Emergency Savings: Do you have a cash reserve?

Yes.

And by yes, I mean no.

 

I said nice rates, not nice rack. 8)

 

i had about $20k in the bank, then i bought a house this summer.

my balance has bounced back to jack shit since then.

 

There's no excuse for not saving. I don't care what it is. Even $5 a week is a start and 99 percent of us have something in our monthly budget that we could do without.

 

Easier said than done, when you've got less than $100 left over each month after the bills are paid and you buy a pittance of groceries.

That said, for those SJers in a similar situation -- and I'm sure plenty are, as I was about three years ago -- find a bank that will let you set up a savings account with a $1 minimum deposit, and just start socking a few dollars away each paycheck. Pay yourself first, before anything else, and try your damnedest not to touch that money, no matter how tough things get.

 

I take two hundred dollare bills out of each pay period and place it in safe deposit box. I have over 13K in the box for real emergencies.

I also max out the 401K match and dump $300 per month into an ING account. Doesn't make much but has easy transfers.

No credit card debt.

As I get older, I have become cheaper. Costco and coupons.

 

Bank of America's keep the change program has been brilliant for me. It rounds up my purchases to the next dollar and transfers the extra to my savings account. I wind up saving between $15 and $25 a month with it, and I don't have to do anything!

 

If only I weren't a stickler for credit unions, but my brother does this and loves it.

 

Yeah, I do that too...that's what I was talking about in my post (couldn't remember the name of it, ha!). But I keep transferring it over from my savings to my checking.

 

I keep $50k in 20s in a black bag in the closet.
You never when you might have to take it on the lam.

 

Says you. If I hadn't had to take money out of my savings account to cover this month's bills, I would have $5 in my checking account to get me through Friday, I am living on chicken noodle soup and Spaghetti'Os and I'm probably going to need gas before then.

Trust me, I'd like to be saving but I don't even have a 401K. I'm just happy to be back on health insurance through work. I probably won't be able to start putting a significant amount of money in my savings account until five or so years down the road.

 

Wenders,

I say this in the most respectful and polite manner and tone I can.

If you're living on soup and Sphagetti'Os and are having to live paycheck-to-paycheck like that, this business will not be kind to you as you near retirement. It's gonna hurt.

You need to change something drastically and now. For your own good.

I'm not trying to be rude, disrespectful or look down my nose at you, by any means.