In general, it’s a good idea. I have the issue of getting a lower interest in return when savings account are generating meager sum of interest. Do anyone of you have any alternatives to automatic investing ?

I pretty much use that method as well.

I myself do $1100 a paycheck to cover my rent and expenses. The rest is right to the savings account. Any future raises I allocate to my ESPP or roth. This way I’m budgeting, saving AND investing. =D

Terese, if your employer uses ADP, you should be able to do MORE than 3 accounts. It says so right on the form :)
http://www.sc.edu/childrenscenter/doc/ADP_Direct_Deposit_Form.pdf

My direct deposit is set up so that $250 of every paycheck I receive goes into a dedicated savings account, my half our our shared rent goes into a joint account I share with my fiance, and the balance goes into my regular checking account.

It’s an awesome system.

“Please bear in mind that the physical and emotional costs of becoming disabled tend to blot out any fiscal gains.” Agree 100% with this statement, although I don’t believe many on SSD or SSI have “fiscal gains.”

I use a similar system to Millie – and it has been fabulous ever since I set it up. It’s from T. Harv Eker’s book, Secrets of the Millionaire Mind.

Nothing overly complicated to understand and setup, but the benefits from using this system have amazed me. Within 12 months of using Harv’s JARS money management system, my wife and I have:

- increased uur net worth increased by 45%.
- bought our first home for $337,000.
- created $800/month in passive income by renting out our one bedroom basement apartment.

Harv’s system is far from scientific and complex, but aren’t the simple things in life the most helpful?

Thanks for sharing Millie’s story and doing what you do.

I had learned this lesson from my 503b. I started at 49 with a small amount. Finally, I got smart and put my raise in each year. I was able to manage this even though we were deep in cc debt and working our way out. After 5-6 years, I went in to put my raise in. They said I couldn’t. I was, with $11 from this raise, putting in the maximum – 25% of my gross monthly income. I informed them I couldn’t be saving that much. I didn’t know how. But it was true.

Now, at 72, I don’t have even 1/10 of what they say you need to retire. But I am comfortable with it. I take it out only once a year. In 3 years I have withdrawn about $14,5k and my balance is only down $4k. How’s that for compound interest. In fact, I don’t have to withdraw the minimum this year and so, if I don’t withdraw until 12/2010, my balance will only be down by $1k. I’m swimming in riches, it seems to me.

But, I really am rich in my area of the country. My SS is $1,067 after Medicare and I have my retirement of $310 clear after insurance and my husband’s of $555. Technically, I am saving one of the retirements each month. I own my own home and can walk any where in town I need to go. Saves gas. There are really great advantages to living in a low COL area. Try it – you’ll like it.

If you own a larger vehicle, you can possibly do things like help someone within your network’s acquaintances to do a quick move on a weekend for some extra cash. You could also drive someone to the airport, or pick someone up, there’s a bunch of those little things you can possibly do, if you can deal with minor bumps or even frustrating moments. But, you must be reliable, that is another issue, if you’ve got too much on your plate personally, it can easily break trust.

I’ve seen folks do the whole, “I’ll drive you to IKEA, wait for you in the parking lot, and then drive you and your stuff home.” deals to make extra cash. There are ways of doing things, but the issue is as always, they aren’t consistent and requires a bit of commitment on time and elbow grease to do.

If you are good around the house, you can offer up serious home maintenance for your networked folks, while they trust that some stranger will not steal from them while working in their house. If you are killer at standardized tests, I’m sure your networked folks with teen kids and a tight budget would consider someone like you.

Ask around, it doesn’t hurt, but be reliable.

I’m not up to this level yet, but it’s certainly well worth looking into.

My problem has been, how could I ask these neighbors and friends to pay me money for doing something I am happy to do for free (or as an investment in our friendship)?

Thanks!