Make Your Savings Automatic
The next thing that we're going to talk about just because again this came up yesterday it's friends and money because what I heard yesterday from a lot of especially like freelancers that are single and maybe younger and friends with people who you know there's a stigma about money that you don't want to say no and I know so it actually made me think of a story that I had a friend that I used to go out to dinner with and um she was a a lawyer doing really well and you know, and even though I'm really good with my money, I found that I couldn't say no to her and we would go out to dinner once a month and she picked these fancy restaurants and well, I loved it really is kind of spending seventy dollars, eighty dollars I don't want to spend this money can't afford it and I don't want to spend it but I didn't say no to her because I didn't I was afraid what she would think of me here on this confident money person and I'm not saying no so this was during the recession two thousand seven e...
ight she called me up and she said, you know, I'm really worried I'm going to be laid off there's a really good chance event do you mind if we just go out for chinese and spend twenty dollars each? I was like thank you yes yes so I was actually really angry with myself that I hadn't said it like why didn't I say it? And so here she says it to me we had a blast if it if anything it was refreshing I was like, oh, I'm so glad you brought that up that was something that I was dealing with I didn't want to spend the money but I wanted to go out to dinner with you and wanted a night out alone with you why not have that conversation so it's the stigma of saying no and if they truly are going to give you a bad time I feel like your mother you shouldn't be friends with having honest conversations suggest something that is equally entertaining one of the exercises I do when I do a twelve week horse is I say think about somebody in your life that you admire in terms there money habits ideally let it be a friend but maybe there's someone in your life that you're like wow and obviously you don't know what's in their bank account but you're like why you know so and so does this so I had always have the group go around the room and say, you know, I really admire you my friend maria admire my friend rosemary I admire you I admire so and so so think about who in your life do you admire in terms of their money habits and it's not that they have nice shoes and maybe if you don't have anyone in your life you should think about that separately who in your life is a negative influence so in fact this sum this month I'm quoted and real simple and it's all about saving money in holiday shopping so I'm bringing that up because I actually interviewed a girl and they wrote a whole thing about are they? I wrote what I had given them suggestions to this girl who said the holidays I do so great and then I just blow my budget, which I'm sure we're all relating to and more importantly she's like I don't get into debt but I'm just I eat upon my savings I'm trying to say for a house, she said I'm single so I'm buying money for my nieces are buying gifts for my nieces, my nephews, my cousin's mason so right away I was like, you know, if they don't understand that you're trying to save for a house great, which I think she knew so it's not it wasn't something she didn't know, but one of the things I said is is bring a friend with you when you're going holiday shopping ah friend that you enlist and say I have one hundred dollars today and I need toe on ly spend one hundred dollars and I have to buy gifts for five people I need your home come with me to the mall come with me to the stores don't let me shop online because I want to spend hundred bucks so find the friend that will help you in a positive way versus the friend that says, oh, someone so is having a great sale the other the suggestion that I gave to her is go when the stores are almost closing s so you don't have a chance to really roam around anyway so there's just some great tips so check out the article because it's some great tips on how to save money during the holidays but it really made me think about friends with money there's actually that movie friends and money so it's it has nothing to do with this but it's a funny movie just thinking about that. But think about again, it's just you having a conversation and if you're really nervous about saying to your friends like I'm a freelancer or not even though because that shouldn't be an excuse, but I have chosen a profession where maybe I'm not getting paid as much as you and I cannot spend that money, can we do something that is equally entertaining and if they're like blowing you off or whatever it might be something to think about, okay, so we are going to move on to making your savings automatic so before we move on jean marie, do you want to share a little bit about some money places that you have found your five places because I was inspired? I have to say, your eyes lit up when really he was just amazing. Well, I think, you know, I I optimized while, but I'm always trying to think like, a where can I have, like, five pretty simple things for? And then there was one that it was kind of cool right there here, so I'm really committed to buying organic and, you know, healthful things in food and also in things that you put on your body, so I buy organic shampoo, but we found this really great big bottle that's, ten dollars versus twenty dollars, that we