Start a Rich Idiot Savings Account
As you know from previous posts - I’ve been following the Rich Idiot’s guide. I want to give it some time maybe 1-2 years to see if following a guide really works.
There are over 30 ideas in the book - I will pick and write about a few of them. The ideas I present aren’t in any order, rather how fast I can implement them.
So with that comes suggestion #1: Start a RI (“Rich Idiots”) savings account.
There are two main ideas behind starting a special savings account: 1st it’s a place to collect monies earned by bargaining, secondly this account is a place to have what Robert Shemin calls the “cash-on-hand” feeling.
The author recommends starting an account at a brand new bank – in order to in order to start a new business relationship. Well, since I deal over 5 banks, I felt I have enough relationships, and I wanted something convenient.
So I started at an “old”bank. Funny, even though I’m in computers I was amazed how simple it is to open an account online. It only took $2 - from a debit card – and whiz bank I had an account.
The idea is to put money in this account from
Saving a dollar a day
Bonuses and raises
Money saved by asking for – sweating for – discounts
Any other little cash saved along the way.
There are four asset categories I will be tracking in the coming months – according to the book. I will list this asset along with a rating: ~ to 10. With ~ being not recorded yet to 10.
I’m going to rate my Savings Account (i.e. cash asset) a 1/2. Not zero because I started it, but a 9 year old probably has more money saved it a piggy bank then I do at the moment.
Box score –
Four Assets
Cash ½
Stocks ~
Real Estate ~
Business ~
*RI = Rich Idiot
When everyone zigs, it’s time to zag.
2 years ago
1 comment:
Not that I do this these days, but I should...
I used to have what I called a "luxury tax" to fuel my special savings account. Any time I purchased an item I didn't need -- clothes, a night at the movies, etc., I was obliged to put at least 10 percent of the price of that luxury item into savings. What the heck -- the money was already spent, right? What was 10 percent more?
I saved quite a bit this way. These days, as a small business owner, I feel a little stretched, so I've done away with that policy. But I still sock away a certain amount by automatic transfer every week. Even if it's just a few bucks, it adds up.
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