Let me rephrase the question....

[meaghanchan]

Re: Let me rephrase the question....

I wouldn't put the money in a CD, because in a case of an emergency you'll need to access the cash. Also, with minimums (typically) of 1000, I don't think it's a good investment for you right now. I would put it in a high-interest savings account like at ING or Emigrant Direct. At ING you'll earn 3.3%, at Emigrant Direct you'll earn 3.5%.

But, like most everyone else, I think you're best off using that $150/month to pay off any debts you have, rather than investing it. I don't know specifically what debts you have (I may have just missed it) but if you're paying 12% on a credit card, you're 4 times better off putting the money towards debt rather than putting it in savings. I don't think any investment's going to be more profitable than paying off your debts will be.

[cicy33]

Re: Let me rephrase the question....

I have a cd and it takes me about 2 days to access the money. Instead of taking it all though, we "borrow" from the cd and then pay it back. sorta like a loan but with really low interest. The CD is a good option if you want the money not immediately accessible. Sometimes people do better if they can't touch it right away. And no matter what, get some sort of an emergency fund before you pay off bills otherwise you are right back where you started. there are plenty that will disagree with me but if you use all your available cash to pay off the credit card and run into an emergency and use it to pay for it you have just incurred MORE high interest debt. I am currently trying to save a little and then focus on the debt. Remember though you can't spend the savings unless truly for emergency, that is why I use a CD. I am such an impulse buyer!

[cicy33]

Re: Let me rephrase the question....

Also there are plenty of times that the emergency won't take a credit card and you have to withdraw cash from it and that has even a higher interest rate attached to it.

[Bluezy]

Re: Let me rephrase the question....

Grownup:

What we on this board do is analyze the posted situation and collectively come up with a game plan not only for savings, but debt relief and budgeting. There are many ways to invest what savings you have. However, the interest you are paying on your debt could outweigh any gains you make on savings.

If you want to find the highest interest paying yields, you can go to Bankrate.com and search the product and the bank that is right for you.

Please note that each of us will at times post a list of what we are currently investing in. You must be the one who makes the decision of what financial product to choose.

All the best hun.

[becomingafinacialgrownup]

Re: Let me rephrase the question....

First let me apologize for startign such an emoitionaly charged debate as that was certainly not my intent. That being said, my husband and I feel very strongly about the tithe-it is non-negotiable.

Second, all my debt is medical bills carried at the hospital. Are you suggesting I pay them 150 a month more than the 100 I already do? It totals about 8,000.
Thanks for all the input!

[jmjj215]

Re: Let me rephrase the question....

Are you suggesting I pay them 150 a month more than the 100 I already do?

Exactly. With your 1k in place, you can begin getting out of debt, which is a great ROI.

[becomingafinacialgrownup]

Re: Let me rephrase the question....

I have no idea what ROI means

I have to say that it sounds very scary to me

[CRFSaver]

Re: Let me rephrase the question....

I am gonna get in trouble for this but... Cut out tithing until you are in better financial shape. Last time I checked God still loves you even when you dont give him money.... Most people tithe cause many churches say it is required. Your family's well being comes first and the new building fund at the church comes second IMHO. People tithe so the church can help people like you, not take from you...

[jmjj215]

Re: Let me rephrase the question....

She's already stated her feelings about cutting out the tithe.

First let me apologize for startign such an emoitionaly charged debate as that was certainly not my intent. That being said, my husband and I feel very strongly about the tithe-it is non-negotiable.

[terry1156]

Re: Let me rephrase the question....

If you have debt, the money that you have in savings may appear to be savings, but it realy isn't. Jeffrey has a good article on this that may be worth reading as he explains it better than I can: <A HREF="http://www.savingadvice.com/forums/showthread.php?t=37">here's the article</A>

If you have $8000 in medical expenses, you will have to pay that debt off eventually. Are you paying interest on it? If so, how much?

Another thing I'm seeing is that all your spending is "non negotiable" If this is the case, it makes it difficult to cut your expenses. Someone mentioned entertainment and you said that you like to go out as a family and its important. The tithe is no negotiable.

