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When do you think it’s ok to NOT save money?

Last Updated: December 19, 2015 BY Michelle Schroeder-Gardner - 14 Comments

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Do you think there are certain times when you shouldn’t feel as bad about not saving money? I read an article on Quizzle about When it’s Ok to NOT save money.

Here are the three times that are listed in the article:

If you’re a college student. When you’re in college, you might be tempted to never go out because you would rather save, but there’s a point where you can just NEVER go out and just never have fun. Every now and then, it’s fine to spend a little money on yourself and get lunch with friends (assuming you have the money and you’re not just putting it on a credit card).
If you’re a parent of young children. It says here about not depriving yourself of every little thing in order to save. You should still try going on date nights and hiring a babysitter.
When you lose your job. If you lose your job, then it’ll be difficult to still put that certain percentage into savings every time. This is what emergency funds are for right?

What do you think? Now, obviously if you don’t have the money, you shouldn’t be frivolously spending it just because.

Where do you keep your Emergency Fund?

Last Updated: April 6, 2020 BY Michelle Schroeder-Gardner - 22 Comments

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I keep my emergency fund money just in my savings account at my bank, but I’ve been thinking about stashing it somewhere else. Savvy Sugar had a good article about the pros and cons of different ways to keep it. Read the original article here.

Under the mattress. You always have access to this money, but the con is that you aren’t earning any interest on this. I don’t do this. I don’t like having cash on me because I am extremely paranoid about someone stealing from me. I’m crazy though.
Checking account. Easy access but no interest.
Money market account. A pro is that they carry higher interest rates than at your banks everyday account, but a con is that it might be a little more difficult to get quickly.
Savings accounts. It is easy to transfer money from your bank’s checking account to your savings account, so it is easy to access and can gain a little interest. However, the interest rate is usually not too high.

Where/how do you keep your EF?

What are your excuses for not saving money?

Last Updated: December 19, 2015 BY Michelle Schroeder-Gardner - 17 Comments

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WiseBread had a good article about excuses for NOT saving money, check it out.

I’m not the greatest saver, mainly because I have student loans and other things that I’m paying for (house, car, and other things in my budget), but I do save. Once I’m done with my car payment and student loans, then I will start saving more (and living life).

Here are common reasons that people say:

“I don’t make enough to save.” If you honestly don’t have ANY money left over to save, then saving might actually be impossible (especially in this economy). However, there are often many things that you can cut, and you should be trying to live according to the salary that you make, and not the salary that you think or wish you should be making.
“Interest rates are too low anyways.” I’ve heard many people say this. Just because rates are low, it doesn’t mean that you should spend all of your money. I never understand people who say this!
“I have too much debt.” It’s good to pay off your debt, but you should make sure that you at least have a comfortable emergency fund, just in case anything does happen.
- Compare your interest rates for saving versus your debt, in order to maximize your value.
- For example, I know someone who has a student loan of around 2%, so they are deferring it and using their money in other places (such as saving and the stock market) where they think they will be able to get a better return.
“I’ll catch up and save faster once I have a bigger salary.” A lot of people say this. But the truth is, is that for most people, when you make a bigger salary then you just end up spending more and adjusting to that new salary.
- I’m not saying all people are like this, but I know many who are. So then you eventually will just KEEP on saying this and never end up saving enough.
- Also, the time value of money in this situation can make a big difference. Saving earlier most often pays off better.

What are your excuses for not saving?

Figured out my MBA problems

Last Updated: April 7, 2021 BY Michelle Schroeder-Gardner - 7 Comments

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In case you didn’t read my other post the other day about my MBA problems, check it out here.

So I’ve been thinking about what I want to do. Do I just want to get a General MBA and be more rounded or do I want to get a Finance MBA and be more stuck, but be more educated in my job area that I’m in right now.

Well, I’ve decided to graduate in the Fall of 2012 and get my MBA. But I’m still undecided if I want a Finance or General MBA. They require the same amount of credits but I’m afraid that I might be too Finance specific since I’ll have my MBA-Finance, CFA and ASA, and then if I ever don’t want to be in Finance, I’ll be stuck because employers might not be able to look past all of those.

So I figure if I wait until next Fall, then I have more time to decide about what I want to do.

I also talked to my work yesterday, and they didn’t really seem to care either way, and I talked to the BF, and he didn’t really have an input either (he just wants me to do what I want to do). I just wish I had a magic ball to tell me what to do.

Thanks everyone though for your inputs. They have definitely helped!

What would you do? HELP! Regarding school, time and pay raises

Last Updated: December 19, 2015 BY Michelle Schroeder-Gardner - 11 Comments

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After I posted my GBU for the week, Tanner and Stephanie got me thinking. I posted my “Ugly” in my GBU:

“I can graduate next semester, IF I can manage to take 6 classes next semester. Having a full-time career, taking care of a house and dogs, and taking 18 MBA credit hours might kill me though. But at least I’d be done sooner then later and then have the rest of my life to not worry about homework anymore (that is until I’m 30 and I go back for my Executive MBA ughhhhhhhhh).”

