Cash Stash??? Banking question..

[mondeo]

I've thought about using an open-source financial planning tool, but something about the thought of keeping all of my financial information in a code that anyone can edit spooks me... I've used Quicken in the past, but BoA is a b**** for downloading information from and I never really got it set up right.

Might look into mint.com. Interesting business model.

 

[Terry]

I don't like the idea of putting all my financial stuff on the computer. I would rather put it on paper so I don't have to worry about security issues.

 

[severine]

If you're worried about spending too much on credit cards, trying using only cash for a month. And I don't mean running to the ATM every moment you need money; you'll also have to ditch the debit card. Then keep all the receipts so you can see where your money is going and where you can trim. I can teach you about couponing, too. Brian loves to roll his eyes but since I've started being more serious about it and matching to ads, I've saved big bucks. I know it's not cool for a single guy, but it's a way to keep the quality of life up while reducing spending.

 

[Warp Daddy]

If you're worried about spending too much on credit cards, trying using only cash for a month. And I don't mean running to the ATM every moment you need money; you'll also have to ditch the debit card. Then keep all the receipts so you can see where your money is going and where you can trim. I can teach you about couponing, too. Brian loves to roll his eyes but since I've started being more serious about it and matching to ads, I've saved big bucks. I know it's not cool for a single guy, but it's a way to keep the quality of life up while reducing spending.

All great ideas Carrie !!!

, We've used cash for years and coupons since we've ben married almost 44 years . As a result have saved huge amt of $$ over the years on that methodology. You quickly eliminate IMPULSE buying and readily learn the discipline to discern between NEEDS and WANTS and KNOW where your hard earned $$ are going .

 

[mondeo]

I don't like the idea of putting all my financial stuff on the computer. I would rather put it on paper so I don't have to worry about security issues.

I'd be more concerned with security issues with paper. As long as you are smart about setting up whatever program you use, your network connections, etc., it's harder to crack electronic records than break into your house and steal papers.

 

[playoutside]

...and I also got a nice raise but I still just keep spending freely..and not putting much away..With my 30th birthday in 2 months..I need to just chill a little...a spending diet..I'll be glad I did come ski season..

Suggestion...if you were making do with the income before the raise, then keep living at that level. I did this when I was your age. When I made enough to live on (pay rent, student loans, buy food, pay for car, fund my 401k) I would look at each raise as a savings plan. I adjusted my direct deposit to take the amount of my raise and directed it to savings. Once my money made it to savings, I treated it like it was gone. Always best to pay yourself before pissing it away on drinking and crap you probably don't need.

 

[Warp Daddy]

Suggestion...if you were making do with the income before the raise, then keep living at that level. I did this when I was your age. When I made enough to live on (pay rent, student loans, buy food, pay for car, fund my 401k) I would look at each raise as a savings plan. I adjusted my direct deposit to take the amount of my raise and directed it to savings. Once my money made it to savings, I treated it like it was gone. Always best to pay yourself before pissing it away on drinking and crap you probably don't need.

EXACTLY the right strategy to build wealth , get with the program then watch the miracle of compounding if its a 401 or 403b

 

[GrilledSteezeSandwich]

EXACTLY the right strategy to build wealth , get with the program then watch the miracle of compounding if its a 401 or 403b

I could save several hundred a month if I was a little smarter...I don't want to work till I'm 70 years old because of poor financial decisions..it is what it is for the past..all part of a self improvement plan..and if I save more..when something costly comes up..like a trip to Montana for a wedding..it won't hurt so bad..

 

[RootDKJ]

EXACTLY the right strategy to build wealth , get with the program then watch the miracle of compounding if its a 401 or 403b

You'll see the same effect with an IRA by depositing $200 a month into it. If you're worried about the stability of the markets, there are cash only IRA's out there...they usually will pay out a small dividend once a quarter. Better than nothing and one way or the other, it's tax free(ish).

 

[deadheadskier]

Lots of sound advice here, but one thing that hasn't been mentioned that you really should be looking at if you're interested in building wealth and securing your financial future is purchasing real estate. It seems likely that you're not going to be relocating any time soon with your job being in the family business. With where prices are and mortgage rates (rising, but still very good) you really aren't doing yourself any favors by renting other than the convenience of not having to maintain property.

