So how much is "too much" to have in the bank?

[quote name='Dead of Knight']The real secret to life is not to worry about that shit.[/QUOTE]

I know the secret - I just have a hard time executing. I try not to worry about that shit but it is hard. I mean, I don't care at all how others perceive me but I still want to live in a nice house and go on vacations and stuff.
 
[quote name='mtxbass1']Bringing this back from the dead.

Along the same lines as the OP. How much are you guys budgeting for "fun" in your monthly budget or expenses? It seems to be tough to get an answer from anyone, so I'd like to get some opinions here.[/QUOTE]

Yeah, like some of the others, I don't really have a set fun budget. I used to back in grad school as money was super tight for 3 or so years so I had a spreadsheet as I had to be careful to not waste money and not have enough for bills.

Now I have enough descretionary income that I don't have to worry about it. I'd still take a few months to save up the money if I wanted to blow $2K on a tv or trip or something as I'm pretty frugal.

But I don't have a need to budget out money for eating out, going to the movies, buying the occasional cd, bluray or game etc. as I can do that and still have $500-1000 to move into savings most months after bills. But a big part of that is I keep busy with work, so other than eating out with the girlfriend a couple times a week I really don't spend a lot on entertainment beyond my $11 or whatever Netflix subscription.

So like others, my need to buy random crap has decreased dramatically. Hell I just donated 50 some DVDs recently. Maybe 10-15 where things I upgraded to blu or will when they're available, but most were movies I bought years ago when I was really into collecting that I was just very unlikely to ever watch again.

Social status stuff I've never cared about. Never cared about having a fancy house--fine with a condo. Never cared about nice cars, or fancy vacations etc. My one weakness is loving good food and good beer. So I do splurge on those--but not for status reasons. Just a couple of the few pleasures in life for me!
 
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It's impossible for me to save money in my current situation as a graduate student. I make just enough money at my part time job to pay the bills, and my schooling is covered. I've got law school after this and loans to pay off after that, so I can't reasonably expect to have a decent savings for another 5-6 years.

This talk of 6 months living expenses amuses me :)
 
[quote name='javeryh']I know the secret - I just have a hard time executing. I try not to worry about that shit but it is hard. I mean, I don't care at all how others perceive me but I still want to live in a nice house and go on vacations and stuff.[/QUOTE]

Well, you are a lawler and I know the big banking and lawler culture is a lot about others' perception of you. Hell I see it in my dad who is a banker.
 
[quote name='mtxbass1']Why do you think our society is now structured like that? Why has the topic of wealth become such a taboo thing, rising up to the level of politics and religion? Since when is it bad to talk to other people about how to use the money you do have wisely? It really amazes me really money can really be clumped in to that grouping. Not disagreeing one bit with you btw in those regards. It's just a bit sad that it's becoming one of those "things" you don't talk about.[/QUOTE]

I think it's partly because it kind of is political. Anything with any real significance is pretty much political. But aside from that people also don't like to be told what to do and financial advice offends people pretty easily I think, in the same ways that talking about religion and politics can.

[quote name='rusty']It's impossible for me to save money in my current situation as a graduate student. I make just enough money at my part time job to pay the bills, and my schooling is covered. I've got law school after this and loans to pay off after that, so I can't reasonably expect to have a decent savings for another 5-6 years.

This talk of 6 months living expenses amuses me :)[/QUOTE]

If you don't already have a planned budget you should make one and see if that's entirely true. If there's anything you can change to save money you should do it. In the fall both me and my gf will be grad students, but we'll still save at least $600 a month. We'll get stipends for TAing and what-not, but it will be equivalent to part-time pay. How much do you make and how much do you pay for rent and necessary bills (utilities, phone, insurance, etc.)?
 
[quote name='rusty']It's impossible for me to save money in my current situation as a graduate student. I make just enough money at my part time job to pay the bills, and my schooling is covered. I've got law school after this and loans to pay off after that, so I can't reasonably expect to have a decent savings for another 5-6 years.

This talk of 6 months living expenses amuses me :)[/QUOTE]

Been there, done that on the grad school thing. It was difficult but you CAN save money somewhere. Save $30 a month. You'll have $360 at the end of a year. Just make sure when you graduate from college, you continue to live like a college kid for a while. It will help you a lot when you actually do get a job. For me, I continued (and still do somewhat), to live like I was in college for the first few years after I graduated. It helped me accumulate a good deal of savings, etc.
 
