How to Compartmentalize Your Money By http://geniustypes.com/
Quick Notes • Separate Accounts • Never keep your retirement and “rainy day” funds in the same account • You should open a separate account for every thing you’re saving for • Visit Ingdirect.com to manage multiple accounts online • Set an “Equity Goose” fund aside with money you’ll never spend. Use this money to invest in assets that will increase its amount.
Emergency Fund • Most Americans have only one savings account • They’ll save, and save, and save, but when emergencies happen they end up drawing it down • Even after continuing to add to it they rarely get ahead • As a result their “retirement fund” never increases its value and doesn’t benefit from compound growth
Equity Goose • You should have two savings accounts- one should be your “Equity Goose” • This is a savings account you never touch • You can only use this money to make more money • You can do this through interest bearing checking accounts or real estate investing • Whatever you do you cannot spend it or invest in something that could lose money
Compartmentalization • So now you have two primary savings accounts- your Equity Goose and your Emergency Fund • The emergency fund will naturally rise and fall as things happen • You should also have a separate account for anything else you’re saving for- a vacation, a child’s education, or anything else
INGdirect.com • I don’t get any money for reccomending them • But I do like them because they offer higher interest rates than most money market accounts (Around 1.5%) • They also let you create multiple accounts online- all you have to do is press a few buttons
Helpful Links • Visit geniustypes.com for more information on blogging, social networking, passive income, real estate investing, and creative life. • Here is another article on the concept of the “Equity Goose”