The Raging Tech

How Do You Put Away Savings?

In this era, you just can’t rely on social security for retirement. Also, when you’re my age, you might be thinking about the future: marriage, a house, kids, kids’ college funds, vacation money, hire a hitman for the in-laws money, etc. Or maybe you’re just thinking about how to get out of debt.

Recently, I received my Economic Stimulus payment from the U.S. government. And as a single person, I qualified for the full $600. I thought “whoopee! 600 bucks to blow!” and then immediately went - “No, I’m broke nearly 1/3 of every month. I need to buckle down, form a budget, and open a money market account,” which I did. I opened a money market account at the credit union and deposited almost half my payment. I hope to try and match that each month and once my car is paid off (27 months from now) I’ll try to put my car payment into that account as well, since I won’t miss it.

I did some basic math, and not including what I’ll earn from dividends, in five years I’ll have saved up about $24k - not too bad if I can stick to it and not spend it all.

What I can’t decide is - instead of putting so much into savings, should I instead pay off my higher-interest debt and then as those are paid off start saving the money I was paying in my Money Market account?

Know some better ways to put away for another day? Leave me a comment below on how you do it.

Money Money Money Money… MON-AY

Pay day is both happy and sad for me. I got paid on Wednesday this week. Since my paydays only come once a month, you can imagine how anxious it can make me to wait on it when I’m broke. The reason it’s sad is because that’s also the day I usually pay all my bills. Since I pay all my bills for the month at one time, that’s a huge chunk of my money that gets gone right away.

It’s better than not having the peace of mind that comes from trying to figure out how to make a bill on time to avoid late payments later on in the month. I’m also getting better at not buying too much that I don’t need. I said better, not that I’m good at it yet.

Also, I have a good amount of money pending from sponsored posts and advertisement here on this blog, and that’s helping tremendously. Another thing that’s going to help this month: Economic Stimulus Payment. Woot! That’s an extra 600 bucks that is going to pay for my GMAT and help me if I indeed move in with some friends out of town later in the summer.

I’m hoping to get some debt paid down over the next few months, to free up more of my income for savings and investment. That book I’m still trying to read, Rules for Renegades, is good at encouraging people to set goals and “Get Stuff Done” (your GSD degree instead of your MD or your doctorate). Crazy motivational books, always inspiring me to do stuff.