Open a Money Market Account. Now.

Work smarter, not harder.

Raise your hand if you save money in your savings account and then transfer it to your checking account so often that you don’t actually end up saving any money. Put your hand down! Your co-workers are looking at you!

What’s a money market account?
A money market account is an uber-savings account. You put money in and take money out using a debit card and/or checks just like a savings account. You can only make a specific number of deposits and withdrawals per month. Due to that restriction, you earn a better interest rate than a savings account.

Why should I use one?
You should open a money market account because you have little-to-no willpower. Do you know how I know this? It’s because I have little-to-no will power as well. Life is not about beating yourself up about your shortcomings, but about finding work-arounds for the shortcomings that we all have.

I know that if I have thousands, heck, if I have hundreds of dollars lying around in a savings account that links to my ATM card I’m going to be really tempted to buy things that I don’t need. Having a money market account, with restrictions, makes me think a bit harder before I spend my money because I have to consider fees and penalties for taking money out.

Where to find a money market account
Money market accounts are offered at credit unions and banks around the country. Before you choose one, check Bankrate.com to make sure that you’re getting a competitive rate.

Extra tip:
– Don’t sign up for a debit card for your money market account. It’s too tempting.
– Keep your money that you’re saving for a short-term or intermediate-term savings goal in a money market account.

Read more simple money management tips in Money Matters: The Get It Done in 1 Minute Workbook.

Phone Apps You Need

It’s important that we manage our money effectively and efficiently. I’ve said it before and I’ll say it again, “its not how much you make, it’s how much you spend”. I’ve created a list of a few phone apps that are:

– Cheap
– Effective
– Easy to use

Take a gander at these puppies.

Budget

They say, “Budget helps you track your spending and keep to a budget. You can easily see your total income and your total expenses for a period, plus which expenses you are spending the most on and which expenses you are going over budget on.”

I say that everyone needs to have a spending plan and there’s nothing like having your personal finance information at your fingertips. Using this app is a small change that will make a huge difference in your personal finance outlook… if you use it.

Compare Me Shopping Utility

They say, “WAS FEATURED BY APPLE IN “WHAT’S HOT” Did you ever shop at Sams, Costco or online at Amazon? Then CompareMe may help you to save money! CompareMe lets you compare products in different sizes and even in different packs.”

I say it’s an easy way to help you find out which buy is the best deal. Who knows if the $2 can at 16 oz. is a better buy than the $2.30 can at the 20 oz.? The Compare Me Shopping Utility knows.

iCredit Calculator

They say, “In the 1.2 release of the iCredit Calculator, the calculated repayment results can be generated into a PDF document that you can then e-mail as an attachment from your phone.”

I say this is a must have tool. When you’re out shopping and think, “i’ll put it on my credit card” this handy dandy tool will be there to help you find the true cost of those purchases. Small purchases really add up and effect your credit.

Bank of America Mobile Banking

They say, “Mobile Banking allows you to check available balances, pay bills, transfer funds or locate ATMs and banking centers on-the-go. It’s fast, easy and convenient. It’s a free service and available to Bank of America Online Banking* customers.”

I say it’s a great way to monitor your accounts on the go. The days of sitting at home balancing your checkbook are long gone for most of us. Why not have access to your accounts 24 hours a day, so you don’t end up with overdraft fees. Be honest… you know you take your phone everywhere you go. Now, you’ll have your personal finance information as close your music playlists!

Bloomberg

They say, “Bring the power of the most trusted source for financial information to your iPhone, along with tools to help you analyze the world’s markets.”

I say it’s a great free app that helps you toy around with financial market information. If you’d like to know more about stocks and how they work why not download an app from one of the most trusted financial sites in the world. Get this, it also comes in Chinese, French, German, Italian, Japanese, Korean, Polish, Portuguese, Spanish, Ukrainian. Nice!

What apps do you use for personal finance?

Money Management in 1 Minute: Savings

Money Management in 1 Minute : Savings

                                                                                            

Savings falls into two general categories: short term (in the next five years) and long term (longer than ten years). We will all have emergencies come up, having just $500 available for emergencies may be the difference between paying bills and going into debt. Short term money needs to be available at a moment’s notice to pay for car repairs, tickets, and other emergencies. Long term money can be put into more risky and less liquid accounts because you won’t need the money for a long while.

 

Savings vehicles also fall into a few broad categories:

 

Savings Vehicles	Short Term Appropriate	Long Term Appropriate
Savings Account
Savings Bonds
Money Market Account
Mutual Fund Account
Retirement Account