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Personal savings

CanadaRAM said:
And the reason that they so generously do this is that the Merchant who sold you the bag of chips has to pay B of A $0.15 to $0.25 per debit transaction, regardless how small (plus their rental on the machine, and their monthly service fees). So B of A encourages you to use your card for dozens and hundreds of trivial purchases to line their pockets with service fees, at the expense of those businesses who are forced to take your card or risk losing your patronage. The merchant loses money on every bag of chips bought this way.
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Yes, but even with that $0.15 transaction fee for retailers, unless what you're buying from the store is $0.85, $4.85, $29.85, etc, the bank will lose money by rounding up the majority of the time (ie: when something costs $x.01 to $x.84). They make money by getting more people to put their savings into their Bank of America account.
 
Abstract said:
Yes, but even with that $0.15 transaction fee for retailers, unless what you're buying from the store is $0.85, $4.85, $29.85, etc, the bank will lose money by rounding up the majority of the time (ie: when something costs $x.01 to $x.84). They make money by getting more people to put their savings into their Bank of America account.
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Huh? How is the bank losing money rounding up the transfer from YOUR chequing to YOUR savings accounts? It's your money they are moving. Not theirs.

BofA is doing a matching thing as a promotion for the first 3 months, OK -- that's just cost of advertising to pump up the use of the debit card so they can enjoy years and years of service fees.


iGary, thanks for the post. This is an evil promotion -- it's like giving free ciggies to kids and hooking them for life.
 
CanadaRAM said:
Huh? How is the bank losing money rounding up the transfer from YOUR chequing to YOUR savings accounts? It's your money they are moving. Not theirs.
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Ah okay. I didn't see the image and only followed iGary's (poor) explanation. :p

From the explanation, I thought that if you bought something for $3.81 using a "checkcard" (whatever that is), they would put $0.19 into your savings account.
 
Just turned 50. (But a YOUNG 50!)
I'm good to retire right now. We also have enough to put my daughter through 4 years of any college she wants, no bills but for one car payment that's up this year, and the mortgage which is considered "free" around here. Spent a long time somewhat poor, but worked hard and married the right girl.
But your question wasn't answered... hmmmm.
Look at it this way. If you're under 25, you are doomed. In your lifetime the economy will collapse after China stops propping us up and the housing market folds. Can you say "Wiemar Republic"? We're turning into a land of 10 buck an hour forklift jobs and Wal-Mart associates/greeters. The middle class WILL die in your lifetime. Look, China pays their auto workers 2 bucks an HOUR. When they get their distribution issues fixed, WATCH OUT.
Buy gold when you can for long term, stocks for short term.
If you're over 40 and have kids, do EVERYTHING you can so they don't EVER have to work. Buy land when you can... any land.
If you're over 60 and want to retire, you'd better have a cool mil in the bank, a paid-off house, and health insurance.
 
I have approximately $3,500 in the bank (cash and bonds), and right now, about $900 "on hand." Normally, I don't have that much cash lying around, but between my Birthday and Christmas, I accumulate a lot around this time of the year.

I also work, usually for about $10 an hour if I'm doing construction; about $14 an hour snow plowing parking lots for my uncles company. I also do various computer tech stuff (with Macs mainly), and I charge about $30 an hour, but usually get a "bonus" from the clients, who are all usually wealthy small business owners.

Anywho, I try to save a lot, but I do like to spend money. I fear going to the mall often, because I can easily blow $100+ on some clothes from A&F or Hollister! Then, of course there's the unfortunate curse of being materialistic and an Apple fanatic... Hah.
 
I don't have much in the way of savings, mainly because I've either been a student or in pathetically low paying jobs my entire life. Having said that, my mum has always taught us to be independent, and I've bought my own clothes etc. since I was 11 or so. My family are fairly restrained about Christmas and birthday presents as well.

Because of this, I've bought any big purchases (like my PowerBook) myself, and having to budget for everything else has taught me a lot. Although I don't have a huge amount of savings (about £750 or so) I'm not in any urgent debt either. I will owe about £18,000-20,000 in student loans when I finish my degree, which is a bit horrific, but it isn't the kind of debt that I'll get chased for, like a credit card or an overdraft.

