Put Your Money IN The Bank

I can’t tell you how many people I’ve met or heard about who, for whatever reason, don’t have an account at a financial institution. They take their paycheck every week or two, get it cashed and head on their merry way.

Of course it’s no wonder they’re probably living paycheck to paycheck.

I’m not trying to dog on anyone. And to most it seems like common sense. But if you don’t have a bank (or credit union) account you need to go out tomorrow and GET ONE. And put your money in it. And keep it there. 😉 It’s much safer there than in your house anyway. Every financial institution is backed by the FDIC or NCUA for up to $250,000. This means that if for whatever reason the institution that has all your money goes under, you will still get all your money back up to a quarter of a million dollars.

But that is truly besides the point because the people who don’t have accounts at a financial institution are, more than likely, not the ones saving up wads of it in their home somewhere. They are the people who spend all their money and sit around miserable until the next paycheck comes (if the next one comes!)

If you’re just getting out on your own or are finally starting to make some kind of income (even an allowance!) search out the best financial institution in your area and open up at least a basic savings account and a checking account. Savings can be for your growing emergency fund and your checking account, well, it’s to live out of. Get a debit card and then just watch your spending (make sure to sign up for access to your accounts through your institution’s website so you can view balances and such 24/7.)

I’m not sure why some people are opposed to keeping their money at a financial institution. Do you have any ideas?

Millionaire To Do List

I’m not into the “get rich quick” schemes but what I am into is being responsible with my finances, and hopefully helping a few people along the way. I’m not the smartest person with finances but I read (a lot) of personal finance blogs and have learned a lot from ordinary people who have made mistakes and learned from them as well as who have made decisions that were straight dead on.

So there are a few things I’ve decided when it comes to my money.
One: It isn’t really mine so I hold it with open hands. It’s entrusted to me to use for the good of others and myself and to honor God and people around me. And…
Two: I would like to be a millionaire one day.

Pretty simple, really. Nothing to get stressed about. But it is a little something for me to get excited about and work towards. Slowly, but surely.

So here it is:

My Millionaire To Do List

1. Open a 401(k) plan and fund it up to the max my employer will match.
For me, this is 5% of what I make. So on a yearly basis I’ll add 5% of my income and my employer will match it so whatever 10% of my income is that year is how much will be added to my 401(k) for the year. Cool!

2. Open a Roth IRA and max it out yearly.
A roth IRA can be funded up to $5,000 a year. And what is great about Roth IRAs is that you get taxed on it as you put it in, not when you pull it out. Perfect.

3. Keep a budget and be frugal but not to too frugal.
What I love about a budget is that I get to tell myself how much I get to give myself in my savings accounts as well as how much I get to just spend on whatever I want. (Of course, the bills are in there too but not quite as exciting.) And it helps me stay frugal. Knowing that I want to be able to have an extraordinary amount of money in my savings accounts gives me the inspiration I need to live my day-to-day life a little less luxuriously.

4. Regularly find ways to increase my income.
This could be trying to get a raise or promotion at work, or starting a side business or selling random things I don’t need anymore. The more channels of income I have the more income I’ll have. And income is the best way to save more money. Cause I can live off of what I have right now. So if I make more, I can keep living off of what I have right now and save all the extra.

So the question is…why create a millionaire to do list? Why save instead of spend? Well, I don’t save for the sake of saving. I save so I can live well when I’m older. I  save so I can go on vacation later. I save so I can buy the new laptop with cash. I save so I can give to other whenever I want to.

I save so I can live well. =)