Debt Dumpers - 2019

[Jaime4004]

How much kept in checkbook? I like to keep at least $1000, typically. That is just my comfort level, but I do sometimes go down to about $300 if needed for a particular need at the time. We aren't on all automatic payments right now, various reasons, where in the past we were more automated. I will probably streamline my number of checking and savings accounts, I have way too many right now, and some of my savings are separated as electronic envelopes, I may just put it all in one savings, use an Excel spreadsheet, and go back to keeping it simple.

I also keep $1000 in checking as a cushion and I pretend it's not here. I've had it there for probably 10 years, when I accidentally paid bills out of the wrong checking account. Oops. There was a lot of fees associated with that mistake. Now I only have one checking account so it wouldn't happen again anyway, but I still like it there in case I forget to record a transaction. We also have several savings accounts, also as electronic envelopes, which I like.

I posted a bit ago that I was following along and i've been lurking since. Update is that I did get a part-time job, with lots of opportunity if I want more hours. Finally got a paycheck, yeah! My goal is to pay off 2 car loans this year so that should do it... Then bump up the emergency savings acct.

 

[StacyStrong]

I don't have a reason for keeping 2k in my checking. I've never over drafted. But seeing anything lower just mentally freaks me out. I basically pretend it isn't there so I guess it's a little built in emergency fund.

 

[DisneyMandC]

I don't have a reason for keeping 2k in my checking. I've never over drafted. But seeing anything lower just mentally freaks me out. I basically pretend it isn't there so I guess it's a little built in emergency fund.

I'm the same way. I arbitrarily have chosen $3000 as my number and get uncomfortable if I dip below that. No rhyme or reason to it, and there's no point in me having that much money in checking other than it makes me comfortable.

 

[jen7233]

It's my small emergency fund so to speak on the checking balance topic, and things come up that are unplanned.

So many here have done taxes, we haven't ventured into doing them yet. We usually hold off until later on.

 

[Jen and Ashwin]

On the topic of taxes, I have figured out that between owing a chunk to federal and getting some back via state, we will end up in the negative by $180. Could have been worse, but still frustrating that we couldn't have been positive $180 instead. I think what I am really upset about is that this likely means that we will likely owe again in future years, especially next year since we have our withholdings already set to $0 and aren't likely to have many additional deductions. Though that could change with baby #2 (hopefully) in 2020. I will just have to plan to have a bit of money set aside by the end of next year to have "just in case" we end up owing on our taxes again. I will probably take some money from DH's extra fall paycheck.

And there was news that the Fed won't be hiking interest rate again and probably not at all for the rest of 2019, so that bodes well for our HELOC since our interest rate is tied to prime.

 

[dayvewc]

My bank charges fees for "excessive" transfers out of my savings account per quarter. Like, more than 3 transfers out. I can make as many deposits as I want, but more than 3 withdrawals per quarter (average 1 a month) and it is no longer considered a "savings" account and there are fees out the wazoo. Likewise, it has a minimum $100 balance. I like to keep it above that, but lately that's been a pipe dream.

My primary checking account has no minimum balance requirement, though I like to keep at least $150 just for my peace of mind. I do have multiple checking accounts. When I get paid (once a month) (the plan is) I put enough to cover my bills in my primary account, some in my secondary, and the rest in savings. I do not have automatic overdraft, and the only ATM card I have is for my primary account. So, I can go on the computer or mobile app and move funds as needed from the secondary account if I have unexpected expenses. If my card is stolen, or the account is compromised, it is only the one account that is compromised. Unless the bank itself is compromised.

Lately, though, it's been that my entire check goes to the primary account. The secondary account has $1.18 in it, and the savings account has $100.05. But, I'll make it somehow.

My taxes are all but done. Waiting for the state to finalize one of the forms and I can file on Feb 7. Looking to get back (net between state and federal) about $6k. I have 0 deductions plus extra withheld, and I know that I can use the money in my checks, but I'd rather get the lump sum each year rather than risk having to pay. Plus, if I can ever get on positive footing again, I use the refund to pay for my spring break trip. It doesn't affect my other debt and sets an absolute limit on what I can do. I'm trying to stay positive and think that I can get through this right now.