[quote name='Dead of Knight']Well, you are a lawler and I know the big banking and lawler culture is a lot about others' perception of you. Hell I see it in my dad who is a banker.[/QUOTE]

Tell me about it. I know partners who make hundreds of thousands of dollars but basically live paycheck to paycheck. They feel like they have to spend because everyone else around them is spending. I don't get it. I am so unimpressed by the car you drive or the house you live in or the vacations you take. None of it matters.
 
[quote name='rusty']It's impossible for me to save money in my current situation as a graduate student. I make just enough money at my part time job to pay the bills, and my schooling is covered. I've got law school after this and loans to pay off after that, so I can't reasonably expect to have a decent savings for another 5-6 years.

This talk of 6 months living expenses amuses me :)[/QUOTE]

Same, minus being a grad student. I pretty much have to start skipping meals over the next 2 weeks in order to cover the $250 deposit I had to send in to hold my seat for law school. I don't plan on going into law to be rich but I'll be damned if I'm still making the sub-$30,000 a year at Target that I'm making now.

I pretty much live paycheck to paycheck and I'm driving an almost 9 year old car I pray doesn't give out on my in the next 2 months. My money in the bank is my checking account which is constantly low after paying all my bills each month. The most I've had at one time in the bank was close to $2,000 after getting my tax return.
 
[quote name='mtxbass1']Been there, done that on the grad school thing. It was difficult but you CAN save money somewhere. Save $30 a month. You'll have $360 at the end of a year. Just make sure when you graduate from college, you continue to live like a college kid for a while. It will help you a lot when you actually do get a job. For me, I continued (and still do somewhat), to live like I was in college for the first few years after I graduated. It helped me accumulate a good deal of savings, etc.[/QUOTE]

I was able to put aside $75 a month in grad school too. It's definately doable.
 
Yeah I managed to save up a bit my last 4 years of grad school after I bit the bullet and lived with roommates etc. You should be so damn busy between classes, studying and working that it's hard to waste money anyway!

I also had it better than most as I had 30 hours of pay year roundfrom working on research projects almost every semester of grad school, rather than the standard 20 hours only during the 9 month school year that many of my classmates had, so that obviously helped a ton as well.
 
[quote name='dmaul1114']Yeah I managed to save up a bit my last 4 years of grad school after I bit the bullet and lived with roommates etc. You should be so damn busy between classes, studying and working that it's hard to waste money anyway!

I also had it better than most as I had 30 hours of pay year roundfrom working on research projects almost every semester of grad school, rather than the standard 20 hours only during the 9 month school year that many of my classmates had, so that obviously helped a ton as well.[/QUOTE]

Nice. It also helped that on my second semester, they raised the 20 hour pay by almost 50%. Would have been much much harder without it.
 
[quote name='mtxbass1']Been there, done that on the grad school thing. It was difficult but you CAN save money somewhere. Save $30 a month. You'll have $360 at the end of a year. Just make sure when you graduate from college, you continue to live like a college kid for a while. It will help you a lot when you actually do get a job. For me, I continued (and still do somewhat), to live like I was in college for the first few years after I graduated. It helped me accumulate a good deal of savings, etc.[/QUOTE]

[quote name='SpazX']If you don't already have a planned budget you should make one and see if that's entirely true. If there's anything you can change to save money you should do it. In the fall both me and my gf will be grad students, but we'll still save at least $600 a month. We'll get stipends for TAing and what-not, but it will be equivalent to part-time pay. How much do you make and how much do you pay for rent and necessary bills (utilities, phone, insurance, etc.)?[/QUOTE]

[quote name='RedvsBlue']Same, minus being a grad student. I pretty much have to start skipping meals over the next 2 weeks in order to cover the $250 deposit I had to send in to hold my seat for law school. I don't plan on going into law to be rich but I'll be damned if I'm still making the sub-$30,000 a year at Target that I'm making now.

