Does This Make Sense?

Anonymous · ‎03-01-2017

Hello,

I wanted to get everyone thoughts on an idea I have. I'm looking to improve the way I handle my cash and investments. I'm looking at my savings accounts, and with the minimal interest, they gain it doesn't make sense to me to keep those accounts open. Here is what I plan on doing. Let me know if it makes sense or opinion you may have on it.

1. Close savings accounts at my bank (Currently have two that I keep one for personal and one for business.)

2. Keep my two checking accounts. I use 1 for personal and 1 for business

3. Limit the number of debits to my checking account by moving all transaction that can be charged to a credit card to them. I'll have 1 for business charges and 1 for personal charges.

4. Pay the credit card in full each month from checking accounts (using auto pay)

5. Limit checking debits to credit card payment, rent payment, student loan, ATM Cash withdrawals and other savings methods (see 6.)

6. Move money that would normally be to savings to a Betterment account. I currently have one that has two goals setup, and one of them is design to be like a savings account called "Saftey Net" and it's already made more money then I usually earn from interest savings. I'm also looking at adding a auto savings plan with a mutual fund that follows an index. All of these savings options would be on auto deposit with some bonus deposits put in as extra money is available.

I figure with this method I will have plenty of liquidity sitting in checking accounts so if I need cash fast, I'll have it available.

Share your thoughts or questions on this.

Thanks.

Anonymous · ‎03-02-2017

It sounds like a well thought out plan. Kudos to you. Making the plan is huge. Sticking to it is also huge. Best of luck to you in your plan implementation.

Anonymous · ‎03-02-2017

Thanks,

I've already started implementing a lot of this today with removing the savings accounts shifting money to Betterment. Now I just need a few more things to fall in place. I've got 3 options it seems.

1.) I would like Cap1 to up my space on my card and PC change it (see sig for details). I would also like to have PPE up my limit on that account so I can use one for personal use and another for business use while i pay off the high credit debt left on the BOA.

2.) If PPE won't increase without a HP I was considering getting a new card to build more positive history dedicated to either business or personal use SD the PPE and pay of the BOA the same way as in option 1.

3.) The third option i have considered if PPE won't auto increase is to continue to garden and use Cap1 and also use the BOA with paying what I use in full each month + additional payment to continue to bring the balance down and let my scores and history grow as they are now. Not sure which one to go with just yet.