The 3-Account Strategy - Deepstash

Bite-sized knowledge

to upgrade

your career

Ideas from books, articles & podcasts.

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.

STASHED IN:

853

MORE IDEAS FROM THE SAME ARTICLE

  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

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

  • 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...

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

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:

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.

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.

197 Reactions

1 Comment

It's time to

READ

LIKE

A PRO!

Jump-start your

reading habits

, gather your

knowledge

,

remember what you read

and stay ahead of the crowd!

Takes just 5 minutes a day.


TRY THE DEEPSTASH APP

+2M Installs

4.7 App Score