I pretty much live paycheck to paycheck and I'm driving an almost 9 year old car I pray doesn't give out on my in the next 2 months. My money in the bank is my checking account which is constantly low after paying all my bills each month. The most I've had at one time in the bank was close to $2,000 after getting my tax return.[/QUOTE]

If I wanted to start saving money, I could maximize my hours at work. I could do a little bit more work to fill out my maximum hours, rather than a few below that. I could save all that extra money and even sell some stuff I don't need/want. I recently sold my 360 when I bought a PS3. I basically switched systems for no cost. It would probably be smart for me to clean out some stuff I don't need anymore and try to recoup some cost. If I maximize my time/paycheck at work and minimize the money I spend, I would probably be able to save up a few hundred before next summer. I used the word "impossible" to describe my ability to save money, but perhaps I exaggerate a little, ha.

I guess my problem is that I have little incentive to save because I'll just be taking loans out for 3 years to cover law school starting Fall 2011.
 
It's interesting that people on a forum about cheap video games are much smarter with money than the average people I see around. Then again, I guess that makes sense. :)
 
[quote name='Dezuria']It's interesting that people on a forum about cheap video games are much smarter with money than the average people I see around. Then again, I guess that makes sense. :)[/QUOTE]

Some of us are here for the community and not so much the deals anymore.
 
Keep roughly two month's expenses in checking, six month's expenses in savings (ideally a high-interest savings account like ING), and, aside from other investments you may want to make for profit put the rest in treasury-backed securities. They're just about the safest possible investment you can make and generally pay back far more than a bank's saving's accounts or CDs. If you're concerned about liquidity you can get T-Bills that mature in about a month so you're never locked-in and consistently beating inflation.
 
I used to work for a very large bank for years and I'd say about 90% if the people I helped every day lived paycheck to paycheck.
 
[quote name='pimpster4183']I used to work for a very large bank for years and I'd say about 90% if the people I helped every day lived paycheck to paycheck.[/QUOTE]

Scary but totally believable.
 
[quote name='rusty']If I wanted to start saving money, I could maximize my hours at work. I could do a little bit more work to fill out my maximum hours, rather than a few below that. I could save all that extra money and even sell some stuff I don't need/want. I recently sold my 360 when I bought a PS3. I basically switched systems for no cost. It would probably be smart for me to clean out some stuff I don't need anymore and try to recoup some cost. If I maximize my time/paycheck at work and minimize the money I spend, I would probably be able to save up a few hundred before next summer. I used the word "impossible" to describe my ability to save money, but perhaps I exaggerate a little, ha.

I guess my problem is that I have little incentive to save because I'll just be taking loans out for 3 years to cover law school starting Fall 2011.[/QUOTE]

I'm trying my best not to fall into that mindset but it is a little difficult to worry about spending an extra $20 on something when I am committing to what could easily be 6 figures of student debt.
 
[quote name='javeryh']Scary but totally believable.[/QUOTE]

Yep. When you add up the people who truly just have trouble making ends meet, and the bigger chunk that just can't manage money and buy stuff they can't afford it's not surprising at all unfortunately.
 
[quote name='pimpster4183']I used to work for a very large bank for years and I'd say about 90% if the people I helped every day lived paycheck to paycheck.[/QUOTE]

That's basically what I do now. I had a bit of savings before coming to grad school. But I bought a car in there somewhere and put some necessary money into the car, so now my savings are gone. That was all money that needed to be spent.

I guess before seeing this thread, I had never really thought about saving money at this point in my life being a realistic possibility. I've been inspired to reduce my costs and attempt to live modestly enough and work as much as possible to secure some bit of savings before law school. Then, during law school, I can take out only the loans I absolutely need so as to minimize my student loans.
 
[quote name='rumblebear']At least a year worth of living expenses, plus more for future education, children, uncovered health problems, etc. Anyone who is spendthrift and lives from paycheck to paycheck deserves to become a homeless bum once they get laid off (and can't find a replacement job) instead of leeching off friends and family.[/QUOTE]

As a poor college kid living from paycheck to paycheck I say fuck you!
 
I'd say his comment is more for people who are done with school and into the real world. It's very tough save of much money while still in school.
 
This is a very interesting thread, as it's something I've been thinking about lately. I'm a graduate student going on fellowship tenure starting next month, so I will actually start making more than I currently make (which is still plenty more than most graduate students make per year). As it is, I easily pay my bills every month, including plenty of frivolous spending on video games, records, eating out, etc. I have ~4 months' salary in my bank accounts, and that has been growing every month. I'm probably going to refinance my mortgage soon, which will reduce my biggest monthly expenditure. I have absolutely no debt, other than my mortgage.

