Savings...

I am not savings a lot right now but I am paying down debt aggressively. I put in 6% of each check to retirement. I was also doing $100 per month to a 401k but I stopped because it was losing money.

 

I know it can be tough, but try putting $25 or $50 into a savings account each month via direct deposit. You'll never notice it missing from your paycheck and then one day you'll be like, "Damn, where'd this money come from?" It works. Smart move on the 6% going into retirement.

 

I am putting every thing I can to debt pay off right now. I am going to save a lot more interest that way than I would earn on savings. I plan to save when I get my debt paid off. I want my cash flow to be good enough so I do not fall into the trap of credit cards and car loans again.

 

I agree with VA49er. That's how I started. Started small, put $50 from my checking into savings. Once I got comfortable with that, I upped it to $100. Then I changed my health insurance plan so I am paying less monthly and put the money I 'saved' into my savings so now I got like $120 going into savings and I got a couple of thousand saved up (any rebates/refunds go in there too). I'm comfortable with that amount since it covers the amount I have to pay out for deductibles. I don't have to worry about scrounging money up for that now.

I also have paid off my credit cards and currently pay in full each month (which will haunt me later I'm sure with credit cards closing accounts left & right) and the money I now have 'left over' go towards the principal of my mortgage. I plan on having my house paid off in 10 years or less.

However, I need to put money into my Roth IRA which I barely bother with. I do contribute to my 401K on a regular basis and I'm years away from retirement age so I'm not worried about that.

I even opened another savings account with a different bank and have $15 a month going to it. It's not much, but it's $15 more than it had last month saved up. Maybe this will be my 'fun fund'. I need to buy a new computer soon and I rather have the money already saved up then pay off a credit card for months on end.

Saving account rates have dropped. Makes me so I keep checking out savings rates from different banks.

My savings habits didn't spring up because of the current economic situation. I basically learned it like Thelt has, not wanting to be indebted to credit cards and loans.

 

All sound like good ideas. I'm in the same boat with my Roth IRA. I haven't put anything in it for a while but have kept up with the 401k. Having two little kids puts a dent in any savings. Bank savings rates are really low right now but once the inflation picks up those rates will increase. If I can get my online account back up to 5% my savings rate will be more than my new mortgage rate. That will/would be sweet!

 

I really wish I could refinance my mortgage but it doesn't meet the requirements (like what I have left to pay is below what they would consider refinancing). I should just be happy that I can afford my mortgage!

Sometimes I think making a list of what you NEED and WANT helps keep you focused on your goals.

Good luck everyone on their financial endeavors!

 

I guess that's kind of a good thing in that your mortgage must not be too high and a lower rate probably wouldn't make to much difference given refi costs. I got mine down to 4.6% 30 year but paid a point. I plan to keep paying my previous payment though.

 

I like this guy's site, I used his calc's:
http://www.mtgprofessor.com/calculators.htm

Yeah it's nice my mortgage amount is low but it's at 7%ish and it wouldn't have hurt to refi at an even lower percentage.

 

Search around there has to be some mortage company out there that will refi you as long as all the numbers check out.

 

I'm doing it a little differently. I have paid my debt off, and now only owe on my mortgage (14 yrs on a house built 11 yrs ago) and 1 new vehicle. I have paid off my other truck and 2 motorcycles (They are now assets). My savings is over 5K for emergencies. I have contributed 6% towards a retirement account (State employee) for 25 years now. Cards (3) are paid in full when used.
My plan is to get with a financial planner with the credit union and find out how much extra principle I would need to pay every month to get the house done in 5 years. This way, when I have the option for a full retirement with the state in 5 years (I'm only 46 years old), I could be virtually debt free. I know I won't totally retire at 51, and will probably stay with the state at 50K, but look at the savings potential when I'm debt free and still young enough to keep on working.
I'm looking at this vs a secondary retirement account as a guaranteed return, unlike the 401's or Roth's. Thoughts?