# How much money do you keep in your checking account?



## ardrum (May 13, 2007)

...


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## nubly (Nov 2, 2006)

over $6k. the only good thing about being single is that your checking account gets fatter


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## ardrum (May 13, 2007)

Are you getting a good interest rate, nubly?


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## nubly (Nov 2, 2006)

do checking accounts have interest rates? i thought it was only CDs and saving accounts. if i get any interest then it sucks because i really dont see it. let me check my transactions

edit: my transactions online go back to june of this year and i dont see any interest anywhere. i have $15k right now and im not really doing anything with it. i supposed to should talk to a banker and see what they tell me


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## ardrum (May 13, 2007)

I think some might have interest rates, but they're probably pretty tiny in most cases.

What I'm doing with my cash (also thanks to my perpetual singleness, haha) is putting what would be in a checking account into a money market account. Easily accessible, and makes a decent return. The other option would be to find a nice interest rate savings account (but I want everything at one place, so I'm using Vanguard).

I want to keep the amount in my checking account low (but without my worrying too much about it being too low).

I was curious what most people tend to keep in theirs though.


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## Just Lurking (Feb 8, 2007)

I keep my checking account between $2,000 and $4,000 in order to fend off bank fees (they waive all fees after a certain amount - it can be a lower amount depending on your plan). Its interest rate is pretty much non-existent (something like 0.08% per year).


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## ardrum (May 13, 2007)

Yeah, bank fees can be annoying. I wonder if there would be another bank near you that wouldn't punish you for holding a lower balance.


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## Bon (Dec 24, 2005)

OK, I'm going to ask, label it being pure nosy.

In today's economy, how does one accumulate this much in savings? A couple, a few, and over is a lot of money for most people, when you consider rent, mortgage, utilities, food, insurance, blah, blah.


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## ardrum (May 13, 2007)

I don't make much money, but I am almost rabid in my "cheapness." 

I live in a small apartment. I don't subscribe to cable TV. I don't use air conditioning. I don't travel or buy many expensive things. I don't buy clothes unless it's getting embarrassingly bad with holes and stuff. I have to compensate for my lower-than-average income with these measures.

Also, I own my car so I don't have payments to make there. I'm not in debt in any way (school loans, credit card, etc.) too.

In all, I'd say I saved about 25-30% of my income last year.


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## millenniumman75 (Feb 4, 2005)

I keep enough to pay my bills.
My salary is actually directly deposited to my savings account. I have to transfer the money to checking.


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## WineKitty (Nov 26, 2004)

I try to be frugal but I want to enjoy life a bit too. I am taking a vacation in a week that required purchase of plane tickets and rental car. Yeah, I guess I could stay home and save a few thousand but traveling is something I love to do.

I keep about 2000-4000 on average but that is because I use my credit card for everything and pay the entire balance every month. After everything is paid, the balance goes down to less than a thousand, and then builds up again.


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## Just Lurking (Feb 8, 2007)

Bon said:


> In today's economy, how does one accumulate this much in savings? A couple, a few, and over is a lot of money for most people, when you consider rent, mortgage, utilities, food, insurance, blah, blah.


Create a budget for yourself. Write out every expense you have -- EVERYTHING from the mortgage to a daily cup of coffee to things you do for personal entertainment. Then figure out your net income (amount you make AFTER taxes, deductions, etc.). Then subtract the expenses from the income.

If you're close to zero or in the negatives, look at your expenses and see where you can cut back.

Get yourself into the green (plus side). Whatever plus amount you have is where you can start your savings. If you can't get yourself into the green, you'd have to look at changes to major things like your job, your house, your lifestyle, etc.

It probably won't work for everyone, but it's something to look at.



ardrum said:


> Yeah, bank fees can be annoying. I wonder if there would be another bank near you that wouldn't punish you for holding a lower balance.


It is pretty bad on the bank's part to hit low balances with their fees. It makes it all the more difficult for people to get ahead in the first place. It makes sense, though. The more money you have with them, the more money you're making for them. Why would they punish the people making them the most money? It's the same old problem of the "rich getting richer and poor getting poorer."


