The Rule of 70

The money talks are already working.

Today, I got to work and my friend and I immediately started talking about more money stuff. Namely she taught me The Rule of 70, which means, if you make 7% interest, it takes you ten years to double your money; and if you make 10% interest, it takes you 7 years.

She also shared info about a money market savings (available for teachers) that makes 5.1% interest. This account (min balance $500) allows up to 3 free checks a month, which makes it perfect to use as an emergency savings account. No fees.

It is a Bank of America NEA – National Education Association Money Market Savings account. The customer service phone number is 800-348-4632.

[update: I just called and it’s all true. I didn’t open the account over the phone because the agent’s computer was operating very slowly and it takes 2-3 weeks for the account to process. I’ll just go into the local Bank of America this week.]

And another potential tip: World Savings is currently offering a CD at 5.40 % APY for 7 months with a $10,000 balance. Sounds like a good place to tuck away the wedding money we got from my folks. Although, seven months (instead of a year) is supposed to be tricky to remember.

Money, money, money. I know I’m moving to Laguna in few short weeks, but I hope to make it back to the hi-des once a month for the money talks. In the meantime, I want to use Quicken to at least calculate how much I am spending in each category – with my ultimate objective being to set up a budget that allows me to save for Bella’s college and for Chad’s and my (eventual) retirement. Right now, if I have the money, I spend it.

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