Happiness Is Having Real Money in Savings
Five years ago, I was a personal banker at a regional bank, making about $28,000 per year. According to my historical financial records (I have been tracking my income, savings, and spending in Excel since 2000), I had about $3000 in savings at that time. When I wasn’t making much money, I seldom used credit cards and always had money saved - it wasn’t until I took a VP job in late 2003 that I started living beyond my means. I haven’t been able to maintain a balance of more than a couple of hundred dollars in any savings account since.
Until now.
As of today, I am happy to report that I have exactly $7,264.08 in the ING savings account I opened last November.
I did it by banking my “extra” paycheck last winter (I’m paid bi-weekly, so I get two “extra” pay days each year), putting away nearly all of my tax refund, saving my teaching income, and having $100 direct deposited to the account every pay period.
There were a few setbacks early on - in January unexpected bills nearly emptied the account. I am so thrilled that now, just a month and a half later, I have recovered nicely and have enough saved to cover our portion of the wedding expenses as well as fund my infrequent bills account and emergency savings.
Now that I have an emergency cushion built up, I can start getting really serious about attacking my credit card consolidation loan. Maybe next year at this time I’ll be free of credit card debt and open a brokerage account (assuming the market will have stabilized by then!).
Stumble it!
March 12th, 2008 at 1:21 pm
Interesting way to think of the two months/year where you get a third paycheck.
I budget in 4 week blocks because of my biweekly pay, so i don’t have non-budgeted paychecks. I started budgeting this way after a coworker used this “extra” paycheck to buy a PS3 and Rock Band, a trap I knew it would be easy to fall into.
March 12th, 2008 at 4:25 pm
It is funny that you said that about the job cycle, because the same thing happened to me. We always had a little debt but it really blossumed (like a weed!) when I was made VP of Marketing at the Old job.
There is a psychological thing where you want to live to your minds-eye regarding your title or position!
March 12th, 2008 at 6:33 pm
I like the idea of banking the extra checks. Most of my adult life (since 18) I’ve had at least $1000 in savings, which is a thin but reassuring cushion. My goal is to eventually get more in there.
March 12th, 2008 at 9:40 pm
Way to go saving!! Sounds like you’ve got things under control. I’ve heard of saving your “extra” paychecks before (or using them to make extra mortgage payments), but I guess I’ve always had trouble figuring out how to put that into practice since so many of my bills (childcare, groceries, and gas, for example) are things that need to be paid every week, not monthly.
March 13th, 2008 at 6:31 am
Congrats Hedi! Knowing that there’s money in the bank should anything happen is a wonderful feeling.
March 17th, 2008 at 7:23 pm
Isn’t it great to KNOW you have a cushion?
It is the first step in the pyramid to BUILDING wealth now. Congrats!