money market savings account formula
Formula for Finances (Spending, Saving, Investing) A PLAN?
Here is what i have so far (my vision). I would like to do better with more specifics. I am looking for some advice. The best advice is free + i am young. —–
1. Bank Account (Checking & Savings) with a maximum of $500.
Reason: Direct Deposit, Bill Pay, and incase i need a loan.
2. Emergency Fund (a minimum of $5000) for Survival.
Reason:No Un-necessary Risks. I dont like the concept of incuring debt.
3. Rainy-day Fund (1/6 of Leftover net worth) must be relatively liquid, low risk, and interest baring. Safe.
Reason: I would like to save for a House Payments, Car Payments, Food, Clothing, Investments, and wedding ring (would like to get married some-day), and anything else worth mentioning.
4. Stock Market Timing Fund – Because Dollar Cost Averageing at Lows in the Market, does better than just BUY and HOLD.
5. Stock Market Investments – Long Term Confidence in the future.
Reason: Finally, the real money maker!
first off i would be carefull with number 4. Timing the stock market is dangerous… no one can time it perfectly and that is a great way to lose everything.
We recommend keeping 2 months worth bills in your checking, 2 months in savings…. and the rest needs to be gaining interest. At a young age i would highly recommend getting into a Roth IRA and putting the maximum away for retirement. If you have any more questions feel free to contact me via email and i can give more specifics.
