What's a good way to save money without a bank/savings account?

Question

I don't want to put my paychecks in a bank account or savings account but I'm trying to save money. What can I do or where can I put my cash that I want to save, so I don't spend it?

Answer 1

you should put it into a high yield CD with your bank. it is a method in which you can put a specific amount of money generally starting between $500 or $1000 and for the minimal amount of time of six months and up you can hold it in a CD that will earn interest usually quicker than with a regular savings account. (CD stands for Cash Deposit) You could look up your local bank on-line and they should post their interest rates according to which type of CD you use. I recommend this method cause it is quicker than investing in bonds or stocks however both of those are worth investigating as well.

at any rate to be truly sure its safe you really ought to put it in a bank account. you never know what might happen to it...gets lost, someone finds it, fire. at least with a bank there will be a record of what you have available.

Answer 2

Well, you can cash your paychecks at those check cashing places, but they are a rip off. You really do need a checking account.

If your goal is to save money, see if your employer will have a portion (whatever you specify) of your pay directly deposited to a separate bank account that pays good interest. That way you have your spending money in your checking, and the other money is out of sight.

This is called paying yourself first. In essence, you've paid yourself by saving the money, and you learn to live on the rest that you deposit normally in your checking account.

I recommend setting up that savings account at an online bank paying over 5%. Right now, I'd recommend Emigrant Direct, as you can set it up with a $1, link it to your checking so you can access the money or deposit more, with only a 1 or 2 day delay for when you need it, and have the portion of your paycheck directly deposited into that account.

There's another bank called Amboy Direct that pays better interest, but I don't know if they offer the direct deposit capability.

All of these online banks are FDIC insured, and every bit as safe as a bank in your town, but they pay phenomenally higher interest than your local bank.

Answer 3

Use the old envelope method. Get an envelope for each area you spend money in. For example, we have

Thithe
Rent
Health Insurance
Gas
Electric
Phone/Internet
Cell Phone
Car Insurance
Food
Clothing
Household
Car Maintainance
Personal Care
What ever we are saving for (braces, car, etc)

You put how much you spend each month on each envelope. For things that aren't monthly, figure the yearly cost and divide by 12. Like for car registration, say it's $120 a year. That means you need to put $10 each month into the Car Registration envelope in order to have $120 at the end of the year.

Put the required amount into each envelope each month. If you have extra, put it towards your credit cards or into what you are saving for. If you're short, you'll have to lighten the load somewhere. I always looks at household, personal care and food first.

When it's time to pay the bills, your money is right there in an envelope. If you need new clothes, you have money for it, but don't take more than what is in the envelope. You can only use what you've bugeted.

You can keep all the envelopes neatly in a shoe box or a file folder.

The hard part is diciplining yourself to use it. I'd try to just do it by memory, but I'd always overspend in some area. Envelopes rule! There's even a bugeting service you can link your bank accounts to if you want to go that route called Mvelopes.com .

Good Luck!

Answer 4

Get a piggy bank with no opening at the bottom. You can save money that way. Or get shoe boxes or an old book and cut the pages of the middle out and put it in there.

Answer 5

What's your objection to banks? That they don't pay enough interest? Or something else?

I'd put my money into stocks through Dividend Reinvestment Plans, but that's just if you don't think you'll need the money anytime soon. See www.dripinvestor.com or www.moneypaper.com.

Answer 6

Look for endowment type of investment. Insurance company offers that service and if you invest your money for 10 years or more it can end up doubling your investment. It is more guaranteed 'coz it is liquid and mutual. It means you have a share on the company. Check out New York Life and check 10 year Endowment and Anticipated Endowment.

Answer 7

Open a Brokerage account.

Answer 8

Get a safe deposit box or a piggy bank.

Answer 9

put it in a piggy bank lol