Are regular savings accounts useless? Best way to save/stack moolah?

[luckyluchiano]

The interest rates on em are od weak, and it seems that they are only really good for the fact of you prob wont touch the money being that its not your checking account, and you prob dont have a card for it.

What money management tools/techniques do you guys recommend?

 

[365k]

I don't see them useless. I have one on a different bank, and use checking with Chase.

Personally, having a separate savings account where you constantly deposit money in, without having to touch it feels real good. Especially once you're past $2000.

 

[hovkid]

I definitely wouldn't use a savings account for money you are trying to grow.  A savings account can be a useful tool though.

(i) Checking Account - I have a checking account that my compensation gets deposited into.  From there, one of two things happens.  If a regular two week check, My family and I live off that.  Sometimes, there is some left over at the end of a two weeks, and my wife will throw that into the savings account.  If the money deposited into my checking account is not from my regular two week checks, but rather from end of the year bonuses or distributions on my carried interest, the money either goes into my savings account, Fidelity money market/investment account or Fidelity municipal bond account.

(ii) Savings Account - Generally, when I get my end of the year bonus, my wife and I will stack our savings account with (x) tuition for my kids' school (f'ing pre-school is $6k per year for each of our two kids), (y) teuition for my kids' summer camp (I'm not even going to get into that - two months at camp costs more per kid than the school does) and (y) a bit of cushion, just in case something comes up and we need money quick.

(iii) Fidelity Money Market/Investment Account - This is where the majority of my bonuses and distributions on carry go.  I am a very risk averse person, so its invested fairly conservatively, but I'm only 36 so there's enough risk to give reward long term.  I don't need this money so I can stand for it to be invested for the next 15+ years until I have to pay for my kids' college.  This account is not "liquid" so I can't just roll in to Fidelity and take money out of it - which is why I have the savings account to set aside money I know I'll need during the course of the next year.

(iv) Fidelity Municipal Bond Account - The original intent of this account was to put away 6 months of money to live on just in case something really bad happened and I lost my job or something.  Obviously, since its all invested in municipal bonds, its very conservative and barely grows, just like a savings account.  I don't know why the hell I even keep it, since I haven't kept up to ensure its 6 months of my family's current lifestyle (my wife and I funded it before we had kids and bought a house and were just renting an apt in NYC).  I guess we really should put some more into it.  Like the other fidelity account, this is not just liquid.  Takes a few days to take cash from it as they have to sell the bonds.

Aside from that, I have 529's for each of my kids and obviously 401k's.  I have mine which grows every year as I continue to work and contribute to it and my wife has hers from when she used to work.  Her's obviously doesn't get funded anymore but its of course still there for retirement.

 

[omgitswes]

Is there a max on how much you can have in one saving account?

 

[sw00shm4n]

A savings account is basically a "put some aside here, don't touch it and only withdraw from it if you really need to" account. If you really want to invest and see your money grow, invest in stocks, bonds, CDs, etc.

 

[hovkid]

Originally Posted by omgitswes

Is there a max on how much you can have in one saving account?

No but you wouldn't want to have more than $100k (i think that is the right number but I may be off) in any one account as that is all an account is insured for by an FDIC bank.


  

 

[crcballer55]

A savings account is for just that... Saving.  You're never going to make any money from it when adjusted for inflation.  In actuality, you'll probably lose money in it.  What it is good for though is short term planning and for your emergency fund.  I have a separate account for my yearly vacations.  When it's separated from your checking account you're less likely to spend it from a psychological standpoint.  Then you won't need to use your credit cards in an emergency and pay interest on top of it.

I also have a separate savings account for my emergency fund.  This is used as a 3-6 month buffer should a major emergency come up or something happens to my job.  This is by far one of the best things you can do for yourself from a psychological standpoint so you won't have to jump right into another job just because you need the money.  You can stay on your heals a little bit and look for something that "fits".

 

[crcballer55]

Originally Posted by HOVKid

Originally Posted by omgitswes

Is there a max on how much you can have in one saving account?

No but you wouldn't want to have more than $100k (i think that is the right number but I may be off) in any one account as that is all an account is insured for by an FDIC bank.


