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Old 01-04-2013, 07:32 AM   #1
maxiesmom
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weekly savings chart

Have any of you seen this? Looks like a fairly painless way to save a bit over the year. I think I'm going to try it.

http://www.facebook.com/photo.php?fb...type=1&theater
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Old 01-04-2013, 09:13 AM   #2
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I saw it and it is just as useless an idea as the save your ones and fives was last year. The real trick to savings is to reduce your actual spending, increase your income or both.
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Old 01-04-2013, 04:29 PM   #3
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Originally Posted by ilovemk76 View Post
I saw it and it is just as useless an idea as the save your ones and fives was last year. The real trick to savings is to reduce your actual spending, increase your income or both.
I don't quite agree. Saving is saving. If you're putting it aside, whether you achieved that goal by increasing your income or reducing your discretionary spending, you have still saved the money.

What I don't like about the plan in the OP's link is that it incrementally increases the amount you set aside each week. It starts out with $1 the first week and increases by $1 each week so that by the end of the 1-year period, you are putting over $50 per week into your savings account. It can be easy to achieve at first. After all, who can't find an extra $1 or $2 that they can put in the bank? But by halfway through the year, you're up to $102 for the month ($24, $25, $26, $27) and that's probably where a lot of people will find it too painful to do.
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Old 01-04-2013, 06:11 PM   #4
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Originally Posted by Marionnette View Post
I don't quite agree. Saving is saving. If you're putting it aside, whether you achieved that goal by increasing your income or reducing your discretionary spending, you have still saved the money.

What I don't like about the plan in the OP's link is that it incrementally increases the amount you set aside each week. It starts out with $1 the first week and increases by $1 each week so that by the end of the 1-year period, you are putting over $50 per week into your savings account. It can be easy to achieve at first. After all, who can't find an extra $1 or $2 that they can put in the bank? But by halfway through the year, you're up to $102 for the month ($24, $25, $26, $27) and that's probably where a lot of people will find it too painful to do.
This way of "saving", as stated in the OP or in the $1/$5 thread, is not a real savings plan. It is more like moving the savings from one place to another vs actual savings.

This example might show my thought process. I will use the $1/$5 in my example as it is easier to see.

I go to the bank every Monday and take out $200. This pays for gas and groceries.

On my way home I buy gas, $23 and put the 2-$1s and $5 aside, and I now have $170 to spend and I have "saved" $7.

On Tuesday I go to the grocery shop and spend $137 and put aside the $3. I now have $30 to spend and I have "saved" $10.

On Thursday DH buys $17 in gas and puts $3 aside. We now $10 for the
next three days and we have "saved" $13.

Saturday morning we realized we are out of eggs, milk, bread and apples. This will cost more than $10, so we stop at the ATM and take out $20. Our grocery run cost $21 and we set aside 4-$1s and a $5.

We end up taking out $220 from our savings account and "saved" $22. How us that different from taking $200 out of the savings account and have $2 left from our budget. That $2 is a true savings. The other $20 was just taking from the savings account and adding to your home "savings jar".
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Old 01-04-2013, 06:16 PM   #5
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I saw that on FB; I think it would be too difficult to manage, although it's a cool concept.

Easier thing to do is open a saving account (I use ING) and direct deposit a small amount in there every week, something you won't miss (we do $25). In 2-3 years, it adds up nicely
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Old 01-04-2013, 06:24 PM   #6
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I have a normal savings plan in my credit union, and an Ing one that gets a bit automatically every week. I think it is a creative, not so painful way to save a bit more.
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Old 01-04-2013, 06:29 PM   #7
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Quote:
Originally Posted by ilovemk76 View Post
This way of "saving", as stated in the OP or in the $1/$5 thread, is not a real savings plan. It is more like moving the savings from one place to another vs actual savings.

This example might show my thought process. I will use the $1/$5 in my example as it is easier to see.

I go to the bank every Monday and take out $200. This pays for gas and groceries.

On my way home I buy gas, $23 and put the 2-$1s and $5 aside, and I now have $170 to spend and I have "saved" $7.

On Tuesday I go to the grocery shop and spend $137 and put aside the $3. I now have $30 to spend and I have "saved" $10.

On Thursday DH buys $17 in gas and puts $3 aside. We now $10 for the
next three days and we have "saved" $13.

Saturday morning we realized we are out of eggs, milk, bread and apples. This will cost more than $10, so we stop at the ATM and take out $20. Our grocery run cost $21 and we set aside 4-$1s and a $5.

We end up taking out $220 from our savings account and "saved" $22. How us that different from taking $200 out of the savings account and have $2 left from our budget. That $2 is a true savings. The other $20 was just taking from the savings account and adding to your home "savings jar".
Simple. The money that is withdrawn at the beginning of the week does not come from your savings account. It comes from your paycheck or other income. So, if you don't spend the money from your budget that is earmarked for living expenses, you are saving it.

Do you make it a practice to pay for all of your living expenses with money from a savings account?
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Old 01-04-2013, 06:33 PM   #8
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I'm considering doing this plan but going backwards. I know in December I will not have an extra $200 but I will have an extra $10. I'm not a strict budgeter but I do save quite a bit. I tend to look at my account and say "we are down to X amount of dollars so we need to cut back a little this week". If I've already put that amount in my savings for the week we may cut out a fast food meal or an impulse buy because we'll reach our cut back limit earlier.

I'm sure it won't work for everyone, but I think I'll give it a try.

Last edited by MickeyManiac; 01-05-2013 at 12:52 AM.
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Old 01-04-2013, 06:51 PM   #9
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I use YNAB to make savings plans.
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Old 01-04-2013, 08:17 PM   #10
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I saw this and have decided to do something a little different. Besides the money that is automatically deposited into savings from pay, I am going to move over an additional $5 every friday. I figure that can be my "fun" money.
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Old 01-05-2013, 09:54 AM   #11
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I posted in this or the other thread already, but.....

