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I have a confession - My finances are not perfect.
Yes, despite all of my sage advice dispensed here at SavingAdvice, I don't always have every tiny detail properly aligned. I've decided it is time to clean up some things that had just gotten a little sloppy over time. Nothing major and not all bad. It's just that over the years, we've accumulated a rag-tag assortment of accounts that had gotten a bit out of hand. Plus, some of them are paying virtually nothing. Finally, our cash holdings have grown to well beyond what we need for an EF and that excess needs to be reallocated to where it will actually earn some money.
I've never been one to chase the highest rates in our cash accounts. I prefer to keep things simple - open an account and stick with it. And that has worked for the most part because the difference of a few tenths of a percent in interest on a couple thousand dollars just isn't that big a deal to go hopping from account to account. Still, when an account is now paying 0.01%, it is time to change the system.
So here are the first two steps I took last night. I transferred $5,000 from one low-paying money market account to our checking account. When that transfer goes through, I will send that money to one of our Roths for our 2011 contribution. The other thing I did was to call and close another low-paying money market account. They are transferring $2,700+ to our checking account. I'll put that toward the other Roth account. Over the next month or so, I'll finish off the Roth contributions from regular cash flow so they should both be fully funded by the end of January or maybe early February.
Once that stuff is all done, I'll take another look and see where things stand.
Yes, despite all of my sage advice dispensed here at SavingAdvice, I don't always have every tiny detail properly aligned. I've decided it is time to clean up some things that had just gotten a little sloppy over time. Nothing major and not all bad. It's just that over the years, we've accumulated a rag-tag assortment of accounts that had gotten a bit out of hand. Plus, some of them are paying virtually nothing. Finally, our cash holdings have grown to well beyond what we need for an EF and that excess needs to be reallocated to where it will actually earn some money.
I've never been one to chase the highest rates in our cash accounts. I prefer to keep things simple - open an account and stick with it. And that has worked for the most part because the difference of a few tenths of a percent in interest on a couple thousand dollars just isn't that big a deal to go hopping from account to account. Still, when an account is now paying 0.01%, it is time to change the system.
So here are the first two steps I took last night. I transferred $5,000 from one low-paying money market account to our checking account. When that transfer goes through, I will send that money to one of our Roths for our 2011 contribution. The other thing I did was to call and close another low-paying money market account. They are transferring $2,700+ to our checking account. I'll put that toward the other Roth account. Over the next month or so, I'll finish off the Roth contributions from regular cash flow so they should both be fully funded by the end of January or maybe early February.
Once that stuff is all done, I'll take another look and see where things stand.
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