MoneyBuckets

 

New to Live Richer Challenge: The Fundamentals? Learn more about it HERE.

Week 1: Money Mindset

Today’s Easy Financial Task: Open up a Money Bucket

How to rock this task:

  • Use www.MagnifyMoney.com to help you find a free, no fee, Savings/ Money Market Account (MMA).
  • Choose the free account that also gives the most interest.
  • Transfer the money you saved from yesterday’s task to your new account.

Today’s Easy Financial Task is to open up a Money Bucket Account. What’s a Money Bucket Account?

Picture this…

Days after it rains, you’d never know…Why? The reason is that the ground soaks up the water soon after a storm. You, my friend, are like the ground, and when it “rains” money (aka payday), you too soak up the water (your funds).

The only way to keep some of the rain is to put out a bucket. An online-only Savings or Money Market Account (MMA) is the perfect Money Bucket.

Why it works:

  • It’s FREE
  • It takes 2-5 business days to transfer your money back into your current bank account. This mandatory wait will stop your impulse spending with savings. Make sure not to open a checking account at the same bank where you have your Money Buckets. If you do, you’ll be able to make faster transfers and use your debit card to spend your savings, and that’s not good.
  • It makes your money inconvenient. This is the best strategy to curb unplanned spending.
  • You can transfer $5 just as easily as $500.

Just in case you’re unsure, here is what you should look for in an online account when looking on www.MagnifyMoney.com :

Money Bucket Bank Criteria:

  • The most essential quality in a bank is that it is FDIC insured. This means that the Federal Government ensures that your money in the bank is protected up to $250,000 per depositor, per insured bank.
  • Choose the highest interest rate.
  • The amount needed to open up an account should be $0 or as low as possible.
  • There should be no fees associated with the account.
  • It’s best to choose an online-only bank for today’s task. Doing so will make your money inconvenient and inconvenient money doesn’t get spent.
  • Ask if opening an account will trigger a hard inquiry. A hard inquiry can result in you loosing a few credit score points.

The purpose of this task is to get you to see how easy it is to save. Many of us have the mindset that saving is hard, but it doesn’t have to be. Once you open your first Money Bucket, throw something in there once a week… no matter how small.

“How?” you ask. Do what you did yesterday during the LIVE RICHER Challenge, Day 3 task, and choose one “essential only” spending day a week and transfer what you save on that day to your new account. You’ll be surprised how quickly the money adds up.

Want an easy way to find even more excess money for savings?

Give the Digit app a try. I love, love, love this app.

Digit is free for the first 100 days, then there’s a $2.99/month fee.

Digit connects to your checking account to analyze your monthly income and expenses. Then it uses your spending history to locate small amounts of cash you can save. It transfers this savings automatically from your checking account to a Digit savings account every 2 to 3 days.

I use Digit in addition to my other online-only savings accounts to put away a little extra here and there with NO EFFORT.

How’s that for convenient?

Digit transfers are usually between $5 to $50. Don’t worry, Digit won’t transfer money if it’ll put you in overdraft. Your money is also safe with Digit just like the other online accounts we discussed above. Digit uses 128-bit bank-level security and funds are FDIC insured up to $250,000. You can also transfer money from your Digit account at any time.

Even bigger bonus: Every 3 months you receive a savings bonus from Digit, 5 cents for every $100.

Check out some Digit savings success stories from our Dream Catcher Facebook group:

Screenshot 2016-03-15 18.09.14

 

Screenshot 2016-03-15 18.16.42

Learn more about Digit here: http://thebudgetnistablog.com/2015/app-for-saving-digit/.

Here’s another great FREE app to help you auto-save for what you want, QapitalSign up via this link and get $5 after saving:  http://get.qapital.com/bzAc/hO6qCdMA6s

Take today’s task one step further and go back to your Day 1 Easy Financial Task and choose one of your financial goals as a focus for your savings. Saving for something specific is the best way to stick to your savings plan.

Now, share your plans today with your tweeps.

I will begin purposefully saving via my @magnify_money Money Bucket. Day 4 #LIVERICHERChallenge Click To Tweet

 

Want to take today’s task a step further? Share the wealth and pass along Day 3’s Easy Financial Task with someone who you know needs financial help.

How do you feel about today’s task? Share in the comments below.

Live richer,

Tiffany

You can find me here:

twitter: @thebudgetnista

instagram: @thebudgetnista

Facebook: The Budgetnista

Private Forum: Dream Catchers : LIVE RICHER

(If you’re new to the Dream Catchers: LIVE RICHER forum make sure to fill out the questionnaire HERE before requesting to join.)