The problem is: I know NOTHING about investing. All I have is my savings account, the monthly interest on which is practically nothing. I need to talk to someone about moving some of my money around to "make it work for me," because it really does not make sense for my bank balances to be any bigger than they already are.
 
[quote name='siderealshift']This is a very interesting thread, as it's something I've been thinking about lately. I'm a graduate student going on fellowship tenure starting next month, so I will actually start making more than I currently make (which is still plenty more than most graduate students make per year). As it is, I easily pay my bills every month, including plenty of frivolous spending on video games, records, eating out, etc. I have ~4 months' salary in my bank accounts, and that has been growing every month. I'm probably going to refinance my mortgage soon, which will reduce my biggest monthly expenditure. I have absolutely no debt, other than my mortgage.

The problem is: I know NOTHING about investing. All I have is my savings account, the monthly interest on which is practically nothing. I need to talk to someone about moving some of my money around to "make it work for me," because it really does not make sense for my bank balances to be any bigger than they already are.[/QUOTE]

Well first make sure your savings account is at ING or another higher-yield online bank. It's easy and secure. I have my savings in there rather than the market because we plan on going on our honeymoon soon and putting down a big down payment on a condo/house in the next couple years. But it sounds like you might be better off investing. Try index funds, and make sure you are putting money into a retirement account first (IRA or a Roth IRA depending on your needs).
 
Right now, because I am in school, I don't have a savings account. I have a checking account that has roughly 3 months of bills in it and is set up for automatic deposit of paychecks/withdrawal of bills. I have a safe with over $4,000 saved up but since it's not in an account I don't claim it on FAFSA.
 
[quote name='crushtopher']Right now, because I am in school, I don't have a savings account. I have a checking account that has roughly 3 months of bills in it and is set up for automatic deposit of paychecks/withdrawal of bills. I have a safe with over $4,000 saved up but since it's not in an account I don't claim it on FAFSA.[/QUOTE]

then you're a criminal ;)
 
[quote name='crushtopher']I have a safe with over $4,000 saved up but since it's not in an account I don't claim it on FAFSA.[/QUOTE]

That would be illegal bro.
 
[quote name='Dead of Knight']Try index funds, and make sure you are putting money into a retirement account first (IRA or a Roth IRA depending on your needs).[/QUOTE]

Yep that's the best thing for those of us who know little to nothing about investing and don't want to take the time to become experts.

Just find a good mutual fund and start an IRA/Roth IRA with it. Lots of funds out there that are based on your estimated retirement date--will start off very aggressive (stock heavy) and get much more conservative as you get closer to that end date with more money in bonds etc. You can get these for IRAs, 401Ks and other retirement funds.

Which is the best way to do it IMO--go aggressive while your young and take the risk and hope you can build up the account early on and get the interest really compounding, and then gradually dial down the risk over the years as you get closer to having to live off your retirement savings.
 
[quote name='siderealshift']This is a very interesting thread, as it's something I've been thinking about lately. I'm a graduate student going on fellowship tenure starting next month, so I will actually start making more than I currently make (which is still plenty more than most graduate students make per year). As it is, I easily pay my bills every month, including plenty of frivolous spending on video games, records, eating out, etc. I have ~4 months' salary in my bank accounts, and that has been growing every month. I'm probably going to refinance my mortgage soon, which will reduce my biggest monthly expenditure. I have absolutely no debt, other than my mortgage.

The problem is: I know NOTHING about investing. All I have is my savings account, the monthly interest on which is practically nothing. I need to talk to someone about moving some of my money around to "make it work for me," because it really does not make sense for my bank balances to be any bigger than they already are.[/QUOTE]



the first thing I'll say about investing...

if you have a 401K or something similar at work and get a match... put enough in it to get that match first.

second. Decide if you want that money sooner or later... if you're just planning on putting money away till retirement. IRA's... if you don't make more than 105K single or 167K joint you can put up to 5K this year in either a traditional or Roth IRA. Now if you're younger the Roth is probably better since you pay taxes on the money you invest this year and whatever it makes till you can take it out at 59-1/2 is tax free. The traditional you get a credit on your taxes this year for what you put in but owe taxes on what it makes when you draw it out.

third. decide how much you can sleep at night when the market comes crashing down. this will happen and you will lose money on paper. No one can tell you how much risk you can handle. Only you know the answer to this and in all honesty, you prolly don't really know till you go through a stomach twisting drop.

