Savings...

[Ravenous Wolf]

Within a short amount of time, I hope to be past many of my debt issues in which I will actually start having a little bit of extra cash in my pocket after each pay day.

I can forsee that I will only be able to save a little bit of cash each month, like $75 or $100. And I know that is pretty much my limit.

I know savings accounts pay so little interest but I am wondering if that is the best path (or the only path) to pursue since I can only contribute so little for the next year or two.

[DHK]

Two ways to go:

1) Set up an automatic transfer to a savings account at the same institution you have your checking (or if you're really tempted, at a DIFFERENT institution). Because your balances are going to be low, you'd need to put it in a credit union account for the best interest rate return.

OR

2) ShareBuilder! ShareBuilder is a way for novice investors to start a small investment fund in different stock and bonds available in the marketplace today. For only $4 per transaction, you can be a stockholder in the company that you choose. It can be set up as a IRA account, College or Educational savings account for a minor - all kinds of ways.

http://www.sharebuilder.com

[Ravenous Wolf]

Is sharebuilder really beneficial for someone like me who can only contribute like $75 or $100 a month?

I don't have the thousands available like other people have to invest in the stock market, although I don't mind the risk involved.

I would very much like to do something like investing in stocks but I always thought that I needed to have a lot more liquid cash.

[DHK]

Check out the site.

It's actually designed for someone who can contribute a MINIMUM of $25 per transaction.

It could be interesting to mess around with.

What is ShareBuilder?

ShareBuilder is a simple, flexible, and affordable way to build wealth through long-term investing. Using ShareBuilder, you can make regular automatic investments in stocks, index funds and closed-end bond funds. There are no account minimums and we don't have inactivity fees!

ShareBuilder is Simple.
Creating a ShareBuilder Plan is easy. Choose which stocks you'd like to invest in, how much you'd like to invest on a weekly or monthly basis, then simply select how you'd like to fund your account. That's it!

ShareBuilder is Flexible.
Allocate a fixed dollar amount to invest each month in a ShareBuilder Plan, or make a one-time purchase when it fits your budget. You can change securities or investment amounts any time.

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If you invest in stocks, pick ones that pay dividends. Some stocks pay dividends which equal 6% interest a year.