Thinking Outside the Box... A Guest Writer...

My friend Kathleen's husband sent me this note and I loved it so much I asked him if I could share it on my blog. He has been trying to get control over money and had a really interesting idea on how to do this for his family.

Hi Jennifer. I was reading your blog and thinking about how we are in the same boat. I have determined to get out of that rut. I came up with an idea. It isn't anything new or revolutionary, but I thought I'd share it with you. 

I ordered a prepaid American express card. No fees and one free monthly withdrawal at the atm. It allows for direct deposit. I set up a direct deposit of $100 per paycheck. So for the year that would add up to $2,600. 

I have put the card away in a drawer and will not touch it until next year. Then I will only take out $2,100 leaving $500 on the card to be included in the following years total which would come to $3,100 That year I would still only take $2,100 leaving $1,000 on the card to be included in the following years total of $3,600 and so on. 

So I get a small windfall every year to have for extra spending, while also saving $500 a year. Putting it on the prepaid card keeps the temptation of spending it away because I cant see it on my online banking totals. 

Not life changing but a start in the right direction. I know after a few paychecks I won't miss the money anymore. I also started a Roth IRA at the bank for just $100 to start it. I've been transferring $20 to $50 a paycheck, whatever I can afford in that range and when I get to $500 I will make a trade for some sort of stock. This allows my money to grow with the market and as the account grows, if an emergency arises, you are allowed to take out the money you put in the Roth without penalty, just not the growth beyond what you put in. 

So that's my simple strategy to at least have s little spneding money and a emergency fund in the Roth acct. Tell me what you think?

I love this idea. I told him it reminds me of the Christmas Account of year's past where you would get a coupon book and pay into it each month and then get a lump sum in December.

What do you think? Has anyone done anything like this or known anyone to do something out of the ordinary to find ways to save money?? We would love to hear about them.

Thanks Luis for sharing!!!