Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
Today I’m going to start off by asking a couple of questions…
Are you carrying any high interest debt?
Do you have any money in the bank?
If you answered yes to both of these questions, then let me ask another one…
Just how much money do you have in the bank?
The reason I ask is that a surprising number of people are holding excess cash in the bank while paying ridiculous interest rates and failing to get out of debt.
Sure, you need an emergency fund — and you might want one that’s somewhat larger one than normal given the current economy — but you’re making a mistake if you’re sitting on more cash than you really need.
On the one hand, this is a good problem to have. After all, there are tons of people out there who are in debt up to their eyeballs and have nothing to fall back on. On the other hand, if you’re sitting on more cash than you truly need, then you’re paying a ton of unnecessary interest while earning a pittance from your bank.
My advice: If you think I might be talking about you, sit down and carefully consider how much money you really need to have sitting in the bank. $1000? Six months of expenses? Twelve months of expenses? The “right” answer will vary. But if you’ve got more than that amount stashed away, use the excess to attack your debt.
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (692)
- Dish Network Customer Service SUCKS (534)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (325)
- How Much Should You Pay a Babysitter? (284)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (227)
- Will Mac OS X Lion Kill Quicken 2007? (191)