Money
Money (That’s What I Want)
I spent much of this past weekend reading money blogs - stuff about getting out of debt, budgeting, and that sort of stuff. I managed to rack up over 10G’s in credit card debt since getting my very first card at eighteen. It took me ten years to pay off all of that old debt, and within the next few months, I should have my last credit card (with debt accrued in 2007) down to a zero balance!
So I thought it was about time I opened a savings account again. Ok, in actuality? Suze Orman guilted me into it. I downloaded the free .pdf of Women and Money off of Oprah’s site a couple of weeks ago and realized I don’t have anything that I’m “supposed to” have, except a 401(k), and that’s only ‘cuz work made it easy to contribute to. The last time I had a savings account was almost six years ago - but I drained it when it was time to pay the security deposit on this apartment, so the bank closed it. That is six years of interest-free checking. I doubt I’d have made any real money, but it’s time I change that.
I have been really worried about not having any savings for the past year or so. Dad’s been out of work, and I watch my parents struggle. They had a nest egg and Mom’s good at stretching a dollar, but it’s hard to find work and that nest egg is gone. It made me realize that I really need an emergency fund. So, after reading blogs and seeing just how many people love them, I opened an account with ING Direct. They have a great offer where, if you open an account with $250 and use a referral code, they give you $25. Interest rates everywhere are dropping, but 3.4% is still more than my bank (or others I checked) is offering, so, there ya go.
Microsoft Money is my lifesaver - especially its cashflow feature - but I really need to figure out my budget better. All of my bills are in there, so I know what’s coming up, but stuff like food (groceries and dining out) and gas? I don’t budget for that; I kind of just go with the flow. So really, my cashflow is never all that accurate. I want to have a true, workable budget so I can put any left over cash in my savings account. I tend to spend if I have, and I don’t want to do that anymore.
So, in short, this is me, trying to be all mature and responsible about my money and my future. Welcome to adulthood, Diz. You’re 29, so you’re a little late.
Discussion
7 comments for “Money (That’s What I Want)”
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Never too late. Too late is when you’re dead. Anyway, you’re suppossed to put 20% of your pay into savings. Or at least that’s what the book I read said. I don’t have 20% to put away so I do 10%. Something is better then nothing. Kris and I have a few grand saved for moving (buying a house). My goal is to have enough saved in my personal account to have three months rent and utilities saved. Just in case. I want to have that by January of next year. I need open a personal savings account. This way I can do that and not touch it. When it’s in checking it is so easy to pull it out!
I don’t want to end up like Kris’s mom. She’s 62 and has nothing saved for retirement. We’ll probably end up having to take care of her.
Having a savings account is the time when you start to follow the interest rates very carefully and curse it every time the interest rates go down to pay to prop-up borrowers.
I heard ING is pretty good. They have some really good rates from what I understand.
I need to do the same. Sometimes I feel like I have spent too much money and nothing to show for it. Crazy.
@Jennifer - They all have different ideas of how much of your budget is supposed to go to savings. I think I’ve decided to put most of my bonus towards paying off the credit card, the rest in savings, and then tackle the car loan.
@WhoMe - I don’t have enough saved for a point to really matter. But it does suck that the rates are dropping here. Recession!
@yoshi - I know what you mean. Over a decade of credit card debt and I don’t feel like I have a thing (although there are a few hundred CD’s out in the living room…)
no kidding. i’m nearly 30 and don’t have any of that. i’ve got about 5K in credit card debt now, and about 100K in education debt (combined with hubbies.) Scary shit.
I’m about 2,000 dollars in debt, but I managed to pay off one credit card that had the highest APR and now I’m tackling the next. I also have a savings account but never put my own money in there, it’s basically my inheritance I received from my grandmother. Do you have that option from your work that you can put money in directly from your paycheck? I was going to do that but it’s never good to direct deposit into your checking account as it should only be used for paying bills. Maybe see if you can direct deposit into your savings account. Also opening up a Roth IRA is good or a CD. I have a CD but only a small amount of money in there. Haven’t gotten around to the IRA yet because my mom said to wait. Just never take from your 401K because you can run into IRS problems.
I love that lady by the way. I’ve learned a lot from her. I watch her show sometimes. A lot of what she said I’ve been doing but a lot I didn’t know. She’s great.
It will all fall into place. It’s hard not to worry about money though.
I meant to say never take from your 401K because that is supposed to be for your retirement. I don’t think it has anything to do with the IRS haha I was thinking of something else. I think Suze had said they can’t touch that if you run into IRS problems.