Confession Time

Remember last month with I double paid my rent and they sent me a check for the over payment?

Well, I didn’t cash that check until last Friday. That’s right, I sat on a $705 check for 6 weeks instead of earning interest on it. I still counted it towards me E-fund total, but I didn’t cash the check.

Why am I even posting about it? Well, I lost out on some interest by not cashing the check immediately. And that is just plain silly!

On the bright side, I’m constantly amazed by the little indicators that show my progress. For instance, I used to have to cash checks IMMEDIATELY so that I could have the money from them. Now I can sit on a $705 check and not even blink an eye. Man, does that feel good.

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3 Responses to Confession Time

  1. Wow, what a difference. You’ve come a long way, baby 🙂

  2. In reality, though, how much did you miss out? Any amount can help, of course, but missing out on 1% interest probably wn’t impact your savings too much.

    Being able to sit on checks is one of my favorite things. Even better, if something gets screwed up with my paycheck or with expense reimbursements, knowing that I can cover that amount keeps me sane!

  3. TMcImmy says:

    She potentially missed out on a couple of bucks of interest. It depends a lot on the interest rate. At 5% Annual she missed out on $4-5, but at 1% probably about a single dollar. A lot of checking accounts don’t even pay 1%.

    Of course, paying down a CC with a 20% APR with that same money would save a lot more in interest. Time value of money is powerful, but in the grand scheme of things 6 weeks is a pretty small timeframe.

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