  

The FDIC & NCUA actually increased this to $250K in late 2008 when the banking crisis was happening.  Depending on how you structure it, you can have somewhere around $3MM.  However, it's limited to $250K per account.

 

[hovkid]

Boom...thanks.

 

[omgitswes]

My checks go right into my savings and I usually take about half out and put it in my checking account.
I don't really like touching my savings at all but since I've had to pay for school myself now it's really taken a hit.
I thought with savings though it'd grow a little over time because of interest or something like that. Also I have a mutual fund too but haven't been putting anything towards it, I probably should since it's growing

 

[kingtre]

Originally Posted by HOVKid

Originally Posted by omgitswes

Is there a max on how much you can have in one saving account?

No but you wouldn't want to have more than $100k (i think that is the right number but I may be off) in any one account as that is all an account is insured for by an FDIC bank.


  

it got upped to 250k but yea thats just the insurance - theres no limit to what you can have....at a certain point though you should be having that money working for you instead of sitting and only working for the bank

 

[luckyluchiano]

I just recently graduated and Student loans will kick in in 6 months (Thank God I only owe about 13-14k because I didnt have any scholarships my freshmen year) and they are govt loans not private.

Also maybe end of next year I want to buy a new whip ( used car not a technically new whip)

I want to create an Emergency fund which will have 6 months of money I can live off off in case something happens such as being laid off.

Is 401k solid enough just to have money saved for the future? I`m not really trying to do major investing and all that stuff right now until I`m where I want to be in my career.

When it comes to CC debt, I paid off all my cards but I had to start using one of them again because I did not want to use cash since I am going to be getting a new apartment and stuff since I was without a job for a month and some change. I just got a job offer so I will be paying that off pretty soon.

I got an American Express Gold card that I plan on using as cash.

Do you guys think it would be wise to create separate accounts for my Car fund and my 6 month emergency pot? When it comes to the car thing I was prob just going to put down a decent down payment on a whip just so I can pay more then the minimum amount, pay it off early so it can look good on my credit score.

 

[crcballer55]

Originally Posted by LuckyLuchiano

I just recently graduated and Student loans will kick in in 6 months (Thank God I only owe about 13-14k because I didnt have any scholarships my freshmen year) and they are govt loans not private.

Also maybe end of next year I want to buy a new whip ( used car not a technically new whip)

I want to create an Emergency fund which will have 6 months of money I can live off off in case something happens such as being laid off.

Is 401k solid enough just to have money saved for the future? I`m not really trying to do major investing and all that stuff right now until I`m where I want to be in my career.

When it comes to CC debt, I paid off all my cards but I had to start using one of them again because I did not want to use cash since I am going to be getting a new apartment and stuff since I was without a job for a month and some change. I just got a job offer so I will be paying that off pretty soon.

I got an American Express Gold card that I plan on using as cash.

Do you guys think it would be wise to create separate accounts for my Car fund and my 6 month emergency pot? When it comes to the car thing I was prob just going to put down a decent down payment on a whip just so I can pay more then the minimum amount, pay it off early so it can look good on my credit score.

From experience with my family and multiple other observations... using a credit card as "cash" is extremly dangerous.  If you can pay cash for things go ahead and do it.  I can't tell you how many times my parents paid off their credit card only to "use it as cash" and then something happened that they didn't foresee and they ended up having to max it out.

Regarding the separate savings account... Yes!  Create a separate account for each goal you have.  I have separate accounts for my car, in investment account for my next house, one for vacations, and one for large one time yearly expenses (insurance, medical bills, Christmas fund, misc. gift fund, etc.)  It should be deposited directly into those accounts too so you won't be tempted to "cheat" when you're in a pinch.  The more discipline you have when you're young the wealthier you'll have when you're older and making decent money.

 

[lokid40]

ING or HSBC online banking accounts.  They offer a little bit higher interest rate, and the good thing is it takes approx 2-3 days to pull out your $$$ so out of sight out of mind. 

