Fresh On My Mind, Beer and Banks
But first, the beer. Starting my first brew at home. It happens to be a Kölsch recipe that I received as a gift. So hopefully in about 2 weeks I'll be tasting a crisp somewhat fruity beer from the tap.
The photo of the fermentation tank was taken at around the 12 hour mark. As of writing, the foam layer grew up to the stopper and bubbled out a little bit but I did place a catcher underneath the tank. I'd prefer to clean a tray than the carpet. A friend and I started the brew Saturday night, the 2nd of March. The small red cap on the valve is to stop any unwanted germs getting into the valve as a secondary precaution.
Also, I have a second fermentation tank that I'm hoping to find a nice fruit beer for my wife and our friends. And yes, I have fully accepted that I know hardly anything about brewing beer. Let alone a fruit beer. This brew is solely off a recipe. All I know is that to get different effects you have to add the ingredients at different intervals and that does not limit you to using normal standard ingredients.
The guide asks to wait 10 days but I honestly wouldn't mind to wait longer for a deeper flavor and higher alcohol percentage. You know the drill; be extra, do extra.
Now! About The Money
In my opinion, this is a good money management system for individuals that want more control over their funds and their future. The normal private banking system for the average Joe or Jane is almost solely a checking account. Their check goes into the account and the check checks itself out of your checking account within a few days and you wonder nothing. You just keep working, pay the bills, eat and have fun to what you can afford and then go back to your job the next day. Don't think you're unique by being in that fund cycling system but also don't let it eat at you until you feel defeat. If you have a job or some kind of income then you're in a perfect situation to break out of that cycle and develop a new cycle.
The past few weeks I've been reading into setting up my own banking system. Not the kind were I setup a store and ask others to let me keep their money for a fee. What I'm looking for is accounts that can be setup in a way to grow my funds the fastest but also the safest way possible. A system that not only levels out my funds for the whole year in front of me but also adds layers of protection with a positive interest rate.
Account System
Nest Account, aka Savings Account
Wait! It's simple and concrete but not all are made the same. Most savings accounts only grow by 0.08%... Yeah, you're just loosing money every year to the average rate of inflation of 4%. So we needs a basic savings account that holds onto a couple months worth of funds but also has a high enough interest rate to try to keep up with inflation. There are a couple savings accounts out there that get above 1.5% but the one that shines brighter is a Goldman Sacs Marcus savings account at 2.25%. Currently, you can't get anything better in the US. Now I know Marcus may not be perfect for everyone but the idea is to get into the highest interest rate savings account possible. No minimum to open a Marcus account too.
Next, redirect all your incoming funds into this savings account.
Why the heck would you have your paycheck go to your savings account instead of it going right to the checking account? Simple, we are limiting your personal spending. By nesting your funds into a growing savings account that has no bills linked to it. It makes your nest of personal funds safer from the outside world and an extra layer of protection from yourself. With the nest also growing at 2.25% it gives your money a chance to grow new dollars. Without any work on your part. More money from the money you worked so hard to get in your hands.
You're going to also need a few checking accounts open... I know, it sounds weird to open several accounts but it's no big deal to open and close accounts here and there. Let's just keep entertaining the idea for the moment. The accounts in this discussion have no minimums to open.
Spending System, aka Checking Accounts
You'll need a basic monthly bills account. Only your utility bills, car bills, entertainment bills, such as: electric, gas, water, car insurance, fuel, Amazon, Netflix, and so on, all of those pesky monthly bills will be taken from this one account. It gives you a chance to go through your current bills and possibly look into lowering those bills if necessary. You can setup a weekly or monthly contribution into this account from your savings account. Just be honest with yourself and you'll find a balance. Don't forget about that inflation issue that's always a problem. There are several checking accounts available that actually have an interest rate. Ally has a interest baring checking account at 0.6%. So if you're looking at making your smaller cash do a little extra work for you on it's way out the door, then Ally is your checking accounts bank.
Payday Accounts, aka They Are Going To Spend Your Money Anyway
We all spend cash, sometimes on a daily bases. So why not also get control of your family's spending. Not in a crazy way but in a way to hold on to as much funds as you can but also be personally happy with your average day. You will want to open a free spending account for each person that needs a separate weekly spending limit. Free spending doesn't mean that it won't cost you anything but that you can freely spend all the once weekly contributed funds in this account. You'll just have to wait until the following "payday" to get some spending cash again. I personally like the idea of my payday to be on Tuesday, that's date day for the wife and I. Everyone is free to pick out of the days your bank can process transactions.
For example: Let's say Joe needs $200 a week for free spending and Jane needs $200 a week for free spending. Joe can freely spend all his $200 the second after it drops into his checking account but he has to wait until the next "payday". On the flip side, Jane could save up her free spending cash for something a little extra.
All we have done here, is set a limit and another layer of protection. You have limited excess spending and in case needed you have all your extra cash growing in your nest account. This way your family is happy, your bills are happy, and you have a growing savings account. The longer this system is in place the better it will get.
The Potential, aka Look At You Now
You'll start to notice that your Nest Account will balloon over the weeks and months. This Account System will help absorb most major life events or if you happen to have a job where you work almost 100 hours a week and then you have a few weeks off work. It does not matter. Things really start to get interesting when your nest account gets to around 6 months worth your normal spending. At this point it's safe to start packing your funds beyond the "6 months worth" into an investment account. Yes, I'm talking real estate, the stock market, or maybe your own business. Not a car or an RV, those aren't investments. Just do the math, it's just less stressful to just throw your cash in the trash. Auto Loans are another subject.
Your Invest Account can be almost any kind of account that you can think of. You can move some extra cash into a CD but the rates are never that great, at least until there's a recession. You can also look into Mutual Funds, some are great and some aren't. You could also just buy stocks. Just do your homework before each investment. Or don't and pay some person or computer to do it for you. I can't say if I could trust either.
Just buy a house as a first major investment.
Debts!
Don't let debts stress you out, it's a part of life but so is inflation. Debts absorb a bump in the road, whether you caused it or not, but some cost more than others. There's basically two ways to go about paying off those debts.
First way, I guess it's my personal preference but just pay off the smallest amounts. For my situation my smallest debts have the highest interest rates. So pay a higher amount every month to your smallest debt so it gets taken off your list the fastest.
The second way would be to pay the highest on the lowest bill so they all get payed off around the same time. This way may be better for you but everyone is in their our unique financial boat. Any debts over 4% are the most concerning, because of inf*****n. Basically, they prolong your growth of personal wealth the longest.
Either way, I'm not a professional financial adviser so read at your own risk.
You got this.
All the times and amounts are up to your personal situation.
BLAM!
