2FD 056: Saving Money The Best Way For Your Goals

The choices you have with saving your money keep evolving as technology and competition improves. Here are some new ways to save money, where to find a good savings rate, why people aren’t saving and how to kickstart your savings goals. Justin Howell, the CEO of Rize has joined us today to shed light on how you can save for what matters. CHA-CHING!

Discussion Points

Why traditional savings accounts are failing people.
How to pay yourself first.
Getting the best interest rate on your savings account.
Creating savings goals that work for you.
Frugal Tip of The Week: How to save money dining out on a regular basis.
How to get $5 to kick start your next savings goal.

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2FD 056: Saving Money The Best Way For Your Goals
Sean Merron

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We know how important community is to help each other even further outside of what we have time for on the podcast, after all, that’s how this podcast started, from Sean and Kevin talking about their money when they met at a user group. Join your fellow cashmates in the never ending school of personal finance: REQUEST AN INVITE. We all accept you for where you are and want to help you get to where you want to be, faster!

The Cheat Sheet!

Savings is hard because we live in a world that is designed to spend money, not save it.
It’s way easier to spend money now, quicker than it was before technology.
People traditionally save with a savings account with a bank but there is almost no interest gained in those accounts, around .06% on average right now.
Savings accounts are almost too accessible, allowing you access to the money when you shouldn’t be using it.
Overdraft protection in bank accounts lets you use your savings automatically and happens far too often than it should.
Budgets don’t work for most people, trying to save what’s left over at the end of the month instead of saving for themselves first.
The Automatic Millionaire by David Bach talks about the concept of paying yourself first automatically.
It feels strange for people to put money into a 401K because it doesn’t feel like savings.
70% of millennials are cashing out their 401K when they switch jobs.
Sean was not motivated to save money at a young age because of the minimal interest his savings account would gain him.
Sean remembers getting notices when he transferred money from his savings account more than 3 times per month, which is not how these accounts should be used.
Your retirement accounts are the best vehicles to pay yourself first out of your paycheck.
Rize used the inspiration behind paying yourself first to create savings accounts that do it for everything else outside of retirement.
Rize savings accounts give you 15 times the amount of the average traditional savings account.
Large banks are starting to implement fees on the basic checking and savings accounts.
A bank will be quick to waive some fees if you let them know you’re going to leave for a competitor.
Goals are built into our DNA and should be built around the money in your savings so it has a purpose to get excited about vs. saving for no reason which isn’t motivating.
The large online banks are going to get you the highest interest rate possible on your savings accounts because their costs are lower.
The right investment for your money and how much risk you can take on really depends on when you are going to need the money.
The money you’re going to have set aside for the long run should be invested to get the best return on your money instead of doing nothing with it.
Rize let’s you choose what you want to pay them instead of requiring a fee for saving your money.
The best ways to start saving money is to make it automatic and to not increase your lifestyle with your income.
Frugal Tip of The Week: You can buy just the Sunday newspaper from a local grocery store to find killer coupons to satisfy your dining out cravings. Sean’s family has found deals consistently, never spending more than $20 eating out as a family. Restaurants usually have insider programs also you can sign up for to get similar coupons without having to buy the newspaper. Yelp also lists special deals at local restaurants.
Rize is an intelligent online savings account to help you save and invest for goals you care about by helping you build a schedule to automatically move money to your account.
Rize is giving our listeners $5 to kick start their first savings goals by using this link: https://rizemoney.com/2frugaldudes/

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2FD 055: The Spending and Saving Habits of Americans

Sean Merron December 6, 2017

We peered into the spending and saving habits of Americans, looking at statistics around student loan debt, auto loans, the effect of our impulses and what millennials are doing differently. […]