FYI:

My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters I’m the most protective over her. Before I share any product or service with you, it must pass my Lisa Rule.

What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to. YOU are my Lisas. I feel protective over you and your financial journey.

The products/services mentioned in this post pass my Lisa Rule. Yes, I’m an affiliate, but I would not recommend a product or service that I didn’t believe was helpful and useful. 

Want the LIVE RICHER Challenge in book form? You can find it here: LIVE RICHER Challenge Book.

LIVE RICHER Challenge Book

  • Carol

    Good morning dream catchers, Tiffany I went online last week to set up a capital one 360 account but they never did the deposits to set up the account. Would you recommend trying them again it going with another bank?

  • Kellie

    I opened up a Capital One 360 and surprisingly I love the inconvenience of the account as you pointed out. It took a few days (2-3) to complete the initial deposit but it tells you the date of expected arrival.

    • ValerieLenay

      I keep hearing about capital one 360! Did you do it all online or go to the bank?

      • Kellie

        Valarie, everything was completed online in less than 15 mins!

        • Valerie Roper

          Thank you!

  • Stacey

    Ok, I plan on doing this, but I can’t today. Seriously I have $2 and some change as I did not get paid for Avon yesterday and really don’t expect to today. I will look into it today, though, and make plans to open an account as soon as possible.

    • Stacey

      Update, I looked at the options and clicked on SmartyPig (I like the name and the interest rate is decent) and it looks like its free to open. I can do free. Not sure when I can start filtering money in but I will TRY to this week.

  • Automne

    This is 1 task that I have already had done. I have been a Capital One 360 member (formerly ING Direct) but now I’m more focused & my accounts are designated for specific goals!!

  • Cambie Egerton

    Done! I’m with capitalOne 360.

  • LJLee

    On it right now! After reading some of the other posts I’m looking into CapitolOne 360 and Piggy_. Thanks!

  • Dominique

    I have CapitalOne360 already. I’ll be transferring the $5 I didn’t spend yesterday over to my savings today. Day 4 complete! I’m loving these task, challenge, & the FB group.

  • I love this task!! Good follow up from yesterday. Feeling empowered.

    • Mya Firepower Bowman

      Me too!

  • T.Green

    This task has been done for about 2 years now and have saved very little but still insist on keeping my Capital One 360 (formerly ING Direct) account opened. I have funds transferred twice a month.

    • KS

      I hope this challenge helps you with the “money mindset” as she says, and you can start saving more- we’re all in this together! Good luck!

  • Ivette Rivera

    I have accounts in 3 banks..Capital one, Bank of America and online savings with Ally…Can I use one of these for this challenge??

  • ValerieLenay

    I’m super excited about this task!!!

  • KS

    Literally signed up for ally bank the week after Christmas, to start managing my money better in the new year. Then my friend invited me to this challenge- glad I was on the same page as the goals set out here!

  • Natisha Willis-AyAndile

    Oh wow…I was already looking at spending what I saved. You’re quick on the draw Tiffany! I’ll be transferrin to my Ally account for sure!

  • Gigi

    I have an account with Sallie Mae Banking at .95% interest rate!! The best online!!! All the best!

  • Denise Phillips

    Hi Tiffany,
    Do you have any suggestions regarding balance transfers for someone like me. Due to my credit card debt which is more than 50% of my debt burden, I’ve only qualified for credit balances of a few thousand dollars, and for only 13 -15 mths max. Which really doesn’t help put a dent in my debt burden.

  • Miya

    Done!

  • Denise Phillips

    Also, ahead of the game on today’s task. I a CapitalOne360 acct (previously ING) with $50 in that I forgot about, which I’ll be focused on using for sure now.

  • Crystal Brook

    Today’s Challenge is completed. So excited. I feel richer already!

  • Timeisha Winfield

    Task completed! I opened an account with Ally Bank

  • KiraATL

    I have a money market with a credit union that I have been using for years. Last year, I stopped transferring money into it in an effort to increase my take home pay. I have switched it to begin transferring money back into the account every two weeks.

  • Shannon

    I completed Day 4 of the LRC: I currently have Capital One 360 and Capital one, but I transferred my CapitalOne Savings to MySavingsDirect because their interest rate was higher. I am looking forward to continuing my journey in the Live Rich Challenge.

  • Caeol Headen

    Im so excited about this cant wait to open my account TODAY!!!!! and start my money bucket…….

  • Shiona Marie

    Great follow up from yesterdays challenge!

