Money is tight. We have a bad financial situation here in the States and it's affecting everyone, even the rich. What's worse is its affect on the economies of other countries. There is little that we can do to change the past. What's done is done.
If we're going to fix this fiasco then we'll need to do it "old school." What I mean by this is simple. We are going to act poor. We are going to pay our debts. We are going to save. This will not be an easy task, and the first six months will be hell.
That means:
Save First.
Fewer trips to the movies.
Turning out the lights.
Line drying clothes.
Riding a bike or walking.
Cutting out the luxuries.
Renegotiating fixed debt.
Wearing a sweater in the house.
Not taking the Sunday Drive.
Avoiding gourmet coffee and tea houses.
Getting by on home cooked meals.
SAVING.
Putting money away for the rainy day is easy, keeping it out of mind and reach is hard. A savings account is a good start, and a wise place to put your cash, but it is easily accessed especially if it's tied into your checking account. I've thought about this for a while now and here are some ideas to make savings accounts less accessible:
Keep the Change Savings Accounts. I like these because it makes saving easy. These work by drafting the change off each transaction you make. Buy a cup of coffee for $4.19 and 81 cents is deposited into your saving account. Lot's of little transaction over time add up to big money savings. Just be sure to round up every debit card transaction to the nearest whole dollar or you won't be able to buy that much needed fifth of bourbon when you're best friend tells you he's sleeping with your sister.
Dual Signature Account. This type of account is structured with an "and" clause. John and Mary Smith, instead of John or Mary Smith would require that both parties be present to withdraw money. You set up the keep the change account this way.
Not at your Bank. Having a savings account at a bank other than the bank holding your primary checking account would make accessing funds via a web supported banking portal much more difficult. You couldn't transfer funds when you really wanted to get that new Coach purse, instead you would need to drive to the bank, during business hours, and make the withdrawal. Hopefully during the drive you'd have had time to think about more and decide to stick with what's working now.
Of course if you're screwed from writing a bad check...we've all done it...then you also would need to drive to that bank, withdraw, drive and then deposit. So don't write a bad check.
Coffee Cans in the Backyard. This is just a step up from the Bank of Serta, but a bit more fun. My Grandfather buried cash in his backyard in metal coffee and soup cans. Which meant that he and only he new where the cash was located. He was not earning interest. His deposits were not reported to the government. Metal cans rusted over time, and paper money rots. He would have been wiser to bury the money after converting it to gold or silver. However, when he was busy doing this, it was illegal for private citizens to own gold. I think though, that before he died he had used the last of his moonshine money.
Saving bonds. The easiest guranteed way to save some cash. There are a lot of naysayers in the financial planning that state this is not a good idea, but what do they know. They invest other people's money...right?
Buying Gold and Silver Boullion. Cold hard cash is king. Precious metal is rare; that's why it's precious. It lasts forever, and is annoying to redeem. You may not get a great return on your investment, but there are few things as safe as gold or silver. Then you need to consider protection from thieves.
In the end no matter what you may choose to do with your savings you're not going to make the best possible decision; every decision is wrought with error because you and I cannot know everything. We are not masters of time and the cosmos. If we were we wouldn't be worried about someone taking our gold.
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