It’s month two for the 2013 money management series! This month is all about a regular savings account. I found the article written by Jordan at Fun Cheap or Free Queen very helpful for this series.
One of the perks of working in the industry I do is free bank accounts. As a new employee I was able to open a no fee checking account and savings. Perfect timing too as this month was all about setting up a regular savings account. I currently have $150 going into my emergency account (ultimate goal is have it funded with six months worth of income). Jordan suggests setting up five to ten percent as an automatic withdrawal from your paycheck. I started out at 1%. Why so low? Well, my monthly health benefits do not start until next month and I wanted to see how that affected my paycheck. I will be adjusting up to 3% if possible with 10% being the max.
At this time I haven’t really found a purpose for the account. Jordan also suggests that this fund a have a specific purpose. Hmmm…maybe to fund my trip to Prague?
Next month we will be onto Regular checking accounts!