  • Moreen

    I opened a similar account at a local savings bank and I declined an ATM card. Best $$$ move I made. No impulse spending.

  • Hollye Richardson-Smith

    I opened my Money Bucket with the Barclays. I also forwarded today’s email to a girlfriend looking to start saving. Thanks Budgetnista!

  • Channa

    This task was done previously as I had re-opened my CapitalOne Savings 360 account on Jan 2!!!…I am sooo excited to begin this financial journey of becoming fit and rich at the same time!!

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  • JanFree

    I already have an account with a monthly automatic deduction for savings but I decided to use another account specifically for the money bucket. It’s not that I have the extra funds but it is the discipline that I am after. I feel that to build wealth I need change my mindset and follow instructions.

  • Erica C.

    Task completed! I did all the research yesterday and opened an account with ally bank this morning. I am transferring what I had my my Capital One 360 savings into my ally bank savings since the rate is higher with ally.

  • Twinkle

    I did it! Didn’t belabor it much and am excited to save. Combining this with the “reverse 52 week saving challenge” LOVE the 1 essential day spending day and putting it in the account. Even if I don’t leave the house, I’ll throw some cash into it.

  • Carrie Simpson

    Yeah…..Just opened an online only acct at FNBO..

  • So excited to do this. About to sign up for my account tonight even though it is a few days later than Day 4. Getting my boyfriend to make one for himself as well!

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  • BDS

    A Little behind on the Challenge and I didn’t leave my house yesterday or today so Day 3’s challenge will have to wait but I did go ahead and open a new online savings acct with GE which I will send a check in to fund. I also have 3 small survey checks that I will divert to savings accts as well. Happy Funding Everyone!

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  • Toccara Booker

    I never looked into an online account and in the pass I would save money only to transfer it into my checking account when I was making impulse purchases, lending money to family, or poorly budgeting. This is a great way for me to save because as you pointed out the money is not easily accessible and I love it!!!! I went with GE they do not require a minimum balance and they had the best interest rate. This also helps with one of my Day 1 financial goals!!! Just started and LOVING IT!!!!

  • gena

    Because of this task my CapitalOne 360 account is alive…again. I’ve had this account since 2007 when it was ing. The interest rate during the ing days were GREAT and I was actively investing in myself (even dabbled in stocks) but once it changed ownership I took out all but $.32. Because of the chatter here I believe I will check into Ally Bank. Thank you to all for sharing your personal selections.
    gena

  • Alicia Marie

    I already have a 360 account using it for the 52 week challenge (2nd Year) but I did find out that Emigrant Direct has another account that pays a better percentage. I will be opening an account with them and moving funds to this account.

  • No excuses

    Love the day 4 challenge . I have a old credit union savings that’s been idle and empty for a while. I’m using that for my money bucket. 🙂

  • nelly

    This is great to stay organized and keeping the eye on the prize. I will be using this for my moving fund.

  • Jamie McCloud

    Just opened up my Ally account online for my savings. This is a great task and challenge..Im loving it!

  • Mylife Dbmc

    Opened an online savings account with Ally Bank now to try this out of sight out of mind thing….

  • aprilabtbalance

    I’m considering this task already completed since I have a certain amount automatically transferred to my CapOne account every payday.

  • Sherise982

    I still have to catch up from yesterday but I will def do this! I have capone 360 already.

  • Aisha

    Ok so my husband and I can’t open a bank account because of our already existing, delinquent accounts…so I don’t know how you would get around that.
    Also, yesterday’s challenge, essentials only…yeah that’s me EVERY day of the week. So yeah. These don’t help. I don’t have extra to spend on ANYTHING. Period. The rarest cup of coffee out, but my beloved and I have already determined that even the smallest and rarest extra expenditures must stop, so it’s not like I have extra I “would have spent” so idk what you can say to that.
    =(

  • Melvis

    I love this task. I started saving a $10 minium/week last week. This week, I told my husband to do the same. Between the two of us, we’ll save at least $80 each month. Each time we reach $1000, we’ve decided to invest that sum into something that will make money from our savings to capitalize on the dividends.

  • Mrz Camper

    I’m just getting started and I’m excited. I just opened a 360 savings account. I’m curious about this because I’m unemployed but its worth a try.