would have spent through buying in bulk and a bulk, yes, exactly. So that's the savings of ten dollars a month? Um, I've gotten back into ballet and dancing, and I would love to buy new clothes, but I went through and I looked at everything that I already had, and I was like, wait a second, I have everything that you've been dressed last two days, you're just beautifully, thank you, thank you, and I know where to find good deals, so I don't pay full price for things, so it sounds like you just took stock of what I took stock so I looked in your cause that you really just thought about yeah versus the needs versus the want exactly. So so if you cost break that down over a year that's another savings of ten dollars a month? I noticed recently that we had spotify on our statement and we also have pandora one and I said, what? Why do we have both? And so pandora one is three dollars a month versus the ten dollars a month that so examining ana hide a card can be a great way I've had people find whether channels they subscribe to I've had people sign up for identity theft insurance that they didn't need so that's a great great tip that just looking at where your money has gone the last few months you're like, well, I'm paying for things I'm not using, yeah, and their monthly fees like I you know, e I don't know if you see those commercials for those I'm like hair products and skin products, and those air monthly fee is that they signed you up for. So yeah, so that's gone and then, um and then I've been trying this sort of automation lately and using insta card every once in a while, I'm not familiar with it's fairly new um it's in san francisco, but I I have been bothered because I know what the prices are in the store versus what they're charging and then they also charge a delivery feet and you have to tip the person so I was looking at a fifteen percent increase on the actual prices for convenience that you might really need s really like I shifted that mentality into that's a once in a while kind of thing that that's not a habit so thinking about convenience yeah, you know what? I'm really I'm working hard this week I need to get my groceries delivered exactly yeah the big one this is number five so I'm already thinking we hit the big one but um so we have an old new car it's paid off and everything it's in great condition we take care of it mechanically and all of that but my husband has been I both had a car envy moment where we saw the brand new version of our our way nice so I said okay, well if we were to do that, what would we do with this car? He said we'd keep it I said, okay, so so a new car and an and a car so let me break this down for you san francisco parking spaces or three hundred dollars a month on average the price of the car would on average if we were to get alone it would be nine hundred dollars a month. I'm so that's twelve hundred dollars a month extra, and then I said, what would happen if we got our car detailed and we made it feel new and all of that that's three hundred sixty dollars for a detail, which, over the course of a year, breaks down to twelve dollars, a month out of the nine hundred, twelve hundred twelve hundred versus twelve? So uh so you just you made a decision about the car? Yeah, yeah, and and so I'm going to turn around in a good way and say I don't I'm not saying you can never get that car and maybe you'll sit with it and you know what? In six months we really want that car, so maybe we safer that way save the nine hundred extra or whatever, you know, the dollar amounts that you need on that's a golda have in a year, so I'm not sitting here saying good, I'm so glad you didn't buy that car, you cannot afford it, you cannot have no, I'm just saying it sounds like you made a really smart decision for today, but if that's something that really sits with you on your money date, you're like, you know what we really want that car, can we say for it? Yeah I want the car right maybe like three years right so safe for it created summer savings account which we'll talk about a few minute call think so awesome thank you. I'll get to you later um okay so thank you for sharing that so if you have your five places let us no let us know in the chopper because as you can see how much we're learning from these five places and it's funny because as you're saying this I signed up for pandora and I think I did spotify because I got sucked in because I was like, well pandora you can't fit and spotify you can I love pandora I don't know if I need spotify I'm going to go check my cards you just saved me ten dollars a month one hundred twenty dollars a year love it love it so thank you things that are free right right well and I did they're free for a while but I music's a big part of my life and I realized I didn't want the ad so I did free for a year and I consciously said you know what? I don't want the ads so I paid for it and I don't regret paying for it but I'm realizing that I'm paying for two things so yeah okay let's talk about making your savings automatic can I save automatically even though mom a free line sir yes I can I mean the pictures a little cheese he'll put that out there but most freelancers air so scared of saving automatically it's just so much fear because we don't know when we're going to get paid and we'll never know when we get paid ever I have a very successful business and I don't know what I'm going to make next year I sure hope I'm going to make a lot of money and I probably will and I've been really