Out of Sight, Out of Mind

At the end of last year, I made the leap to open a higher yield savings account with a bank I don’t usually do business with. I did this for a couple reasons.

1. 0.90% more interest – um, yes please!
2. Out of Sight, Out of mind.

I know that savings is important. I know it in my brain. I know it every time I buy something I shouldn’t or stretch myself a little thin to be able to do something I want to do that I can’t quite afford. I know it when I log in and look at my credit union savings that has nothing in it because, at .10% what’s the damn point? Why save it when I could put that money on my student loans, or my house, or insert other debt item here that can apply.

I know my mother is screaming at the screen right now. And you probably are too.

“BECAUSE WHAT IF YOUR CAR BREAKS DOWN? OR YOU LOSE YOUR JOB? OR THE APOCALYPSE?!”

Breathe, Mom, I’m sorry. I’m fixing it. I heard you, I just needed to find a way to make it work for me.

So, there are a couple of things I log in every month to pay. The mortgage, a non-credit union credit card, and my student loans (because I’m paying ahead on those and the assholes who administer the site don’t continue to take the monthly payment out of a section that you’re paid ahead on). Which means I can see all the money sitting there, waiting for me to put on debt X, Y, or Z. Or to book the next vacation or whatever. To eliminate that I opened an online savings account that I use only for savings. I have absolutely nothing that comes out of that account.

This way, the money is not taunting me, telling me that it would be better spent on student loans, and I can get a nice nest egg.

I didn’t really mention this before, but part of the reason that I also chose to do this now instead of later is because I need to be able to handle paying bills, debt reduction, and create savings all at once. I started out using a Dave Ramsey Trello board to take control. However, a couple months in I realized that although it’s good advice to follow, his plan is for people who are capital I In Debt.

Being able to make progress towards my savings and debt reduction at the same time is absolutely what I need. I am not a patient woman by any means, but I will end up doing myself a favor by doing them at the same time. Most of my debt is my mortgage and student loans, which, for reasons unbeknownst to me, are considered “good” debt. That term really rankles me when applied to student loans.

The best part about feeling in control of my money is that I feel like a General commanding my troops. All of dollars are little soldiers doing my bidding. I look forward to being debt free, and I’m working on accepting that I am not going to be so by 30.

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