If you dont like risk... stick mostly with bonds ( I like buying bonds straight out and not bond funds ). Look for higher rated, stable companies.
If you like risk... go for mutual funds... I use vanguard.com for some... they're nice and cheap and the have some nice index funds. fidelity.com is another good place but I've never used them.
If you like extreme crazy amounts of risk... well troweprice.com has some crazy asian/african/middle east funds... Yeah I know you can get them other places but I've used these... fun fun.
You can always buy staight stocks but I definitely don't recommend that for people just getting started. The key is diversification and it's hard to do buying individual stocks.

fourth. Yeah yeah this isn't sexy but always remember... don't invest something you can't afford to lose. Don't think of your home as an investment. I'll also say don't put everything into the market. Keep a decent proportion of your portfolio in the bank. CD's when the rates go back up. This will help with down markets.

Like someone said.. the retirement dated funds most companies have now would prolly be a good place to start. Also most larger banks have brokers that can help with some of this, just be warned that not all are looking out for your best interest and most will come with a hefty price tag, if you use them, but you can setup an appointment and talk with most of them for free.
 
[quote name='Afflicted']
second. Decide if you want that money sooner or later... if you're just planning on putting money away till retirement. IRA's... if you don't make more than 105K single or 167K joint you can put up to 5K this year in either a traditional or Roth IRA. [/QUOTE]

Dang, I didn't know the limits were that low! So if you're above those you you can't contribute at all to an IRA? I have a roth that has less than 1K in it, if that's the case I may just close it out as it's always lost money the 7 or so years I've had it.

I probably won't hit 105K single any time soon, but if I married my current girlfriend our joint income would already be around $145K--and we're both early in our careers (both professors) so we'd get over the $167K probably in 5 years or so minimum.

Makes no since that joint isn't just twice the single limit.
 
[quote name='dmaul1114']Dang, I didn't know the limits were that low! So if you're above those you you can't contribute at all to an IRA? I have a roth that has less than 1K in it, if that's the case I may just close it out as it's always lost money the 7 or so years I've had it.

I probably won't hit 105K single any time soon, but if I married my current girlfriend our joint income would already be around $145K--and we're both early in our careers (both professors) so we'd get over the $167K probably in 5 years or so minimum.

Makes no since that joint isn't just twice the single limit.[/QUOTE]


well the limits I posted are when the maximum you can contribute start dropping. Also those limits are for the current tax year and have increased over the last 5 years and will probably continue to increase. also if you close it out you will have a penalty so I wouldn't close it... maybe change up how it's invested? Also... you may not marry your current gf... :) just throwing that out there... hehe


I'm assuming the limit isn't double because even the federal government thinks that men should earn more. :lol: ok ok.. I really shouldn't have said that but ah well.
 
[quote name='Afflicted']well the limits I posted are when the maximum you can contribute start dropping. Also those limits are for the current tax year and have increased over the last 5 years and will probably continue to increase. also if you close it out you will have a penalty so I wouldn't close it... maybe change up how it's invested? [/QUOTE]

Oh I'll definitely change it up--not sure if I'll get a penalty or not.

It's with Ameriprise currently and they just suck. My other retirement accounts are with TIAA/CREF and they've been great, so I want to roll that roth IRA from Ameriprise into a new IRA with them if I keep it.

It's nothing anyway--started at $1,100, got up to like 1,500, then fell down to $650 or so during the crash--haven't checked it in months though, so not sure if it's bounced back any.

But I want to get some other account going as I'll want to save more than my mandatory retirement account allows once I get some savings built up-as noted earlier it's 5% of my salary from me, 9.24% from employer and I can't put more or less.


And yeah, I may well not end up marrying my current girlfriend--but I'd like end up with someone making OK money anyway as I'm really only interested in successful professional women--I work my ass off so I really need a significant other that does the same (i.e. not clingy etc.). Also don't want kids (so don't want a housewife), and that's more common among career minded women! :D
 
Finally got around to filling out the paper work to roll my crappy Ameriprise Roth IRA into to a TIAA/Cref Roth IRA. Probably should have diversified more, but went with the same 2040 retirment date mutual fund that I have my main retirement account it.