The minute I get a job I intend to start saving again. If I can live on £6-7000 a year at the moment, when I get a job for, say £14,000 if I'm lucky, I can save a reasonable chunk of that. I would spend a bit though just for the novelty of not analysing every single purchase. :eek:
 
Like iGary said, my savings was in my house. Was forced to sell because of a breakup.

But even after this event last year, I face a bitter 2006. First Virginia eliminates the "car tax relief" for 2006. The State was paying 70% of the personal property tax bill, till now.

Those *******s in Richmond are more worried about how marriage is defined that paying attention to the burden of an unfair tax.

Like many companies, mine is limiting raises to the Cost of Living Index. About 3 frigging percent! Gas has been up just 9 cents alone in the last week! My apartment supplies all utilities, so guess what I can expect come May at my renewal? Then this past week we find out at work that out current health plan is increasing rates 29%!!!! So we are switching to a plan that will not change the bi-weekly contribution; but will now have a $500 deductible and double the co-pays. And the company they are going with is considered so bad by doctors offices (use to have them so many years ago), that many of the doctors we are with are not part of the new plan!!!!

LUcky I have some savings now. But so much for increasing them with all this great news.

I still count myself lucky. At least I don't have to go on Medicaid like many that work for Walmart. If the rent increase is not too much, I will just have to tighten my belt a bit more.
 
Deepdale said:
Senior moment at 42 ... BV, you do amuse me.
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In a good way, I hope... But these things are relative. I'm also noticing a general slowing-up of faculties in my contemporaries and of course, the occasional walking-into-a-room-and-forgetting-what-I-went-in-there-for moment. :D
 
Blue Velvet said:
In a good way, I hope...
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Without question ... you know my opinion of your posts, intelligence and writing style.

Blue Velvet said:
...the occasional walking-into-a-room-and-forgetting-what-I-went-in-there-for moment. :D
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I know that feeling well. Every so often there is a time when I will take required pills and within two minutes question whether I did so or not. Such a joy!
 
"Compound interest is the most powerful force in the universe", Albert Einstein.

My dad kinda rammed that theory down my throat since about 11 when he sat me down in front of excel with numbers tailing off in the millions.

Currently at age 21 I have 6 figures in the bank earning interest at a cool 5.75%. That's just for a rainy day though.
 
Six figures including the 2 decimal places, surely. What? You mean a real six figures? Damn! :eek:

*flies to the US, walks up a rich dude's driveway, and hope he slips and hurts himself. Lawsuit? You betcha*
 
Abstract said:
Six figures including the 2 decimal places, surely. What? You mean a real six figures? Damn! :eek:

*flies to the US, walks up a rich dude's driveway, and hope he slips and hurts himself. Lawsuit? You betcha*
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Well 6 figures in AUD is not necessarily 6 figures elsewhere.

AUD 100,000 = GBP 42,502.08
 
My parents and grandparents instilled the savings mentality in me very early. Sadly, many realize this too late in life. As they always told me (and my financial advisor says), pay yourself first each month. In other words, SAVE.

Through my teens and early 20s, I saved 20% of everything I made. When I hit 28, I had $135,000.

Bought a condo putting 10% ($14,000) down with a 30 year mortgage. Condo is worth $500,000 today and I only owe $45,000 on the mortgage.

Took the remainder of my savings at 35 and sat with an American Express financial advisor (still use him) and worked out a plan so I could retire by age 55 (if I want). In 8 years with him, I can not believe how much money I have. I earn a very good living now and put away a nice chuck monthly.
 
Blue Velvet said:
Not yet, but the union negotiates the yearly pay review and it applies equally to all employees.

I forget their name at the moment but it's one of the clerical, white-collar ones... we're a large national charity and it's just one of those many things that they're good about.

Edit: Now I remember (after having a senior moment)... it's Amicus.
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Same here! Amicus really looked after me when we were going through a massive restructure beginning of last year. Even though I only joined them when I heard about it. Felt rather sheepish about that, but they didn't mind...
 
rdowns said:
My parents and grandparents instilled the savings mentality in me very early. Sadly, many realize this too late in life. As they always told me (and my financial advisor says), pay yourself first each month. In other words, SAVE.