Since I am only 2 years into budgeting and probably one of the minority of lower incomes on this board, I am still working on being able to save. 2 years ago was catch up, last year was to just hold on to the budget, and this year is to start saving.

It seems to me that most folks put away $X amount per week/month for budget categories. I have in excel, every bill marked out due for each pay (bills covered with my pay, Wifey's pay just covers a week of gas and groceries.) For non monthly stuff such as car insurance and heating oil, I set an annual amount I need and funded with my bonus check last month. I spend $300 every 3 months on insurance, so I put $1200 in the insurance fund. When I pay non monthly bills, the extra in future paychecks go directly to the funds I paid from until they are topped off to the limit I designated. So, instead of saving $X amount per month, when all the budget categories I need are funded, I put everything extra into savings. This way I shouldn't have any mind games of whether I need to pull from savings or not for stuff.
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Old 01-05-2013, 10:42 AM   #12
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Quote:
Originally Posted by Marionnette View Post
Simple. The money that is withdrawn at the beginning of the week does not come from your savings account. It comes from your paycheck or other income. So, if you don't spend the money from your budget that is earmarked for living expenses, you are saving it.

Do you make it a practice to pay for all of your living expenses with money from a savings account?
We always live on money that was already made and not what we have yet to earn. Both paychecks are direct deposited and then we use rewards credit cards to pay for our living expenses.

If you want to save more then you have to reduce your spending (not steal from Peter to pay Paul), earn more or both. You really are having a hard time understanding.
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Old 01-05-2013, 04:33 PM   #13
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Quote:
Originally Posted by ilovemk76 View Post
We always live on money that was already made and not what we have yet to earn. Both paychecks are direct deposited and then we use rewards credit cards to pay for our living expenses.

If you want to save more then you have to reduce your spending (not steal from Peter to pay Paul), earn more or both. You really are having a hard time understanding.
Actually it you put the money into savings you are reducing your spending because the money is not being spent and therefore you are...SAVING it!.
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Old 01-05-2013, 04:38 PM   #14
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Quote:
Originally Posted by ilovemk76 View Post
We always live on money that was already made and not what we have yet to earn. Both paychecks are direct deposited and then we use rewards credit cards to pay for our living expenses.

If you want to save more then you have to reduce your spending (not steal from Peter to pay Paul), earn more or both. You really are having a hard time understanding.
Then I don't think that you grasp the concept of saving your $1's and $5's. No one is "borrowing from Peter" in order to put money in savings. They are simply applying a different method than you.

Let's say that Mrs. X has budgeted that same $200 for her weekly spending that you used in your example. At the end of the week, when she needs bread, milk, apples and eggs but only has $10 to cover it, she doesn't go to the ATM to take out $20. She uses $11 from the pile of $1's and $5's that she accumulated over the week. In the end, she only saved $2 in her jar at home. But it's still $2 saved, which is more than some people manage to put aside each week.

Your example stated that Mrs. X would have taken the original $200 from savings, as was the subsequent $20. That may be the way that you handle your finances. We have savings accounts, money markets and investment accounts for saving. That's why I asked if you were in the habit of using money from your savings account to pay for your living expenses.

We use the checking account to handle everyday expenses. I don't take money out of savings unless it is for the purpose for which it was set aside...home improvements, new vehicles, vacations, emergencies. Money for the daily living would be pulled from the checking account. If I under-budgeted for the week's groceries, it wouldn't come out of the fund for new windows. It would be taken from the weekly spending money and we just wouldn't go out for pizza that week.

In the long run, I really don't care how other people save. If it works for them and they manage to meet their goals, then more power to them. I have a regular savings plan that puts money into each account on a regular basis. The money gets moved automatically and I never miss it. The method works for me. But I also don't live so close to the edge with my finances that I don't have enough cash in my wallet at the end of the week to pay for a small bag of groceries.
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Old 01-05-2013, 05:31 PM   #15
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Quote:
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Then I don't think that you grasp the concept of saving your $1's and $5's. No one is "borrowing from Peter" in order to put money in savings. They are simply applying a different method than you.

Let's say that Mrs. X has budgeted that same $200 for her weekly spending that you used in your example. At the end of the week, when she needs bread, milk, apples and eggs but only has $10 to cover it, she doesn't go to the ATM to take out $20. She uses $11 from the pile of $1's and $5's that she accumulated over the week. In the end, she only saved $2 in her jar at home. But it's still $2 saved, which is more than some people manage to put aside each week.

Your example stated that Mrs. X would have taken the original $200 from savings, as was the subsequent $20. That may be the way that you handle your finances. We have savings accounts, money markets and investment accounts for saving. That's why I asked if you were in the habit of using money from your savings account to pay for your living expenses.

We use the checking account to handle everyday expenses. I don't take money out of savings unless it is for the purpose for which it was set aside...home improvements, new vehicles, vacations, emergencies. Money for the daily living would be pulled from the checking account. If I under-budgeted for the week's groceries, it wouldn't come out of the fund for new windows. It would be taken from the weekly spending money and we just wouldn't go out for pizza that week.

In the long run, I really don't care how other people save. If it works for them and they manage to meet their goals, then more power to them. I have a regular savings plan that puts money into each account on a regular basis. The money gets moved automatically and I never miss it. The method works for me. But I also don't live so close to the edge with my finances that I don't have enough cash in my wallet at the end of the week to pay for a small bag of groceries.
I do grasp the concept but I will let you think you are just so much smart.
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