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## nubly (Nov 2, 2006)

ardrum said:


> I don't make much money, but I am almost rabid in my "cheapness."
> 
> I live in a small apartment. I don't subscribe to cable TV. I don't use air conditioning. I don't travel or buy many expensive things. I don't buy clothes unless it's getting embarrassingly bad with holes and stuff. I have to compensate for my lower-than-average income with these measures.
> 
> ...


thats me too plus being single and no kids helps a lot. especially having no kids


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## X33 (Feb 13, 2005)

Last I checked, I had about 16k. But this is mostly from school loans (except for a 5k research award). I am planning to repay a portion of my loan soon. Once I do that, the balance should go down to 2000. I voted 1500-2000.


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## X33 (Feb 13, 2005)

.


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## ShyFX (Mar 6, 2006)

I have two accounts, chequing and saving. I've got my life savings in my savings account and about 5 grand in the other. I don't know any good places to invest so it sits there.


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## ardrum (May 13, 2007)

ShyFX said:


> I have two accounts, chequing and saving. I've got my life savings in my savings account and about 5 grand in the other. I don't know any good places to invest so it sits there.


Your bank might have some different options available, like CDs or something to give a little more return. I used CDs when I got my first job since I didn't exactly have anything I wanted to buy (and didn't know much about where else to invest).

I read some books to learn more about investing, and now I use Vanguard (online) for most of my investing.


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## ShyFX (Mar 6, 2006)

Thanks Ardrum. I'll look into that. I just don't trust banks and I've been putting it off.


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## Shauna The Dead (Jun 16, 2005)

don't have one


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## Amocholes (Nov 5, 2003)

Bon said:


> OK, I'm going to ask, label it being pure nosy.
> 
> In today's economy, how does one accumulate this much in savings? A couple, a few, and over is a lot of money for most people, when you consider rent, mortgage, utilities, food, insurance, blah, blah.


Single
Good job
Don't go out 
House is paid off
Don't (make that seldom) buy what I don't need
Pay off credit cards every month

About 17K in the bank right now. I should really invest some of it.


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## LostinReverie (Mar 18, 2007)

2-4


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## refined_rascal (Dec 20, 2005)

I can just keep my head above water at the moment. You people are banding around figures I've never even dreamt of.


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## Bon (Dec 24, 2005)

Amocholes said:


> Bon said:
> 
> 
> > OK, I'm going to ask, label it being pure nosy.
> ...


And not available;-)) :mum

I can see that I have to earn more. My rent is as cheap as one can possibly get and not be on assistance. Car is paid for, oh, I do have a child *but*

I know I spend more, or should I say I spent more than I should I'm changing this. Right now I'm in the process of "keeping it real" and getting my life in order, I don't need a Gucci bag, Coach bags (put them on eBay!) so I'm trying.

I just don't know how people have any ET and are able to save money, well, yes if your home is paid for, that's nice;-)

Anyway, right now I have about $759.00 in my checking account, but I have to write a lot of that out. OK, most of it;-) As far as keeping money in my account, I only have to keep $5.00 in my savings account for my checking account. Then $3.00 a month service fees.


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## Bon (Dec 24, 2005)

refined_rascal said:


> I can just keep my head above water at the moment. You people are banding around figures I've never even dreamt of.


I understand!


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## nubly (Nov 2, 2006)

^ well i also do a lot of OT and that helps out a great deal. its not like i have better things to do right


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## mserychic (Oct 2, 2004)

I stick my paycheck in it every Friday and it's all gone to bills by the next Friday.


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## Amocholes (Nov 5, 2003)

There was a time I was making $400 a week before taxes. I was working as a sub-contractor and had to pay my own taxes. No problem! Unfortunately, I didn't know that I needed to be paying self-employment taxes as well. I got a notice from the IRS and needed $1500 immediately. I was able to talk them into a payment plan of $500 per month. This left nothing for little things like food. Things were pretty rough for a while. 

Buying my house was actually cheaper than renting. Still there were times that I had to decide which bills got paid and which ones had to wait. You have to have discipline. Don't spend money that you don't have. Don't spend money on stuff that you don't need to survive. 

Once you get to the point where you can afford to spend something on extras, don't go overboard. Set yourself a lower limit. How much of a "cushion" that you want so that you don't have to worry if something comes up. Don't let yourself spend down to that limit. It still takes discipline. 

