Help me learn how to "save" money in my checking account

[iNTeNSeBLue98]

After years of living paycheck to paycheck and spending every cent in the checking account to live and pay bills, it looks like we will finally have money to save on a regular basis.

Yesterday, I worked up our monthly budgets for now through June and noticed after paying off some debts, restructuring a few others and my job change (annual rate increase of $3K) we will finally be able to save money. I switched car insurance carriers (after 9 years I found better coverage for 1/2 of our current premium) That will save $100/month for at least the next six months. I changed the land line telephone from unlimited calling to basic because we hardly ever use it to make calls. That change saved almost $9/month. There are few other bills that will be paid off over the next months and we will have excess money at the end of most weeks beginning in February, as much at $100 by March. We have never had money to spare and now I don't know how to handle it.

Typically we might have a little leftover at week's end, but we usually found a way to spend it. Usually we needed it to cover a bill in the upcoming week. Now I'm looking at the potential of having $300-$400 each month and I don't know how to save it in my checking account. I used to seeing very low balances in my check register at the end of each week.

This checking account is linked to an ING account, so most likely I will transfer the extra $$ to that account. I haven't been able to put much over there recently, using what was there for holiday shopping. At least if it's there I'm not so likely to spend it.

 

[imsayin]

Set up an automatic deposit to happen each payday - from your checking account to ING. If you leave it in there, you may be tempted to spend it. If you have it automatically transfered, it will seem like just another bill, but will add up quickly in your savings!

 

[iNTeNSeBLue98]

I can do that for three weeks of the month. The first weeks is still killer, but if I can build up enough to cover that more costly week I can set up the direct deposit. Time to calculate the realistic amount I can transfer.

 

[Pink Flamingo]

You could set up different ING accounts too. We set up different ones for things we are saving for ~ for ex. new car, vacations, etc. Then you'll know exactly how much you have/need for each area your saving for & you might be less tempted to "borrow" from that $.

We also set up budget & include every thing we can think of: food, utilities, gas, car maintenance/repair, DMV fees, insurance, internet/magazine subscriptions, medical expenses, computer expenses (ink, paper, etc), dues (pool, community association, Sams club), hair cuts, clothes, church, cell phone, gifts, school expenses (field trips, etc.), emergency fund, licensure, home maint./repair, college savings, etc. We keep these funds in a money market account or savings account that earns higher interest than a checking account. Whatever is left is discretional & is what we keep in our checking account. I use a spread sheet to help me keep track of each of the different catagories & how much I have budget for each area.

Happy saving!

 

[iNTeNSeBLue98]

I just tried manilpulating some numbers on my spreadsheet. Instead of going hungry the first week of each month when rent is due, starting in April (March has 5 pay periods), I can begin allocating money for rent each week. I've put a note that I write myself a check every week to deposit in another checking account I have (also linked to an ING account). At the end of the month I will have the next month's rent and have a little left over for savings. Plus, by changing my method of paying the rent, I free up money other weeks that I can designate for transfer to ING from our joint account. I've worked the budget so that there is no less than $30 leftover each week(after adding to savings). It's not much, but better than the savings we have ($0). At the end of the month I can transfer what is leftover after everything is paid or write a check to the other account. At least I would know I can transfer it back or access the other account, should I need it in an emergency.

 

[Disney_1derland]

I have a budget of expenses for each payday. I have a set amount of earnings that doesn't vary so it makes it easy to budget. Each payday I have a budget for gas, groceries, bills and entertainment. As soon as I get paid I put any thing that is left out of that budgeted total into a seperate savings account. When I grocery shop if I do not spend as much as I had budgeted I go home and transfer the difference into my savings account. Same for any other budgeted amounts. The night before the next paycheck hits I go and look at my account and anything else that is left in there I transfer and start fresh with the next paycheck.

I know this system doesn't work for everyone but you'd be surprised at how much the little bits add up over time. I transfer even if it's $1.35 or something tiny like that, it does add up and we are now saving a LOT more than we used to.

Good Luck!

 

[iNTeNSeBLue98]

That is how my Excel file is laid out. I look at three months on a page, divided up by each pay day. I can copy/paste the two parts (one page where I lay out when each bill get paid, the other totals and gives me a balance) for each quarter. I just added 3rd quarter and I'm ready to add 4th quarter, which will be tricky with Christmas and hopefully a trip to WDW.

To add to the mix, I just got off the phone with a realtor/agent from CB Homesale. We looked at a mobile home online yesterday that has a really nice lot (the home isn't too bad either ) . I don't know if it will pan out, but we'll worry about that when/if we are approved to make the purchase.

 

[clutter]

I deposit my paycheck into my savings. (Direct deposit helps make it easy.) Then I transfer my monthly budget amount to my checking account. (I get paid 2x/month, pay bills 1x). You could do that weekly. When I have extra money, that I put in an account that's at a different bank.

Good luck!!!

 

[Focusdude]

When I just went through all my bank statements checking for extra charitable deductions for my taxes, I realized that my bank is charging me .25 every time I use my ATM card; I realized I got charged for using "foreign" ATMs - but they charge me when I make purchases! It is partly my fault - I never look at my statements because I check my account over the internet every day - and only see the big fee deduction come out once a month (which I knew was high - but I always blamed it on my husband not using our bank's ATMs. I am in the process of changing banks now! Also - I loved my ING account - I deposit a small amount every week, and it really adds up! Every little bit helps!!

 

[iNTeNSeBLue98]

When I just went through all my bank statements checking for extra charitable deductions for my taxes, I realized that my bank is charging me .25 every time I use my ATM card; I realized I got charged for using "foreign" ATMs - but they charge me when I make purchases! It is partly my fault - I never look at my statements because I check my account over the internet every day - and only see the big fee deduction come out once a month (which I knew was high - but I always blamed it on my husband not using our bank's ATMs. I am in the process of changing banks now! Also - I loved my ING account - I deposit a small amount every week, and it really adds up! Every little bit helps!!

That's why we switched bank a year and a half ago. The old bank kept finding ways to charge us. I kept my account at the old bank, but canceled the ATM/debit card ($12/year) and they started to charge for using the card form making purchases (any time using a PIN). I now use it for savings and it's linked to PayPal and ebay.

Our current bank doesn't charge anything, and we only are charged by another bank's ATM, someting we try to keep to a minimum. I'm thinking about canceling the old account completely and opening another one at our "regular" bank. I can then have a portion of my pay (direct deposit) split between the accounts so I can save on a regular basis.