New to the Live Richer Challenge: Saving Edition? Find out how to register for free HERE.
Today, we’re opening a Money Bucket Account. What’s a Money Bucket?
After it rains, the water disappears. Why? Because the ground soaks it up. You’re just like the ground. When it rains money on payday, you too soak up the water a.k.a. your paycheck. You need to save some of that “rain” (income) with a bucket.
The perfect place for a Money Bucket is an online-only Savings Account or Money Market Account (MMA). So today I want you to sign up for one. Opening an account can take anywhere from a few minutes to a few days. Make sure you apply for your Money Bucket today because you’ll need it for next week’s tasks.
Why choose an account at an online-only bank?
- It’s FREE. Yay! (At least it should be. Choose a free, no-fee Savings Account from MagnifyMoney)
- There’s no minimum or maximum amount of money you can transfer into your Money Bucket. You can transfer $5 just as easily as $500.
- It takes 2-5 business days to transfer money from the online-only account (your Money Bucket) back to your regular bank account at your physical bank. This makes accessing your money inconvenient and inconvenient money gets saved. (Don’t open a checking account at the same online-only bank where you have your Money Bucket. You’ll be able to use a debit card to spend your savings or make transfers quickly. Not a good idea.)
The purpose of this task is to show you how easy it can be to start saving. When you open your first Money Bucket, all you have to do is put money in it once per week—even if it’s only a small amount. During next week’s tasks, I’ll also show you ways to cut expenses so you can save even more money!
One more thing: don’t just choose any online account. Use the checklist below to help you select the right account for your Money Bucket at MagnifyMoney.
If you did this task during the last Live Richer Challenge, you can use MagnifyMoney to make sure you’re getting the best rate.
Gentle Reminder: Every task is a suggestion. The key is to do what’s best for you. Also if you DO NOT live in the United States or are not approved for an online only bank account, opening a Savings Account at a physical bank or credit union, that is NOT your regular bank is an alternative.
Look for a Money Bucket/Online Savings Account That:
- Is FDIC-insured. (This is essential. “FDIC-insured” means that the Federal Government insures your money in the bank up to $250,000.)
- Has no fees.
- Has no minimum balance requirement.
- Has the highest interest rate available.
- Bonus: Find out if opening an account requires a hard inquiry BEFORE you apply. A hard inquiry on your credit history can impact your credit score by a few points. Call the bank you’re interested in & ask.
Know someone who needs help with saving? Share the wealth and pass along Day 3’s Easy Financial Task by using the social media buttons and teaching the people in your network what you’re learning.
Share your plans today with your tweeps.
|Today I’m opening a Money Bucket for savings using @Magnify_Money! Day 3: #LRCSavings|
Then share your progress with your accountability partner and with me in the comments vs. email. For example what bank did you choose? I personally use Ally Bank for my Money Bucket Accounts.
Lastly, share your choice in our private Dream Catchers Savings Challenge group. Not a member? Join us HERE.
Ways to find me…
Facebook: The Budgetnista
Forum: Savings Challenge Private Community (if you’re not already a member.)
Tiffany “The Budgetnista”
A Freebie: Have you saved and printed the Live Richer Starter Kit yet? It’s full of awesome freebies. Click the picture to get your kit.
Want to work through the Live Richer Challenge: Savings Edition in a workbook? It’s already an Amazon Bestseller!
Click the link below and get your copy.