Everything I Wish My Dad Had Taught Me About Savings
Americans are hoarding more. The savings rate is skyrocketing, money market and savings deposits are up and good offers are starting to appear.
For example, web-based EverBank offers new depositors a 3.01% bonus rate for the first three months after opening a Yield Pledge Money Market account and 2.0% thereafter. (Be careful, though: You’ll need to maintain a $5,000 balance in order to avoid an $8.95 monthly fee.)
Credit: NCinDC
Meanwhile, consumers are finding creative ways to get more for their money. Author Michael Guerriero prefers staycations. Guerriro is the author of Party Across America, a guide to the nation’s annual festivals.
“Life is short, and your time off work should be maximized — even if you aren’t boarding an airplane. A day trip to a local summertime festival offers the feeling of escapism without breaking the bank,” Guerriro says.
Life is too short to be broke
Too often, I’ve used the “life is short” refrain as an excuse to overspend. Debt plagues me as a result — but less than it used to. My wife and I have curbed spending in many areas. We don’t overeat, for example. We perform all our own household chores. We save for bigger-ticket purchases. Things I never thought to do as a recent college grad 20 years ago, I’m now doing.
But after a quick tour of the microblogging service Twitter, I wonder if I’m doing enough. Student Jacob Roche of Davis, Calif. forces savings by making money hard to get at. “I have terrible liquidity because most of my savings is at another bank, so I have to do an ACH or wire to get more money for a larger purchase, which gives me 3-7 days to rethink it,” Roche says.
Writer Jarvis Slacks of Gaithersburg, MD practices everyday minimalism. “Only buy food and pay bills. Survive on what you can for as long as you can,” Slacks wrote to me.
Could that be too harsh a stance? Perhaps, though with a family of five, my income doesn’t often allow for more than food and other basics. We’re treading water, as are most Americans.
For those who are doing just a little better than that, Scott Greenhalgh, a cosmetic dentist from Denver, Colo., advises consumers to think long-term. “Use the savings goal part of [Quicken Online] to hide [money] a little at a time (works great for Christmas).”
Make an ordinary income extraordinary
You needn’t have Quicken or even a computer to create savings goals. Grab a pad of paper, a pencil and a calculator and spend the next 15 minutes thinking about the big-ticket purchases you’ll make over the next six months. Precision isn’t important — simply write it all down, estimating high, and total the results. That’s your savings goal. Need $6,000 by December? You’ll want to sock away $1,000 a month, beginning now.
There are tools to help accomplish your goals. Coupons and higher-yielding accounts that offer you more for each dollar are two of my favorites; they can make an ordinary income extraordinary. Here are three places you’ll find them on the web.
Provides a frequently updated and comprehensive list of new savings deals. Go here for the best rates on money market and savings accounts as well as certificates of deposit (CD). What makes this blog special is that, while one administrator runs it, a community of readers submits tips. Bank Deals is also on Twitter, here.
Not as timely as Bank Deals but more comprehensive, Bankrate’s checking and savings page allows you to check for the best rates in your region. You’ll also find national averages and helpful calculators designed to maximize your income.
My favorite spot for coupons. Sign up to take full advantage of the forums, where the community posts deals and free stuff. FatWallet also offers generous cash back shopping deals and a new service allows you to connect your Twitter account to FatWallet’s feed, notifying you in real-time when relevant deals go live.
Of course, these are only day-to-day tips. Lifelong savings habits are what we want for our children and they’re best developed from an early age. How about we use Father’s Day — our day — to begin teaching.
Tags: personal finance advice, saving money | Categories: Personal Finance, Saving |
Hi Lesedi,
Quicken Online currently works in the U.S. only, though we support some Canadian financial institutions.
Chelsea, Quicken Blog Team
This is a question:
I tried signing up for Quicken, but I am overseas (South Africa) and was prevented from doing so because of the zip code requirement. We dont have zip codes down here and thee doesnt seem to be another option on your signup page.
How can overseas potential customers sign up?
Thanks,
Lesedi