Post # 1
Just wondering about this. Mr.flipflops and I hardly ever use ours. We have one just because its more of a necessity but we only keep emergency savings in there and a few dollars in the account to keep it open. Other then that, every check is cashed and we use the envolope system. (Every envolope is for some bill and we put the money straight into that) After having SO MANY problems with banks I just don’t even want to use one anymore.
I’m trying so dang hard to get us debt free. Student loans and one credit card to go. I just feel more comfortable having my money in my hand. I feel more in control. Anyone else feel this way or do things like this?
Post # 3
I totally see where you’re coming from I guess, but do you pay your bills in cash? Doesn’t that make you nervous that there is no paper trail? Like a check #? I like doing everything through my bank account so it’s documented. But that’s just me. It seems like your really on top of your finances, so thats good.
You really should consider opening up a high-yield savings account (I like AmEx Personal Savings). Having all your money lying around doesn’t do you any favors. Or it’s just as bad to have “savings” in a normal bank account. It’s not gaining you any money. And how much fun is it to watch your money grow? Personally, I love seeing my savings grow without me having to do anything. I just put money in little by little whenever I had it, and over time the interest really adds up. Yeah it’s not much, but it makes a big difference. I also have an investment account, but I’m not very good with the whole stock market thing. So I just put a little bit of money into safe stocks and it’s already grown about 25%. Sweeeet.
Post # 4
Even though I think the envelope system is a good idea, I don’t use it because A) I would never feel comfortable having that much cash on hand/in the house B) I can’t pay my bills with cash and C) Cash for me is WAY easier to spend and blow through than a debit card and
Post # 5
I have a friend who kept his life savings in an old nintendo console. His house got broken into and the nintendo was stolen. He lost like $12k that day.
So no, I don’t do this. I had my identity stolen when I was 20, and the only thing that allowed me to get things back on track was the fact that I was with a major bank who refunded my money within a week (and would have given me a “loan” until that point if I had requested it). I also really like free credit card/debit card points, I can’t pay bills in cash, and it’s much easier for me to track my spending this way.
Post # 6
i use the envelope method for groceries and fun money. pretty much everything else has to be paid by check, and i never feel comfortable having a lot of cash around.
Post # 7
Wow….we have high interest checking AND savings accounts. We have free bill pay (I haven’t paid for a stamp in years), and our money is safe and secure.We make a decent chunk of change off of interest, and are constantly rolling our savings over into CDs with higher interest rates. That’s on top of the 401K investing we already do (made over 33% on my account in the last year – your money won’t do that sitting in an envelope).
What if your house burned down? What if you were robbed? What would happen?
In all seriousness, though, if your money isn’t earning interest, it is devaluing with every passing moment through inflation. Not to mention the growth you are missing out on for retirement.
Post # 8
Do you actually mail your bills in cash? I cant tell you how dangerous that is! That cash could soooo easily be stolen by someone in the post office. Why have you had such bad experiences with banks? Maybe you should try a new one or a couple different ones until you find one you like. Your money will be so much safer there.
Post # 9
I agree with @crayfish. We just dump everything into one account then tranfer any extra to a high interest account after we’ve paid our bills. Once we get a decent chunk it goes to a CD.
It would make me nervous to have just cash around. Plus I like being able to track every payment thru our account. BUT if that’s what works to keep you from going into debt then that’s cool. If you’re able to save up any though you should put it in an account where it can earn some interest.
Post # 10
I absolutely use a bank account! More specifically, I have a credit union – much more “user friendly” than traditional banks. I also have a high yield savings account.
We pay all of our bills on a credit card (and pay off the full balance every month). I think it’s safer to have a paper trail, and with credit cards, you can dispute incorrect charges much more easily. The only physical check we write is our rent check.
I never carry cash – it’s too easy for me to spend on stupid things. I would be very, very careful keeping envelopes of cash around. And even when you pay bills – if an envelope gets lost in the mail you can cancel the check # and send another one. If you lose an envelope of cash in the mail, you are SOL!
Post # 11
@JrzyGurl: Actually that is a very good idea about the savings account thing. I will definetly look into that. I guess we haven’t really looked into our options (other then our 401k) for investing. For bills we will go and pay directly at the utility company. (Actually for a long time you could go to the general store and pay all your bills there. Yeah I came from a town THAT small! lol)
As for the big payments we do deposite our “envolope” money in the bank and then write out a check. As much as I still hate doing this its kinda hard not too. We used to have direct pay which we would just have our bills be taken out the same day out of our account for us every month. That turned into a HUGE mess! SO many times we had the bills come out a few days to a week before they were suppose too and even had money taken out when we didn’t authorize it. The bank would NOT work with us on that and pretty much made our account a free for all for whoever wanted their bills paid whenever they wanted it.
As for a debit card, oh lordy that gets me into trouble. If I can’t physically see my money then I feel theres an endless amount. I have to admit I’m terrible with plastic. So I stay as far away from that as possible!
Post # 12
You should really look into a credit union. They are smaller institutions than banks (but offer the same insurance protection for your money) and generally are more use friendly. Mine has no fees for overdrafts (I don’t ever overdraw, but if I did, it would be waived), has decent savings interest rates, and their customer service is amazing. I think you’d be much happier with a CU and would avoid most headaches that banks cause.
Post # 13
@JBelle7757: Actually I have been looking into Credit Unions lately. I really, really am starting to like the idea of a credit union wayyyy more then a traditional bank. Its just me taking a leap out of my comfort zone thats keeping me from doing it. =/
Post # 14
@MissFlipFlops: I get what your’e saying, and how it works for you. But I think you need to seriously consider a few different options. As the other posters commented, you never know what could happen to (break in, fire, etc). And, you’re losing out on the opportunity to make money through interest. If you’re that concerned about over spending do what I (sometimes) do. Leave all the money in your bank account for bills (rent, utilities, etc). Budget how much per week you are allowed to spend and only take out that much money per week in cash. This is kind of the best of both worlds. That way you have your cash in front of you, and you know you’re not overspending. But – you can easily pay your bills through your acct. And btw – with most companies you can “schedule” payments so you know exactly when the money will go through.
Post # 15
@MissFlipFlops: I dont do direct bill pay for that exact reason, it makes me nervous that I wont have the $ in the account at the exact time they decide to take it out. I still pay everything online but I go to every single website seperate and pay them individually when I need to pay it and when I know I have the $ in my account, you should think about doing this route.
Post # 16
If automatic payments got you into trouble (which is understandable), here’s something that might help (it’s what I do with my bills lol):
I get paid every 2 weeks, late Thursday night. I check my balance online Friday afternoon and make sure my paycheck went in, and then I pay all my bills online that same day. I pay a little more than ½ the amount due (except for credit cards, which I pay off completely when the bill is due). I like to pay them as soon as I get paid, so I know bills are paid and I know how much “fun money” I have leftover.
That way, you are not shelling out huge sums at the end of each month, and are always a bit ahead of your bills. I keep a little “budget” document, and as I log on and pay each bill, I check each box off, so I quickly know what I’ve paid and what I haven’t.
Since I check if my money is there first, I don’t run into companies processing payments before I get paid, causing overdrafts, etc.
There’s probably an automated way to do this, I kind of like the Friday afternoon routine of paying the bills.