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belleama

I was inspired by BofA's save the change program

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Since 4 Oct I have saved $37.24!!! I am so proud of myself for doing that! :D Each week or somewhere between 7 - 13 transactions I figure out what the change would be and I do a transfer. I transfer change from all transactions not just the ones that I use my debit card on so it has been adding up more quickly.

 

I remember hearing someone say that everytime you see the "you saved xx by shopping here" line you should transfer that money into your savings. So I'm going to start doing that too. So far I've only had one transaction (since I remembered that trick :blush:) that had that listed on the reciept. It was $4.69. :grin:

 

I wonder how much money I'll have in my savings at the end of the year... This year is finally starting to look up. :grin:

 

Anybody else got any cool painless ways to save?

 

 

ETA: Just this morning I found myself writing a check for$25.01 instead of $25. I think I'm getting addicted :P

Edited by belleama

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do you have any frequent shopper cards? I do most my groc shopping @ Food Lion and then we save the receipts and each month we transfer the MVP savings and coupon savings to ING. If you get rebates, save them too. This spring DH & I bought 3 computer parts @ Circuit City. Al l3 had a rebate and 1 had 2 (co & CC). Rebates were $135 and we sent it straight to ING

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did you actually sign up with the program or are you doing this on your own? I plan to sign up with it. I think it's a good idea.

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My wife and I used to bank at BOA, but after the many changes and the horrible service, not to mention the false statements, we ran away from them. They used to be the best bank in our area, up until around 1992 or so. Anyway, I would be very leary of this new "program" or "feature".

Here's what can happen:

Let's say you forget to write down a transaction or you math is incorrect on one transaction. Then you get overdrawn because of this. WHAM!!!! They then hit you with a big fat NSF fee for each NSF transaction, even though you had that money in your account and they conveniently transferred that amount for you into your savings.

Check this out:

 

http://www.bankrate.com/brm/news/advice/19991108a.asp

 

http://www.bankrate.com/brm/news/advice/19980720b.asp

 

 

What I do now to save, which seems to work well, is to start a monthly auto transfer to savings.

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did you actually sign up with the program or are you doing this on your own?  I plan to sign up with it.  I think it's a good idea.

 

I bank with USAA so I'm doing it on my own. BofA does give you a 100% match for the first 3 months and will give you 5% but those are credited annually on the annevirsary of when you signed up.

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I don't know that I would use the Bank of America option directly (got some personal history with them), but this thread did prompt me to take my change cup into the bank today. It netted me a very nice $75, which would have gone to my ING account, but instead will cover a few small issues that blew the budget this month.

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did you actually sign up with the program or are you doing this on your own?  I plan to sign up with it.  I think it's a good idea.

 

I bank with USAA so I'm doing it on my own. BofA does give you a 100% match for the first 3 months and will give you 5% but those are credited annually on the annevirsary of when you signed up.

 

Wanted to add one last thing. You will not get the match if you close the account before your anniversary or for the month that you close the account. I also heard that there are fees associated with the savings account the "change" goes into at BofA.

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I too was inspired by the BofA program. We don't have a BofA near us so we are going to try to do it on our own. Our strategies up to this point have been, the culligan bottle (counted it up the other day = $65) and the biggie is $50/week goes straight from DH's check to savings at CU. However, we manage to 'need' to dip into the CU money too often.

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DW and I simply take the 'change' from every cash purchase we make, rounded up to the nearest $5...and stash that. once a month or so, we deposit it into savings. It is really easy...you know that you're going to go and get something for lunch or dinner, and you have $5 or $10 budgeted...spend 3.87, and 1.13 goes right into the jar. In your mind, you've already spent it, so you don't miss it.

 

Also, if you have direct deposit, most employers will let you 'split' the deposit...send some right into savings so that you never had it in the first place. If your employer doesn't do this, just set up an automatic withdrawal for each payday.

 

Finally, my hobby tends to be self-sufficient (I'm a ham radio operator, and I do a scad of electronic repairs and computer work)...anything 'extra' goes into another saving account...which is the same account that my settlement money has been going...gotta love FCRA violations. (thanks, CB!)

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I also heard that there are fees associated with the savings account the "change" goes into at BofA.