Taking $50 -$100 off your paycheck and auto transfering it directly to these accounts ...you'll see $$$

 

[jhobson5]

^^^^I just transfer it automatically from my checking to savings after I get paid. I put 10% of my pay check in as saving in addition to what I contribute to my 401k...It so nice to know you have savings...

 

[luckyluchiano]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

I just recently graduated and Student loans will kick in in 6 months (Thank God I only owe about 13-14k because I didnt have any scholarships my freshmen year) and they are govt loans not private.

Also maybe end of next year I want to buy a new whip ( used car not a technically new whip)

I want to create an Emergency fund which will have 6 months of money I can live off off in case something happens such as being laid off.

Is 401k solid enough just to have money saved for the future? I`m not really trying to do major investing and all that stuff right now until I`m where I want to be in my career.

When it comes to CC debt, I paid off all my cards but I had to start using one of them again because I did not want to use cash since I am going to be getting a new apartment and stuff since I was without a job for a month and some change. I just got a job offer so I will be paying that off pretty soon.

I got an American Express Gold card that I plan on using as cash.

Do you guys think it would be wise to create separate accounts for my Car fund and my 6 month emergency pot? When it comes to the car thing I was prob just going to put down a decent down payment on a whip just so I can pay more then the minimum amount, pay it off early so it can look good on my credit score.

From experience with my family and multiple other observations... using a credit card as "cash" is extremly dangerous.  If you can pay cash for things go ahead and do it.  I can't tell you how many times my parents paid off their credit card only to "use it as cash" and then something happened that they didn't foresee and they ended up having to max it out.

Regarding the separate savings account... Yes!  Create a separate account for each goal you have.  I have separate accounts for my car, in investment account for my next house, one for vacations, and one for large one time yearly expenses (insurance, medical bills, Christmas fund, misc. gift fund, etc.)  It should be deposited directly into those accounts too so you won't be tempted to "cheat" when you're in a pinch.  The more discipline you have when you're young the wealthier you'll have when you're older and making decent money.

With the credit card thing I wanted to do it like this

Use the AMEX as cash since it's a charge card and has to be paid off at the end of the month.
Use one card strictly for Online Purchases.
Use one strictly for Bill payments.
And my last one keep on ice for life or death situations.

Being that I opened up multiple Cards early on in college I didnt want to cancel any of them since that would ding my score since the avg life of them are 3-4 years of age. With the AMEX I wont lie I only got that cause pulling out a gold card looks cool to chicken heads

 

[supermanblue79]

Great stuff in here. 

 

[vahustler]

anyone invest in nike stocks here? and where at? i'm really interested in doing that for the upcoming months. Good idea or bad?

 

[crcballer55]

Originally Posted by LuckyLuchiano

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

I just recently graduated and Student loans will kick in in 6 months (Thank God I only owe about 13-14k because I didnt have any scholarships my freshmen year) and they are govt loans not private.

Also maybe end of next year I want to buy a new whip ( used car not a technically new whip)

I want to create an Emergency fund which will have 6 months of money I can live off off in case something happens such as being laid off.

Is 401k solid enough just to have money saved for the future? I`m not really trying to do major investing and all that stuff right now until I`m where I want to be in my career.

When it comes to CC debt, I paid off all my cards but I had to start using one of them again because I did not want to use cash since I am going to be getting a new apartment and stuff since I was without a job for a month and some change. I just got a job offer so I will be paying that off pretty soon.

I got an American Express Gold card that I plan on using as cash.

Do you guys think it would be wise to create separate accounts for my Car fund and my 6 month emergency pot? When it comes to the car thing I was prob just going to put down a decent down payment on a whip just so I can pay more then the minimum amount, pay it off early so it can look good on my credit score.

From experience with my family and multiple other observations... using a credit card as "cash" is extremly dangerous.  If you can pay cash for things go ahead and do it.  I can't tell you how many times my parents paid off their credit card only to "use it as cash" and then something happened that they didn't foresee and they ended up having to max it out.

Regarding the separate savings account... Yes!  Create a separate account for each goal you have.  I have separate accounts for my car, in investment account for my next house, one for vacations, and one for large one time yearly expenses (insurance, medical bills, Christmas fund, misc. gift fund, etc.)  It should be deposited directly into those accounts too so you won't be tempted to "cheat" when you're in a pinch.  The more discipline you have when you're young the wealthier you'll have when you're older and making decent money.

