If I don't know the answer I will point you to someone who does! :)


OnlyOnSale said...

I really need to get a high interest checking. thanks for this post of encouragement :)

Nicole said...

thats really neat...

becky said...

Please send me a referral link...Thanks! = )

Karen said...

If ING is really just offering a 3% savings account, I am sorry, but you are losing money, not making 3%. That's because of inflation; the cost of living is said to be up 4% (I think over last year) and depending on who you ask, it's probably really more than that. Also, the money from this savings account is taxable, and will be taxed when you take it out. 3% growth isn't going to make up for any of that and put you ahead. I'd have to crunch the numbers because I don't know your tax bracket, but you just might be better off with a ceramic piggy bank.

To see money grow, you're going to have to try to find something better like a Roth IRA. Sorry! These can be set up to roll over and reinvest their earnings, and/or you can mail in a monthly stub with additional payments. If you don't know about the Roth IRA, basically you can invest up to $5000 into a single Roth IRA each year, and your income tax is applied AFTER you've contributed to it. (So if you make $40,000/yr and contribute $5000 to your Roth IRA, you're taxed as if you made $35,000, not $40,000).

Try reading The Only Investment Guide You'll Ever Need by Andrew Tobias. It is somewhat outdated (e.g. there is no mention of Roth IRAs), but the learning principles in the book are still worth getting down, and can keep you from situations like this.

Denise Sawyer said...

Send me you name (first and last) in an email! I have to have that to send you a referral link!

The "Cent"sible Sawyer

Denise Sawyer said...

Thanks for the info!
However, I have had a Roth IRA - we closed it to put money down when we built our house last year.

Right now I don't really have that kind of money to invest. I have an investment account through my teacher's benefits that I contribute to.

This savings account is just to put a little away until we need it so that I am not struggling when I have an unexpected payment (appliances break, cars need major repair, etc.)

Roth IRA's are the way to go if you are wanting to invest. However, that is not how I am using my savings account - for long term. Roth IRAs can't be dipped into (without penalities) unless you are retiring age, for a child's education, or for your first home -atleast that was the info I got from my bank.

I agree that you should invest. But, you also need somewhere to save up for life's little pleasures or emergency funds where so you don't have to pay for them on credit cards!

The "Cent"sible Sawyer

Shawn said...

I opened up a Wachovia Way 2 Save account. Check it out

Queen of the Urban Jungle said...

re: karen's post.....the money put into a savings account has already been taxed, it's not removed from your check pre-tax, and therefore is not taxed again upon withdrawral. i think she's confusing it with a traditional roth account.

the basic breakdown: traditional is deposited BEFORE taxes are taken and is therefore taxed when withdrawn. Roth is deposited AFTER taxes are taken and is therefore NOT taxable upon withdrawral. savings is deposited AFTER taxes are taken out and withdrawrals are therefore NOT taxable. federal rules do not allow double other words the government can't tax the same money twice. the interest you earn however must be reported as taxable income when you file; this only referrs to the interest earned, NOT the entire balance of the account (if you have $10,000 and earn $300 in interest, you only report the $300).

i've used ING since 2002 and have always been thrilled with them, the have the bestbest rates and awesome customer service. we have a long term savings account and also a checking account (it has a 3% yield as well) which is used for house-related expenses.

Queen of the Urban Jungle said...

denise you inspire me :)

i posted my savings strategies!

The Arants said...

If it's not too late, would you send me a referral link. Thanks.

Kari said...

I would love for you to sent me a referral link to this awesome savings account!

Denise Sawyer said...

I would love to send you a link - could you email me at denisesawyerATgmailDOTcom
and send me your first and last name and your email address!

Thanks a billion - zillion!
The "Cent"sible Sawyer

Amy said...

Hi Denise. I love you blog and am a dedicated reader. Is it too late to ask for a referral for ING?

My email address is