Above all else, don't depend on anyone else to bail you out if you get into trouble. It's not your parent's fault if you bought that 52" inch flat screen when your car was on it's last legs. It's not their responsibility. It's your's!


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## Bon (Dec 24, 2005)

Hey, they gave me that TV, they bought a new one!! And I paid them back the $900.00 for my van repair. Oops, that wasn't directed towards me was it;-) :afr 

I know what you're saying and I truly agree.


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## dullard (Aug 4, 2008)

I am leaving to travel around South America ten months so I have a little over $20,000 sitting in my account right now.


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## CopadoMexicano (Aug 21, 2004)

dont got any checking account


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## Perfectionist (Mar 19, 2004)

My money is split about evenly between chequing and savings accounts. I live at home, don't work, and watch my money like a hawk. It's pretty extreme, I withdrew $9.58 over the entire month a few months back.


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## ardrum (May 13, 2007)

Wow, these checking accounts are much larger than I expected! You people need to invest it!!! :lol

My plan is to keep about $1000 in my checking account and throw anything above that into either my Roth IRA, Roth 401k, or money market account (the last serves as my emergency fund, and the other two get first priority assuming the emergency fund has about 6 months expenses in it). I feel bad if I have a lot of money sitting around not earning interest (or those joke rates of 0.08% or whatever they are).


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## Lonelyguy (Nov 8, 2003)

Whatever money I don't have invested I keep in a Negotiable Order of Withdrawal (NOW) account. Its basically an interest paying checking account with a minimum balance requirement of $500 at my bank. I'm not sure what rate I'm getting right now but I do know it pays more than the regular savings account at my bank. I rarely write checks anymore; I use my credit card for larger purchases and pay the balance online every month, or I use the ATM for smaller cash purchases.
As for the amount, I normally don't discuss my financial status so I'd rather not say.


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## slyfox (Nov 18, 2007)

I try to keep it at around 100, so I don't get charged fees. When I need more money I transfer it from my savings. I usually only write one check a month, so it's not too much trouble doing it this way. 

Ardrum, I'm also thinking of putting my money into a Vangard money market account. I've been procrastinating though. I think my dad said that you can write checks with a Vandard account, as long as they are over $250(or something similar)


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## ardrum (May 13, 2007)

slylikeafox said:


> I try to keep it at around 100, so I don't get charged fees. When I need more money I transfer it from my savings. I usually only write one check a month, so it's not too much trouble doing it this way.
> 
> Ardrum, I'm also thinking of putting my money into a Vangard money market account. I've been procrastinating though. I think my dad said that you can write checks with a Vandard account, as long as they are over $250(or something similar)


I'm not sure if you can write checks with the accounts or not. I'm intending to just use it as a vehicle for liquid, emergency funds (and for saving up until the next taxable year so that I can put any excess in my Roth IRA, which is also at Vanguard). Luckily, Vanguard has an Ohio tax-exempt money market fund that would be perfect for me since that's where I live.

It is nice to have all your accounts in one place. I just have a checking/savings account at a brick and mortar bank (everything else at Vanguard or employer Roth 401k), but I don't really use the savings account since it offers a practically non-existent rate of return.

The money market account still lets you transfer funds, so you can still transfer some over to your checking account if you need to. I think there just might be a limit on how many times you can do that per month, but it's more than enough for me (a few times).


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## bezoomny (Feb 10, 2007)

Usually about $20. I don't have a job, but my mom sends me an allowance so that I can drive my car. I really need a job, actually.


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## WineKitty (Nov 26, 2004)

I have accounts with:

Edward Jones (bulk of my holdings)
Vanguard (hubby's 401K)
Fidelity (My 401K)
TD Ameritrade (a few different stocks)

and of course my silly 'ole Wells Fargo account. I am about to transfer the savings money to a higher yielding account (saving for a car). I keep a higher balance in checking but also deplete it when the mortgage and other bills roll in. If I start having extra money in checking, I take it out.


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## UltraShy (Nov 8, 2003)

I have 2 checking accounts.

In total, I probably average about $500 in them over time.


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## nubly (Nov 2, 2006)

not trying to be an *** or antying but how do you some of you guys get money without having a job?