 

I have a BofA savings acct and it has no fees. It's not any kind of special account, so I think they may have some no-fee options available. (Then again, this is an account that became BofA through acquisition so it could be grandfathered.)

 

I haven't bothered to sign up for the savings thing. I'd run around for 3 months, trying to figure out how to spend XX.01 on every transaction. Then I'd anxiously wait 9 months to get my loot and send it to ING.

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The 4th is not until friday... I can't wait to tell you guys how much I've stashed throughout the entire month. BrokeinVa's suggestion has added atleast $25-$30 already. :)

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Okay my total from 4 Oct to 4 Nov has been...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$122.21 :dntknw: I'm so excited :yahoo:

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When I first heard of this program I was thinking this is a great idea and was considering doing it myself as well. I'm sure my bank, and all banks will have a similar program soon, but it would be nice to start now. After seeing Belleama's results, now I really want to start this on Monday! Thanks for the post and inspiration!

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I personally don't spend change and put it all in a jar and I usually have about $50 a month(a fair sum since I'm a college student and only make about $600 a month). I don't do alot of transactions with my checking account so I get more money this way. I've tried to get my fiance to do it but he dips into his jar ;) then suddenly his jar's empty! :dntknw:

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Belleama, could you explain EXACTLY how you are doing this outside of the BofA program? I read the info on the BofA website and it sounds like a cool idea but I'm not sure how to apply it to our regular daily spending, since we use our debit cards for pretty much everything...? THANKS!

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Here are some of the things that the Wall Street Journal had to say in a July 23, 2004 Article entitled, As Cash Fades, America Becomes A Plastic Nation:

 

For the first time, Americans used cards - credit, debit, and others to buy retail goods and services more often than they used cash or check in 2003.

 

McDonalds and other fastfood outlets, the Wisconsin State Police, vending machines, subway systems and charities now accept cards.

 

When people pay with plastic, they tend to spend more - often more than they have in the bank. Thus, credit cards also have fueled an explosion in consumer debt.

 

Today, U.S. consumers use plastic to buy $2.2 trillion in goods and services each year - roughly 20% of U.S. gross domestic product.

 

As cards spread, critics say consumers are running tabs for increasingly routine purchases. "You could end up paying interest on ice cream," says Travis Plunkett of the Consumer Federation of America.

 

Maria Nemeth, a psychologist in Sacramento, Calif., says card usage is becoming so easy and pervasive that consumers are losing the ability to budget. Using Plastic, she says, is as hard to resist as junk food, and potentially as dangerous. She regularly tells clients to go on 48-hour "crash diets," refraining from the use of plastic for two days at a time.

 

Card companies say McDonald's found the average transaction jumped from $4.50 to $7 when customers used debit and credit cards instead of cash - in part, because cardholders tend to buy for more people. /

 

Knowing that people spend more money using plastic than cash....I question this program's effectiveness. Personally, I have money auto drafted from my accounts to purchase stock and other investments vs. this scheme from BOA? Do you really think BOA would be doing this if they were not making money? I'm sure I will hear enmass from the 37% who PIF every month that they never overuse their credit cards---behaviors don't lie--and the true tendency to spend more than a mere 5% is fact!

 

It's not rocket science...quit spending as much, get on a written budget, spend less than you make, and you can save money.

 

Clark

 

 

P.S.

I'm appalled that this topic is in the "Money Management" section verses the credit section. This idea is simply bad money management!

Edited by Clarkfan2

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Belleama, could you explain EXACTLY how you are doing this outside of the BofA program?  I read the info on the BofA website and it sounds like a cool idea but I'm not sure how to apply it to our regular daily spending, since we use our debit cards for pretty much everything...?  THANKS!

 

What I do is each week or after 7-12 transactions I pull out the change and deposit that into my savomgs account (atually I just do an online transfer but its the samething. I do this for all transactions not just debit card purchases. So even deposits or checks or ACHs get added too.

 

Here's an example from this week.