  • onbecomingmyself

    I have a Quorum Federal Credit Union savings account but I never added anything else to it except the first $25.00. I keep getting emails quarterly for my eStatement but I don’t remember my account detail so I just ignore the emails. Today is Sunday and the call center is closed. I’ll call them tomorrow to get everything back online. (Paula)

  • Dawn Clayton

    I started my account through my job credit union. I did the auto deduction 25.00 a week plus what i save for my bucket.. task completed

  • Asherah Solomon

    I already have the CapOne360 savings account which I believe I haven’t used in over a year. I will to see if my account is still active and continue to setup biweekly deposits again.

  • J4M2005

    Done! Opened an online savings account with Ally yesterday.

  • gfcfmama101

    The problem I’ve had in the past with savings accounts is that I ALWAYS opened them at the same bank as my checking account which made the money more accessible. This step will solve that problem. Thanks, Budgetnista!

  • Stephanie Jenkins

    This was a great task. I chose Ally Bank. I tried to do the auto transfer but it was not wanting to so I will send the money in. I liked the idea of repeating day three’s challenge once a week and add that to the savings, but I think I will do the pay my self one tenth of my paycheck every 2 weeks and send that in. I will see my account rise faster since it will come out to be more $. So far I am really loving this challenge course, Thank you.

  • Housna

    I opened an account with Ally bank a few months ago for this reason.

  • janice mines

    having trouble with the site

  • Fancee

    I need to get a paying job to make this work for me. Money is really tight but I also have a mindset where I can’t just do any kind of job anymore. Certain kind of jobs make me feel miserable just because of my past experiences working in them like retail for example. I don’t want to go back to a job I hate in order to pay my bills. I feel like I’m in a very bad position with no choice.

  • Angela Woods

    Unexpected bonus…When I made my deposit at the credit union and got my balance, I thought they had made a mistake. I had $985 that had been sitting there for almost two years! It was money I had used to get a secured line of credit. Other than putting a portion of it in church, I don’t plan to touch it.

  • Nicole A. Tatum

    I have capital 360 already- i don’t do spending (coffee, cigs, etc) so i’ll just work on rebuilding that account. i used to set up auto deposit into the account biweekly (about $25)

  • Jeanette Jones

    This reminded me that I signed up for an ING account about 5 years ago. It was notified that it was changed to CapitalOne360. But I havent logged into the account in so long, I need to see if it is still active. I’m positive there was no money left in it, but this motivates me to get on top of my savings once again.

  • Danielle

    I opened up an American Express High Yield Savings Account. I’ve been wanting to do something like this for a long time so this task spoke to me today. My next step will be to set up a direct deposit so I don’t have to worry about moving the money over manually. That will help me “forget” about it and leave it alone.

  • Krystal Rosebud

    I’ve been meaning to do this for a while! so I’m glad to have done it! Here is to savings!

  • Krystal Rosebud

    I just opened it! something I’ve been wanting to do for a while!

  • denise

    I do have a savings account but I was interested in the Capital One 360 for my money bucket. part of the application process is that they check with a few consumer reporting agencies. would that be an inquiry on my credit report?

  • Jamilah Muhammad

    Since I am a Capital One cardholder, I set up a capital one 360 savings account where I will transfer $75 biweekly through March 2016 with a goal of saving $1000. This will be my rainy day bucket and I plan to create more money buckets as my budget permits.

  • Lynda Lawrence- Earl

    well already had a money market savings account with ally.. which I forgot all about. working on putting money in it now..

  • Lynda Lawrence- Earl

    I already had a money market savings account with Ally bank I just never put anything in it until now. not only did I put the money that I would have spent if I was to go and buy it today but also put the money that I did save when I did buy something. (example: spent 35.oo on food at Walmart and saved 4.50, that money I put in my savings.) I figure I would have spent it anyways so I might as well take that money and put it in the savings too. I feel that if I keep doing this I will reach my goal in my savings plan that I plan for in day 1 challenge. thanks

  • Nafeesah Smiley Leverett

    I opened one with Ally. I’m excited. Making progress.

  • Stephanie Crews

    I opened an online only 360 account.

  • Tee IamMi J

    I love this task too, I already have a Money market account online but, it’s empty. So now I can use this it.

  • SHAQUANA PITTS

    so can I use my MCU account? I made it so that every time I get paid $100 from my paycheck goes straight into my MCU savings account, it also has a checking but I don’t carry the card around with me….in fact I gave the card to my best friend and told him about me saving, so he won’t let me use the card at all lol.

  • Olatanwa Adewale

    Will use my current savings account for this challenge.

  • Sandy Eyl

    Wishing I had waited to start LRC until after vacation! I’ll do this once I am back at a secure internet connection!

  • JennaLee G

    Money bucket account opened! YAY! 🙂

  • Anasa Evans

    Love it!

