Savings Accounts suck

About 3 years ago I knew little to nothing about savings accounts. I did have a 401k through my employer in poorly-allocated funds, but it was there and it was automatic.

Now that I am slightly more educated in the whole system, I can confidently say that it sucks.  It is such a horrible tool overall. Besides the fact that most savings accounts cannot even keep with half the rate of inflation, we're constantly being fed really high interest to borrow. Am I the only one that has an issue with the bank paying us 0.8% interest to hold onto our money, while they loan it for over 18%?

Looking for alternatives doesn't yield a lot of hope either. I have mid term (EF, car fund, >12mo) and short term savings (Vacation, Christmas, <12mo). I eventually want to have long term savings, of course, like a house down payment, but I'm not ready for that yet. The problem with short- or mid-term savings is that you need to keep them relatively accessible, liquid cash, which rules out most long-term CDs that may offer a slightly better rate, but penalties for withdrawal.

I have my ING/CapitalOne360 savings account which hold the shortest-term or in-transit funds, like month-end payments or things like my phone fund. The interest yield has came down to 0.75%. My other savings are in an Ally account, which has come to 0.84%. This is quite a depressing state of affairs!

So, where do you have your savings? Do you keep them anywhere? Have you looked or considered at bonds or CDs?

Let me leave you with this very interesting infograph from MoneyRates.com I found in my research.

Monthly vs Biweekly vs Weekly bills

I am thinking about borrowing a very interesting idea from the financial books I've been reading: paying this month's bills with last month's income. Anyone tried that? It sounds like a very fascinating way to pay the bills and let money sit tight for a bit.

Right now I am doing biweekly budgets which would make it so much easier to get it started than if I were to go monthly; just collect 2wks worth of pay and start paying this period’s bills with last period’s pay. I haven’t wrapped my head around the concept, but I think I’d like to try it, at the expense of 1.5mo delay in my payment schedule. If it doesn't work or I don't like it, I can always just take paycheck's worth of income and do a bulk debt payment. Sounds like win-win, no?

This does bring me to a second topic: how do you pay your bills? Do you pay your bills monthly, biweekly, weekly, or as they come? Which one do you prefer or would prefer if you could make a change, and why?

I do the biweekly, and things are paid on the same Friday I get paid. I prefer that because I only have to "budget" and pay bills twice a month. It wasn't as easy, though. I had to change dates of some of my dues in order to make them fit into one payment or another. But it was so worth it. What's your side of the story?

Multitasking

Before receiving the news about needing to move, I was trying to get myself into reading again, so I borrowed a copy of How to Manage Your Money When You Don't Have Any by Erik Wecks. Sadly, I'm not done with it yet, so I can't do a review on it. I really like this book for some things and disagree with others, but it has me thinking. That's totally worth it in my books!

I haven't started packing yet, which shouldn't be a huge issue for me. Other than the whole dismantling of my huge L-shaped desk, I don't own a lot of stuff. I may take a day off my full time job to complete the move while everyone else is at work.

As far as my rental options... I started officially looking Sunday after being given the 30 day notice, and as of right now, my 3 options are:
1) $450(?) Bayside rundown shack 30min away with lots of amenities, nice views, biking, kayaking, walking/hiking trails and... yes, water. Lots of it. Everywhere. Have I mentioned I am hydrophobic?!
2) $425 Single father of 7yo twin girls on premises, about 15min away in a 4br 2fb. Haven't talked to them in person yet as our schedules do not match. But the place looks very nice from photos!
3) $500(?) Youngling party-goer/entertainer. He's actually 3 streets down from my work. The place is pretty empty to begin with, just stuff thrown everywhere and no real furniture. Nice looking airbeds, though. Haven't had a chance to meet him in person or seen the place either because our schedules do not match either.

All the options have pluses and minuses, and none of them really sound ideal, but I'll continue to look and keep my options open. Considering I have until the end of the month, I'd love to have something by Tuesday of next week.

Nothing new I can share about the whole moving. I am using ream-paper boxes from work and other big boxes we get from ordering supplies. I don't need packaging materials, as my clothes provide enough cushion, and I don't really have much that would break. I could also go to our local grocery store and consignment store to ask for empty boxes if I had to. I will probably borrow my dad's SUV to help me move the stuff, but I may not even need it as I don't have a lot.

Too many things up in the air. Good news is, they will have to be cleared in 2 weeks or so! (Because I have no choice!). That's definitely something to look forward to, right?

Let's talk roommates

For someone who has already moved on her own once, let me tell you that my thoughts are right along a first-grader leaving for school for the first time. And I'm not ashamed to say I find it very exciting and I am looking forward to the process, yet at the same time, I am slightly terrified.

I still don't know when I want to move. The landlords said they will probably put their house out for the market within the next 3 months, and if I am correct, that probably means they will be fixing up and dolling up the house to put it for sale. I don't know if I want to be around for that, or for when the showing starts and my already minimal privacy gets reduced to none.

After going to Craigslist and Roommates.com, I must say that there are some comical rooms for rent when you live in the middle of nowhere ("must know to cook edible things", "must not be a clean freak" [photo shows a bunch of shoes and unmated socks in a corner]), and some that are downright scary ("must be ok with spirits--they're friendly", "drugs ok, overnight guests ok").

My current rental situation is super normal, other than for "small stuff" (I'm known to be too accommodating and passive). I don't think I can afford living by myself, so I'll check out more roommate situations. It's only for another 24 or so months!

So tell us! Have you had to move with a roommate? Anything you wish you had considered before moving? How about after? If you are/were single, would you consider roommates as a way to help out your budget, especially since you're not staying in that city/state in the nearby future (1-3 years)?

Living arrangements about to be changed

"About" is a bit of an exaggeration. My landlords just told me that they are trying to move closer to work (which is 100 miles away each way... I never understood why he's been doing a trip with such distance for so long!), so I will have to find a new place of residency. Joy!

They don't expect to put the house on the market for another 3 months, but that will come before I know it. They are optimistic they can sell the house before year end, and I wouldn't doubt it too much.

What does this means to me? I have to move. And from what I've seen and have been seeing for months, it will cost me at the least, an additional $200-350+ (plus utilities). Deep breath. I can do this. No use getting stressed about that now. It may actually be a great experience, to move on my own! Again! Even if it's still in the same town.

There are a lot of considerations, of course. Since this town (and my job) is in the middle of nowhere, everywhere else is 30+min away, which means moving elsewhere means more gas expenses. What I am a little bit quite afraid of what that will do to my budget and my plans... at the least, I am looking at a $4,200 reduction over the next 24 months. That's 1/3 of my required savings for before I move! But oh well. I still think it will be quite an adventure and that I can still do it and make it work. Let me process all of the information and I'll get back at you.

Have a wonderful night/morning/day!