So...as we are paying down the last of debt, I really would like to start focusing on savings. My goal is to save $700 a month in various accounts (for various reasons, i.e. short, mid, and long term). I have updated my side bar to reflect this goal.
I would REALLY like to start adding a little bit at a time to our IRAs... Do you automate your deposits? Or do you just transfer the funds when you have them available?
I am only allowed so many direct deposits from my paycheck (and my husband even less)... with all of accounts and subaccounts... I have been making one transfer to the main account, and then transferring funds within. For example, I have 7 ING accounts, all for different goals. I usually put the money in the HOUSE (down payment for) account, and then disburse accordingly. Seems like a lot of work.
Is your savings on auto pilot? Any tips?
Savings Speak
July 30th, 2009 at 06:53 pm
July 30th, 2009 at 07:05 pm 1248980720
Other savings, I manually transfer at the beginning of each pay period, twice a month. It is generally the same amount, but not always.
July 30th, 2009 at 07:23 pm 1248981801
I've seen quite a few people get "stuck" on transfer limits, etc. If I initiate the transfer from my investment firms, etc., I can transfer money out of my checkbook endlessly, with no limits. So I pretty much just deposit my paycheck to my checking and transfer from there accordingly. I don't run across any transfer limits with this method.
Though I do calculate a lot of little transfers to/from savings, in Quicken, I just add them all up and transfer the net, after every I deposit every paycheck. Thus, I have greater detail on all my savings transfers, but only do one or two savings transfers every month - those are limited.
Oh - pretty much what ccfree says (I just read).
If you like the many savings accounts, and they are offered, that is fine. But you may be better to direct deposit to one account, and then automatically have it doled out every month (possible with a recurring transfer setup?). I just track my various savings goal in excel. If I Was offered subaccounts I would maybe use them... I just tend to move around and chase higher interest rates (not terribly often, but enough to now want more than 1 or 2 savings accounts).
July 30th, 2009 at 07:38 pm 1248982733
Besides dividing things into virtual envelopes, I have a 401(k) that's automatic. You're doing great on your debt and always nice to have a plan a couple of baby steps ahead.