My Last Name Means Money

Right now. If you do not currently own an active online savings account you’re not taking advantage of free money. In fact, you’re actually losing money by not keeping up with inflation. Within the next few days you must open an online savings account and make sure you transfer money into it! Make sure you pick a bank and account that is FDIC insured and be careful to avoid any fees or minimum balances. Below I’ll mention a list of banks with online savings accounts that meet these criteria.

Photo credit to m.prinke.

As I mention in my about section, my online savings account brings in $50 a month, which is no giant treasure, but it pays for almost my entire monthly iPhone bill. Considering the recent crashes in the stock market, I’ll gladly lose the extra 2% or so the market generates over time for the guarantee that my money is safe and secure. Over the course of history, the stock market generally returns a 5-6% rate per year. As these online savings accounts are right now offering a rate around 3% and were up to 5-6% earlier in the year, they’re a great way to save and at least keep up with inflation, all while knowing that your money is safe and sound with the FDIC’s guarantee. Mr. Money advocates taking risks in order to get great returns, but first we must have a safety net and an online savings account is a great way to build that net.

Personally, I’ve used HSBC Direct and ING Direct and have had nothing but pleasant experiences so far. Even if you’re only able to put away a few dollars at first, eventually the savings will build and snowball and by then you’ll be encouraged to put as much money as possible into the savings account since you’ll actually see real results quickly. Sure, there are higher yield investments out there but considering that these savings accounts are FDIC insured and that the interest is guaranteed, it’s quite difficult to beat these accounts as a no hassle way to passive income. Here’s a run-down of three quality online savings account:

1. HSBC Direct
   • Branches in some states.
   • Refunds 100% of other banks’ ATM fees.
   • no minimum balance
   • $1 to start
   • No fees
2. ING Direct
   • No physical branches
   • $1 to start
   • no minimum balance
   • No fees
3. FNBO Direct
• No fees
• $1 to start
• no minimum balance
• Branches in some states.

Any of those banks would make a fine choice for an online savings account. They all offer a similar savings rate with no fees and no minimum balance. Personally, I’m a big fan of HSBC Direct and their policy of refunding all ATM fees. The important thing is that you open an account now and start savings. If the economic news of the past month has taught us anything it’s that savings accounts are important to individuals and our economy as a whole. Living credit card to credit card is no way to live and I urge all my readers to save, even if it’s only a few dollars a month. Your future self will thank you!

Photo credit to pasotraspaso.

Over the past few weeks we’ve discovered there is only one sure aspect of our current economy, and it is that we are in uncertain times. Some analysts believe we’re on the verge of hyper-inflation, others believe we’ll likely see deflation, while still others foresee stagflation on the horizon. Uncertainty is the one constant we have now and in such uncertain times it is wise to cut spending, invest in self-sufficiency and hold at least a small reserve of cash, food, and water at home. Now, Mr. Money does not believe we should all put on our tinfoil hats and jam on the panic button, but being cautious is never a poor decision, especially in uncertain economic times. It is not only in that light but also in general that Mr. Money brings to you today’s tip.

Buying a used road bicycle is one of the single best investments a capable person can make. By capable I refer to those of us fortunate enough to have full control over our muscles and limbs and in good enough shape to move. Obviously, if you have a pre-existing medical condition consult with your doctor before buying a bicycle or venturing into any new strenuous activities. In fact, the best and safest thing to do would be to consult with your doctor no matter your perceived current health.

Assuming you’re fit enough and of sound mind, a used bicycle can easily and quickly pay for itself. Even now, with a heightened demand for bicycles due to high gas prices a good used bicycle can be found for $100 to $400. It might seem like a lot of money but if you replace driving with pedaling you will quickly recoup the upfront cost. In fact, a few months into biking your improved health, decreased dependence on fossil fuels, and increase in confidence will match and possibly surpass nearly any other investment you can make. The ROI is literally off the charts.

Photo credit to bamse16.

Mr. Money sees many of his friends, family and even strangers take a great interest in their wealth, but few seem to carry over the same concern to their health. At its core, health and wealth are both economic decisions. To pursue wealth while damaging your health is simply a poor economic decision. Consider your body and mind as investments. Just like you can take a pile of cash, tuck it under your mattress and forget it, you can do the same to your body by ignoring its maintenance. In both cases, inflation will slowly decrease the value of your pile of cash and your body. Regular exercise, a proper diet and moderation are like a high yield savings account for your body. Taking care of yourself is essentially a guard against inflation.

So we return to the bicycle. Mr. Money sees many, many commuters who are either frustrated sitting in traffic or absent minded, moving their boxes on wheels from point to point without enjoying the journey. Too many times we consider our lives based on achievements rather than enjoying each day. Many of us simply do not consider how much of our day we waste performing activities we do not enjoy. It is for these reasons that Mr. Money quit his day job, abandoned the car and public transportation, and bought a bicycle and began riding it everywhere while enjoying life every day.

In April of this year Mr. Money purchased a used single speed Shogun from the non-profit used bike shop Bikes not Bombs in the Jamaica Plain neighborhood of Boston for $350. Since then, I’ve easily saved that much money by not spending it on insurance premiums, gasoline, public transportation fees, gym membership and by making more frequent trips to the supermarket I’ve had less food spoil and get thrown out too. Though I’ve had to spend a few extra hundred dollars on supplies and repairs for the bicycle (new tires made from Kevlar, extra tubes, lights, helmet, etc.) I’ve still saved money over the past seven months.

In addition, I’m in much better shape than I was in April, have gotten sick much, much less frequently and overall have more energy each day and actually enjoy the journeys to my destinations, rather than simply sitting in a car, bus or train wasting time. Not only does my bicycle save me money, but often it also saves me time too! Mr. Money lives in the fine City of Boston, which is small enough that a bicycle is often the fastest mode of transportation! My bicycle can get me to nearly anywhere in the city in under 30 minutes, which is a feat rarely achieved by car or public transport!

Even when the bicycle takes a few more minutes than other forms of transportation, you’re still getting exercise in and essentially moving for free (or very, very close to free) while also having time to enjoy the sights. If you do not own one yet, Mr. Money highly, highly recommends you save up enough cash and purchase a used bicycle as soon as possible. It is literally one of the best investments you’ll ever make!