J and I don't make much money at all and didn't have a lot saved for a bigger / longer term home, but made the decision to hop into a very modest condo last summer. The mortgage and expenses associated with it are cheaper than renting and we're building equity/wealth every month without 'trying'. In a couple of years we'll have enough saved (provided I stop buying new skis :lol to get into more of a home that will suit us for ten years or so. Then we'll rent this one, which we can for higher than the mortgage/taxes etc. and someone else will continue to build equity for us.

 

[GrilledSteezeSandwich]

Lots of sound advice here, but one thing that hasn't been mentioned that you really should be looking at if you're interested in building wealth and securing your financial future is purchasing real estate. It seems likely that you're not going to be relocating any time soon with your job being in the family business. With where prices are and mortgage rates (rising, but still very good) you really aren't doing yourself any favors by renting other than the convenience of not having to maintain property.

J and I don't make much money at all and didn't have a lot saved for a bigger / longer term home, but made the decision to hop into a very modest condo last summer. The mortgage and expenses associated with it are cheaper than renting and we're building equity/wealth every month without 'trying'. In a couple of years we'll have enough saved (provided I stop buying new skis :lol to get into more of a home that will suit us for ten years or so. Then we'll rent this one, which we can for higher than the mortgage/taxes etc. and someone else will continue to build equity for us.

I have heard that before..but there are alot of things keeping me from purchasing a house/condo..

1. It's just me..if I had a SO and another income things would be different..
2. I have zero interest in doing any maintenence..yardwork..and don't want to have to pay a fee for that.
3. I like not having to pay real estate taxes,
4. I like having most of my utilities included in the rent
5. I don't want to move again for quite awhile as I just moved last fall.
6. I'd rather have the money in the bank than in a house..

I'm not going to live in an apartment forever but don't see buying a house until I get married one day or have alot more money..I have no interest in doing a starter home and then moving again..when I eventually buy a home..that's it..cause I'm lazy and hate moving..

 

[bigbog]

yahdwork isn't as bad once you own...

Steeze,
My $.01 is to at least start making a plan for a purchase at sometime...and sticking to that...just like saving $$$.
$.01

 

[severine]

Another perspective on the property investment option (since you have more flexibility than I do)... consider where you'd like to live someday, even if it's just for retirement or vacation, and maybe buy some land. You could have it paid off before you build, have a stake in where you'd like to end up, and be buying while it's a buyer's market instead of seller's. Property taxes on vacant land aren't as bad as improved lots either. Just a thought... I always meant to do that when we didn't have kids but we never got around to it.

 

[GrilledSteezeSandwich]

Steeze,
My $.01 is to at least start making a plan for a purchase at sometime...and sticking to that...just like saving $$$.
$.01

If I own a home..I'll have less disposable income..not good for my skiing..for what I pay in rent I'd get a fixer upper in the ghetto..I like apartment living..and I feel that the price is right..

 

[deadheadskier]

If I own a home..I'll have less disposable income..not good for my skiing..for what I pay in rent I'd get a fixer upper in the ghetto..I like apartment living..and I feel that the price is right..

You might have more disposable income as an owner. I know we do, but again we purchased a very moderate priced place with intentions of only living in it for 2-3 years.

As for some of the other things you addressed. Property taxes are rolled right into your mortgage and depending on your income tax status, property taxes combined with mortgage interest could end up being a net tax savings for you. Association fees do often include some utilities. For us includes water, trash removal, grounds maintenance, snow removal and the piece of mind that if the roof needs to be replaced, the siding painted ect, it's taken care of and I'm not faced with a multi thousand dollar bill. My home owners insurance is the exact same as apartment insurance because of this as well.

It's cool if you're comfortable with how you're living, but given you're asking advice on saving etc, home ownership should be a top priority IMHO. At the very least, meet with a mortgage broker, get pre-qualified and head out with a realtor to see what you might be able to afford. Even if I wasn't with J, I'd be owning right now.