The Entrepreneur Daily series are blog posts that I write when I am working on my side business. My goal is to write a post every day when I am in “entrepreneur mode” and actively working on my business, talking about what I’m grateful for and what I’m working on. In a perfect world, that would be every single day, but in my reality, I work on my business in spurts. I’ve accepted this as my reality for now and hope to improve going forward. This is my entrepreneur journal, to document where I am today.
What I’m Grateful For
Today I’m grateful for a personal finance blogger. Specifically, I’m grateful for Mad Cash Lab and the post I read this morning on savings accounts with Capital One 360. I would use their name, except I found no name on the blog. So they are just Mad Cash Lab for now, anonymous good Samaritan of the day.
The savings account information in the post was great and comes at a perfect time for me. I am back to basics with my own personal finances, trying to build a solid foundation before pushing forward with further entrepreneur efforts (eg. no spending on business endeavors until my own house is in order).
The breakdown of savings and how to account for it using multiple savings accounts is excellent. That will allow me to visualize each category of savings and the current status. I am a visual person, so this is great for me.
I had no idea that Capital One 360 allows you to open up to 25 separate savings accounts within your profile. That’s amazing and perfect for separate savings goals. I can get in there and setup accounts for each goal I have, like house repairs, car repairs, vacation, and many more.
Mad Cash Lab has found that most savings goals fall into 3 basic categories, annual recurring expenses, long term savings, and short term savings. Then you can further breakdown those categories with specific goals.
Read to the bottom of the blog post to find out about a referral link where you can earn $25 for opening a new account. I already have an account, so no money for me. I’ve had this account for years but never knew of the great tools available to me, which is why I’m so grateful to Mad Cash Lab today. Thanks!
What I’m Working On
This week’s focus is all about working on my own personal finances. I’m back to basics to ensure I have things setup, like an emergency fund, automatic deposits for debt pay down, automatic deposits for savings accounts, etc, etc.
I hit my two goals for yesterday, which were to make plans for debt pay down for the month of September and to make plans for using the equity from my house refinance (application in process, hopefully completed next week).
I set weekly debt payments for the month towards my highest interest rate credit card…that felt great! Then I plugged numbers into a spreadsheet for the plan to use the equity from my cash-out refinance. The majority of that will go towards debt pay down, with a small amount used to max out my Roth IRAs for the calendar year.
Next I will use the Mad Cash Lab idea and setup my savings accounts within my Capital One 360 account. I had forgotten about my account there because we haven’t really used it in years. We used it in the past to save up for property taxes that were not rolled into our monthly mortgage payments. It was so easy to pay that tax bill twice a year when the money for it was sitting in one account. I don’t know why we didn’t build on that idea back then, but that’s life.
As I’m thinking about it, I want to list my basic personal finance goals, just so I can see them written out…
Personal finance goals:
• Build a stable emergency fund. Save 3 months worth of expenses to start and grow from there.
• Setup individual savings accounts for each saving category/goal.
• Lower my debt load each week. Setup weekly debt payments to highest interest rate debt at the beginning of each month.
• Save enough to fully fund retirement accounts. Fund two Roth IRAs first ($210 per week), then look at funding 401(k) at work.
• Save enough to invest in a brokerage account (minimum of $100 per week).
• Save funds for real estate investing. Saving down payment funds for rental property investments (minimum of
I have an emergency fund in principle, but it’s really just liquidity of 3 months. That means I can liquidate cash and cash equivalents quickly in order to cover 3 months of expenses, but that isn’t the same as an emergency fund in my view. So I need to setup a savings account for emergencies. Then I need to define what those emergencies are, so I know when it’s okay to use those funds.
After that, I’ll work down the list and put each principle/action into place.
Goals For the Day
The goal for today is simple. Get into my Capital One 360 account and setup individual savings accounts for each category and goal that I can think of.
That’s it for today. Don’t forget to join me on Twitter where we can interact.