How Do I Manage My Money?
How Do I Manage My Money?
Sometimes I wonder how other people manage their money. I figured I would throw my own way out into the wild and see how it compares to your way. Below I have listed the various ways I deal with earning money and spending money.
Paychecks
I have a percentage of my paycheck directly deposited into my checking account. I have the remaining percentage directly deposited into my high interest savings account at ING DIRECT.
Retirement
401k doesn’t have matching so I don’t contribute to it. Instead, I have a Roth IRA at Fidelity which pulls a fixed amount from my checking account once a month. For tax reasons it doesn’t make sense for me to contribute to my old Traditional IRA.
Other Income
I continually work to figure out ways to diversify my income streams. Two years ago I had no idea how to make money from anything, but a paycheck and some small dividend and interest income. Side work, web site ads, etc. are some of the ways I’ve found and I try to keep this money separated from my normal day job income. I like to think of it as a bonus and try to save it in a separate savings account and watch it grow. (Of course, it also helps at the end of the year when I figure out taxes which, by the way, are way too high. Sure would love a consumption tax)