Graduated Learning: Life after College

I got my degree, I got a job…now what?

The good kind of impulse spending? February 23, 2009

Filed under: Personal Finance — Stephanie @ 10:55 pm
Tags: , , , ,

I just set up two extra payments towards my student loans.  One to my ~$15k  at 4.5% loan, and one to my ~$44k at 4% loan.  And it was kind of on a whim.  I was visiting my mint page (as I do, perhaps too often) and saw the reminder to pay my student loan bill.  And technically, I don’t have to schedule payments, as I’ve signed up for their automatic bill pay setup (which I believe gives me a .25% interest rate deduction).  But I can still manually set up payments.

Why did I do this?  I think it was due in part to realizing that my savings account at ING is making pretty crummy interest(1.835% (1.85% APY)), compared to back in the heyday (only a few years ago!), though I will admit it’s still much better than the tiny rate I used to get at my brick and mortar bank.  And so my money is going to do a lot more for me (net-worth speaking) paying down my student loans than it would be sitting in savings.  And I actually didn’t move any money out of my savings account, I just took some out of my checking to pay these extra payments.  So I’m not saving any less.

So, while I feel a bit anxious about the fact that I’ve reduced my liquid assets by ~$1k, in the long term, my net worth will thank me.

In the meantime, I’m also wondering if I should start “shopping around” for better savings account interest rates (or signing up for a CD ladder, which I’m still not very familiar with).  I have heard good things about Emigrant Direct, but I’m not sure how much of an impact a slightly higher rate will have on my savings.  What are you doing to counteract this crumbling economy of ours?

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2 Responses to “The good kind of impulse spending?”

  1. shtinkykat Says:

    Good for you in making extra payments to your SLs! I agree that when your savings yield goes down, the better strategy to “save” money is to pay down your debt with higher APRs. After all, paying down debt is the flip side of the same coin as saving. Funny you should write about your savings. I’m doing the same today as well. 😀

  2. BTW, thanks for the tip on ING … haha. I hadn’t checked that account in ages, and didn’t realize the rate had dropped! I am now thinking about opening a CD … who knows. a variable rate could be exciting right about now 😉


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