Saving money tips and ideas.

[freemotion]

Our morgage payment is automatically taken out of our savings account that is at another bank so we have some of DH's paycheck deposited into that account every pay...but we have slightly more deposited than what our morgage is plus the two extra pays a year the amount still goes in so it adds up quickly. Then we do not touch the $$ in that account unless it is an emergency.

This post reminded me of something we do.....we have our savings account at a credit union that is a 35 minute drive away, so we have to plan carefully when we take money out. No impulses are possible.

We both have a small, one half-day per week teaching job that pays very nicely, and both those checks are direct-deposited into the savings account. This money pays our taxes, since we are mostly self-employed, and pays for the big expenses that show up occasionally, like tires, firewood, dead washing machine, etc. We hope to be able to leave it alone long enough to get dh a used car for cash, no payments, before his current car bites the dust. He will drive that car until it won't go anymore. That is another tip, but not for me. Women have more safety considerations than men, and being stranded alone is not safe, so I get the newer car....tee-hee!

 

[FarmerChick]

If you aren't disciplined enough to LIVE WITHIN YOUR MEANS then ignore all of the above except the first one.


***Great advice right there Dacs....just live within your means! I sure am learning that fast!

 

[Dace]

Well with the financial turmoil we have been going thru for the last couple of years, i have no savings therefore no advice!

I would say that if you are not earning enough to save, then you or your spouse should look into something part time and then try to sock away whatever they earn. That is my plan!

I also agree with the idea that the money needs to be out of sight hard to access. I used to keep a jar buried in the garden. DH didn't know anything about it I would dig it up and put left over grocery money in there. It added up pretty quick! I can't remember the specifics but that little jar pulled us out of some sort of a jam at one point.

 

[freemotion]

Another thought: consider how much you have to earn before taxes in order to put cash away. Depends on what bracket you are in. So for the sake of argument, let's say you have to earn $130 to put $100 away. Then your interest earnings are taxed also.

Money you don't spend isn't taxed....what I mean is, if you save money by all the little things like coupons, sales, trading with other people for products they make (some barter is taxable, btw), making your own laundry soap, etc......if you save $100 on laundry soap, you are really saving $130, because that is how much you would have to earn to buy $100 worth of laundry soap at the store.

So factor that in if you are considering how much you need to work outside the home. Adding another job is not always the best answer if you now have to spend more money on things you used to have time to do yourself. Especially if there are children, an industrious mom can save a tremendous amount of money by staying home and adding tremendous value to the household budget by not having to spend as much.

Although sometimes we just need cash for bills! The mortgage company won't take my canned spaghetti sauce for part of the bill!

 

[poppycat]

The mortgage company won't take my canned spaghetti sauce for part of the bill!

A pity, isn't it?

Great thread BTW!

 

[Wifezilla]

Well with the financial turmoil we have been going thru for the last couple of years, i have no savings therefore no advice!

I know how you feel! Most of my clients are realtors and mortgage professionals. ARG!

The mortgage company won't take my canned spaghetti sauce for part of the bill!

Jerks! Otherwise I could pay off my mortgage with fresh herbs and frozen turkeys

 

[FarmerChick]

I don't know...the way the economy is heading, those mortgage companies might be bartering loans for fresh chicken and canned spaghetii sauce and jams and jellies!

All of the sudden the money is gone, your "stuff" becomes more valuable.

 

[Wifezilla]

I actually had a conversation with a Doctor's wife and half-jokingly asked if doctors would consider going back to bartering to avoid dealing with insurance companies. (1 chicken for an office visit. 1 side of beef for an appendectomy....)

Apparently it is not such a far-fetched idea as doctors have been talking about this among themselves.