successful last ten years but I have no idea what I'm making next year do any of you know no that's okay but it doesn't mean you have to let it hold you back money is temporary, you can make changes with money, you don't have to let it hold you back and get yourself in a hole but what I do see is people who don't do anything with their money miss out on opportunity so by you not making these money moves you are missing out and what you're goingto happen is by not doing anything, you are going to get a light years and years go by and you're like why didn't I have? Does anyone have it? Why didn't I moment I d'oh why didn't I mean, why did I save mohr especially when you learned of the power of saving? But why didn't I do more things so saving automatically your I cannot stress that enough. It is one of the most important invest things you could do for yourself so you can do it don't be focused on the dollar amount just get started. You won't miss it and think about have have you had? Has anybody worked in corporate america and had a four one k? Did you miss that money getting taken out now? Course not first paycheck, you thought, oh, I thought it was gonna be bigger in this and after a while you don't miss it and then you got the statement you're like, oh, I just save seven thousand dollars so psychologically make it harder to get to we really have an online bang where the money is harder to get teo harder to reach to put a minimum amount on automatic savings, whether it's twenty five, start with twenty five dollars a month, you can do fifty to one hundred to a cz muchas you think you could do that doesn't hurt it's funny, I went to religious service and the the minister was just like give until it hurts, eh? So I'm not religious that all this is not about religion, but I always laugh about that, but think about okay, I could do twenty five I can do fifty does that hurt? No I don't know hundreds that hurt now two hundred all right, not now that hurts but think about what's your dollar amount that you could do you could always have access to it I'm not telling you that you could never touch it again, but what I'm telling you is that if you set up the habit of taking the money out and putting it someplace that's a little bit harder to get to you will save more I see it over and over and over you won't miss it and then you also take advantage you know, it's kind of spreading the notion there in dollar cost averaging, which means that I'll talk about that in a few minutes, but what that essentially means is that when you start to invest your money every month, you're taking advantage of the market going up and down without market timing so where should you invest your money so it doesn't matter where you bank but you can pick any of these institutions capital one three sixty g e capital ally american express so these air for that I like I was a huge fan of I n g direct I don't know did anybody do angie so capital one, three, sixty baht thumb and just, you know, disclaimer I don't work for them I don't get paid I've got my accounts a capital one three, sixty so the idea of a big picture basis is you've got your bank where you do your banking and that could be your credit union that khun b chase that khun b wells fargo could be any of those places, but then you have your savings here. So initially I suggested the online savings because they paid more like if you look at him, if you have a savings account at the bank at your regular bank, how much you getting paid? I only have a kind of a one saving so why my chase account is paying point zero zero for maybe maybe the's air paying nearly one percent not a lot of money I'm not going to say it is, but that's ten times what I'm getting at my bank so obviously I started in the sort of dating myself here ten years ago, fifteen years ago when it was like four percent versus the two percent you were getting at the bank on interest rates will go back up, they always do that's life life is a big cycle, it goes down, it goes up hills and valleys, so the idea is that it goes up, it goes down, but why not have your money in a little bit higher interest? And so the way it works logistically is you have your checking account again wherever you want it so you could be in nebraska you could be in florida you could be in california you could be in connecticut you have your local bank you have the checking account the checkbook in front of you you go online, you open up this account and it's linked to your checking account and so it's f d sc insured there's no fees there's no minimums there is a big caveat the money's a little harder to get to it can take up to three days to get the money going I love it I love it what I like is that when you go to the and it says checking or savings you can't touch it what I like that when you want to make an impulsive move can you got to think about it so as long as you know and there's no surprises and I'll be honest with you I've had my account there for eleven years I won't lie um I would say that it's never taken me more than a day to get the money but it can take up to three days so just know that I'm not saying put nothing in your checking account and everything they're definitely put more money in your checking account if you need it but make it a little bit harder to get to so for the starters this could just be your savings account your emergency savings, the counter your runny rainy day this khun b, where you set up money for your taxes so I have a separate savings account for