Getting Serious About Saving

Posted December 13, 2016

I’m a few months into my new job and have decided to get aggressive and more serious about my saving. Previously it had been difficult for me to truly allocate money into my savings. Now I have a 401(k), money from each paycheck to save, and a diversified pool of funds. I’ve made a few moves over the past month or so to get serious about growing my wealth, including signing up for new investment banking services, and compiling a chart/graph of my net worth.

My current diversification:

  • Primary checking - Chase
  • Primary savings - Chase
  • Secondary checking - Simple
  • 401(k)
  • Robinhood Equities Investing
  • Betterment Brokerage

Basic use cases for each:

  • Primary checking/savings: where direct deposit goes from employment checks, checking used for bills/credit card payments, savings will be capped at a comfortable level for emergencies.
  • Secondary checking: small portion of each paycheck goes here for non-essential spending.
  • 401(k): retirement fund, currently at 4% contribution to Roth post-tax IRA.
  • Robinhood: used for short-term investing of equities.
  • Betterment: newest addition to the pool, this is for long-term wealth growth. It is an automatically managed, diversified portfolio. The goal is to deposit at least $500 per month, possibly more when I am comfortable with my savings.

The idea here is to have a number of buckets that I can contribute to on a regular basis, all with varying levels of risk/return. It became increasingly obvious to me that I needed to let the majority of my money sit somewhere where it will grow, and that is not a savings account. Once I have my savings at a comfortable spot, most of the money I make each month will be going straight into my retirement/investing/brokerage accounts.

I might even give updates on my net worth, as I’ve seen on another blog about personal finance, but I don’t have the guts yet :)

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