Note: Content reposted from other blog to minimize my internet footprint
For starters, I should say my LA Fitness 'drama' is already over, with an anti-climactic amount of ease. After sending in the required cancellation form to corporate, I didn't bother to update my expired credit card in the system, so they wouldn't be able to charge me in the event that they "lost" my cancellation in the mail. I have heard many tales on Reddit of people being charged for months after canceling, so I was prepared to nip that in the bud. On Tuesday, the day after my payment due date, I got 3 phone calls from the local and corporate offices saying my card expired and would I kindly update them to the new information? Shortly after that, I got an official corporate email saying that not only was I canceled, but since I paid the final month's dues upon joining, I can actually use the gym until September 12th! Winning!
On the scrimping front, I signed up for some new "rewards" accounts, including PetCo and Irving for pet supplies and gas, respectively. Might as well get some discounts on frequent items, right? I also connected my American Express card to Uber, because AMEX members get extra reward points through Uber.
I have gone far far far down the rabbit-hole learning about personal finance on the internet, and my goal of getting out of debt is slowly morphing into a goal of Financial Independence (not to be confused with Financial Freedom!) I've been reading about investments and putting my money to work for me with compound interest*.
*For a quick lesson in compound interest, read this article about Ben Franklin doing yet again another badass thing.
I've had an interest-yielding savings account for the last decade, and Spoiler Alert: I've been using that entirely wrong! I think about where I would be if I had even put $10 a paycheck in there for the last decade, but that kind of thinking isn't going to serve me.
I explored all the Savings and even Certificate of Deposit (CD) accounts available to me through my credit union, and my mind is blown at how many options are out there if you can afford to part with even a little bit of money! My credit union has 5 different Saving options, which vary in minimum dividend-earning rate and interest rates, that go all the way up to what I'm calling "God Tier" savings. To get into God Tier savings and accrue dividends, you need to keep a minimum balance of $25,000! Someday. My credit union even has a God Tier dividend-earning Checking Account option, but that comes with a higher risk, since you get charged a fee if it drops below 25k. The rich get richer, right?
With this week's paycheck, I opted for a modest $100 minimum dividend-earning Savings Account, and have labeled it "DON'T TOUCH" in my online banking dashboard. I haven't quite decided how I am going to allocate funds to this, but even leaving it alone will serve me in the long run. At the very least, having a separate account from my Primary Savings & Checking will keep me from dipping in and out, as is my current tactic between the two aforementioned accounts.
I have discovered a use for Mint.com, which is that it gives me my Net Worth, taking into account my retirement account (which is a joke, frankly) and everything. I have to say, I never realized wanting to be WORTHLESS ($0 Net Worth) was actually a goal until now! I will be adding that to my little progress grid. Mint also provides a free credit score, as does Discover. These two scores are way higher than what I am getting off of Credit Karma. Anyone else have experience with this, or how to know which is the most accurate?
Speaking of Discover, I made a substantial payment on my card to cover expenses, so I finally feel like I am making progress again! I also dropped my car note by a thousandths place - small victories!
Catch ya on the flip side!
M
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