Also got the ball rolling on transferring my prior university job (last year of grad school) 2040 retirement fund into my current universities fund (same fund/type of account, just need combined)--have to get a form signed by my prior university on that.

Way too much damn paperwork to do this kind of stuff!
 
[quote name='dmaul1114']Finally got around to filling out the paper work to roll my crappy Ameriprise Roth IRA into to a TIAA/Cref Roth IRA. Probably should have diversified more, but went with the same 2040 retirment date mutual fund that I have my main retirement account it.

Also got the ball rolling on transferring my prior university job (last year of grad school) 2040 retirement fund into my current universities fund (same fund/type of account, just need combined)--have to get a form signed by my prior university on that.

Way too much damn paperwork to do this kind of stuff![/QUOTE]


Yup some places like to make ya jump through hoops for your money.
 
I'll echo some other sentiments and say this is a very interesting thread.

I guess I will just give my current break down: I graduated from school 2 yrs and 1 month ago, and since that time I managed to pay off all my school loans (approx 35 K) and bank approx 10 K.

I had a few other expenses in the mean time like room, board, and I had to get a "new" car since my 1992 Topaz finally bit the dust.

I'm now looking to go to grad school is about a year (taking the GMAT in about 3 weeks and then the GRE). I'm not exactly sure which route I want to go. MBA and Engineering dual degree program, just engineering, just MBA, etc. I do know that I'm going to try and avoid going to an expensive private school unless I get a great deal of assistance, grants, or what not. I don't want to end up with 100 K in debt from grad school.

So right now I'm debt free and trying to save. I don't have a real budget, but I'm not really a high upkeep kind of guy. Jeans and T-shirts. I buy a few video games, maybe go to the movies, eat out, etc. I don't like real fancy or expensive clothes, cars, etc. Some people in my family rank on me for having a 2000 Camry saying I should've bought something nice now that I'm out of college, etc.

I guess my only real weakness are vacations. I love going new places and seeing stuff. Since graduation I've gone to Japan, Hawaii, and Las Vegas plus a bunch of small road trips to western NY, Niagra Falls, Prince Edward Island, etc.
 
I do the following:

1: Max out my Roth IRA. $5000/12 is somewhere around $420/month. All of it is invested in an S&P 500 index fund, per Warren Buffett's advice. I think that guy knows a bit about making money.
2: Put about 8% in my 401k. My employer offers no matching, so I just put what I can afford. I don't even particularly like 401ks without matching, since you're just delaying the tax until retirement age (which may be more severe than when you earn income.)

IIRC, you can withdraw principal for free from the Roth, so eventually I'll use that to buy a house.

For savings, I save an additional 25% and stash it in a savings account. Some of it I have targets for things (Japan Trip 2010! Yeah!). Others just accumulate there.

I also still live at home, but I'm planning on moving out next month which means I may have to cut savings. But because of that I enjoyed a lot of stupid expensive stuff. =)

I feel like 2/3 months worth of extra savings is enough. Any more than that should be invested. I've been hearing 6 months, but really... 6 months? That seems like way more than you'll ever need.

I'm also very aggressive/risk-tolerant so maybe that's why.
 
[quote name='javeryh']I know the secret - I just have a hard time executing. I try not to worry about that shit but it is hard. I mean, I don't care at all how others perceive me but I still want to live in a nice house and go on vacations and stuff.[/QUOTE]


here's the true secret. Make your house a place that you love to be... so much so that you don't NEED a vacation from your life. Vacations should be what you do when you think of some place that's interesting/fun/new to go (since you obviously can't go on a cruise inside your house etc... unless your house is a yacht).

Your financial situation is solid sounding compared to most people, and you've gotten some pretty good advice:

1 year (or more with the economy in the crapper) of savings that can be tapped with minimal delay (standard savings acct can usually be withdrawn in short order, and can earn a minor interest rate).

Pay down your debts, since the interest rates on the debts usually outpace your money's ability to earn its own interest. (mortgage is usually and exception since rates are lower, and the amount is larger.

if you're paranoid about bank failure, don't let accounts exceed FDIC insurance.

Consider how good your health insurance is, and match it up against using a "high deductible health insurace" combined with a "health savings account". Often times the monthly premium for regular insurance is higher than a high deductible offering, and the coverage is lower. The health savings account has some decent tax incentives going for it, and is basically meant to be of the amount of your deductible.