taxes. So again, whenever I get paid and money, I take money out I right away transferred to my capital one account, my tax savings account, because it's not my money. It's really? Unfortunately, the irs is already and when my accountant sends me an email and says you owe x dollars amount on a quarterly basis, it's already saved my quarterly saving in my I n g account. So I go online, I link it it's linked to my chase, checking I transferred back to chase checking, and then I write a check from there, and so I have many different accounts, so for starters, and then you can also set up automatic savings so you can tell a capital one or ally or american express any of these companies, you don't have to have account, so you don't have to have an american express card. You don't have to have a g, you know, whatever roman allies, actually. Gee mac, which general more general motors except so it's that's? Why allies based on so you don't have to have an account with any of those places. But what you do is you can say on the first of the month take twenty five dollars from my checking account and put it into my savings account I haven't done for two separate accounts I have of my rainy day emergency and for my safe to spend so I have twenty five dollars a month going into my vacation account so no matter what and you know obviously twenty five dollars a month isn't gonna get me far but I'm saving that we have the savings question from daryl and carol are welcome back carol carol was great in the chattering yesterday too and it's about this concept of saving when you have a really low income and we have had some of our people with quite low incomes to carroll says my problem is if I save money I'll have no money for anything that's why I got into such debt because my income is too low but maybe I can save off any extra income that comes in because I have a regular salary is professor believe it or not, but how about that? I mean do ella advocate try get a second job for the savings? Yeah, absolutely yeah, I mean you've got to save money so you have to figure out how to save so whether it's continuing to cut your expenses which it sounds like she's done sound sexist yeah, which is great but, yes, you have to pay yourself because no one's gonna pay her so she could choose not to save and not to get the second job or not get more money, but she's only going to get into more debt and she's not going to move forward and have retirement savings. And ten, twenty years from now, she's gonna have no cushion. So what I'm trying to do initially is just helped her create the heaven of making savings a priority. It should be a line item. It shouldn't be if it should be a when I save and so that's why I keep saying if you haven't saved, don't worry about the dollar amount dont worry about ok, I'm just going to do twenty five dollars, I mean, we all know twenty five dollars a month isn't gonna get us far right it's not going to buy us a home. It's not, but it's an action step and what I see eleven years of working with individual clients, twenty five dollars quickly turns into one hundred, two hundred to three hundred that I do see and I have seen it over and over, so yeah, thank you for sharing keira really that's huge that you're putting it out there from zen lp, who wants to know if the rates matter? For the savings accounts when they're when they're so small well no if you do the math you're not going to make a lot of money in the long run so I agree so if you have enough will power that you could do a savings account at your bank and you're not going to touch it and if that's easier for you could sure go for it I'm trying to also make it a little bit harder to get to you because I think psychologically if you know that you can't touch it you're not gonna spend it so this is where I just want you to make it a little bit easier for yourself I do have ah five twenty nine account and I get statements about the the amount of interest earned and reporting that as income is that anything we have to be concerned any money so the five twenty nine account wouldn't count as income and we're going to talk about that tomorrow because that's tax deferred for children's college but with that being said yeah sure you have to if you have a lot of money saved and you're earning interest that's income you've gotta pay taxes on it so what? So if you think about the math though so you've earned a thousand dollars so you still have to pay you know I'm just saying twenty percent but maybe in your bank you've only earned two hundred left to pay twenty percent so the idea is that twenty percent I'll have eight hundred left versus twenty percent of two hundred is one sixty I'd rather have eight hundred, then the one, sixty, so I'd rather save as much money as I can and make a cz much interest rate as I can yeah, I'll pay taxes on it, and if you're truly saving so much that the savings bumps you to the next tax bracket, then you probably should be investing your money, and we'll talk about that tomorrow, but I don't think we're talking that you're saving so much that it bumps you to the next tax bracket. Judges has a question on the separation of personal on the business something so should we take out extra left over from business net inside some in a business savings? Or do we just put it in our personal site? That's such a great question so I actually have just going quickly jump to the side where should you bank money yesterday went too fast I'm going to slow its okay, we've got plenty of