Tuesday, June 30, 2009

Trying a new way to save money away.

The other night, I was reading The Simple Dollar, and he posted about a two-account system for savings. And I've been thinking about this ever since in the back of my head. I think that I an adapt this for my own routine. So, here's my plan...

What I would ordinarily do is on Bill Day I'd transfer the difference of my checking account balance and my paycheck to my ING savings account. This works, but it leaves me to my own devices for the whole month with my whole paycheck. This is not always the best thing, especially when I get in one of my "shopping therapy" moods.

So, my plan is this. Once all the bills are paid, I'll transfer nearly all of my money out of my checking account into my savings leaving only $100 behind. On one day, each week, I'll set up an automatic transfer of $100 from my savings to my checking.

Hopefully, this will (a) force me to subsist on $100/week, (b) have more money in savings at the end of the month, and (c) gain a small amount of interest for having more money hang out in savings longer. Of course, the ultimate goal of this money is to pay off my 2008 taxes by the end of the year (an not go to prison). I'm planning on writing a post about the whole taxes thing later tonight, so hold on for more details.

Anyway, I'm going to enact this plan for July and cross my fingers that it works (and that I don't overdraft my checking account.

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