I have given up making new year's resolutions for the past few years; but this year I thought I would resurrect the idea.
Instead of the old standards like: Lose weight, exercise more, make friends with the neighbors howling, slobbering, barking dog (not gonna happen) I instead decided to make resolutions that make ME happy and are doable.
My resolution is a traditional one, but I am choosing to do it in a painless way. I want to save more money this year. So when I heard about Bank of America's "Save the Change" program I jumped at it.
Here is the gist of it; You open a checking account with $250 and a saving account with $100. Now don't freak, that money is just to open the account. You can use that money right away...there is no minimum balance per month. The only catch is you have to have direct deposit. If not there is a monthly fee of $5 or so.
Now how this checking/saving program works is, you get a debit/atm card just like a regular account. The difference is this: When you use that debit card the bank rounds up your purchase to the nearest dollar and puts that change into your savings account. Then for the first 3 months they match that change 100%. After the 3 months they match your savings at 5% or $250 a year! AND they match the original $100 you opened the savings account with, with an extra $100! Free money! You just can not beat that!
In the past 2 weeks I saved $32 in change and the bank matched it %100. So we have $64 plus the original $100. And of course they will match that $100 in a few months. Not bad for 2 weeks.
I do most of my shopping and bill paying at the beginning of the month since we are paid once a month. So the savings will not be the same through out the month, but this is better than nothing and with bank matching you really can not beat this great way of banking.
One other thing about the savings; you have to use your card as a debit card to get the savings. Using it as a credit card will not work . Also checks are not rounded up either, only debit transactions.
Now I know some of you savvy, money smart people out there will say putting the money here, here or there is better. And while there are better ways to save I am trying to help people save in the easiest way possible, especially if you have not been able to save before. Also bank of America offers several savings account options, so you can make your money grow in various ways. So if you want an easy way to save your change and make it grow try Bank of America. ( I sound like a commercial! Maybe I can be there new spokes woman! ;-)
Mandi Gordon, Money Correspondent
recommend this
email
print
link to this page
Comments: 20
I also save money buy putting, weekly, the same amount I used to spend on the lottery. It's stacking up nicely.
I also put the coupon used, on any purchaese physically into the pot. Change adds up. The best way I've found to save, is to spend as little as possable.
The day before payday, I take out any money left from last weeks paycheck, chunk it into the savings pot, and begin anew, with the new paycheck. I've gotten very good at not spending. Many, many thing, I used to get with the idea that this was the American way, and lifestyle, I've discovered I can easily do without. It's gotten very fun.
I also have a seperate jar that I put only money that I've found. It adds up nicely every month.
I advocate saving money and building up emergency fund under any circumstance, especially now with the downturn in economy and credit tightening affecting many of the financial transactions we are engaged in. Many of us already know many ways to saving money, including garage sale, coupons, rebates, carpooling, slowing car down, bulk purchases, eBay, etc. I am listing some of my short-term and long-term ideas that may not be obvious to you.
Short-term ideas:
1. Change W-4 (increase allowance) and increase 401(k) to withhold less payroll tax if your tax refund is big
2. Cash out whole life insurance policy – replace with a cheaper level-term life insurance policy
3. Sell your car with big loan and replace with cheap reliable economical used car (or two) - and pay with cash
4. Save up 3 to 6 months of expenses in emergency fund to repel Murphy. This reduces penalties and fees
5. Switch from credit card to debit card and balance your checkbook each month, and maintain a cushion
6. Budget and stop spending frivolously; Stopping Starbucks, dining out, gifts, etc. will save you thousands
Long-term ideas:
1. Eliminating debts (credit card, auto loan, student loan, etc.) will increase monthly cash flow
2. Pay down more on each monthly mortgage payments – will save tens of thousands
3. Buy direct when possible – sales, brokers, and agents always take a cut because they have to make a living
4. You cannot save if you: cash out IRAs before 59 1/2, borrow against 401(k), finance a new economical car, etc.
5. Reduce overall financial costs and penalties. All interests, fees, and penalties profit corporations, not you. This also reduces risk.
6. Stop and replace things you don’t understand (investments, insurance, annuities, big-ticket items, etc.)
7. Restructure your income tax to take advantage of special treatments deductions and credits - Special treatments (transfer taxable assets to minors, capital gains, Coverdell, etc.), tax deductions (401(k), Flexible spending account, business expense, education, etc.), and tax credits ( Saver’s credit, adoption, Hope Scholarship, education, Child, etc.)
I have posted my personal finance advices elsewhere on gather.com. I suggest searching for key phrases at gather.com (include the quotes):
"Personal finance Topic"
"Interesting Statistics on Personal Finance"
"I found some money in my wallet"
"Insane financial practices"
I've invested in Ford and GM stocks. Since 11/19/08, Ford is up 141% but GM is up only 41%. I bought Home Depot at $18, and it's been up 23%.
I'd rather deal with something little more risky, with high returns.