More Uncommon Financial Advice For The Digital Marketer

This is a followup to a post I wrote in April of 2014 that is located at Uncommon Financial Advice For The Digital Marketer.

It’s been almost a year and not much has changed with the advice I gave last April.

A few people have asked me for updates and I thought I would shared some of new advice I would give today.

Your Emergency Fund

The only update I have here is that I have learned I don’t really need cash in the house. It’s nice to have, but most emergencies I have encountered didn’t require the need to have cash on hand and didn’t require the full use of the $1000.00.

I have now moved this money to a separate checking account at one of my banks where I can just use my debit card if I need access to the money. Everyone takes Visa and for the time I need cash, I can hit the ATM machine.

 

Start A Savings Plan

I didn’t change anything here, but I did forgot to mention where to store this money in the original article.

Considering this money will largely be left untouched and unused, it makes sense to have your money work for you while it’s a safety net. I’ve moved all of my savings to Ally Bank, which right now is paying me a 0.99% APY, one of the highest APY’s for any bank.

Ally has been trouble free since I started with them.

 

Removing Temptation

A lot of readers have told me that they become easily tempted when their emergency fund and 6 month’s savings builds up to spend the money and splurge on items they regret later.

I also get those urges and feelings, but one thing I have done to combat that situation is to simply put the money out of my reach.

For an example, Ally Bank doesn’t have branches or ATMs. They also do not issue out debit cards. If I want my money from Ally Bank, I have to make a transfer and wait 3 days. When you are waiting 3 days for your money, you have time to think about the splurge you are about to make.

Even deeper, I take 1 extra precaution and many of my regular and needed bills ( electric, water, phone/internet, insurances, etc ) are paid up 6 months in advance. Yes, you read that right.

The way I worked it out was that I was simply setting aside in cash the amounts needed for my 6 months of savings for electric, water, and other bills and sending it off to Ally Bank. Knowing that temptation was still hovering around, I decided to instead take the money and give 6 months worth of payments to the electric company in exchange for a credit on my bill. I repeated this for my water bill, phone and Internet, and many other bills.

I can already hear a ton of you in disagreement with my decision.

The simple truth is, I designed my 6 month’s savings plan to be exactly what it’s titled, “A 6 month savings plan”. It only exists so that if I get laid off, lose my job, get injured, etc… I can survive for at least 6 months without any problems.

It’s doesn’t exist for fixing water heaters, getting new tires on the car, or taking a last minute trip to Disney World. It doesn’t exist for getting my children braces or lending money to family in a pinch.

Therefor, by my decisions to pay up 6 months in advance, I achieved my goal. If I were to get laid off, fired, or disabled.. I would still want/need to pay my electric, water, phone, and other needed bills so I could survive. So why not give them their portion of the money right now and keep it paid up each month?

I achieve my goal, plus remove temptation in spending it later foolishly.

 

Paying 6 months in advance doesn’t matter much if you now stop paying those bills going forward. You have to pay 6 months ahead, get a credit, and continue paying what the bill would have been every month afterward to keep a rolling 6 month credit.

Any other bills I can not prepay or wouldn’t make sense to ( property taxes, Christmas fund, etc ) simply just go to Ally each month where I earn 0.99 APY on it until it’s needed.

 

Conclusion

A strong financial foundation is key for moving forward with your business and goals.

Don’t let small mistakes lead you off your path. If you get easily tempted, remove the risk. If you have a good sized nest egg, make sure it’s working for you while safely stored away.

Hi! I'm Jason Brown and I’m a 36 year old digital marketing intrapreneur living in beautiful Louisville, Kentucky. I've been involved with the Internet since 1996 and have personally made millions online with my creative marketing tactics and persistence. I blog about marketing, money, and motivation. Thanks for stopping by!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>