Questions tagged [savings]
a generic tag related to accumulating cash or bank deposit savings.
715
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When is it worth taking out a loan for something I could pay in cash?
I'm trying to better understand the time-value of money and how to compare interest rates vs. investment returns.
In general, if I can pay for something in cash or short-term credit (paid off monthly),...
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5
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I have to pay back my student loan. When is the best time to do it?
Today, I received the news that my "Payback phase" for my student loan has begun. I was afraid this day would come soon, but it came quicker than I anticipated. However, I got the news that ...
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3
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What is the way to get money managed without hiring a personal financial advisor?
What is the way to get money managed without hiring a personal financial advisor? I do not think I need any personalized approach, I'd rather have a target retirement date and I would like to get ...
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Where to put an inheritance of $1.4 million upon first receiving it
Sometime in the next year, I will receive an inheritance of 1.2 to $1.4 million. I am concerned about the safety of money in a bank with threats to USD thanks to fiat vulnerability. I live in the ...
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How are the income conversion factors for 3%, 5%, and 7% interest rate calculated for retirement income in the U.S.?
I'm reading the U.S. Department of Labor's PDF Taking the Mystery Out of Retirement Planning. Page 17, Worksheet D, asks the reader to take their total estimated savings in different retirement ...
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How does Robinhood’s cash sweep achieve 4% interest?
As of February 2023, Robinhood’s Brokerage Sweep Program guarantees its users 4.15% APY (for those who pay $5 a month for Robinhood Gold). Robinhood is sweeping the cash to banks. Do those banks offer ...
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Is car loan the better option when one has already saved enough to cover the purchase
Let's say someone has saved $100 000. There is no specific purpose for this saving
Now there is a car that cost $62 000
Financing the car entirely via a bank loan would cost around 50% of the salary ...
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answers
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Prepay principal vs putting money in savings account
Should one prepay principal if the interest rate is higher than that offered in a savings account? For example, in the US savings rates have gone to 3% but what if one's mortgage is higher than that, ...
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Do I use savings to buy a car?
My current car worth £700 needs £1500 of repairs. It’s a bit of a money pit at the moment with big repairs needed a lot.
I want to buy a new car. I’m looking at used cars and I found a 2015 Corsa that ...
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Should I repay my student loan to free up £800 in cash flow?
Some advice would be appreciated.
I am in a very fortunate scenario where I'm currently earning net £6k a month as a contractor inside IR35. My student loan balance remaining is £12k and I have enough ...
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Saving for retirement... starting at 68 years old
It may sound like a joke, but it is not. I imagine I am not the only one in this situation. I guess.
Here is what I have going on. I am a "one man show" self employed carpenter. It took many ...
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How do I calculate monthly compound interest with additional monthly deposits in Google Sheets?
I'm trying to figure out how to write a formula and/or use a function to calculate the following in Google Sheets.
John deposits $1,000.00 into a savings account on Dec 31st. John also deposits $100 ...
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Are there any world-wide statistics about the average amount of money people hold in savings? [closed]
I was surprised to learn today that according to finder.com, the average British adult has savings of around £6,700 (unclear if it's mean or median though,) while a third of Britons have savings of ...
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EE Paper Savings Bond reads MAIL TO:?
This was issued 23 years ago.
Below my Son's name reads MAIL TO: and gives a person's name and PO Box address. I don't recall how I purchased this, and who this person is, but how does my Son find out ...
4
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1
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Funds that approximate savings accounts
I have money in IRAs that I shouldn't take out to put into a savings account. I'd like to get a relatively safe 1.5-2% return on these, similar to what I might expect from a savings account in terms ...
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2
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Investing in stocks and bonds to save for a home renovation
We have a goal of one day doing a large home renovation. This work is not urgent, but it would definitely be nice to do someday. I would prefer to take on as little debt as possible to do this, so I'm ...
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Do High Interest Savings Account (HISA) have an associated risk?
