Help with savings plan

[tired_of_debt]

This thread may not belong here, but I would like some ideas. Just out of Chapter 7 (discharged and closed) and I don't ever want to be back in "that place" again. I am working on my credit reports and trying to clean up things. Opened a Crown Jewelers account, placed my first order and made my first payment and am trying to survive on cash only until I get everything cleared up and have a small slush fund to fall back on. Does anybody have any ideas about how to start that? I really don't want a passbook savings account as it is too much of a pain in the butt for such a small amount of interest, but I have limited funds left per months after monthly bills and groceries. I have been using MS Money to try and budget a bit, but that does not really allow for the variables and emergencies (sick kids, car repairs, lack of work and a multitude of other things that seem to go wrong when least expected). I would like to save at least a couple hundred a month without cutting our throats. I have a checking account at a very small local bank and just wondered if anyone had any ideas. Please note: This has to be a place where I can stash my cash, but it can't be in a place where I can't get to it if need be. Would love to hear other ideas on how you folks handle putting something away for a rainy day. I am not so great with money or I would not be here now... thanks.

[aa06a47]

The passbook savings account would be good

1)Inconvenient but can get it,

2) buy savings bonds (decent interest rate, but you have to wait 1 year though to cash them out). The one year wait sucks, but if you can make it that year, you'll probably find that you only go cash them out in a real emergency...it is kinda inconveient to go to the bank and cash them.

3) Open a savings account with emigrant direct. good place to save, and they can link your account with your checking account to transfer funds ect. I understand they have a very good interest rate.

[aa06a47]

also, don't forget, your asking a bunch of bk people how to save money. You might want to ask some financial guru's! LOL!!!!

[SinkingFast]

I learned with my son. You can have a checking acct that you cannot access on a normal basis.

I'm on son's checking acct as a second. Not to worry for BK purposes. There's not much money in it. Maybe $50. But when we set up the acct, my name wasn't listed on son's checks. That was for him so he'd look like his own man, so to speak. I can make deposits and withdrawals, but I cannot write checks. If I want to put money into, or take money out of that account, I have to do it at the bank. And it's an interest bearing checking acct. Not great interest, but something.

Maybe your bank has something similar. Easier to withdraw from if need be than passbook savings, but still inaccessible enough to help you put back funds.

And, of course, there's the envelope system. You can do that at home.

[aa06a47]

The only thing about the envelopes, people can break in your home and take them and homes are destroyed all the time (tornado, fire, hurricane...ect). Having said that, people with special problems such as me (gambling) would be too tempted to take one of them envelopes to the local boat and gamble them away.

I wish I knew of a good way to store money without the opportunity to get it. A safe deposit box at your bank may work as well, but they charge for them things.

[HopeinHorizon]

I like the idea of savings bonds...

[tired_of_debt]

I Did It...

I have a daughter who has far more financial savvy than I do -- sad to say that, but it is true. I opened a meager online savings account today...starting with 25 dollars and having 25 dollars going in every 2 weeks. It is not a great deal, but it is a start. It is linked to my checking account so I can add more if I want or transfer back and forth and the interest rate is 4.75% (which seems pretty decent for a savings account). The cool and not so cool thing is...I currently live in Illinois and that is where my bank is located. I am moving to Indiana in the near future, but I am in Chex systems so I cannot open an account in Indiana. It won't be so easy to whip out the debit card at an ATM machine once I move to take out cash (they charge 2 bucks for every out of network transaction) so that might help me in the spending arena. The bad thing is that 600 dollars of my monthly income is NOT direct deposited (child support), so that will be cash that I will probably have to use for groceries and paying a couple of bills once I move. I cannot believe I allowed myself to get into this shape. I always considered that I was reasonably intelligent. Live and learn...

To anyone interested...the website address is www.ingdirect.com

No minimum deposit and for a poor person like me, that was a deciding factor.

Thanks to all of you for listening. I have been so seriously depressed and it really helps to know that there are those out there who listen and don't pass judgment. I'm moving on up to the east side to a deluxe apartment in the sky lol

[HopeinHorizon]

I am in Chex systems too...

I hope that I will be able to get a checking account sometime next year, a lot of banks will look at you if the charge off has been a while... I just hope thats true...