 

[DisneyMandC]

So I went to Costco to pick up my prescription last night and was interested in joining the pharmacy plan you all mentioned. I stood in line for a while and looked all around for any information about it posted and there definitely isn't any, so it's no wonder I've never heard about it. I was getting ready to ask about it when I picked up my prescription but for some reason my insurance has now decided to fully cover my prescription. So now it's $0 instead of $12 with the plan or $19 cash

 

[amalone1013]

I used to care more about keeping $1000 in my checking all the time, mainly because my two auto pay bills were my student loans and my car payment and they were just over $900 together. Now student loans are gone, car auto pay is off since I'm paying it off anyways. I just split my paycheck to put $1k (approximately by base after all deductions) into my checking and any additional goes straight to Ally, since it's mainly from OT/bonuses. That way I don't have to move it and calculate things as often. We charge everything to cards and pay off at the end of the month for points, and my base pay usually covers around half of everything easily - sometimes one of us may pay for more or less, or if we have opened a new credit card for points then that person might pay for more expenses that month, but we look at finances jointly. Occasionally I have to move money back from Ally to pay for something, but that is typically a goal I've been saving towards anyways (like right now, with paying the car off).

Also we stopped by the gym yesterday, and when I jumped on the scale it was actually lower than I expected, lower than the last time I did (either right before Christmas or first/second week of January, can't remember and forgot to track it). So that was a little motivation booster.

 

[DLgal]

For all of you who keep several thousands of dollars in your checking account, maybe I'm not understanding, but can't you do instantaneous transfers between a savings account and a checking account at your bank? We have checking and savings at our bank (USAA), so I keep around $100 in the checking at all times, but can easily move money out of savings at the click of a button and it is available immediately in checking. I keep our $1000 "emergency fund" in that bank savings account and transfer money out if needed after large expenses that I charge on the credit card. I just opened an Ally savings account to earn interest on the rest of our liquid savings. By keeping so much money tied up in a checking account, you are missing out on a lot of interest income at an online bank like Ally.

With proper consistent bookkeeping, you should never overdraft your account (but overdraft protection is also the function of the bank savings account with the emergency fund in it).

 

[Jen and Ashwin]

My bank charges fees for "excessive" transfers out of my savings account per quarter. Like, more than 3 transfers out. I can make as many deposits as I want, but more than 3 withdrawals per quarter (average 1 a month) and it is no longer considered a "savings" account and there are fees out the wazoo. Likewise, it has a minimum $100 balance. I like to keep it above that, but lately that's been a pipe dream.

My primary checking account has no minimum balance requirement, though I like to keep at least $150 just for my peace of mind. I do have multiple checking accounts. When I get paid (once a month) (the plan is) I put enough to cover my bills in my primary account, some in my secondary, and the rest in savings. I do not have automatic overdraft, and the only ATM card I have is for my primary account. So, I can go on the computer or mobile app and move funds as needed from the secondary account if I have unexpected expenses. If my card is stolen, or the account is compromised, it is only the one account that is compromised. Unless the bank itself is compromised.

Lately, though, it's been that my entire check goes to the primary account. The secondary account has $1.18 in it, and the savings account has $100.05. But, I'll make it somehow.

My taxes are all but done. Waiting for the state to finalize one of the forms and I can file on Feb 7. Looking to get back (net between state and federal) about $6k. I have 0 deductions plus extra withheld, and I know that I can use the money in my checks, but I'd rather get the lump sum each year rather than risk having to pay. Plus, if I can ever get on positive footing again, I use the refund to pay for my spring break trip. It doesn't affect my other debt and sets an absolute limit on what I can do. I'm trying to stay positive and think that I can get through this right now.

I understand your reasoning for 0 deductions and extra withholdings in the past, but given that you have pretty much nothing left in your accounts and are barely scrapping by, I think that you need to start getting that money on a monthly basis until things improve. $6k is potentially an extra $500 per month. You can use the IRS calculator to help you figure out what your deductions should be for add something like $400 back into your monthly pay. This should still allow you to get a refund of around $1000 next year.

ETA: You can always change your withholdings at any point during the year, so if things improve, you can increase that number later.

 

[Jen and Ashwin]

For all of you who keep several thousands of dollars in your checking account, maybe I'm not understanding, but can't you do instantaneous transfers between a savings account and a checking account at your bank? We have checking and savings at our bank (USAA), so I keep around $100 in the checking at all times, but can easily move money out of savings at the click of a button and it is available immediately in checking. I keep our $1000 "emergency fund" in that bank savings account and transfer money out if needed after large expenses that I charge on the credit card. I just opened an Ally savings account to earn interest on the rest of our liquid savings. By keeping so much money tied up in a checking account, you are missing out on a lot of interest income at an online bank like Ally.

With proper consistent bookkeeping, you should never overdraft your account (but overdraft protection is also the function of the bank savings account with the emergency fund in it).

I don't have a savings account at USAA since it earns terrible interest. It takes about 1 business day to go from Ally Savings to my USAA Checking.

