Money, Money, Money!

*Note: This is in no way a post to boast--it's to encourage. I'm sure there are many of you with similar stories--please share.

On December 31, 2007, Sam and I had a total of $2,270.25 in a "high"-yielding online savings account.

As of July 23, 2008 we have $10,999.49. In less than 7 months (one of those months I didn't even have a paycheck, because my first pay check was Feb. 1st) we have saved roughly $8,729 (plus an additional $1,050 into a Roth IRA).

How have we done so, especially when we had 2 households to pay for (Sam being in Colorado)? Let me share how we have managed this feat:

1st of all--I do not make that much money--it's really a modest income. We've mostly just done it by living the same way we have lived since we got married, and pretending like our income is just as small as it was last summer.

We save money first each month--it's the first thing to come out of our paycheck. We also save any extra money at the end of the month.

We use a no-annual-fee credit card that gives cash back bonus on EVERY purchase, and we pay that off in full each month out of our checking account (as if it were a debit card). Every three months or so we get a nice check from our credit card company that is FREE money. We don't spend it--we send it straight into our online savings account.

We are pretty meager on buying things--including things for other people. We're careful with birthdays and Christmas presents (besides, don't we all have enough stuff anyway, when it comes down to it?). That may sound harsh to some, but it's one way we've saved so much.

We only have one car, and no payment on that car. And we walk or ride our bikes almost everywhere (we only drive when we are heading out of town).

We save for irregular expenses, like Christmas, oil changes, car registration, etc., every month. That takes some budgeting and planning, but it is absolutely *WONDERFUL* to have money ready to spend when Christmas expenses (gifts, travel, etc.) come around. Click here and then click on "Budget Special Expenses Worksheet and Sample" for a handy-dandy worksheet and more information on how we do that.

Our economic stimulus payment was sent straight to our savings, as well as our tax returns. Every penny after tithing of Sam's summer income heads straight to savings, also. And finally, any gift money we receive (like money I got from graduation), also joins its friends in our savings account.

And that is how we've saved $9,779.24 in 6 months and 23 days.

(Bytheway, the money we are saving is first for our emergency fund, then next to pay off Sam's student loans. Once those are accomplished, we'll be saving for a downpayment on a house.)