 

McDs $5.18 (1-.18 = .82) 82 cents goes to savings

Cigs $9.20 (1-.20 = .80) 80 cents goes to savings

Gas $38.64 (1-.64 = .36) 36 cents goes to savings

Lights $2.87 (1-.87 = .13) 13 cents goes to savings

Books $30.95 (1-.95 = .05) 5 cents goes to savings

 

Now I tally the "change." .82+.80+.36+.13+.05 = 2.16. I then make a transfer to my savings for $2.16 cents. It helps if you use your check book register to keep track of what change has already been transfered. Or you can just do a printout each week say each friday night or sunday night. Then whatever change you find do the calculations and make the transfers. Or just write them out on a seperate peice of paper. It really helps.

 

I also started saving my reciepts and transfer anything that says "this trip you saved $X.XX." That helps to save up more. I have found myself writing checks or making payments for .01 when I have needed to make a flat .00 payment. That is .99 cents that can go into my savings account.

 

I hope this helps you. Seeing actual money in my savings account has motivated me to keep going. Good luck :rofl:

Edited by belleama

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Knowing that people spend more money using plastic than cash....I question this program's effectiveness. Personally, I have money auto drafted from my accounts to purchase stock and other investments vs. this scheme from BOA? Do you really think BOA would be doing this if they were not making money? I'm sure I will hear enmass from the 37% who PIF every month that they never overuse their credit cards---behaviors don't lie--and the true tendency to spend more than a mere 5% is fact!

 

1. If you read the thread you would see that I DO NOT BANK WITH BOFA! 2. I am doing this on my own just showing others that it can be done without BofA. 3. I already said that I believe that the savings account that BofA transfers your change into charges a monthly fee. 4. Arent you MR save not spend? Mr. How appalling americans don't save? Here I am SAVING and telling others simple ways to do the same and you call me an salamander? :blink: What crawled up your A** this morning?

 

It's not rocket science...quit spending as much, get on a written budget, spend less than you make, and you can save money.

 

Clark

 

 

P.S.

I'm appalled that this topic is in the "Money Management" section verses the credit section. This idea is simply bad money management!

 

Why are you appalled? You are the salamander that inserted that junk into this thread in the first place? :glare: Also what the heck does transfering change from your checking to your savings have to do with credit or credit card debt? :blink: I'd really like to know. :glare:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oh yeah I forgot... Here's your cookie for having auto draft. Hands clarkdoesntknowwhatthehellhestalkingabout a cookie. :glare:

Edited by belleama

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I personally don't spend change and put it all in a jar and I usually have about $50 a month(a fair sum since I'm a college student and only make about $600 a month). I don't do alot of transactions with my checking account so I get more money this way. I've tried to get my fiance to do it but he dips into his jar  :glare: then suddenly his jar's empty! :glare:

 

I also do a money jar as well. I just noticed over the years I was having less change to put in the jar since everywhere I need to go accepts cards. This has been a great way for me to recapture that change. It has been fun too. I am also better at staying on top of al transactions I do now and can spot a phoney charge in a heartbeat. :glare:

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P.S.

I'm appalled that this topic is in the "Money Management" section verses the credit section. This idea is simply bad money management!

 

This post wasn't really about credit. It's about one person's way of saving more money than he/she would otherwise be saving. I thought the whole point of the Money Management section was to find ways to stretch money and save/invest more. This post seems perfect for the MM section.

Edited by andol469

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I'm appalled that this topic is in the "Money Management" section verses the credit section. This idea is simply bad money management!

 

 

Blah blah blah blah.

 

Clark, I know that you have some useful advice, I don't know why you choose to do this kind of stuff.

 

A whole thread full of people find a way to start a savings account and add to it regularly, (perhaps the best overall financial advice out there) and all you can say is that it's a bad idea- Because they *might* overspend using their debit cards? Or because BofA might profit from it, when we're not talking BofA in the first place, other then as the inspiration?

 

Heck, your *stock* might drop in value, and your broker is probably making money on the transaction fees. Doesn't make stocks a categorically bad financial move, does it?

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I think its an ok idea what BofA is doing but you cant go wrong with autodraft into a savings account. Take the loose change(and dollars) you get each week and deposit into a HIGH % mmkt(ING is great) and boom. But at the end of the day whatever motivates you and keeps you on track for your goals I say do that. Paying yourself first is mindless and painless.

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