time, so one of the things that I do is that this is actually a client. So another thing, this is a client who has one, two, three, six different savings accounts, I have a business savings account. So I actually put one hundred dollars or two hundred a month from my business account into a business savings account again I'd do it a capital one at I n g on what did I say before I save it for a new computer? I save it for camera equipment if you're a photographer I save it for marketing was talking earlier is that you know, I sometimes I'll do like a big marketing plan and pay a consultant two thousand dollars to help me with that I say for it so absolutely why not say for it why not plan for it and budget and forecast I think it's a absolute responsible business decision it's awesome photo fabulous this is related says so the first of the month I pay all mortgage credit card bills and lytes et cetera should all of that come from the his account and what is left put in my personal account so it sounds like questions around I'm going to talk a lot about separating business one per second so yeah that's definitely covered it's such a great question and the point is they're thinking about it you're thinking about should you how should you pay the logistics of it and you know it's I'll be honest with you I have spent many hours with clients talking about how to set it up and not everybody is the same but take the time to do that now but if you can start thinking about I need to separate it so realistically what you want to eventually do is check comes in don't draw this out this is where I get really visual you get the check and if you still get the written check or if they direct deposit you put it into a business checking account and what you might be able to write off your home office and we're gonna talk about write offs and things like that well, you might be able to write off your home office you really have direct business expenses so you might have a business office you might literally have your website your landline and again we're going to talk about that but if it's a gray area you're not sure about you don't pay for it so you do the true business expenses and then you literally transfer the money to your personal checking and there you do your personal expenses your mortgage, your credit card bills, your student loans, your gym anything personal now these you can write off which means the taxes you pay will be much lower because you can deduct but if you're not sure if you think if it's personal business is probably personal to keep it in the personal checking and then do tree business expenses business so here you'll pay for your business credit card you will not pay for your personal so again keep those really separate two maybe you gotta set that up. Great. Like, kind of an interesting anecdote. I actually had a phone call you yesterday with somebody who doesn't work for me sometimes, and I was speaking with them and about, you know, sending them a cheque. Could you send me an invoice? And they were very adamant that I send it to this particular name don't put my name on the check, put it towards this, and we decided to have a conversation he's a much older person than I am and has worked on this for, like about twenty five years, and it was like, you have to keep those things separate it's so impossibly, and I'm going to take it a step further because I do the same. I mean, I don't tell investments I don't manage money, but I am in the investment business, and so the first thing I did is I created corporation, which we'll talk about tomorrow's I'm a limited liability corporation, no one's ever suit me, but I could get sued. Absolutely, we all could. So that was another reason is that I wanted to create quite limited and elsie for tax purposes, but I want every check written too down to earth finance my company, and I don't want to be personally responsible. I'm not a lawyer again I have a great lawyer who helps me with this but send it to the business and so if it checks written to the business, the business is responsible so that's another reason to just for liability and corporate responsibility again, this is where is the freelancer think of yourself as a ceo in a cfo even if you're one person shop and that's all you'll be for your life you're still the ceo and the cfo okay, so we talked about the places to save really think about do you have an extra two hundred dollars? Absolutely you have an extra thirty three thousand probably not, but you definitely have an extra two hundred dollars and if not I'll find it you see, I've been finding it and I love it that the budget I have to admit I've gotten some really tough budgets these have not been easy ones and I have found two hundred dollars in almost everyone's budget and haven't even gotten you know really rolled up my sleeves. So this is, you know, just kind of a very basic chart. But the idea is that if you're investing every month the one percent interest rate twenty five dollars, one hundred dollars, two hundred dollars, five hundred you confined these dollar amounts you've got to find these amounts eventually when you start earning more, you have have to but what is one hundred dollars a month in ten years? That's twelve thousand so you all have one hundred extra hundred dollars but given extra twelve thousand you say for that car at the twelve thousand or two hundred a month that's twelve thousand a short period of time in five years so again really saying how can I come up with this