 

[jen7233]

My bank charges fees for "excessive" transfers out of my savings account per quarter. Like, more than 3 transfers out. I can make as many deposits as I want, but more than 3 withdrawals per quarter (average 1 a month) and it is no longer considered a "savings" account and there are fees out the wazoo. Likewise, it has a minimum $100 balance. I like to keep it above that, but lately that's been a pipe dream.

Maybe due to how things are going for you currently, look for another place to keep savings that won't charge excessive fees, or is the savings the best place to keep the savings if you need more room for transactions? Yes, there's the federal law Reg D regarding more than 6 transfers/withdrawals from savings accounts, but going beyond that limitation maybe utilizing the savings isn't the best option. I know for me - I would not want to be charged when I'm trying to save. Bank fees are always crazy amounts for the things they do charge.

For all of you who keep several thousands of dollars in your checking account, maybe I'm not understanding, but can't you do instantaneous transfers between a savings account and a checking account at your bank? We have checking and savings at our bank (USAA), so I keep around $100 in the checking at all times, but can easily move money out of savings at the click of a button and it is available immediately in checking. I keep our $1000 "emergency fund" in that bank savings account and transfer money out if needed after large expenses that I charge on the credit card. I just opened an Ally savings account to earn interest on the rest of our liquid savings. By keeping so much money tied up in a checking account, you are missing out on a lot of interest income at an online bank like Ally.

With proper consistent bookkeeping, you should never overdraft your account (but overdraft protection is also the function of the bank savings account with the emergency fund in it).

I could, and I know I'm willingly missing out on a bit of interest for the tradeoff of the bit of a safety net without the wait for albeit short transfer time. I'll say it's also the tradeoff for piece of mind or my comfort level. For my situation, I'm not truly worried about overdrafting but more about what I mentioned.

 

[dayvewc]

I understand your reasoning for 0 deductions and extra withholdings in the past, but given that you have pretty much nothing left in your accounts and are barely scrapping by, I think that you need to start getting that money on a monthly basis until things improve. $6k is potentially an extra $500 per month. You can use the IRS calculator to help you figure out what your deductions should be for add something like $400 back into your monthly pay. This should still allow you to get a refund of around $1000 next year.

ETA: You can always change your withholdings at any point during the year, so if things improve, you can increase that number later.

The $6k this year is an anomaly. Most years it's more around $2k. This year with all the trouble with roommates and everything else, I filed showing that I had expenses related to renting rooms, but had no corresponding income to compensate. So effectively, I "lost" income due to the extra people there, which led to a much adjusted gross income.

I don't really plan on trying to rent rooms again. I'll either sink or swim on my own, or I'll actually find someone that wants to be a real partner and NOT use me as a bank.

I should probably drop the extra I have held out. I think it's $100/month federal and just keep the 0 deductions. Just me by myself, that should still be enough that I'll come in under and still get a refund, smaller yes, but still a refund, and it will increase what's in my checks for now.

My only small concern is that none of the our HR things are automated. I actually will have to fill the paper out and physically take it over to the office to have the HR person enter it in the system, and then if/when I change it back do the same thing. And I really like our HR person. It may not be a big deal, but I don't like adding extra work on her if I can avoid it.

 

[DisneyMandC]

For all of you who keep several thousands of dollars in your checking account, maybe I'm not understanding, but can't you do instantaneous transfers between a savings account and a checking account at your bank? We have checking and savings at our bank (USAA), so I keep around $100 in the checking at all times, but can easily move money out of savings at the click of a button and it is available immediately in checking. I keep our $1000 "emergency fund" in that bank savings account and transfer money out if needed after large expenses that I charge on the credit card. I just opened an Ally savings account to earn interest on the rest of our liquid savings. By keeping so much money tied up in a checking account, you are missing out on a lot of interest income at an online bank like Ally.

With proper consistent bookkeeping, you should never overdraft your account (but overdraft protection is also the function of the bank savings account with the emergency fund in it).

I don't have a savings account at USAA since it earns terrible interest. It takes about 1 business day to go from Ally Savings to my USAA Checking.

Same as @Jen and Ashwin for me. I had a BoA savings account and got rid of it when I signed up for Ally. I actually don't even know what the minimum is for my BoA account. I should really talk to DH about keeping less in there, and maybe I'll just use some of the extra in there to pay down my student loan. Still, I don't know that I'd be comfortable keeping less than the amount of my mortgage in there.

 

[barkley]

I prefer paying bigger bills less often (ex. Car insurance twice per year vs every month)

I pay my credit card off

i also like the discount paying car insurance twice per year vs. monthly provides. we pay car insurance twice per year and all our other policies once per year b/c it equates to almost a 10% discount on the combined policies.

another way to offset insurance costs is to see if your insurer offers a no fee credit card b/c they tend to offer the highest reward tier for their own products. we just pay each of the policies w/their credit card and turn around and pay it in full when the statement arrives. it ends up netting us another 3% in cash back-and when you look at what the average person spends on home and auto alone it adds up.

