In an era of increasing government, increasing global conflict, and increasing handouts for semi-human third-worlders, it can be difficult to hold onto your hard-earned money. There is plenty of literature available on building a budget and what percentage of income you need to set aside, but I find that the particular execution is not spelled out. Hopefully, this will give you some insight on how to effectively set aside your money for a rainy day.
Step one: Identify your major expense categories
Where does your money go every month? Common ones usually include:
- Car payment/car repair
Also take a hard look at each expense: How much do I truthfully spend every month on these expenses?
Step two: Set up separate bank accounts with separate banks
The easiest way to make sure you don’t overspend on a certain category is to keep that money in a separate account! As an example: My primary debit card is with a major national bank, but I transfer $45 every week into an account with a small local bank for future car expenses. I then tore up the pre-paid debit card associated with that local bank account so I cannot be tempted to quickly spend those funds.
My justification is: It takes one or two days to transfer funds from the local bank to my primary account, so I’ve removed any temptation to use those funds for impulse purchases.
Similarly, set up separate accounts with separate banks for the following categories (and maybe more if you need):
- Long term savings (for major purchases like a home or car)
- Short term savings (for potential emergencies like a medical bill)
- Christmas/Birthday/Wedding Gifts
- Car repair fund
Step three: Set up a recurring transfer to each account
Staying on budget can be difficult, even for a low-time preference white man. Therefore, remove the guesswork and simply automate your savings. After you have the total of your recurring expenses (mortgage, car payment, groceries, power bill, etc), then subtract that from the total of your paycheck. The remaining amount should be transferred on a recurring basis to various savings categories.
How often should funds be transferred? I recommend you auto-transfer funds however often you are paid. If you’re paid weekly, then do it weekly. If you’re paid bi-weekly, then do it bi-weekly. Etc.
Here’s an example of how I transfer funds to the four categories in step two:
- Long term savings: $150 weekly
- Short term savings: $70 weekly
- Christmas/Birthday/Wedding gifts: $15 weekly
- Car repair fund: $45 weekly
Perhaps those numbers will be different you, but this should give a flavor on how to arrange the transfers.
The secondary effect of auto-transfers is that most of your budgeting is done for you! You don’t have to skimp on groceries if you need new tires, or forgot about your cousin’s wedding gift, etc. Also, the amount of money in your primary debit card account will be more reflective of how much you have to spend this pay period!
Step four: What type of bank account should I use?
For the long term and short term saving categories, I recommend a high yield online savings account. (As of this writing, Citi offers an online savings account with a 2.21% interest rate, for example. Aim for an interest rate of at least 2%.)
For the gifts and car repair categories, I would recommend a simple savings account with a local bank.
Lastly: If you are worried that you’ll be tempted to use these funds for impulse purchases, then tear up the card associated with that account. Better safe than sorry!
Please note: By federal law, savings accounts can only have six withdrawals per month, so make sure not to withdraw too frequently from those accounts!
Calculate how much you can save each month, and then divide that into the four categories in Step Three.
Set up separate bank accounts for those categories (so the money will be difficult to access for an impulse purchase), and arrange recurring auto-transfers to each account.
Remember: Rome was built brick by brick, and your savings will be built the same way – week by week, and dollar by dollar.
Give yourself the financial flexibility to avoid Jewish credit cards and bad debt. Taming your finances is a necessary first step if you are to be able to be a proper dissident in clown world.