money? Because this is what it turns into we're going to talk a lot about investments to are so six percent in the longer term basis is absolutely realistic in this market so that thirty three thousand in ten years you could have thirty three thousand just by two hundred dollars a month that's your down payment that's your camera equipment that's paying off loans that god fill in the blank what can you do with thirty three thousand heck of a lot of money? So find out two hundred and then tomorrow we'll talk about how to invest it and get six percent for that just a little bit about where you should banks we talked a little bit about where you should save your money but let's talk a little bit about where you bank so with a bank I I'm I'm cheap I don't want to pay us sent in fees sorry, big banks but I'm cheap and I'm like, what can you do for me what kind of benefits and services can I get for free? I have not paid a fee and once in a while I get charged a fee I just march on down there and I like, you better take that off because I don't mess with me so first time convenience because convenience we pay fees for convenience because if something's not convenience and I know that I'm probably going to hear a lot about online banks and great I mean there's lots of ones that I don't know about, but you want to initially just pick the one that's most convenient to your home or office the least amount of fees so bank versus a credit union, which I'll talk about in a few minutes, you know, I'll just start with the big bank is that I personally you know, I had to make that decision and actually new york city there's not a lot of credit unions, it seems like smaller towns have more credit unions, but there was a credit union I was in a bit able to have access to and credit unions are great for me community standpoint from a social responsible stamp point there's there's a human touch there I mean there's very little automation they do have lower fees to so in terms of really saving money on fees, they they're essentially non profits so they want it help you and give you the best services they have support, they also look sort of work with you in terms of borrowing money, so maybe if you don't have the best credit or if you don't have the best credit history, so they're great, however they are not, they might not be as available to you, so they might not be one that's close to you. So maybe you do have to pay fees if you're getting from an atm, you also might not belong to a credit union like you might not work for a city or municipality or be part of a union or be part of one organization, so it might be harder to get access to our you also might not be able teo, you might have a family member who could get you into a union. So the big banks, though on the flip side, they're much more around. They have atms everywhere, so, like literally I'm a chase customer, I came to san francisco is able to get chased out money and not have to work, you know? And I knew monday I'll get my money. Monday morning I knew exactly where there's a chase a t m I didn't have to pay the fees, so again, I'm really cheap, I didn't want have to pay that, so I like that. Just a quick story is you know and I don't want to get too much into the down and dirty but I have had a lot of clients who've had identity theft and I have to admit that's where the big bank helped because they do have the resource is to really help you with that and so especially like if you're with a larger bank and you get on it right away I mean unfortunately just have more of the corporate backing for that so I'm really not telling you one is better than the other but I find that the big bank really came through in terms of identity theft, prevention, protection and really helping with that so just kind of throwing that out there, but most importantly don't pay fees. So think about so bankrate dot com again, which I talked a lot about yesterday khun talk about banks and you neighborhood you can put your zip code and we'll show you all the banks in your neighborhood but go to the bank and banks change so much and just say if I keep this much in checking or if I have a direct deposit like if you get any sort of steady paycheck like you know we've got the professor if you do a direct deposit the way fees I do have a minimum and saving so I think I bank lets me put a five thousand in savings and fees get wave because of that. But if you're paying twenty, thirty dollars a month and fees, you gotta cut that out and again, we did what you might not realize that you're paying them, that I have online banking with bank of america, and I feel I felt as though the fewer justified because of all the online features they have in the bill, pay and whatnot. Are you saying that I should call them and ask for that feta beat removed? Get to know your bank manager. Go into your local bank of america. Talked to the bank manager, go dressed up like the way I'll just go from here. Yeah, I do that to chase a I moved from new york to connecticut. I walked right into my conn, officer. I'm like hi, I'm galya. What can you do for me? Like we had a savings account? We weren't getting much savings and I was like, can we get it on? I went in there. I sat for an hour to I got it done and chases the biggest bank practically in the country. Go to bank of america and you might have to put more money to savings. So you might have to make the move, but say, what can I do to get rid of this feet? Can I get a credit card? Can I get a savings