Paycheck | Online Savings Blog

We're Going On Vacation: How We're Saving For It
04.03.08 | Consumerism, Money | 0 Comments | by junger

For the first time since we've been married, Debbie and I are no longer on school vacation schedules. Debbie's new job, while in a preschool, is technically more of a daycare-type position, so she works year-round without spring/winter/summer breaks.

It's different for her, since she has always worked on school schedules — but now she actually accrues vacation days. So, we've been looking to head out of town for a vacation for awhile now, and we finally settled.

At the end of May, we'll be flying across the country to Los Angeles and driving up the California coast.

We love California, so it'll be exciting — but could also get expensive. We got a great deal of flights via Airtran, but we still need places to stay, a rental car, and things to see.

Yahoo! Finance has a great article on last-minute ways to save for vacations — we'll be heeding many of these tips.

1. Start with a spending plan
2. Sacrifice now for fun later
3. Build cash with a 'Pantry Week'
4. Eat out less, save big
5. Make a savings wall chart
6. Sell your stuff
7. Use your tax refund — now
8. Let credit cards pay you back

The biggest thing we'll be doing is cutting back on our spending in April in preparation and trying to put that money aside for the trip. We're also on the lookout for great deals, including hotel stays with included tickets to attractions and cheap rental cars.

It helps that May is one of the two months I'll receive a third paycheck (thanks to three Fridays), but we don't want to count on that entirely for paying for the trip.

Technorati Tags: budget, california, Deals, los angeles, paycheck, saving, trip, vacation
Are You On a Fixed Income?
03.24.08 | Money | 1 Comment | by junger

The other day, I was watching a news report on how the stock market's up and downs are affecting senior citizens — specifically, those on a fixed income.

It got me thinking — am I on a fixed income? What does it mean to be on a fixed income?

Here's what Wikipedia has to say:

Fixed income refers to any type of investment that yields a regular (or fixed) return.

For example, if you borrow money and have to pay interest once a month, you have issued a fixed-income security. When a company does this, it is often called a bond or corporate bank debt (although 'preferred stock' is also sometimes considered to be fixed income). Sometimes people misspeak when they talk about fixed income, bonds actually have higher risk, while notes and bills have less risk because these are issued by Government agencies.

The term fixed income is also applied to a person's income that does not vary with each period. This can include income derived from fixed-income investments such as bonds and preferred stocks or pensions that guarantee a fixed income. When pensioners or retirees are dependent on their pension as their dominant source of income, the term "fixed income" can also carry the implication that they have relatively limited discretionary income or have little financial freedom to make large expenditures.

So, if your investments are paying out a certain amount of income over a given time period, you're on a fixed income.

But what if you're on a salaried paycheck? Aren't you getting a fixed amount of income every paycheck?

For the most part, I know how much money will be coming in to our bank account every month because our paychecks are consistent. Isn't that being on a fixed income?

For hourly workers, salespeople who work on commission and 9-5ers with inconsistent part time work, each month, your budget's "intake" column probably looks different. You don't necessarily know how much money you are earning until the month is over.

So if you're a salaried, non-commissioned worker, you're probably on a fixed income. Live like it.

It might seem a bit counterintuitive, like when I say I live paycheck-to-paycheck (even though technically this isn't true). Knowing how much money you have to spend, save and invest each month puts you on a fixed income — and helps you prepare to achieve your goals.

Technorati Tags: fixed income, income, investments, Money, paycheck, Retirement
Paycheck to Paycheck On Purpose: It Works
02.23.08 | Money | 0 Comments | by junger

One of the most popular posts here covered why living on a paycheck to paycheck mentality works. (Despite the lack of comments, a number of readers flocked to it.)

Single Ma from Fabulous Financials has a post up over at Consumerism Commentary on how she lives paycheck to paycheck, but is saving money through automatic deductions and taking money off the top.

By the time I receive my “real” paycheck, it’s less than half of what I actually earned, which is ok with me. All of my financial priorities are accounted for, so I have fewer things to worry about. Automation also locks in the funds to make sure I achieve my financial goals (e.g. max out 401k, IRA, and tax deductible college savings).

Having all of your investments, savings and tax-favored spending accounts (FSA, etc.) filled before you get a chance to spend it on impulse purchases is the easiest way to save.

You don't always feel like you're saving because so little work is involved, but you're doing better than if you waited until the end of the month to scrounge up whatever is leftover to put away.

Unless your paycheck is way out of proportion with your spending (on the positive side), try living with a paycheck to paycheck mentality. It works.

Technorati Tags: automate, finances, Money, paycheck, savings, spending
Why Living on a Paycheck to Paycheck Mentality Works
12.26.07 | Money | 1 Comment | by junger

Living paycheck to paycheck isn't a great way to manage your money, but there's something to be said about having a paycheck to paycheck mentality.

We have a nice retirement accounts, an emergency fund, and are even saving specifically for a house. But we still live with a paycheck to paycheck mentality — and I'm glad that we do.

If you have automated your finances — including monthly retirement contributions, debt payments and transfers to high-yield online savings accounts — then living with paycheck to paycheck mentality is okay.

Because our finances are automated, our money is constantly doing something. It's getting added to our Roth IRAs or it's going into our housing fund or getting direct deposited into our checking accounts.

But since many checking accounts (including ours at Bank of America) pay nothing in interest, there's no reason to keep more money in there than necessary. So we only keep a certain amount in our checking account — enough to get transferred via automatic payments or to our outside savings funds and for bills.

This forces us to live a paycheck to paycheck mentality, even though we're saving for now and saving for the future.

With a paycheck to paycheck mentality, you're waiting for that next paycheck, but not just to pay the bills. It's also to invest and to stick into a high-yield savings account.

It works. Give it a shot — find out where all your money goes (start a budget), automate it, and then watch your spending.

Technorati Tags: automate, finances, Money, paycheck, savings, spending
On Living Without Direct Deposit
12.21.07 | Money | 1 Comment | by junger

My wife recently started a new job after we made our move, and so far she's loving it.

She works great hours with good people and even gets to use the in-house gym, so she's maximizing the most out of work.

But because she hasn't been there for enough pay cycles, we don't have direct deposit yet. It's not a huge deal, since she's still getting paid, but you realize how convenient it really is when you don't have it.

We're not so good at going to the ATM, so the checks have a tendency to sit around for awhile.

When the checks aren't deposited, the money won't get any interest (however little it may be) and we have to watch our balance more carefully to make sure our automatic payments won't short us too much.

We'll have direct deposit set up for her in the next pay cycle or two, but not having that automatic system really adds another layer of managing your money that can be avoided.

Technorati Tags: atm, cash, direct deposit, Money, paycheck

free website hit counter