As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Thursday, 2 December 2010

Two Bank Accounts? No, You may need Four! - (3)

Read? Two Bank Accounts? No, You may need Four! - Part 2

I have four separate bank accounts for different purpose:


1 - For living expenses and GIRO

2 - For Emergency Fund (3 months in conjunction with FD period 6/12 months)

3 - For Investment and Trading

4 - Fixed Deposit (Mid Term Saving)

With the 4 bank accounts, I am absolutely clear on money movement and transactions. It also helps to save time (less than 5 mins) in tracking by just downloading the monthly statement from the each bank.
 
I also simplify it into broad category as follows:





I have another diary to record big ticket items following Pareto Principle - 80% of your expenses are from 20% of big ticket items and don't sweat on the 80% of the items that contribute only 20% of expenses.

1 comment:

  1. i only have 2 accounts. but i follow the envelope budgeting method and use Quicken. thus i have many virtual envelopes and containers to classify them.

    its a method of having less physical accounts yet provides you with a psychological seperation of things.

    How to budget with envelope budgeting to save money easily

    Drizzt
    Investment Moats.com

    ReplyDelete

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