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## Shauna The Dead (Jun 16, 2005)

nubly said:


> not trying to be an *** or antying but how do you some of you guys get money without having a job?


I'd guess some are on disability. And some(like me) probably have money saved up from when we did work...especially those who live with their parents/have help from their parents... easier to save money when you don't live on your own.


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## ardrum (May 13, 2007)

I saved over $12,000 in high school working part-time at a movie theater. Living with parents all but eliminated all expenses, and I had nothing to buy.


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## nubly (Nov 2, 2006)

ardrum said:


> I saved over $12,000 in high school working part-time at a movie theater. Living with parents all but eliminated all expenses, and I had nothing to buy.


that is impressive for a teen to do!


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## ardrum (May 13, 2007)

nubly said:


> ardrum said:
> 
> 
> > I saved over $12,000 in high school working part-time at a movie theater. Living with parents all but eliminated all expenses, and I had nothing to buy.
> ...


Yeah, and my friends (I had active friends in high school) thought it was crazy I wasn't going to buy a car or something. I didn't mind driving my dad's old, beat-up truck to school. It's not like I was trying to impress anyone.

I eventually used the money for college expenses. I'm glad I never had to take out loans thanks to scholarships and this amount I had saved up for books, food, etc.


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## bezoomny (Feb 10, 2007)

nubly said:


> not trying to be an @$$ or antying but how do you some of you guys get money without having a job?


Not at all. I'm the oldest and my mom is kind of overprotective about me. She doesn't want me working (I don't really know why, my younger brother has a part-time job making subs), and puts money in my checking account so that I won't try to work part-time. It's a rare instance of overprotection benefiting me, so I'm more than okay with it.


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## dsf23j9j2dlm (Mar 22, 2008)

I have 0.29$ in my account right now. I have credit card debt totaling over $10,000. I'll probably have to file for bankruptcy.


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## crazytomato (Aug 5, 2008)

I believe I currently have a balance of $6.40.


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## Drella (Dec 4, 2004)

$700

Wait, no, I just bought a new printer.

$500

No, no, I bought groceries.

$335

Oh yeah, vet bills...

$225

And I bought that Diet Coke yesterday..

$223

Wait, yes, I just got SPSS 16 ...

$-0.89

Just call me "lint pockets" from now on. I'll be in the street, tap dancing for quarters if anyone needs me.


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## person86 (Aug 10, 2006)

Drella said:


> Wait, yes, I just got SPSS 16 ...


Why on earth are you buying SPSS?

Anywho...

I keep about $1000 in my normal (unlimited transactions) checking account. Sometimes less. Don't really use it much, except to pay off my credit card monthly and maybe pay rent. My paycheck is direct deposited into checking, and I just transfer out however much to savings to make the balance come out somewhere around $1000.

Savings is a high interest savings account (GMAC), which lets me write 3 checks/month. This way, I never need to keep any substantial amount of money in the checking account... for rare large purchases, I just write a check from the GMAC Bank account. My actual savings are here ($18,700 or so last count). Interest is only 2.95% at the moment. I ought to look into actually _investing_, but that takes effort. Effort is hard.


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## ardrum (May 13, 2007)

person86 said:


> I ought to look into actually _investing_, but that takes effort. Effort is hard.


It's really easy if you just invest in a target retirement mutual fund. It will even automatically re-balance and adjust the asset allocation over the years to reflect a more appropriate risk exposure in relation to how soon you plan to retire. The cheapest I've found (in regards to expense ratio) is at Vanguard. I couldn't believe just how easy it was to set up!


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## Drella (Dec 4, 2004)

person86 said:


> Drella said:
> 
> 
> > Wait, yes, I just got SPSS 16 ...
> ...


I had to; I certainly wouldn't buy it for recreation. Not unless my idea of a party was sitting alone, making box and whisker plots.


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## odun (Nov 9, 2003)

these days i try to avoid a negative balance,

the most ive ever had in a checking account...about 12 or 13K.

long gone,


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## Kwtrader (Oct 10, 2007)

about $8 right now.


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## Classified (Dec 7, 2004)

I just got reimbursed from a loan and from an expense report and haven't been able to move it yet. I probably have $14,000. I have a $4,750 credit card bill from business expenses though.


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