. . .into our savings account! We deposited another $900 today into our E*Trade savings account with money from my wife’s “extra” third check this month. This deposit puts our total E*Trade savings account balance at $10,918.89. The funds in this account are a combination emergency fund/future house downpayment.
When we first opened our Emigrant Direct savings account ~1 year ago, the APY was 5.15%. Since then, the APY has been reduced multiple times, and is currently at 3.60%. Emigrant Direct has worked well for us, but we've been disappointed with how much the APY has dropped over the year.Today, my wife saw an E*TRADE ad on television mentioning their 4.40% APY savings account. After checking out their website, we decided to apply. Like Emigrant Direct, E*TRADE does not have minimums balances or account Read more [...]
Many of our friends have been evacuated because of the Southern California Wildfires. We are far enough away that it is unlikely our neighborhood will be evacuated.However, I'm flying to the east coast tomorrow for a business trip so we prepared my wife just in case the fire heads in our direction.Here's what we packed in a suitcase in case there isn't time to fully load up the car:WaterFood / Dog FoodExtra clothingFamily PhotosLegal DocumentsInsurance DocumentsEmergency CashCheckbookToiletriesFlashlightLighterKnifeHand Read more [...]
My wife and I are trying to find the balance between long term investing (retirement) and short term savings (emergency fund, house, etc.).I tend to focus too much on investing for retirement, and am eager to put all of our spare money into either our Roth IRA’s or 401(k). The power of compounding is amazing and time is the most important element. The more money we can invest now, the better off we should be later. This simple table demonstrates that a person who invests early and for just eight Read more [...]
I think it’s great to have an emergency fund for unexpected events, such as sickness or job loss. However, if there were ever an emergency that took out the power for a long period of time, such as a major earthquake, it is likely that we would be unable to access our saving accounts or use our credit cards. My wife and I rarely have more than $20 in cash on us, because we try to charge most of our expenses to our cash back credit cards. This puts us in a tough position if we needed to buy water Read more [...]
One of the simplest ways to get your money working harder for you is to open a high yield online savings account. We use Emigrant Direct and ING Direct because I have read many good things about both banks in online forums, and have been very happy thus far. These banks are FDIC-insured and pay a much higher interest rate that your typical brick and mortar bank.If you would like to receive $25 for opening a high yield ING Direct savings account, send me an email and I will forward a referral link Read more [...]
Simple ideas for a strong financial foundation:Live below your meansI believe this is one of the most important steps to a strong financial foundation and, for me, one of the hardest. If you try to keep up with your rich looking friends and associates, you may end up like most of them: lots of nice stuff, but a low net worth. Every dollar that you save is worth more than an extra dollar earned because the extra dollar earned is taxed.Start an emergency fundJob loss, health issues, and expenisve repairs Read more [...]
We keep our emergency fund in a high yield (5.05% APY) Emigrant Direct savings account. We currently have a whopping $1,541 in the account; our goal is $12,000.Most financially savvy people recommend having enough money in your emergency fund to cover 3-6 months of total expenses. I personally do not want to tie up that much money in a savings account. I’d rather pay down debt or invest the money. Our goal of a $12,000 emergency fund represents 2 months of total expenses for us. If we have an emergency Read more [...]