  • Sheryl

    I have a savings account with my local credit union but I am going to open a Money Market Account. I ha always heard about it but I wasn’t sure about how it works.

    Thank you!

  • GoldenLadyP

    That was actually really easy to do! I’m not sure why i put it off but I’m glad it’s done.

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  • Monica Cornelius

    Opened a Money Bucket account with my credit union on 4/11/2016 when I did the Live Richer Challenge: Savings Edition. I happen to spend some money out of there but now I am determine to save without taking anything out.

  • Sherreen Snipes

    love this task,,

  • Kimberly Beasley

    Task completed, I opened up my Ally savings account, will be mailing my $20 to start.

  • LaMonica Green

    Thank you! Thank you! Thank you! I’m so excited about getting my finances and life on track! Our task for day 4 is the very thing I’ve been talking about and procrastinating on for months! I’m on my way to Living a Richer Life thanks to you Tiffany and group members. My Ally online savings account is done!

  • April Frasier

    I was so excited when I joined, in all my scrolling on the first day, I encountered a post about Digit…and downloaded it then! I rocked this challenge on day 1! I am loving this feeling of empowerment I have since joining. Like, for the first time EVER, I feel like I am finally on the right track to really accomplishing my goals, and not just making them! Thank you!

  • Melanie Kenner

    I love the idea of having a money bucket. I told my hubby a few months ago that we didn’t need another account because we already have two. However, the concept of not being able to access the account as conveniently is what sold me. I will check out what my options are and open a money bucket. I am also looking forward to trying out the digit app!

  • Maria

    I have a CapitalOne360 for the pass couple years. I love it.

  • Rosalind Lindsey

    Forgot to post this but I have a money market acct and was able to deposit the $30 I saved from not spending and additional $70!

  • Kanitria Mayes

    Researching this task now will be opening account later today

  • Yuwan Harper

    I’m excited about seeing how these tools will help me save!!!!

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  • Danyalle Jones

    Such great info! Saving is what I need to do!

  • Gloria Pratt

    Opened my account…..yeahhhhh!

  • Malisha L

    I placed $6.24 in an online savings account! Wooohooo

  • Michelle Jackson

    I just opened my new online savings account with Ally. I also downloaded the digit app. I am so excited. I am on my way to becoming debt free.

  • Sharon Sanders

    Account opened with Ally today with the money I saved from yesterday. On my way to being debt free. Yayyy!!!

    • April Woodton

      How did you deposit the money, if you don’t mind me asking?

    • Christina Rach

      Hi Sharon, did opening the account with Ally trigger a hard inquiry?Please Help!!

  • April Woodton

    I just opened an online savings account with Ally. Starting Friday, I will be depositing money in this account at least twice a month.

  • Riasha

    I put away my card that is connected with my money bucket account, and transfered $20 from another bank to get it started! I will not touch my savings as I usually do!

  • Mya Firepower Bowman

    This is complete!!!! I’m on my way to a better financial me!

  • Layla

    So I just opened up an account with BB&T! I deposited the $13 I saved by doing yesterday’s challenge in the new account. Even though I’m really strapped for cash, I understand that following these steps will help me to get out of my current financial trouble!

  • Kris Nicole

    Wow….I saved $60.00 yesterday and opened a saving account with Synchrony Bank. So excited. I am making “essential only spending four days a week.

  • Tammala Boyd

    just finished setting up an account with Ally….will be depositing $$ on payday. I’m so nervous but I am reminding myself to “be anxious for nothing”!!

  • Stacey Williams

    This really sounds like a really good idea! I will be trying this out soon! Got a few of my friends doing the 30 day money challenge! I have a few things to pay off and want to live debt free by November 2017. So Im hoping the challenges will help me save enough money to pay off.

  • Charita Rogers

    GM Dream Catchers. I haven’t researched today’s task yet but I wanted to piggy back on a suggested method of automatic savings. I joined Digit recently but I can’t comment on its performance as its still analyzing my account. lol. I know it’s difficult to analyze two zeros instead of four. My fear is that they will automatically take out a sum on a day that I have other auto bill pay coming out. Stay tuned.

  • Linda Duncan

    I decided to go with an Online Savings account as opposed to an MMA because the money is less accessible. Awesome task.

  • Nahema Carty

    I opened an Ally account and transferred the $58.38 I didn’t spend yesterday into it. I’m excited about doing this again next week. I wish I thought about this essential spending thing before!

    I am also trying to open a digit account, but I am having some trouble setting it up.