PayPal Is A Great Way To Squirrel Away Money Without Thinking About It

by Hank

paypal-logoLike most people, I sell things on eBay from time to time. And, I require buyers to pay for all of my items through PayPal, eBay’s sister payment transaction service. The beauty of the system is that I do not spend the money in my PayPal account except to ship the items to the winning bidders (I have a PayPal debit card to use at the post office). So, over time, my PayPal account builds up as I sell more and more items on eBay, Half.com, and receive payments for surveys I complete with PineCone Research.

So, the old adage is true, “Out of sight is out of mind.” Forgotten, hidden, or not readily accessible bank accounts like PayPal are a great way to squirrel away money that you will not even know is “missing”.

Other Ways to Save. I also manage to save money every month in my ING Direct Orange Savings Account which pays a little more than a normal brick and mortar bank’s savings account. The money is debited from my normal checking account every month, and I never even notice that it is gone. Of course, I am only talking about a small amount of money, like $25 every paycheck. But, no matter how much money you deposit, it will really start to add up if you forget about it. I also manage to save a lot of my spare pocket change in a similar fashion.

So, when you try and fool yourself into thinking that you cannot save any money from your paycheck, I challenge you to squirrel a few dollars away in random accounts that you forget about like PayPal, ING Direct’s Orange Savings Account, or the piggy bank in your own home.

{ 1 comment… read it below or add one }

Patrick March 2, 2009 at 2:09 pm

Just be careful – the money in the PayPal money market account is not guaranteed and PayPal has been known to hold people’s funds hostage for random reasons. I usually don’t leave much money in my PayPal account – instead I transfer it to my ING Direct acct as soon as I have a couple hundred dollars in it. I usually don’t leave more than $100 in my account at any given time.

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