This page contains the following Savings Tips.
I recently read in a magazine a plan to get your finances back in line and to save money at the same time. It is called the 50, 30, 20 plan.
The 50 part is 50% of your pay goes towards things you absolutely need such as food, medicine and electricity. The 30 is 30% of your pay goes towards things you want like a cell phone, cable television, and internet usage. The 20 is 20% of your pay goes towards savings.
I have begun to limit using what money we have left over from the "have to have" list and the "want list". I have started banking the 20% in my savings account. It is really easier than you think. Neither my husband nor I are paid an exorbitant amount each month, but we do spend money on things we do not need. Since the checks come in at different times, I have found it is easier to take the 20% off the top before I pay the bills. If push came to shove, I could always go into the savings account and take the money out.
There are many good aspects to this plan. It opens your eyes to see what you are really spending your money on and what you really do not need to spend your money on. Also the added benefit of having some savings really does make you rest a little more comfortable. After paying all the bills this month, I actually had money left over which is very unusual. I am looking forward to honestly see what I can delete in my billing and not really miss the loss. I have found it very useful and I hope you do as well. A little nest egg really can make a big difference.
By gem from VA
ThriftyFun is one of the longest running frugal living communities on the Internet. These are archives of older discussions.
For a great savings rate, buy Series I Savings Bonds.
The Pros: You will earn over 5% interest, they are insured by the US Government and you can buy them for as little as $50. You only pay fed tax on the interest.
The Cons: You must hold for a year, and if you cash them in within 5 years you lose 3 months interest. The interest rate changes every May and November.
For more information visit:
By Jon from Reedsburg, WI
Our government now limits the amount of savings bonds that we can purchase. Found this website that will answer a lot of people's questions.
http://www.washingtonpost.com/wp-dyn/content/article/2007/12/19/AR2007121902305_pf.html
My husband and I have always invested in U.S. Savings Bonds. Some of us are old enough to remember the advertising posters, "BUY WAR BONDS."
Buying U.S. Savings Bonds financially pays our men and women in uniform. We don't bother risking our life savings in the stock market that's why we buy bonds every year.
(02/18/2009)
By Marjorie
A cautionary note:
It is indeed good to invest a portion of your money in US savings bonds (I do) because they do have good interest terms and are insured but be wise and do not put all of your eggs in one basket ... Invest in other safe investment strategies as well and consider doing some homework about converting a portion of money in to euros, etc, (no, that is not unpatriotic in today's world wide trade market) ...
Even though our bonds and banks are federally insured, if our US current downward spiral continues it is possible that cashing in on those bonds could be held up for several months after maturity of the bond because the money will simply not be available when you might expect, want or need it most ...
Take heed of the current conditions in California where tax payers in that state are receiving California tax over-payment IOU's/roll over credit towards the next tax year rather than an immediate refund check ...
(02/19/2009)
By Deeli
Thank you for posting this I think I will get some.
Liz (02/22/2009)
By Liz
Whoa, not so fast on buying I bonds. Interest rates change every 6 months on I bonds. As of Nov 1st, they are paying 3.36% ( a GREAT rate) but the rate announced May 1st was ZERO due to deflation! They are generally a good deal but checkk the rates 1st!
http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm (11/20/2009)
By Pat
Bonds used to be a good deal. No longer is that true. You are better off putting a few bucks in a credit union money market fund. The more you save the higher the interest rate.
The credit union account is even better than my savings bank account which is only at .25%.
The credit union account is also protected the same as the bank. (11/20/2009)
By Marlene
