The 3-Account Strategy - Deepstash
Behavioral Economics, Explained

Learn more about moneyandinvestments with this collection

How to make rational decisions

The role of biases in decision-making

The impact of social norms on decision-making

Behavioral Economics, Explained

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The 3-Account Strategy

Three accounts make it easier to get a grip on your finances.

  1. The normal checking account. Use this account only to cover groceries and small purchases.
  2. The fixed costs account. Ensure there's enough money to cover your mortgage and bills for six months. Don't use this account for anything else.
  3. The savings account. Set up an automatic payment that transfers a set amount every month to your savings account.

The rule is to pay your fixed costs first, then wire cash to your savings account. Spend what's left in your checking account.

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A Definition of Personal Finance

A Definition of Personal Finance

Personal finance is about managing your own money - how much you spend, save, get into debt, and invest.

How you manage your money will depend on your age, education, ambition, family, and country of residence. While this guide will give you enough input to work out a stra...

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The 4 Phases Of Personal Finance

Consider where you find yourself as each phase requires a different strategy.

  1. From nothing to something. This is where you live from paycheck to paycheck without any savings. Try to build a financial buffer of at least one month of expenses.
  2. Gainin...

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5 Ways To Get Out Of Debt

  1. Do a personal finance assessment. Ask what's coming in, what's going out, where's it going, and what's left. That is all you need to know.
  2. Proactively try to negotiate lower interest rates on your debts.
  3. Make extra payments

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A Stoic Way To Invest Your Money

First manage the money you do have, then use your money to generate more money. You don't need to think about investing until you're out of debt and have multiple ways of generating income.

  • Use the 90/10 rule, where only 10% is used on speculation.

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When To Take On Debt

Debt is a liability unless you use it to finance income-generating assets. Don't take on debt for anything that does not increase in value over time.

Suitable forms of debt include buying real estate as a rental property, investing in your business, or a student loan.

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Best Personal Finance Books

  • The Richest Man in Babylon, by George S. Clason. The message of this 1926 book is that rich people are rich because they save their money and don't get into debt.
  • Your Money or Your Life, by Vicki Robin and Joe Dominguez. This book will change your...

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Ways To Make More Money

It is too risky to rely on one source of income. Try to generate income without trading your time for money.
Ways to generate extra income:

  1. Start a web-shop - Sell something you use yourself.
  2. Write and publish a "how-to" book

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"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." ~ Warren Buffett

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Week 5: Automate Everything

Week 5: Automate Everything

Use this schedule to help you set up your own automation:

If you’re paid on the 1st of the month. Switch all bills to arrive on or around that time, too.

  • 5th of the month. Set up an automatic transfer to your savings account and to your Roth IRA.
  • ...

How to follow through with saving up an emergency plan

Some people are disciplined enough to manually set aside "leftover" money at the end of every month into a high-interest savings account. Others take the decision-making out of the equation and automate the entire process. Most banks have a feature that allows you to set up recurring transfers fr...

Automate Your Savings

Once you set up your savings goals, chances are, you won’t even notice the money getting pulled from your checking account on a weekly or monthly basis. 

You just need to do the hard part of setting up your automated savings.

To do this, you'll want to use an app or bank accou...

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