What areas are you willing to cut back in?

When making the move to get out of debt, my feeling has been nothing should be off-limits, but then again, that is my opinion. That being said, if you won't consider areas where money can be saved, it's hard to get the budget in order.

[becomingafinacialgrownup]

Re: Let me rephrase the question....

As I pointed out somewhere in one of these posts we very rarely use the "entertainment" money,most of the time it goes into savings. Our youngest is 9 so when we do "go out" she is the only one who is free anymore. Most of the time we have game or movie nights at home. If it makes you all feel better I will take it out of the written budget but we will "go out" once in awhile.

Also updates on numbers

Water-36
phone/internet-64

We decided to spend 40 dollars on an antenna to pull in as many local channels as possible and rely on our extensive movie collection.Don't worry they were gifts!

I guess this is why I have avoided budgets in the past,nobody wants to have fun

And as stated before-tithe is non-negotiable and that is a personal decision between me,my husband and God. We do not take a tax deduction for our giving. it's not between us and our church.

[pennywise]

Re: Let me rephrase the question....

Terry1156 said it beautifully. I have noticed most on the site ask for help and then when it is given they say NO, it doesn't FEEL right, non-negotiable, etc. The facts are the facts. Income is limited to the income, so cuts must be made in the outgo. This is a reality that must be faced. Emotions do not belong in financial decisions, only facts. Next, many have bashed me on this site. I am asking you to stop. If you do not agree with me you may email me directly by contacting Jeffery (may release the email connection) and we will debate the issues. Some are more educated than others, many appear biased. This individual CANNOT afford the tithe, period. It was our responsibility to help her family with the guilt they would feel for cutting it. Basic survival is what is at stake, and believe me churches are takers and not givers (expecpt to the in-crowd).

[terry1156]

Re: Let me rephrase the question....

I am no way suggesting in any way that becomingafinacialgrownup can not tithe. That is not a decision that we can make. We can lend suggestions and give our opinion, but I don't think any of us can say what is right and wrong. The final decision is hers.

I also want to apologize if you felt I was saying you can't have any fun. Far from it. I think that you can have loads of fun even when not spending money. We have all come to rely on other things to entertain us (and pay for it) that we forget how to entertain ourselves. If you want the entertainment fund, that is fine. But in order to be able to help you reduce costs, we need to know where you are willing to cut expenses

[terry1156]

Re: Let me rephrase the question....

If it makes you all feel better I will take it out of the written budget but we will "go out" once in awhile.

Your budget should reflect the reality. Taking it our for "our" sake makes no sense if you are going to spend the money. If you can "go out" once in awhile and spend $50 instead of $100, then you have $50 more that can be used to pay down debt or put toward the emergency fund. If you're going to spen $100, then $100 should be in your budget.

It doesn't matter what we think. We are just trying to give suggestions of places you may be able to cut expenses.

I have a question. Do you feel that you need to cut your expenses? I reread through the thread and we have all been giving a lot of suggestions, but after rereading, I got the feeling that you don't feel you need to cut expenses. Are you just looking for investment advice and not reducing cost advice?

[cicy33]

Re: Let me rephrase the question....

I really think that most of the people here have missed the point of this post. The OP was asking how they could get more put into SAVINGS not how to cut the bills they already have. They have approx $150 every month to put into savings. They were asking the best way to accomplish that. I still strongly feel that not having any savings and using it all to pay off bills first is BAD BAD BAD. What happens if you have paid all your excess money to debt and your car breaks down? now, lets assume for arguments sake they don't have a credit card. Not everyone does. We don't. not to mention they would then incur more debt. What are they supposed to do? You have to have something to cover those times. Or what if the emergency is more crucial. What if they get hurt and can't work. Do you think that the bill collector is going to care? NOT. There must be money to cover that. Not saying never put excess but first build up a small emergency fund and then pay all you can toward the hospital. Do they even charge interest?