SavvySugar

Money Tip: Set Aside What You're Saving on Gas

SavvySugar — Wed, 26 Nov 2008 13:45:18 -0800

Gas is now going for about half of what we paid at the pump through the Summer, and the reduced cost is a welcome retreat from the strain that filling up had been causing consumers. We can hope the days of gas price-induced desperation (remember the new dad who named his baby boy after a radio show for a $100 gas card?!) are behind us, and before we go forgetting the damage gas prices did to our budgets, let's take the opportunity to do something with the extra money we're saving.

We managed to make it when our money was going into the tank instead of staying in our bank accounts, which means we might not miss at least some of that disposable income if it was out of our reach. Figure out how much you've saved in gas this month compared to what you had been spending at the height of gas prices, and apply at least part of the difference to the amount you transfer each month into your savings account. It will feel good to watch your savings grow, rather than burning your cash on the cost of fuel.

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In-the-Black-Tip: When Saving Takes a Back Seat to Spending

SavvySugar — Thu, 30 Oct 2008 14:30:59 -0700

While many retailers started giving their full court press in holiday advertising at least a month ago, most shoppers shift gears to the holidays after Halloween has passed. Well, tomorrow marks the occasion for haunted houses and candy corn, which means November and intense holiday shopping is already upon us. During the holidays, saving often takes a back seat to spending, so here is my solution for ensuring you're left with more than pennies after the season of giving has ceased.

In-the-Black tip: If you haven't already, set up automatic transfers from your checking account to a savings account that occur whenever you receive a paycheck. The money will be out of sight and unavailable when you're out shopping with your debit card, and you'll feel better about spending money on gifts for others knowing that you've already taken care of yourself.

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Money Tip: Pay Your Bills on Pay Day

SavvySugar — Wed, 27 Aug 2008 08:00:36 -0700

When I was a fresh college graduate earning my first real paychecks, I quickly saw how living in a city like San Francisco isn't made for entry-level salaries. Exploring the city and all of its nighttime gems were certainly priorities, but the biggest priority was to keep myself out of debt while not depriving myself of enjoying my new surroundings.

I struck a balance by forming the valuable habit of paying all of my bills on pay day. That practice, coupled with automatic 401(k) savings and automatic transfers to a high-interest savings account, can allow for a relatively low-stress financial life. Once in a while we may make money mistakes that can throw us off track and unexpected expenses inevitably come up, but forming the habit of paying your bills as soon as you are paid will keep you out of serious trouble.

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Ask Savvy: In Need of Savings Tricks to Pay Off Debt

SavvySugar — Fri, 25 Jul 2008 12:30:13 -0700

Dear Savvy,

I read the Savvy posts almost every day because I am in tons of debt and seriously need help. I'm the type of person that needs actual tricks to save. I have zero willpower when it comes to money. I keep seeing the Bank of America adds for Keep the Change and I feel that could really work for me. I was just wondering if you knew of any Canadian institutions offering similar programs. I've tried searching on the Internet but with no success. Any more tricks you could offer?

See my answer when you read more.

Canadian banking is not my forte, but I can definitely try and help you with a savings and debt pay-off plan. The easiest way to save, hands down, is to utilize an automatic savings plan. Bellaressa was on track with her suggestion to set up an ING account; you can quickly and easily create an online account with ING Canada and set it up so there's money automatically withdrawn from your checking account to your ING savings account.

Here's what I recommend for a relatively painless way to save and pay off debt: Open two accounts that are both connected to your checking account, one for savings and one for money that will only be used to pay off your debt. Set up your accounts so that a percentage of your paycheck is allocated to each of these accounts every time you get paid. Even though you have some debt to pay back, it's important that you build up some savings in case of an emergency so that you don't fall deeper into debt.

Before you can determine how much to deposit into those accounts each month, figure out how much you'll need for your fixed expenses like rent and bills, what you'll need to cover food costs, and if possible set aside some for having a little fun, too. Once you've determined a rough budget, commit to only living off that amount each month. Take away the temptation to spend by not even giving yourself the option - that's the beauty of automatic savings.

Goals always push me to do better with my money. Check out our calculators to come up with some savings and debt repayment goals! Whenever you feel the urge to spend, revisit your goals to help yourself stay on track.

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Savvy ATM: What Is an ING Savings Account?

SavvySugar — Thu, 03 Jul 2008 06:26:27 -0700

Building up savings is one of the best ways to set ourselves up for financial success, and the amount of questions coming in lately about ING accounts tells me that you're all on your way! There are a number of online banks out there, meaning they don't have actual branches you can physically walk in to and speak to customer service in person, but ING is a particularly appealing choice to many savers for a few key reasons. Find out what they are when you read more.

The three biggest draws are their no fee policy, high-yield interest rates, and they do not require a minimum account balance. It's harder to build your savings when fees eat up the interest you earn, and many savings programs mandate that you keep a minimum balance that is sometimes thousands of dollars in order to get a high interest rate or avoid fees. At ING, your $500 account is treated to the same high-yield interest rates as someone else's $10,000 account.

The actual product they offer is called the ING Orange Savings Account, and they make it easy to set up automatic transfers from your checking account at your existing bank to your ING savings account. The interest you earn on your savings is variable according to market rates, so if the Fed raises interest rates your savings account rate should go up, too.

Do any of you have an ING savings account or prefer one of their competitors?

