Financial Freedumb and Brownie

So here I am trying to catch up, and I find this post on Jonathan’s blog, My Money Blog, called “My Current Bank Account Setup to Maximize Interest.”

And I thought to myself, “Jeez, I wonder what happens to my cash.” It’s kind of complicated. Overly so, I think.  Anyway, I decided to map my “cash flow,” not in the traditional sense.

START HERE

1. Paycheck will either get deposited into: a) credit union or b) regular old checkings account.
- Credit Union: Used for free online bill payment and general savings account. Also, good for shared branching purposes and other credit union benefits, like free traveler’s checks.
- Regular old checkings account: ATM. Oh and free checks.

TO

2. From here, I’m really not sure. Reassuring huh? lol. But seriously, it depends. Generally funds have been going to GMAC, but not always. Like this past month, HSBC was offering 6% interest on “new money.” So that’s where my money has been going.
- GMAC: GMAC is my main “transfer account.” Why? Because they don’t put your money in some void while it waits to move between banks…basically, it’s not losing interest.
- ING: I don’t know why I still have this account opened.  Granted ING has a pretty quick transfer system too, they just don’t have competitive rates…I’d rather have my money sit somewhere else.
- HSBC: Since the 6% interest promo ended, all the cash here will go to my GMAC account.

TO

3.  My cash then either sits in step 2, or goes to investment accounts.
- Scottrade:  I have been using them for awhile.  I should take a 2nd look at my investment account to see if another makes more sense.  I want to be able to invest in portions, like how Sharebuilder works.  For example, I would like invest $xx every month in a set of stocks.
- Various banks:  CDs at the highest interest rates.

TO

4.  Millions and millions and millions of dollars.  That’s the hope…but looks like my cash has a long journey ahead of itself.

I’ll have to re-evaluate my system…I yearn for a sleek, simple 3 step system.