I have been chatting with a friend who asserts that all investments have an associated risk. In reference to this I suggested a High Interest Savings Account, claiming it has no risk. My friend ...
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Is it a good time or good idea to invest money that I will need to repay in a year time that is not currently accumulating interest?
I'm currently in my graduate studies in Canada. I have around 20k in savings. I will make around 8k more by the end of studies in savings without accumulating any more debt. I currently have 20k in ...
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In a Budget is Saving Considered an Expense?
I created a personal budget with a savings section but I'm not sure if it is considered an expense. Is it an expense, and how do I account for it?
Thank you all for your great insights.
I decided its ...
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How to establish your (yearly) savings rate in GnuCash?
Title says it all... pretty much.
Maybe this exercise is really simple and this question a bit silly: I'd guess it's simply the sum of all expenses (i.e. expense accounts) over the sum of all income, ...
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Financial pros and cons of having a rainy day fund in a savings account versus invested?
I used to have about 4 months of expenses in a savings account as a "rainy day fund" in case of emergencies.
The last year or so, though, I've switched to having a minimum of expenses (about ...
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63
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Should I hold strong currency with weaker interest rate or a weaker currency with high interest rate?
I earn in USD but my home country has a different currency INR.
Pros of holding USD:
Converting to INR cost me 0.5% of the amount which I save by not converting.
USD/INR rate seems to be going up ...
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Understanding/Calculate effective annual rate and savings
I came across the following exercise:
You put $1000 into a savings account today that offers a 5% APR with semi-annual compounding.
What is the effective annual rate of the saving account?
How much ...
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1
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1
answer
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Mismatch Between FV Function and the Bankrate Simple Savings Calculator
I'm trying to replicate the functionality of the Bankrate Simple Savings Calculator in Google Sheets. I've assumed that I need to use the FV function, but I can't get the numbers to match exactly. ...
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How much you have to pay taxes for selling gold in USA? [duplicate]
Imagine you don't trust the stock market nor the banks so you keep the money in your house.
Then you want to protect yourself from inflation and you buy gold.
Then one day you want to sell a ...
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Promotion will leave me with a spare $25k. What should I put this towards?
I'm 20, about to graduate college, and have accepted a promotion at my current job that after taxes will leave me with about $25,000 not allocated to anything.
I am already putting aside 15% of my ...
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1
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It's official - I've paid off my student loans. Now what?
I paid it off. (Before you congratulate me, I'd like to remind you that I imagine this must be how it feels getting released from prison.)
But now there's $1100/month that I was paying toward that ...
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Diverting work income through my unprofitable LLC
I have an LLC that doesn't make money, and I have a full-time job. I'm considering having part of my income from my employer go to my personal bank account (to save for retirement), and the rest go ...
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"High Income Earner" savings / investment options
After 7 years in my profession, I'm finally in a high paying position. I was reminded recently that I needed to be "accumulating wealth", which got me to reading articles. One of the things ...
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What is the advantage of a Sparbuch, and how does this work?
In Germany, there apparently exists such a thing as a Sparbuch (literally: Savings book, apparently comparable to a passbook in the USA), mentioned in this answer. According to a recent news article, ...
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4
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How does tax-deferred pension savings carry any long-term benefit over taxable accounts?
In terms of the total post-tax savings value, I don't see how taxable (e.g. Roth) vs. tax-deferred (e.g. 401(k)) makes a difference.
Let me be specific. Suppose tax rate is s, and you dedicate X of ...
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8
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Safe-ish investment options for a young, well-compensated couple
I'm definitely late in learning this stuff and have gone through the top questions on this site like
I'm 23 and was given $50k. What should I do?
Oversimplify it for me: the correct order of ...
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2
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How do I use my spare money? (Brazil)
I am writing this question because I want to know what are the best options for using my spare money. Hence, let me first describe my situation:
Who am I? I am a 24 years old no child single male.
...
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2
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Is this a loophole in my credit card policy?