With the credit card thing I wanted to do it like this

Use the AMEX as cash since it's a charge card and has to be paid off at the end of the month.
Use one card strictly for Online Purchases.
Use one strictly for Bill payments.
And my last one keep on ice for life or death situations.

Being that I opened up multiple Cards early on in college I didnt want to cancel any of them since that would ding my score since the avg life of them are 3-4 years of age. With the AMEX I wont lie I only got that cause pulling out a gold card looks cool to chicken heads

http://www.getrichslowly.org/blog/2008/09/23/research-reveals-credit-cards-encourage-spending/

You spend $12-18% more by using your CC over cash.  I tried it myself and my bank account has never looked better.  I use my debit card for online purchases too since any fraudulant activity is also covered by your bank (and Visa/Mastercard) as long as you report it in time.

 

[freakydestroyer]

Originally Posted by VAHustler

anyone invest in nike stocks here? and where at? i'm really interested in doing that for the upcoming months. Good idea or bad?

Could be a good idea when that NFL deal kicks in, which should be 1 season from now?

 

[proper english]

Originally Posted by LuckyLuchiano

[h3]Best way to save/stack moolah?[/h3]

stop buying stupid ^%$#

 

[luckyluchiano]

Originally Posted by crcballer55

Originally Posted by LuckyLuchiano

Originally Posted by crcballer55

From experience with my family and multiple other observations... using a credit card as "cash" is extremly dangerous.  If you can pay cash for things go ahead and do it.  I can't tell you how many times my parents paid off their credit card only to "use it as cash" and then something happened that they didn't foresee and they ended up having to max it out.

Regarding the separate savings account... Yes!  Create a separate account for each goal you have.  I have separate accounts for my car, in investment account for my next house, one for vacations, and one for large one time yearly expenses (insurance, medical bills, Christmas fund, misc. gift fund, etc.)  It should be deposited directly into those accounts too so you won't be tempted to "cheat" when you're in a pinch.  The more discipline you have when you're young the wealthier you'll have when you're older and making decent money.

With the credit card thing I wanted to do it like this

Use the AMEX as cash since it's a charge card and has to be paid off at the end of the month.
Use one card strictly for Online Purchases.
Use one strictly for Bill payments.
And my last one keep on ice for life or death situations.

Being that I opened up multiple Cards early on in college I didnt want to cancel any of them since that would ding my score since the avg life of them are 3-4 years of age. With the AMEX I wont lie I only got that cause pulling out a gold card looks cool to chicken heads

http://www.getrichslowly.org/blog/2008/09/23/research-reveals-credit-cards-encourage-spending/

You spend $12-18% more by using your CC over cash.  I tried it myself and my bank account has never looked better.  I use my debit card for online purchases too since any fraudulant activity is also covered by your bank (and Visa/Mastercard) as long as you report it in time.

True I already know the psychological thing behind the you dont think about money when you swipe your card. But if one has the strength to know how not to blow money, couldnt my idea end up being pretty powerful?

 

[allreds]

posting for later

 

[wcghost]

Employee Stock Purchase Plans (ESPP) typically guarantee a ~17.6% return (10-12% after taxes), regardless of stock price. If you have one at your company, contribute the max amount ASAP!

401K's........ since 2007, over $1 TRILLION dollars have been lost (65-70%) in value. Imagine working for 40 years of your life, and overnight 70% of it vanishes in thin air, and you're expected to retire with that remaining 30%. Take advantage of your company's match, but do not contribute anything more.

Growth Cash Maximizer accounts, CD's, and bonds are all very conservative/safe investment choices.


However, nothing beats being your own business owner without any caps on your income + tax advantages!! i have a full-time job and a home-based business on the side, and i'm able to legally write off $5K in expenses on taxes.

 

[kantoot]

i usually just use my savings account as an emergency fund, also i only contribute the max that the company i work for matches, wifey has an ira account, etc. , as some other poster stop spending on stuff you dont need