Do you "envelope" budget? Credit: PinkMoose/Flickr
A friend emailed me with a bit of budgeting advice passed on from her mother, the professional organizer Janet Fishman:
Set up separate bank accounts for: living expenses, play, long-term savings, education, charity, and retirement and have either a percentage or fixed dollar amount from each paycheck go into these accounts. Most all companies that offer automatic deposits for payroll have the ability to automatically deposit into multiple accounts. Figure out how much you need to pay taxes, divide by the number of weeks you work, and that constitutes the dollar amount to set aside for each week. Repeat this for the categories above and you will be fully prepared and organized year round!
This ads up to six accounts – or more if you set up one for taxes and other categories. Phew! That strikes me as a lot to manage. Plus, you would have a harder time hitting minimum balance requirements to keep your account free or low cost.
On the other hand, how much money you have to spend on any given thing would be crystal clear. No pushing money earmarked for one expense to cover something else. Plus, retirement is singled out, which makes it more likely that you will save for retirement.
What do you think of this modern take on the “envelope” system? Would you use it?
viZZZual.com / Flickr
I share five must read blog posts about saving money every Friday.
Avoid bank fees – Find out which seven banks are still offering free checking and great interest rates. (Wisebread)
Feed Fido – Save money on your pet with these homemade dog food recipes. (Money Crashers)
Tax season is near – The Silicon Valley blogger shows you how life events affect your tax status. (The Digerati Life)
Protect yourself -Avoid identity theft by learning about the eight things you should shred right now. (MainStreet)
Home costs – Save money by getting these five fall maintenance jobs checked off your to-do list. (Bargaineering)
pin add / Flickr
I share five must read blog posts about saving money every Friday.
Is your bank increasing their fees? Ditch them! Here are 3 steps to replacing your bank. (Money Talks News)
Have you received your internet bill? Find out seven ways your Internet Service Provider may be overcharging you. (Cheap Internet Deals Blog)
Daily deal junkie? You can now sell unused deals on sites that allow you to re-sell and buy past daily deals. (Fabulous & Frugal)
Travel on a shoestring budget to these five inexpensive off-season vacation spots. (CNN Money)
The checkout line is getting revamped. Look for these three changes at your local grocery store checkout line. (Time Moneyland)
borman818 / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
Weeks before graduation, I received a letter from my bank telling me I would no longer qualify for a student account and that I needed an average daily balance of $1,500. Boo!
With my student account I managed to avoid bank fees as long as I never stepped in to the bank and only used the ATM for my transactions. According to the bank’s letter, the fees would kick in on or after June 4. I prepared by transferring money from my savings account on June 1.
A couple days later, I was slapped with a $8.75 fee. What?!?! I couldn’t believe it. I immediately called my bank.
“Hi. I’d like to know why I was charged a fee when I met the average daily balance for my account.”
“Sure, let me check our records,” said the bank teller.
Turns out I
kenteegardin / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
With bank fees increasing due to debit card swipe fees getting capped, it’s time to take these four easy steps to avoid bank fees.
- Give your bank a call- I called my bank and requested my personal schedule of fees and deposit agreement. Didn’t get charged for this, thank goodness! It contains a list of all the bank fees I could end up paying if I’m not careful. Now I know that if I lose my card, I’ll have to pay $5 for a replacement. I could also get slapped with a $20 per hour fee for research (more…)
Broken Piggy Bank / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
CCN Money made a list of the 9 most annoying bank fees and included information as to why banks charge the exorbitant fees. Here are the nine pesky bank fees and my suggestions to avoiding them.
- Forgetting to update your address – If you are moving, make it your top priority to call your bank and change your mailing address to avoid this fee. I have a post office box where I have important mail delivered for security reasons and to avoid having to deal with address changes.
- Cashing in your coins – Coin-counting fees at many banks run at 5% or more. In my post about gift cards with perks, I shared that Coinstar no longer
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This post is brought to you by Kramer Law Firm where you can find an Orlando divorce lawyer.
This is a post by BargainBabe.com writer Yazmin Cruz.
While grabbing dinner with friends, we began to talk about relationships and money. My six friends and I, all in our mid-20s, agreed it was important to be on the same page when it comes to money before getting married or moving in together, but on the subject of joint bank accounts, we were divided.
Half said they wanted a joint bank account, while the other half wanted to maintain separate accounts. I prefer a combination because I want to be in control. But that was not my only reasoning.
These two share a banking account. ✭Lou✭ / Flickr
I share five must read blog posts about saving money every Friday.
Jim Wang tackles couple finances and weighs the pros and cons of blending your finances with your spouse or significant other. (Bargaineering)
Emergency funds act as a cushion when things go awry, but you’d be surprised how many Americans do not have money set aside. Here’s how to save for an emergency fund. (Fabulous & Frugal)
Borrowing from your 401k, good solution or bad? Laura explains the SEAL Act, that would limits 401k borrowing and ease repayment loans, and tells you what this means for those contributing to retirement accounts. (Money & Happiness) (more…)
A bank vole captured by blackclough/Flickr
I recently switched banks for a higher interest rate on my checking account. My new bank is nontraditional so I had to consider what behaviors would let me take advantage of the account fully.
1. My bank does not have their own ATMs. However, all my ATM fees are refunded to me on a monthly schedule. As crazy as it seems, this is probably cheaper for the bank than maintaining thousands of ATMs across the country. I try to use the ATM only once a month so I don’t rack up a lot of fees, even though they are reimbursed, because I figure the bank factors the expense into other services.
2. My bank does not have traditional branches so I do not have access to bank tellers to make large cash withdrawals or deposits. This is rare for me, but uncomfortable if it comes up. The branches accept check deposits or I can mail in deposits.
3. The branches are few and far between so I do the vast majority of my banking online, through the mail, or over the phone. The bank website is great, I can request free deposit envelopes through the mail, and the US-based phone service is excellent.
4. I have free checking as long as I have a debit card for the account. This is my first debit card ever and I usually use it for small purchases. It does not feel as safe as using a credit card, however. I think that is just me.
5. My other bank services are free as long as I have a brokerage account, which I use to fund my ROTH-IRA. I like having my checking, savings, and IRA all through the same bank, though I’m worried it makes me more vulnerable if my identity is ever stolen.
All told, I’ve had to adapt my banking habits slightly to take advantage of my new nontraditional bank. But I think I made the right decision because I pay no monthly bank fees and my interest rate is higher that my previous bank. Knowing this, would you bank with a nontraditional bank?
