Grip it! On another level

A recent post on Get Rich Slowly (GRS) about “Purpose Driven Investing” is making me re-evaluate how I manage my savings. The meat of the article is this: Yield to the natural human urge for instant gratification and divide your savings goals into small, fun to manage chunks. So instead of one (hopefully) large savings fund sitting in the United High Interest Credit Union, you have a few smaller accounts each based on the asset’s needed liquidity and the interest rate that liquidity, and possibly risk, bears. Thus divided, one can view his goals piecemeal, and meet them “faster”.

In fact, I already have, to some degree, done this by setting aside my emergency savings in a high yield savings account. But as I’m trying to get all my finances set up in Quicken, and generally just become more efficient with the whole process of saving and investing, an article like this has given me some ideas.

While GRS has taken this plan to a pretty elaborate level with multiple accounts and such, I don’t believe that will necessarily be optimal for me. However, I think I’m going to start utilizing a series of virtual “liability” accounts to represent the specific savings goals I have (For the curious: Emergency savings, end of year IRA contributions, vehicle maintenance, vacation fund, and furniture purchases). Actually juggling a bunch of bank accounts is too much effort. But creating seperate, fake liabilities in Quicken which I can allocate from one real account will work in much the same way, just easier.

And even though I know this kind of thing on GRS is preaching to the choir, a lot of informative writing usually is. As someone who reads the GRS blog, I’m naturally going to be interested (ha!) in applying this strategy. I’m not even in the financial services field yet, but I’m constantly faced with situations where friends and family need advice that appears simple to me, but elusive to them. That’s, hopefully, one of the beautiful things about this whole “blogging” phenomena. You have your completely insular blogs like GSR dedicated to one topic or another. But then again, there’s some general interest content out there to expose you to completely random subjects. I guess right now, this blog leans towards that.

Or, I could specialize in cracked XXX web password trading. SHOW ME THE MONEY!


3 Responses to “Grip it! On another level”

  1. May 28, 2008 at 7:52 am

    Ah, I read GRS too. Well, used to. Perhaps it was working too slowly for me.

    Very excited to see you talking about your personal investment choices on your blog, though. hehe

  2. 2 asciigod
    May 30, 2008 at 2:07 am

    John, are you being snarky? You know, blogosphere Snarky? I honestly can’t tell. If not, THANKS!!! ^_^

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