Finally.... Meet up with a CFP (Certified financial planner). For a minor fee they will help you keep track of your money when it's spread among various banks/investments, and will USUALLY give you sound advice on where your money should be sitting at the moment (usually not your checking account). I know a guy who's good at what he does, and is a CPA as well (another cost savings, since the tax guy will have all your financials readily available). PM me if you care to know.
 
munkapotamus: I agree with you about the house. I am in the process of planning an addition - I want to make it as cool as possible. I want the house to be not only a place where I love to hang out (which it kind of currently is) but also a place where my kids want to hang out when they get older. I'm thinking about adding a theater, gameroom/arcade and bar in the basement. Should be pretty sweet if I can pull it off.

As for the money advice - I married my financial planner. My wife is a CPA and she takes really good care of our finances. In fact, I really don't have to do anything - I haven't paid a bill or written a check in over 10 years!
 
[quote name='kainzero']I feel like 2/3 months worth of extra savings is enough. Any more than that should be invested. I've been hearing 6 months, but really... 6 months? That seems like way more than you'll ever need. [/QUOTE]

What if you lose your job for 6 months?

The last time I was out of work was for 7 months. Unemployment helps, but it shouldn't be relied on.
 
Never trust investing people unless they are on % (which is none of them) - they don't give a shit about other people's money, only their commish.
 
Yeah, that's a big part of why I wanted to move the one IRA from Ameriprise to TIAA/Cref. The advisors at Ameriprise sucked, while TIAA/CREF gives free consulting and has no fees on the IRA.
 
So uh, as long as this is the go to investment thread, got a quick question.

I have 40k that I'm looking to do something with for the next year. I don't wanna tie it up much longer then that. Any input would be appreciated.
 
[quote name='perdition(troy']So uh, as long as this is the go to investment thread, got a quick question.

I have 40k that I'm looking to do something with for the next year. I don't wanna tie it up much longer then that. Any input would be appreciated.[/QUOTE]

Buy a $80K house with the $40K and resell it for $60K. That should take a year.
 
Tough call, normally CDs would be the way to go for a 1 year turn around. But the rates are so low you'll be lucky to find one that's better than leaving it in an online "high" interest savings account like ING for a year.

Maybe there's some bond or money market options that you can withdraw from after a year with no penalty--hopefully a more knowledgeable investor type will have some better advice for you.
 
[quote name='dmaul1114']Tough call, normally CDs would be the way to go for a 1 year turn around. But the rates are so low you'll be lucky to find one that's better than leaving it in an online "high" interest savings account like ING for a year.

Maybe there's some bond or money market options that you can withdraw from after a year with no penalty--hopefully a more knowledgeable investor type will have some better advice for you.[/QUOTE]

Look into Ally or some online bank as stated by dmaul. or if you want to do a little bit of work for ~3% gain. look at your local credit unions. they usually will have a power checking account that gives you the same rates as a CD without locking your money to them. the only catch is that you must meet some requirements like using their check card as a credit card a couple of times a month. best one would be to look for one that will allow you to do free ACH push/pull. that way you can transfer money in and out of that account, sometime one of the requirement would just be moving the money in and out of the account 10 times a month.
 
[quote name='javeryh']
As for the money advice - I married my financial planner. My wife is a CPA and she takes really good care of our finances. In fact, I really don't have to do anything - I haven't paid a bill or written a check in over 10 years![/QUOTE]

I'm (almost) a CPA and my husband does all the bills except for my credit card even though he is an engineer. We do our taxes together. :lol: It's nice to have a husband who is financially literate but wasn't schooled in it.
 
[quote name='Dead of Knight']I'm (almost) a CPA and my husband does all the bills except for my credit card even though he is an engineer. We do our taxes together. :lol: It's nice to have a husband who is financially literate but wasn't schooled in it.[/QUOTE]

Must be nice. I have an engineering degree and I used to be able to do crazy math once upon a time but if you put a dollar sign in front of any number I go cross-eyed. Go figure.
 
i just opened a 2nd savings account with my bank. im not going to put a ton in there, just a little bit here and there. but itll be nice to have one with my bank because my other savings account is with ING. the big downside with that is if i want to transfer over like $100 to make a purchase (no doubt on something i shouldnt) i have to wait 2 days. whereas opening it with my bank ill be able to make that transfer instantly.
 
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