Savvy ATM: Where to Find Extra Money

SavvySugar — Mon, 09 Jun 2008 08:24:43 -0700

There's no real secret to reaching your savings goals, but there is an attitude of commitment that you should consider adopting in order to accomplish them. In order to keep your commitment to save, make it a priority: decide what you will save each month and learn to live on the rest.

This approach ensures that you don't run out of money each month before you get around to saving some, and it means that you don't have to abide by irritating mantras like the latte factor. Everyone's spending priorities are different so all encompassing mantras aren't always appropriate, but no matter the reason for saving everyone aiming to set aside more money shares a common goal. Discover a few not-always-obvious places to find extra money when you read more.

According to Kiplinger, a 30-year old with no savings must save $448 each month in order to have 1 million by age 65, and that's assuming the account earns an interest rate of 8 percent. It may seem daunting, but it isn't an impossible feat. They suggested six places in our spending lives that may have room for extra savings, and I've selected the three that aren't always apparent.

Save $219 per month on taxes: The average refund for the 2008 filing season so far is about $2,500. If you received an average refund and you are in the 25 percent federal tax bracket, you could be entitled to three extra exemptions worth $3,500 each. That would boost your take-home pay by $219 a month. A couple of reasons you might be eligible for more exemptions: becoming a new parent or buying a house.
Save $28 per month on health care: The typical family spends $1,321 on out-of-pocket health expenses each year, says the Department of Health and Human Services. You can pay those costs with a flexible spending account, which lets you set aside pretax dollars.
Save $10 per month on auto insurance: The average consumer pays $829 annually for car insurance, according to the National Association of Insurance Commissioners. Raising your deductible from $250 to $1,000 can save you 15 percent or more.

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Let Your Savings Do the Work

SavvySugar — Tue, 29 Jan 2008 10:27:41 -0800

You work hard for your money. Did you know your money can work hard for you, too? Your savings can grow with a savings account with a great interest rate, so you can afford to pile on a few fancy accessories?! How can you let your savings do most of the work for you?

I suggest you take a look at the rate and yield you’re getting with your bank to make sure you’re not missing out on extra savings. Some banks offer high-yield savings, while other banks offer little more than tiny one-percent savings yield.

We all know we should save, but sometimes other things get in the way and we have racks of shoes to prove it. Paying yourself first means you won't be tempted to spend the money you need to be saving. Tricky, eh? Saving now ensures you're never caught in a sticky situation without the cash to help you through it. Think of it like that umbrella you keep in your trunk for a rainy day - you hardly realize it's there until you really need it.

Your savings can really grow with one of WaMu's high-interest savings accounts. Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

Do You Use Online Banking?

SavvySugar — Thu, 10 Jan 2008 10:31:32 -0800

I bank online because waiting in line just isn't my thing. I need the ability to access my account whenever I want and from whatever computer happens to be in front of me.

Our friends at WaMu know your time is precious and make online banking as easy as store-bought pie. Most applications to open a checking and high-yield savings account online take only seven minutes, which means you can get started on organizing your finances in the same time it takes to shower, and do it all while wearing your comfy robe and fuzzy slippers! If questions come up, customer service is always around to help.

When you bank online, all of your latest balances, statements, and transactions are available for your viewing pleasure. Worried about your privacy? Many banks will send you email alerts to keep you informed about your account activity.

One of the biggest benefits is the option to pay bills online; you can pay all of your bills in one place and even have the ability to set up your account for automatic payments. That leaves more time for yourself, something all of us could use. Tell me: Do you bank online or visit your local branch?

Thank you to WaMu for sponsoring this post.

Total Deposits at Washington Mutual are FDIC insured.
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I'm Asking: Do You Automatically Transfer Funds to Savings?

SavvySugar — Mon, 13 Oct 2008 06:30:35 -0700

Putting part of your paycheck aside for savings each month is one of the oldest cash savings tricks in the book, but it isn't always possible. 83 percent of SavvySugar readers admit to being more mindful of their money given the current economy, and that often means setting higher savings goals and being more methodical about where extra cash is put.

Do you transfer funds to savings every month automatically, or do you balance your checkbook and contribute what you can on a month-by-month basis?

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3 Ways Obama Plans to Help Americans Save More

SavvySugar — Tue, 08 Sep 2009 04:30:14 -0700

The federal government is in an unfathomable amount of debt, but that's not stopping President Obama from trying to help US citizens improve their personal finances. The message from his weekly address was clear.

Even before this recession hit, the savings rate was essentially zero, while borrowing had risen and credit card debt had increased. More broadly, tens of millions of families have been, for a variety of reasons, unable to put away enough money for a secure retirement . . . We cannot continue on this course.

The President isn't wasting any more time to remedy this reality and announced changes this weekend that will take effect immediately. The administration is hoping these changes will make it easier for Americans to save, particularly for retirement. Find out the three main ways saving will be made easier when you read more.

Auto enrollment in retirement plans: The administration will eliminate many hurdles smaller employers have had to automatically enroll workers in to retirement plans. Employees will still be able to opt out of employer-sponsored retirement plans, but the existence of auto-enrollment makes higher-rate of participation more likely.
Saving tax refunds: There will be a third option when selecting how you'd like to receive your 2010 tax refund. Besides choosing to receive a paper check or direct deposit, the IRS will allow those eligible for refunds to receive payment in the form of U.S. savings bonds.
Sick days and vacation time become 401(k) money: I can see this one becoming particularly popular, because so many workers are in the habit of letting their accrued vacation days go to waste. The White House will make it easier for employers and workers to convert unused vacation and sick leave pay into 401(k) contributions.