Do you spend your interest??

[Ima saver]

Krayzie, you are doing great for such a young person. I like the idea of matching and adding your interest to your account each month. What a smart idea! I wish I had thought of that when I was young!!

[krayziebone33]

Krayzie, you are doing great for such a young person. I like the idea of matching and adding your interest to your account each month. What a smart idea! I wish I had thought of that when I was young!!

Thanks for the words of encouragement. You have done so well for yourself. People like you, Disneysteve, Sweeps and Poundwise motivate me to continue learning about and applying the principles of building wealth. This forum has been good to me.

[Ima saver]

Well I have always said, it is not what you make that counts, it is what you KEEP! So even tho I have never made more than $8000 a year in my life, I always saved 10% of what I made, even as a teenager.
You are getting a great head start in life.
I read somewhere that if you started at about age 18-20 and saved $2 a day (and did not draw it out to spend) you would be a millionaire in your early 60's!! You rock!!

[krayziebone33]

The funny thing is not spending any of the money saved has not been hard at all. I always know its there if I need it, but I have had no urge to run to the store and buy something that I know is more of a want than a need. The biggest temptation I have had since accumulating so much in my EF is an XBOX 360. I fought that battle and am winning. Lately, I have been wanting an external hard drive to save my movies on, but I can save up for that. Once the EF is where I want it to be, then I can start looking at bigger and better investments. When I graduate and start making the big bucks, I can really do all that I want to do with this saving game that we're all playing.

[mercuryguy]

Hi guys,
I'm new to this forum, love it and its giving me good advise.
I opened a ING Saving account (for Emergency Fund) with 4.5%APY yesterday and automatically send $25 every month.

Whats the formula do you guys use to calculate interest on my ING account? does ING pay interest every month or once a year?

Also, how many accounts do you guys have?
I also have a Bank of America checking and saving account, and BOA has keep the change program where they match dollar to dollar for 6 weeks i think and after that its 3%.
my paycheck goes directly to BOA checking acct.

Thanks.

[mrvirgo]

I spend it. As long as I don't have to touch the principal, I feel fine with using whatever monthly interest I get. We're not talking about a large amount of interest per account so I'm not exactly a big spender, yet.

[PRICEPLUS]

I always save any interest I make and reinverst it. I am a firm believer in the power of compound interest. So I just let it ride and accumaulate in an accunt where I can get the best return on my money!

[FrugalTexan75]

I save my interest.

Also, now that I have an interest bearing checking account (ING) I plan on transferring whatever interest is earned each month to one of my saving accounts (probably my EF).