07 January 2009

Automatic Savings Accounts

If you haven't set up your emergency savings (I took Dave Ramsey's Baby Step One advice and saved 1000 dollars) then its probably time you should. It's hard to think that instead of paying off debt, you should be putting money in savings, but I really have to say that ever since I took the plunge and saved that money, I have not worried as much about emergencies. For example, right now ex-h owes me money (surprise!) but it's okay, because I have money to cover the bills. Before I would have been freaking out, now I'm just (rightly) pissed.

Most banks offer a savings account that you can link to your checking account, and you can set up transfers from one to the other. I really think that the automatic savings plans are the easiest way to save money- I set mine up to come out the day after I get paid, and that way I don't worry about having the money.

Although my bank does have a savings account, I have been using ING Direct instead, because I earn interest on my savings. Right now the interest is 2.50%, but it was much higher in the past and I'm sure it will be again. Over the last year, I've earned about 18 dollars in interest, almost all of that from when I started keeping the 1000 dollars in the account. The only drawback for ING is that it takes a few days to transfer the money back to your savings account, but I think that helps with not using it for impulse purchases and stupid things.

If you're interested in opening a savings account, they are running a promotion where you get 25 dollars added to your account if you open one with 250 dollars. In addition, if you email me at yearoffrugalliving@gmail.com, I can send you a referral for the 25 dollar promotion and then I'll get 10 dollars from them, too. I have never put ads on here because I didn't want to encourage spending, but I'm happy to encourage saving!

Happy saving!


Lori said...

SEND ME A REFERRAL - lori_noelle@msn.com

Jaime said...

Lori, I sent you a referral but you might want to remove or edit your comment so that your email doesn't show- I wouldn't want you to get tons of spam!

BabiesandBargains said...

I do this as well for my x mas fund! Easy way its like its forgotten! I also gave you a lemonade award!

mary said...

The ASP was the EASIEST way for us to save money! We have a small amount taken out each pay day-- small enough that we don't notice, but after a year it really adds up! And I agree about ING taking a few days to transfer-- when I know it won't be in the checking account for three days, I don't bother tranferring....and wasting money :).

Lisa said...

I'm taking your advice. Already have an ING account but it only has about 80 bucks in it. Just deposited some Christmas money to bring it up to $500 and when a CD matures in a few days, I'll add an additional $500. It'll be nice to have the peace of mind.

save said...

This is, indeed, the year of savings. All of us should have started doing this earlier, but it's not too late yet. Saving money gives you the opportunity to feel financial stable and to live a more independent life.