Through my teens and early 20s, I saved 20% of everything I made. When I hit 28, I had $135,000.

Bought a condo putting 10% ($14,000) down with a 30 year mortgage. Condo is worth $500,000 today and I only owe $45,000 on the mortgage.

Took the remainder of my savings at 35 and sat with an American Express financial advisor (still use him) and worked out a plan so I could retire by age 55 (if I want). In 8 years with him, I can not believe how much money I have. I earn a very good living now and put away a nice chuck monthly.
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Wow! I just hit 28 – unfortunately with a rather different mentality too you.

I have finally learnt the art of saving now though – started a business with a friend last summer, and while its building up I can't guarantee I can pay myself every month so have learnt not to spend. :eek:
 
rdowns said:
... Through my teens and early 20s, I saved 20% of everything I made. When I hit 28, I had $135,000.
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That is very impressive ... the way to do it is to have that savings mindset instilled early on, have a percentage you want to put aside when payday arrives and then steadfastly follow the plan. As I look back, I wish I had bought property in the late 80's to early 90's. Aside from not doing that, I am in a solid position.
 
Deepdale said:
That is very impressive ... the way to do it is to have that savings mindset instilled early on, have a percentage you want to put aside when payday arrives and then steadfastly follow the plan.
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Yes, but that's easier said than done.

I know he saved a lot of money through his teens and early 20s, but some people have parents who don't have the money to send their kids through school and not put financial burden on their children.

Like I explained about my situation, if I make money, I put it all into my bank account. My parents contribute as much as I can't cover, no questions asked. It will be used for uni tuition and general expenditures. Despite my parents giving me what I can't afford to cover on my own, there's no way I'd take 20% away to save in another bank account, and then only contribute the 80% towards my own tuition and living costs. Its not fair for my parents, even if they would still pay what I don't pay myself.

Of course it's easy to save money if you don't have to pay for everything. I don't have to pay for everything, but it's just an example.

Just learn to be smart with your money. You can learn to handle money without having any savings. Before I pay tuition each year, I have lots of my scholarship money saved up, and it's all in a high-interest bank account that earns me 5.4% interest. It'll save me AND my parents money when I go and pay my tuition, although I won't have any savings or investments of my own. :eek:
 
I've been trying my hardest to save up, but I'm not getting all that far. With my savings I've bought my PB and a car (which I'm still paying off). I've been working a fair bit over the holidays, but most of that will go when I move out of home and start uni. I don't worry about it too much, seeing as I'm only 18, but I do think about it a lot of the time, because it's really important. I think once I start working even more I'll set up a high interest savings account or organise a few term deposits.
 
max_altitude said:
... I think once I start working even more I'll set up a high interest savings account or organise a few term deposits.
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abstract said:
... Despite my parents giving me what I can't afford to cover on my own, there's no way I'd take 20% away to save in another bank account ...
Of course it's easy to save money if you don't have to pay for everything.
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At the respective ages of 18 and 25, the important thing to remember is that your decades of steady and peak future earnings all lie ahead, and it's not a question of looking back at 50 and wondering why you didn't do things differently. It serves no useful purpose to get too crazy about money matters at those ages (I didn't), but the need for a keen sense of awareness to have a fairly secure future cannot be underestimated.

I concur with the points raised about the substantial help that many receive from parents who cover most expenses, thereby enabling accelerated savings to go into effect in some cases. The cost of college today is downright scary and even with partial scholarships and other sources, I commend all who do their best to deal with those situations.
 
I learned by the example set by my parents...and they declared bankruptcy. Although luckily my grandparents taught me to always save for a rainy day. Their influence won out and now I'm the only person I know with $4,000 personal savings, a 401k, and a Roth IRA.

I live completely independent of my parents since they cannot provide for me, bought my car outright (although it is older than I am), and am financing my college education on my own (although it would be a lot nicer if I didn't have to claim my parent's income when filing for financial aid).

I got lucky that my grandparents smacked some sense into my at an early age. I have a lot of friends who are not so lucky...

EDIT: Note that I am 20 years old...
 
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