Comments on: Put Your Savings in Hyperdrive, Part 5: Hide Your Savings From Yourself http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 08 Nov 2009 07:50:42 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Heidi http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133399 Heidi Mon, 21 Jan 2008 18:32:01 +0000 http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133399 Excellent tip! I plan on hiding my annual bonus this year (short term CD) until my wedding. Mccy - I often recommend laddered CDs to clients who want to be able to access their cash in regular intervals and want to avoid market risk. This is an especially wise strategy for those in or nearing retirement. Current market conditions are driving more people to a bank/guaranteed soluion. Excellent tip! I plan on hiding my annual bonus this year (short term CD) until my wedding.

Mccy – I often recommend laddered CDs to clients who want to be able to access their cash in regular intervals and want to avoid market risk. This is an especially wise strategy for those in or nearing retirement. Current market conditions are driving more people to a bank/guaranteed soluion.

]]> By: Ginger http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133386 Ginger Mon, 21 Jan 2008 17:21:47 +0000 http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133386 Such great advice: "The more you don’t see or otherwise come into contact with your money, the less tempted you are to access and spend it" This is my issue, not seeing it. But Im getting past it as its helping to build more savings. Out of site out of mind. Such great advice: “The more you don’t see or otherwise come into contact with your money, the less tempted you are to access and spend it”

This is my issue, not seeing it. But Im getting past it as its helping to build more savings. Out of site out of mind.

]]> By: Dan http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133309 Dan Mon, 21 Jan 2008 04:02:21 +0000 http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133309 Re: #3 I keep track of my savings accounts, but label them emergency fund, new house fund, etc. It's hard to buy a new tv with the money I can use to upgrade my house. Re: #3

I keep track of my savings accounts, but label them emergency fund, new house fund, etc. It’s hard to buy a new tv with the money I can use to upgrade my house.

]]> By: Flexo http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133194 Flexo Sat, 19 Jan 2008 19:26:53 +0000 http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133194 Dividend Guy & Mccy: Great ideas, thanks for sharing. CDs are good -- the "penalty" you would pay for taking your money out early should provide sufficient deterrent from early withdrawals. Dividend Guy & Mccy: Great ideas, thanks for sharing. CDs are good — the “penalty” you would pay for taking your money out early should provide sufficient deterrent from early withdrawals.

]]> By: Mccy http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133186 Mccy Sat, 19 Jan 2008 17:42:34 +0000 http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133186 Another good suggestion I've taken to heart: Ladder it. A good number of 6 month CDs have good rates with as low as $500. For as little as $3000 dollars, you can set it up so you have one CD a month maturing. Have your automatic investment roll right into whichever CD matures that month, and reinvest for another 6 months. The rate can at least compare to, and usually beats most high interest accounts, while still being FDIC or NCUA insured. Plus, 5/6ths of it seems locked away from you at any one time. Of course, you don't want to do this with money you want or need to have easy access to, but if you're trying to make your money work for you while hiding it from yourself, it's a good way to go. Most banks will even automatically roll the CD over when it matures if you ask them to. Downside: It requires a bit more hands on than just setting up an automatic deposit and forgetting it. You'll have to keep track of when each CD matures and manually reinvest if you want to roll your automatic deposit in. I feel that this makes up for it by making the money feel less available and in a smaller amount by dividing it and staggering it out. Another good suggestion I’ve taken to heart: Ladder it. A good number of 6 month CDs have good rates with as low as $500. For as little as $3000 dollars, you can set it up so you have one CD a month maturing. Have your automatic investment roll right into whichever CD matures that month, and reinvest for another 6 months. The rate can at least compare to, and usually beats most high interest accounts, while still being FDIC or NCUA insured. Plus, 5/6ths of it seems locked away from you at any one time. Of course, you don’t want to do this with money you want or need to have easy access to, but if you’re trying to make your money work for you while hiding it from yourself, it’s a good way to go. Most banks will even automatically roll the CD over when it matures if you ask them to.

Downside: It requires a bit more hands on than just setting up an automatic deposit and forgetting it. You’ll have to keep track of when each CD matures and manually reinvest if you want to roll your automatic deposit in. I feel that this makes up for it by making the money feel less available and in a smaller amount by dividing it and staggering it out.

]]> By: The Dividend Guy http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133183 The Dividend Guy Sat, 19 Jan 2008 17:14:58 +0000 http://www.consumerismcommentary.com/2008/01/19/put-your-savings-in-hyperdrive-part-5-hide-your-savings-from-yourself/#comment-133183 I also think that using a tax deferred account also helps to "hide" the money - there are some pretty big steps to get at it. This is one of the often unspoken benefits of retirement accounts. I also think that using a tax deferred account also helps to “hide” the money – there are some pretty big steps to get at it. This is one of the often unspoken benefits of retirement accounts.

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