Sunday, July 1, 2007
Where to Put Short Term Savings
Even though I’ve read a lot of books and online info about saving and investing I was still unsure of what to do with my short-term savings. Short term savings to me are my emergency fund and any money that I plan to spend in the next few years. I had been putting a couple thousand dollars in to a CD (certificate of deposit) at 5% interest but I didn’t like that the money was tied up for 6 months or more. I had other money in 2 savings accounts and 2 checking account. I asked a co-worker and she said she uses a money market fund with Etrade.com. I asked my sister to get a second opinion. She uses a money market fund with Paypal.com that also earns 5%. I had no idea I could do that. I already had a Paypal account so I signed on with their money market fund. The best part is I can transfer money in or out when ever I want. I just received my second, and biggest, dividend payment today-$107! I’m excited. It makes my dream of financial freedom seem a little bit closer.