 

[dayvewc]

I REALLY dislike my insurance. I've been trying to stop smoking for a couple of months now. Ever since I was in the hospital last summer for bronchitis / COPD / asthma. They finally approved me for chantix in the fall after I went through a stop smoking class. They would only cover a portion of the cost, but with a manufacturers coupon, it brought the price down to $40. Fast forward to New Years. I go to refill my prescription, and it is $355 (after coupon). New year, new deductibles, doesn't matter about the class.

Except. Monday I found out that they changed vendors for behavioral and mental health. So, the class they insisted I go through last fall before they would cover even the portion of the cost now no longer counts, because there is a NEW behavioral and mental health provider. So, if I go through the NEW stop smoking class, this time they will cover the entire cost of the prescription. Yay!! So, I went through the class Tuesday night, on my phone because, you know, someone decided Tuesday that I really didn't need a laptop anymore, and I was hoping I can pick up my refill prescription by today since this is the last day I have any pills left.

And insurance just informed me that, because you know, it's a new vendor, they haven't gotten all the kinks worked out. It'll take a couple weeks. Give them a call back next Tuesday. Or maybe the week after. They might know something by then. *sigh*

I'm feeling like my 13 days smoke free might not make it to 14.

 

[DLgal]

I don't have a savings account at USAA since it earns terrible interest. It takes about 1 business day to go from Ally Savings to my USAA Checking.

Yeah, that's why I opened up an Ally account too. But, I'm fine with keeping the $1000 emergency cushion in the USAA savings. That's only like $2 per year in interest. Not a big deal.

 

[Shughart]

I just opened an Ally savings account to earn interest on the rest of our liquid savings. By keeping so much money tied up in a checking account, you are missing out on a lot of interest income at an online bank like Ally.

Am I the only one who gets twitchy at the thought of an online savings account? I mean one hack...a few clicks and poof. I mean I have a traditional savings account. But it's local. I feel better about my chances in an emergency if I hear whispering, and can run withing 3-5 minutes to my branch pull out all my money. I mean I don't know if it will happen. Maybe if there is an emergency they won't let us pull money, or they won't be able to. But completely online? There's no hope accessing it at all. But I'm also the type that keeps a stash in my home too.

Maybe due to how things are going for you currently, look for another place to keep savings that won't charge excessive fees, or is the savings the best place to keep the savings if you need more room for transactions? Yes, there's the federal law Reg D regarding more than 6 transfers/withdrawals from savings accounts, but going beyond that limitation maybe utilizing the savings isn't the best option. I know for me - I would not want to be charged when I'm trying to save. Bank fees are always crazy amounts for the things they do charge.

I could, and I know I'm willingly missing out on a bit of interest for the tradeoff of the bit of a safety net without the wait for albeit short transfer time. I'll say it's also the tradeoff for piece of mind or my comfort level. For my situation, I'm not truly worried about overdrafting but more about what I mentioned.

This is why I keep a small amount in savings and keep the rest with me. I don't like being told how I can and cannot access my money. I should be able to transfer as I want to. It's my money and my business.

 

[Ngwira]

Just looked at my USPS daily digest and our Magical Express luggage tags are arriving today. I am so freaking excited for our trip in March!

Yay! Were 27 days out as well and I just scored VIP Passholder event tickets to the MK on February 26th...extend the trip? LOL

 

[DLgal]

Am I the only one who gets twitchy at the thought of an online savings account? I mean one hack...a few clicks and poof. I mean I have a traditional savings account. But it's local. I feel better about my chances in an emergency if I hear whispering, and can run withing 3-5 minutes to my branch pull out all my money. I mean I don't know if it will happen. Maybe if there is an emergency they won't let us pull money, or they won't be able to. But completely online? There's no hope accessing it at all. But I'm also the type that keeps a stash in my home too.



This is why I keep a small amount in savings and keep the rest with me. I don't like being told how I can and cannot access my money. I should be able to transfer as I want to. It's my money and my business.

If a bank is FDIC insured, all deposits up to $250,000 per account holder are insured. That's the whole point. Otherwise, you would be no safer with a physical bank branch savings account. You don't think the bank actually keeps all your money sitting in a vault, do you? EVERYTHING is hackable when it comes to banking. The bank takes your money and invests it to make them more money. They pay you out when you ask for it. Most reputable online banks are FDIC insured. Our bank is 100% online. There are no physical branches for me to ever visit. It has never been an issue in 18 years.