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Darn that Sweeps

August 8th, 2006 at 07:38 pm

Some folks get me thinking. Thatís not always comfortable.

Sweeps posted in a Thread entitled Where Do You Draw the Line: ďI was a little disappointed when I looked in this thread because I thought it meant: Where do you draw the line on being frugal? I don't mean to offend anyone, but I think there are a few people who have gone to the extreme with being frugalÖ. What really makes me scratch my head is when someone works so hard to save a few pennies while they overlook very big things like:
Ľ Taking advantage of the tax savings and potentially company matching of retirement plans
Ľ Dropping unnecessary insurance coverage and/or raising deductibles
Ľ Using cash-rewards credit cards (or even cash-rewards debit cards)
Ľ Paying bills with online bill pay to avoid the use of envelopes, stamps, checks and wasted time
Ľ Paying down highest-interest debt first, instead of paying off something else that may give a warm-and-fuzzy feeling but makes less of a financial impact.
Ľ etc. etc. etc.

So I am evaluatingÖam I sweating the small stuff without paying attention to the big stuff?

Well, no work match on retirement, so I'm okay there. Iím good on insurance, high deductibles and not over insured. I donít have a cash-back card...I could, and should, look into it, but say I got 5% on everything on my card, Iím looking at maybe $15 a month maximum. Now thatís more than eight pound s of cheese, which is real, but for me, not a ďvery big thing.Ē Online bill pay? Yeah, I love it, but at half the postage for 4 household bills a month thatís 78 cents for me. And I have no debt, so I donít need to worry about paying off in a different order. So the initial list, Iím okay with.

But how about that [etc. etc. etc,?

Hereís where I am tackling my own issues. I am socking away big bucks on My Challenge. Prior to The Challenge my savings were in good shape. The bad thing is until recently I let my savings sit in a 1% account. I had a IRA (rollover from prior 401k) that I didnít add to and I didnít manage its allocation. I have a 457b deferred compensation plan that I make contributions but I donít manage the allocation.

I am making progress. I just opened a Roth IRA. I moved a large chunk of savings into ED and ING accounts. (I know ING isnít great but the $25 bonus was compelling, and itís not 1 %.) I am facing my fears and working at not being intimidated.

Okay, boring banking chatter in the middle of exciting frugfality. But thatís the problem in my head; garage saling is fun, finding out how to invest for retirement is not. Sweeps point is well taken; while saving the (shiny!) pennies, Iíll make sure that all aspects of my financial house are in order. It will be a journey-I didnít become frugal overnight-but I should continue to make solid progress.

Why doesnít that Sweeps character have a bog, huh?

3 Responses to “Darn that Sweeps”

  1. yummy64 Says:

    Last year I finally bit the bullet and got a financial planner. My savings were about as well invested as yours were. My dude is on commissions but with a Bachelor of Commerce it isn't like I don't know about this stuff - I just don't enjoy doing it. This dude gets really happy finding good mutual funds for me. I ask a question or two, and approve his suggestin or not. So he gets a cut, I'm in back end loaded funds and I'm earning more than I have been in years .

  2. baselle Says:

    I love boring banking stuff...maybe I'll blog a little more about it.

  3. ima saver Says:

    I love boring bank stuff too!

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