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Two New Transfers and Other Savings

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Over the last few months, I started transferring 10% of my gross pay to my Emergency Fund again. I used to do this, but I stopped when my ING Direct Emergency Savings Account plus my Roth IRA were at a sgnificantly high level to pay for several months of expenses. I started transferring money directly into the Emergency Fund again so I can get to the point where I wouldn’t have to withdraw my TIAA-Cref Roth IRA contributions in a dire emergency. (You can withdraw your contributions to a Roth IRA at any time, tax- and penalty-free.)

I also now transfer my take-home pay above and beyond my base salary — basically the money I take home after taxes for working overtime — into a special Emigrant Direct Overtime Fund. I do withdraw money from this account to pay for treats for myself once in a while, but sometimes the money from this account is necessary to pay for regular expenses.

My girlfriend (Amy) and I set up a jointly-owned account at ING Direct. We collect our loose change and every few weeks, we make a deposit. The two of us sell old books on Amazon.com and any net income (minus shipping expenses) is deposited here.

I also have a super-secret “Amy Fund.”

Updated February 6, 2012 and originally published December 16, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

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