[aa06a47]

I have a daughter who has far more financial savvy than I do -- sad to say that, but it is true. I opened a meager online savings account today...starting with 25 dollars and having 25 dollars going in every 2 weeks. It is not a great deal, but it is a start. It is linked to my checking account so I can add more if I want or transfer back and forth and the interest rate is 4.75% (which seems pretty decent for a savings account). The cool and not so cool thing is...I currently live in Illinois and that is where my bank is located. I am moving to Indiana in the near future, but I am in Chex systems so I cannot open an account in Indiana. It won't be so easy to whip out the debit card at an ATM machine once I move to take out cash (they charge 2 bucks for every out of network transaction) so that might help me in the spending arena. The bad thing is that 600 dollars of my monthly income is NOT direct deposited (child support), so that will be cash that I will probably have to use for groceries and paying a couple of bills once I move. I cannot believe I allowed myself to get into this shape. I always considered that I was reasonably intelligent. Live and learn...

To anyone interested...the website address is www.ingdirect.com

No minimum deposit and for a poor person like me, that was a deciding factor.

Thanks to all of you for listening. I have been so seriously depressed and it really helps to know that there are those out there who listen and don't pass judgment. I'm moving on up to the east side to a deluxe apartment in the sky lol

Does your current checking account have a debit card? If so, you can use this. It doesn't cost anything to use a debit card (at least where I bank at). If you have a debit card, use places like Wal=Mart. When you pay with your debit card, your asked if you want cash back. Again, no charge.

You can also perhaps have your daughter open up a checking account in her name with you as joint on the account. Then, you can have direct access to that account and it won't be out of state. Her only problem may be if you overdraw or something, she might be liable.

[HopeinHorizon]

If you are on Chex Systems can you be placed on an account with someone else?

I thought you couldn't have an account PERIOD...

[aa06a47]

If you are on Chex Systems can you be placed on an account with someone else?

I thought you couldn't have an account PERIOD...

This is America, being on the Chex system isn't death, it is just an inconvenience. There are banks out there. Do an internet search and be careful to not get duked.

[poorme]

You said "survive on cash only until I get everything cleared up and have a small slush fund to fall back on. Does anybody have any ideas about how to start that?".

I would suggest making a list of your top 4-5 killer needs for basic contingencies. For me, car repairs always come at a bad time, heck - even 'routine' maintenance can wreck a budget. For example, add up the costs for 4 or 5 oil changes per year, one or two brake jobs, a set of tires every two years, plus tag renewals, emissions checks, etc. and figure an average per month based on a two year period. Set that amount aside in savings.

Well, you get the idea...whatever your list comprises, over time you will have some funds set aside for those little 'killers' and you can just transfer to your checking account when you need to do the oil change, get brake job, etc. You can enter this as an expense category amount in MS Money just like 'groceries'.

Hope that helps.

[KevinR]

ING Direct is a great place for a savings account. Nice interest rates and no minimums. I have my mortgage through them as well.

I would also recommend you take some of your savings money and invest it. That of course is a long term thing, and may not be accessible when you need it. So decide how much you can put towards that kind of thing and start small.

Get an account at one of these internet discount brokerage firms that have cheap trades (less than $10). Start buying a simple S&P 500 index fund. No brains required, just chuck a little money at it now and then.

[13inOR]

We have a checking and savings at B of A, and a savings at a small credit union branch. The credit union account has no atm card for it, is not open on Saturdays, and is really inconvenienty located.
So, thats our "permanent" savings, in other words money that we don't want touched unless its a real emergency or something we have planned for in advance.
The B of A savings is what I call our temporary savings--for example, I take half of our mortgage out of each of my husbands 2 paychecks per month.
So on the first, I take out that half from checking and move it over to the savings acccount, where it sits, not in danger of being accidentally dipped into, and then on the 15th, I transfer it back to checking along with the second half from the 15ths paycheck, and mail the check to the mortgage company.
This works really well, because I can set money aside for a week or two, but with the click of the mouse transfer it back again if need be. But our permanant, long-term savings account can sit in the credit union, and is there if we need it in a dire emergency, but its so inconvenient to get to that it works out for our benefit, and we have been able to build it up quite a bit that way. Hope this makes sense......

[SinkingFast]

Does your current checking account have a debit card? If so, you can use this. It doesn't cost anything to use a debit card (at least where I bank at). If you have a debit card, use places like Wal=Mart. When you pay with your debit card, your asked if you want cash back. Again, no charge.

You can also perhaps have your daughter open up a checking account in her name with you as joint on the account. Then, you can have direct access to that account and it won't be out of state. Her only problem may be if you overdraw or something, she might be liable.

That's a good idea. If the child is the primary on the acct, your SS# is the secondary and the acct isn't really yours. Legally speaking that is.

Sad to say but we may be piggy backing on son soon. Our filing timeline and when we may get discharged might not work so well with when we need to move this summer. And I know our current landlord would love nothing more than for us to break our lease with her!