June 2007 - Posts
So, almost every personal finance blogs I've come across talks about the high-yield savings accounts...
HSBC,
ING Direct,
Emigrant Direct. There are also lots of money market accounts and CDs out there with really good rates. You're supposed to put your "emergency fund" in a stable account like that...put away at least 10% into a fund that can be accessed ASAP if it needs to be.
This is sort of going back to my last post, where I wondered if it was a good idea to pay down my loans as fast as I can. In the long run, I suppose, "future me" will have more money, since less money will be spent towards interest payments. "Present me" mentioned last post how I don't like the idea of having barely any actual money. Of course, since my student loan interest rate is almost twice that of my savings rate, it seems like I'll have a lot more money in the long run if I pay down as much as I can. I guess the question I'm asking myself (and anyone who reads this blog): How much money is "enough"? I mean, if I want to just have some money in my checking account for bills and other expenses, and some money earning interest for emergencies, how much should that be? I've calculated that my expenses per month at least are less than what I'm making, even when I am putting money in my 10% fund and my Roth IRA. So that's good. Should I put the rest into my loans? And should I take money out of my savings to pay down my loans? It's hard to figure out what to do.
I'm also debating getting the
Electric Orange Account from ING. It's an interest-bearing checking account, which is pretty impressive, but I suppose I don't need to be keeping too much money in a checking account. Then again, every little bit counts! I'm not sure about the hastle of switching over.
Lastly, I've noticed a lot of people post about referal bonuses from ING Direct. Basically if someone joins from a referral and puts in at least $250, they get a $25 bonus! And my happy part is I get an extra $10...so that's pretty cool!
So, let me know if you're thinking about opening a savings account with them (with a comment or from emailing me) and I'll send you a referal.
And anyone who has gone through the ridiculousness of student loans and has any words of wisdom for me or others reading this, please post!
Thanks!
So, I've been out of school for about a year now and have been trying to pay down my student loans...and let me tell you, it's no walk in the park! I consolidated all of my federal loans with the same company that I have my private loans with...not sure if that was necessarily the best idea in the world, because maybe my interest rate might not have been too bad to begin with, but I guess it's good that it's all at one company, so I only have to go to one site! One thing that's got me confused/annoyed is that I keep getting solicitations from both reputable and suspicious looking companies offering to consolidate my loans. It's frustrating, since most of them offer the option to consolidate my federal loans, which have already been consolidated, so that just adds to the trash. And it seems like maybe I could get a decent option if I were to consolidate my private loans, but I don't know how to go about getting the rates from places, especially without knowing if I can trust these different banks and companies.
So, I'm trying to figure that out...I'm paying extra towards the principal on my loan with the higher interest (an extra $500 or so a month) and since my other loan is the same interest rate as my ING account, I'm not worrying about it too much, and just paying the amount due every month. I think this is one of those common suggestions: Pay down the debt with the highest interest rate! Of course, I'm also contributing to my 401(k), my Roth IRA, my ING account, and still paying for rent and utilities and food and whatnot....so that's a lot of money to keep track of! I'm trying to go by another one of the common personal finance rules: Pay yourself first! The idea of taking at least 10% off the top of my earnings every month and sending it to my savings account really seems to work, since I don't notice the lack of money, and it feels good knowing that my money is making money for me, instead of me spending that amount. I suppose I could be paying more towards my student loans, since they are the highest interest (higher than any of my investment returns) but I'd rather have both money available and some debt than no money and no debt!
So, what do you think? What are you doing? or, if you're done with loans, what did you do?
I also wanted to thank those of you who commented on my blog! Special thanks to
Matt, who commented on the problem sometimes referred to as the
"latte effect". His blog seems to be a bit over my head, but I think I'll try to work my way through some of his posts!
I've been compiling some ideas for future posts...hopefully I'll post again soon! Thanks for reading!
So, I've subscribed to a bunch of feeds, including
Free Money Finance. They have a commentary on a
yahoo.com list about the top 10 mistakes you can make with regards to retirement. So, yeah, that list looks pretty good.
Also, I've been reading through
The Simple Dollar like I mentioned last time. I started at the
first post and am trying to read all of them, so I can catch up to current posts.
Interestingly enough, some of those posts can sort of serve as metaphors for other goals in life. It makes you recognize the mistakes you may have made, and reminds you to take things one day at a time, making a concious effort to change. So some of the
money saving tips can also apply to, say, trying to be healthier...bring food in instead of going out or ordering food, doing free activites (perhaps running/biking) instead of sitting on your butt doing nothing but using electricity to watch TV.
I'm also curious if anyone actually reads this. Please leave a comment or shoot me an email to let me know how you found this site, and what you think...
And I'm thinking for my next post, I will describe my financial plan for the time being....
I've been chatting with friends, reading books, blogs, and websites, and listening to podcasts.
One blog one of my friends recommended to me is
The Simple Dollar. I haven't really started reading it yet, but I think tonight I may read a few. My friend said she started all the way from the beginning and loves it. So, we'll see. Let me know what you think of it, and I'll do the same.
I've also been listening to some podcasts. The ones I've listened to the most are the
Fidelity Personal Finance Podcast as well as the
Money Girl site from
QDNow.com. They have some other interesting podcasts about
legal matters,
grammar, and
manners among other topics.
Let's see how these help!