I have recently applied for a new credit card that and cardholders can get 5% cash back on purchases in their top eligible spend category each billing cycle, up to the first $500 spent (then 1%). The ...
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How do I calculate Compound Interest with changing monthly contributions, quarterly contributions, and changing interest rate
John currently has $100 in a saving account that compounds quarterly at a .25% interest rate. When the account's balance reaches $2500 or more, the interest rate will change to .05%. I want to figure ...
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2
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What exactly are the drawbacks of moving money from a checking account into a savings account?
My paychecks get directly deposited into my checking account, and I haven't bothered to move any of it into my savings account because I know there are some drawbacks to having it in savings as ...
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Professionals who provide the same services as Mint; i.e. personal expense tracking & analysis?
Not long ago I went to a financial advisor/money manager for a discussion of all (I mean all) my finances and was needing some analytics in the short term to decide what smart actions to take for the ...
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How to split up income for loans and savings
My partner is about to start Veterinary School, and as a result is going to be taking on a potentially very large amount of debt. I have a job currently paying me $55,000 on salary (factoring in the ...
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Company with high match for 401K vs IRA, which to choose?
I am fortunate to be at a company with a pretty high 401K match, 50% with no cap.
Normally when I've saved in the past, I've done the 401K up to the amount matched, and then chose other savings ...
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4
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What is the easiest way to avoid using banks while still being able to store money safely?
I have had a bank account since I can remember, which I mainly used for saving money & having a physical card to spend money with. For a long time, this his seemed a logical thing to do as I would ...
user109555
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If the loan interest is lower than inflation rate, does it mean it would be less expensive to take a loan and spend now, than save to buy later?
I am considering to buy an upright piano. For that, I have been planning the budget I would need and how much I would have to spend/save to be able to buy it .
A few things to consider:
The piano ...
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13
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Should I spend 3/4 of my savings to buy a new car that costs about a year of my annual salary?
Since I still live with my parents I've been saving money for a while. All these savings amount to around 15 months of my current salary.
Now I need a car.
Cars are pretty expensive. I don't want to ...
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Started earning money, have significant savings, would like to invest [duplicate]
I am in the last year of university and got myself a well paid part-time job. My expenses are negligible for now. Since I was 18 I was always making money here and there, so I managed to gather over ...
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1
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What are my options for investing as a resident in Poland? [closed]
I am intending to become resident in Poland in 2 years and would like to find ways of investing, eg: stocks and shares, tax free savings etc.
What are the options and how can I find them? (I don’t ...
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3
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Optimizing Savings Allocations
I am currently trying to decide the best way to allocate my savings, and I would appreciate your input. I am trying to budget roughly based on the idea of using 50% of my post tax income for ...
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Can I buy an overseas property using the bonus from a Lifetime ISA?
I have a Lifetime ISA but am looking to move overseas in the next few months. I am yet to buy any property and thus my first property purchase will most likely be overseas, can I use my Lifetime ISA ...
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1
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What does same scheme account mean in banking purpose?
I'm planning to open an online savings account in a bank where i already have normal savings account. In the form though it asks me to declare that i don't have same scheme account in their bank. I'm ...
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How should money sitting idle in a bank account be invested? [duplicate]
I've been working for a couple of years still living in my parents home with no outgoings, meaning all my money goes straight to the bank. I've saved around £30'000+ but I'm unhappy with money sitting ...
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4
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Mid twenties, no debt, maxed out all contributions to "common sense" stuff, what can I do to maximize the value of my money now?
I'm in my mid twenties living in the US, in a relatively inexpensive city (my rent is 930 a month).
I max out 401(k), 80% going to Roth 401(k), 20% traditional 401k (I expect I'm going to have to pay ...
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How do you calculate your finances for 3-5 years in advance?
I can keep 50% of my net salary a month (800$ for example), so I can just 800$*12 months, but this would be deadly wrong. Since probably I would keep it somewhere in the bank, with compound interest, ...
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