And I posted a rather lengthy reply to them and I’ve been thinking about this for awhile. I want more people to read and see it, so I figured I’d make a post. What would you do? Below is what I said in my comment:

“Thanks everyone. I’m still deciding. I have another meeting with my adviser today. If I switch to just a General MBA, then I will have no problem graduating next semester (because the classes are generally easier and there are more classes offered), but if I stick to my MBA with an emphasis in Finance, then it’ll take longer because the classes are harder and not offered as much. So if I stick with Finance, then I would take 4 classes next semester and 2 in in the Fall of 2012, but there’s always a chance that the classes might not even be offered.

So I’m stuck. I can be done next Spring easily or I can hope that the classes that I need are offered.

And another way that I’m stuck is that I don’t even know if an MBA with an emphasis in Finance is any better than a General MBA. They both require the same amount of credits and employers and clients don’t really care if you have an emphasis or not, because after my name, just the 3 letters would be showing (MBA), so it’s not like anyone would even know the difference. Clients and employers usually care more about designations and licenses. I’m also thinking about just doing a general MBA regardless of the time because it won’t even really matter.

Also, if I wait to graduate until next Fall, then there’s the chance that I’ll get a bigger raise overall because my work is already giving me a big bump in June, and therefore if I graduated in May, I would be afraid that my bumps won’t be as big since they would both be in the same month.

Also also (sorry haha), but if I wait until December, then I can defer my loans for an extra 6 months (this is versus if I graduated in May), and most of my loans are federal loans that don’t gain interest, so I would essentially be saving money as well.”

And for those wondering, I would be able to fit the 6 classes in, because one class only meets everyday for two weeks and that’s all. And the other class is a class that’s only on Saturdays. I just really want to be done with school, but is it the best choice? Should I go slower so that I’m not burned out? I’ve taken a lot of classes before, so I’m not afraid that I won’t do as well (but I’m sure my grades would be slightly worse). When I was an undergrad, I often took 21 credits, while working full time and living on my own, but those were difficult times, so I don’t know if I want to do it again.

What would you do?

Secrets of Early Retirees

Last Updated: April 7, 2021 BY Michelle Schroeder-Gardner - 10 Comments

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Everyone wants to retire early right? Retirement seems so far away for me (and it is) but I still want to retire early. But am I prepared?

Yahoo! Finance had an article about early retirees and I thought it would be helpful to compare myself and see where I am.

1. Do you save for retirement outside of just your workplace plan? I save, most of my retirement fund is from my work though, because I’m trying to pay down debt first.

“69% of early retirees do this vs. 60% of those who plan to retire after 65 and 49% of those who say they’ll never retire.”

2. Do you defer a high percentage of their salary into a retirement plan? No. I feel like I’m already failing at this article.

“Early retirees defer a median of 10% vs. 6% for those who plan to retire after 65 or don’t plan to retire.”

3. Did you start saving at a young age? I started saving awhile back! This is something that I did not fail at. I expect all of my debt (besides my mortgage payment) to be done in a couple of years, and then I will start heavily saving and investing.

“The median age early retirees begin saving is 25 vs. 30 for those who will retire after 65 and 31 for those who never plan to retire.”

4. Do you have a thought-out retirement savings strategy? No I do not. All I’ve really thought about is that I want to retire.

“71% of early retirees have either a written plan (16%) or a non-written plan (55%), while just over half of those who plan to retire after 65 do and just one-third of those who will never retire do.”

5. Are you very involved in managing and monitoring your retirement accounts? I monitor them all the time. Nearly everyday.

“71% of early retirees say they are very involved vs. 58% of those who will retire after 65 and just 45% of those who say they will never retire.”

6. Have you saved the same amount or more since the recession began? I have saved more. Considering I was only around 18 when the recession started, of course it’s more.

“71% of early retirees are doing this compared to 61% of those who will retire after 65 and just over half of those who never plan to retire.”

How are you doing? What are your retirement plans?

Do you raise your deductibles to save money?

Last Updated: December 8, 2014 BY Michelle Schroeder-Gardner - 9 Comments

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Whenever I read articles about saving money, the article almost ALWAYS says to adjust your deductibles for different things, such as car and home insurance.

My auto deductible is at $1,000 and my house is at $1,500 I think (I’m not even sure, this amount may be way off, I should probably check on this). Some people think $1,000 is high, but I’ve never been in an accident where it’s been my fault, so I’ve never had to pay my deductible. I’m not too worried that anything will happen. And raising it from $500 to $1,000 saves around $100 every 6 months.

So what do you do? How high are your deductibles?