Author Topic: optimizing - how did you approach it?  (Read 852 times)

mistymoney

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optimizing - how did you approach it?
« on: June 22, 2019, 11:39:31 AM »
What is you conception of optimizing?

When and how do you apply this?

I'm asking due the interest on my new EF at vanguard. It is money market with 100 put in, and in one month it got 17 cents in interest. My checking account, with an average daily balance of a couple of thousand, only gets 2-3 cents in interest a month.

It struck me that perhaps this is an opportunity to optimize, but I do worry about how much trouble that might be and if I made a slip up I could get hit with some fees in the checking.

So - when and how do you determine if optimizing is worth it. If 100 gets 17 cents, then 2000+ would be 3-4 dollars a month. Once occasion of not transferring money in time for a bill would be $37.

For those who don't know me, I'm not the greatest at keeping track of all this. I've been focusing on finances much more the past 2-3 months - but I'm still kind of struggling with organizational aspects, and getting things done.

ozbeach

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Re: optimizing - how did you approach it?
« Reply #1 on: June 22, 2019, 02:58:33 PM »
So - when and how do you determine if optimizing is worth it. If 100 gets 17 cents, then 2000+ would be 3-4 dollars a month. Once occasion of not transferring money in time for a bill would be $37.

For those who don't know me, I'm not the greatest at keeping track of all this.


For the sake of a few dollars a month, and the (by the sounds of it) high likelihood of a slip-up costing $37 I would not bother.


I have a high-interest, online-only savings account that advised the other day that they were cutting their rate by 0.25%. That was enough to make me look around at alternatives. I found another bank that has a higher interest rate. That would make a difference of around $100 per year. By itself, it would not be enough for me to go to the effort of closing one bank account and opening a new one, but, the old account has penalties if you make any withdrawals in the month whereas the new one doesn't. In the past, trying to avoid this penalty has seen me shuffle money around other accounts which has been a hassle, so I opened the new account.


To answer your question: when conditions change I evaluate. If I can optimise and the benefit outweighs the effort required then I do so.

Buffaloski Boris

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Re: optimizing - how did you approach it?
« Reply #2 on: June 22, 2019, 06:00:32 PM »
For this kind of thing, I tend to want to look at it once every now and then. Itís really not worth your time to optimize something for a few dollars. Pick a good option and look at it every now and then to see that itís working OK. Your EF should be something youíre not touching except in an emergency, so maybe increase your checking account balance to insure you have enough to meet expenses.

Classical_Liberal

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Re: optimizing - how did you approach it?
« Reply #3 on: June 22, 2019, 11:00:05 PM »
Optimize spending/saving first and then worry about investment vehicles.  How to do it?  I like the ERE 21day makeover, or something similarly extreme.  Cut until it hurts, then add back in if you don't adapt.

ender

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Re: optimizing - how did you approach it?
« Reply #4 on: June 23, 2019, 09:05:37 AM »
Optimize the big things first.

The example you presented here is a few bucks a year. You could likely make that much money by selling one item on swap sites every month with considerably less risk. Or save a bunch more in many different ways.