Comments on: A Reader Success Story

By: vivi

vivi — Sun, 07 Dec 2008 00:34:11 +0000

thanks for a helpful blog. A few tips:
1. get money management software. It’s the best investment I ever made. I saved every receipt and logged it every Sunday. That’s how I discovered I was spending $2000 a year on office lunches. I also tracked irregular yearly expenses like computer repair; I figured a monthly amount to save so I didn’t take the hit all at once.
2. Save your change, cash it in and buy a savings bond. $25 buys you a $50 bond. I have about $2000 in bonds and it was painless.
3. Set up a “found money” account. I stash my cash gifts, reimbursements, money from garage sales, and payment for odd jobs. When it hit $500, I bought a short-term CD…3 or 6 months. While it’s accumulating, I continue to add to the found money account. When the CD matures, I add the cash in the “found money” account and buy a bigger CD. Lather, rinse, repeat.
4. One final note. The big advantage to the financial software is that it can track all your accounts so you can see spending patterns and get a sense of momentum about your savings.

By: Becky

Becky — Fri, 05 Dec 2008 20:41:03 +0000

We have three accounts…i’ve been meaning to close one for months. I haven’t quite figured out the purpose of each. It’s a checking and savings at two different banks. One is online only and my pacheck goes into there. I keep the checking at 0 and everything in savings because it has a higher interest rate. We pay for most expenses out of there once a month (credit card) and rent & tithe out of the other. I always think we don’t have money because i’m only thinking about what is in the rent account. Then i go to pay the credit card and there is so much that i thought! It’s great.

By: Millionaire Acts

Millionaire Acts — Fri, 05 Dec 2008 03:17:07 +0000

Good advice. Thanks for the info.

By: Lynnae

Lynnae — Thu, 04 Dec 2008 02:35:41 +0000

Great point, Becky. Something that we should all strive for is to include irregular expenses like repairs in our regular budget, whether it be in a freedom account (a la Mary Hunt) or a regular budget category that carries a balance until you need to use it.

But until you get there, it’s nice to have the emergency fund as an option.

By: Rebecca Rivera

Rebecca Rivera — Thu, 04 Dec 2008 01:59:35 +0000

I am glad that you were able to pay cash for the computer part, especially since you need the computer for work.

I do want to point out in addition to an emergency fund we need to plan for stuff like car repairs and computer repairs. Every time we drive our car or as time goes on we are using up part of these items, they will need to be replaced.

I learned from Mary Hunt to have an emergency fund, plus a freedom account. The emergency account is for absolute emergencies (like medical or loss of job.) The freedom account is for things like car repairs and bills that come up but not every month. My freedom account funds:
AAA membership, contacts once a year, Christmas & other gifts throughout year, oil changes, car repairs, my boys birthday parties, and my bi-yearly dentist visits.

I want to add a new computer fund to it as well.

I am a single mom with very little income, but this account has saved me from so much heartache.
I have no debt. We do live very frugally, but peace of mind is so worth it.

This is not my doing, it is all God.
-Becky R in NJ

By: AngelSong

AngelSong — Wed, 03 Dec 2008 21:43:36 +0000

Thanks for printing my post, Lynnae. I am very glad it is helpful to people.

By: Connie Walsh

Connie Walsh — Wed, 03 Dec 2008 19:37:37 +0000

Very good lesson. Good advice.

By: Nicole

Nicole — Wed, 03 Dec 2008 18:59:56 +0000

My husband and I have been our house for 1 year and we’ve already had some unexpected expenses and it seems like the money gets tighter and tighter with each downturn. This story does inspire me because even if it’s only $10 a paycheck then in a few paychecks it will be enough to at least help us with anything unexpected.

Does anyone have any suggestions on which sites are better to do an online savings account?

By: Sheryl

Sheryl — Wed, 03 Dec 2008 17:25:37 +0000

Hello,
This post could not come at the right time. I just came back from the Dept.Of Human Services. I work on line for a company and was told at H.S. that I made too much money and can`t even get on the pending list for insurance. I had a bypass 2 years ago and you have to go to to Doc at least twice a year plus a nutritionist every month not to mention the various vitamins and I have to take something for acid reflux.
The point I`m making is I have to cut down my hours to qualify for insurance.
What that post did is make me relize that I COULD save money for I had the same expectations of saving hundreds of dollars. So now I`m going to do it!
Thanks

By: Marci

Marci — Wed, 03 Dec 2008 16:26:41 +0000

Isn’t it great to be able to say to yourself, “I told you so!” :)
You knew you were going to some day need an emergency fund, you took the baby steps to get it started, and kept making the additions to it, and Presto – just like ‘magic’ – there it was when you needed it!

Nice going!