account? Can you work with me to get rid of this fi go in person? Absolutely. It's old fashioned, but that's, how you get things done, so do not pay the fees. I mean, I bank online with chase. If you have a mortgage that could be something to like. I have a mortgage, a chase. If you have a mortgage to bank of america, they should you should not be paying a cent. Okay, you're making four percent offer you whatever the mortgages that that in itself, right there. So maybe they're not aware that your mortgage to be linked your checking account. In that sense, you just saved you. How much fees have been on the list there, too? What I save jean marie, I'm so bank resource is bank rate to find again the most convenient lois right bank in your area. And if you do want a credit union a smarter choice, which, by the way, was tweeting about this course yesterday. So so fantastic website for finding credit unions in your area and has a lot of great websites about credit unions. So you're not going to necessarily put your savings here or save money, but you are not going to hopefully pay fees and you will need this like I have my personal and my business checking in one bank they're not linked, they can be linked but sometimes that doesn't work is easily so I'm still doing some old fashioned check rating but you know I don't do it that often I only do it once or twice a month, but I initially had to open a business checking at another bank because chase of the time wouldn't give it to me because I didn't have the track record so this was gosh years ago commerce bank, which was really big in new york they had branches everywhere and I think td bought them up, but commerce had free business checking and they were near my office, so I did that so shop around but find that new business account checking don't spend money um just really quick some case studies on uh this one client she had I was saving for her down payment she just bought the apartment who eight years it took her to save doesn't matter she owns an apartment in new york city come on that's huge she's a single lady nobody helped her she did all on her own she doesn't make a lot of money as a freelancer and she just spot a gorgeous one bedroom apartment in new york city because she had saved down payment money. She was also motivated. I will say she started making a lot more money when those account started growing because she would and she would come in, and she chan she what was I don't have capital one lets you do this anymore, but I n g usedto let you name the savings accounts, do they still let you do it? Yeah, I loved it, so I called ah favorite vacation spot for us is big sur, we love big certain, and we don't want to camp there, we want to state the nice hotel way would call was kind of post ranch, which you know, is a fortune, but we would call her vacation account the post ranch account just we're like we'd rather safer one night to stay there or the down payment, maybe you're like upper east side apartment, you know, called theory have fun with it, like don't make it so serious personal growth. She took a lot of seminars, and so she saved money for it. She had haircut, dentist and just was unfortunate haircut wasn't she liked to look good, and she wanted to save for bumble, bumble, whatever the salon was rainy day ira and then what so she would do is if she had an extra seven hundred dollars a month, which I remember was her amount put him in every month seven hundred so some counts got twenty five some got fifty, some got one hundred someone she could put a thousand someone shook up a two thousand it was about seven hundred she could do in all of those accounts and then she would either meet with me or sit down with herself and say, ok, I've got too much in down payment I don't have enough of my ira let me shift around like money's fluid that's okay? It could be moving around, but at least it was really, really focused and like I said, she just bought an apartment she would not have done it if she hadn't focused on saving that money like that. So do it at one of these places, so just like on a big picture basis set up that online account, make it automatic have money, go into those different accounts so you can save thirty three thousand dollars in a very short period of time and look at that five hundred dollars a month is thirty five thousand dollars in five years that's a lot of money, so your homework open your online savings account, so if you're nervous about automatic savings, just open the account link it to your checking account and I mean, if you truly feel that you are very well powered and disciplined and you don't need the online savings account that you don't feel that pressure of getting the money from your savings at the you don't. But most of us word, I'm pretty disciplined. I've got great willpower, ivan online savings account, I just liked the idea that I cannot get to it and it's a little bit harder to get to, and I'm not talking about that. I can't get to a tome seventy or sixty I'm ju nothing that I can't get to it immediately. I can get to it in a day or two. Have you ever wanted something? You've bought something and you didn't buy it, and then you went home and you're like, I'm glad that I'm buying it's the same idea lincoln to your checking account and I just I am pelo rre you set up automatic savings, just set it up, don't worry about the dollar amount if you haven't set up who does to you bump it up like english and then create different accounts for different purposes.