The 30 Second Choice For Investing & Spending

[Knight_Writer]

This idea strike me as I was doing my exercise this morning. (Exercise & thinking/brainstorming is like double productivity )

So I haven't done this but it sounds nice on paper. Also I wanted to keep it short so I'm just presenting the general concept idea along with some points on how it can be expanded during implementation.

There are threads about investing money into businesses and spending your money on whatever it is that you want.

Now, the rough idea is to have/open two checking accounts (could be savings - I just use checking) designated as 'Investing' & 'Spending'. Kinda self explanatory in a brief sense.

Some useful points:

Comparing total deposits of the separate accounts can give you an overview of what you are: such as spending needs or are you primary investing. And determine something about you.

You can take it to a next step and say doing something business-wise will reward you with $x. You make a decision to put that $x into investing or spending. Example: I'm in self-publishing. Something simple would be I can 'reward' myself with $10 for every book I get publish. Now I'm left with the choice of what to do with it. This would be different for everyone since my business might not be the same as yours. It shouldn't be an easy task relatively speaking. You probably shouldn't reward yourself for every little thing but I guess think of like milestone goals?

Probably set the reward amount beforehand and stuff would be better instead of giving yourself free reign whenever.

Also with this, when you get that $x, you should have done something already to promote and improve your business. Can give the boost of confidence that you earn this. Therefore the idea that you may spend might not be so guilty. BUT at the same time, since you did something for the business - you might be compelled to do another and another. You might develop a stronger desire to invest the 'reward money' because there's a sense of success that goes with it.

Along with this, you can set some rules with this. Ex: limits on spending account for pacing. Splitting up % of spending money (there are threads on this). Rules to promote freedom or restrict freedom - experiment what might work. Penalties on breaking guidelines? Etc.

If you spend a lot but want to try to invest it instead, go for rules like can you withdraw from 'Spending' and drop it into 'Investing'.

A lot of people use Investment money to generate passive income or just more money to inject into the investing cycle again which is great incentive to stuff the investing account and such.

Last note: I'm not sure how practical this is, but I guess it's sort of relates to mindset and mentality. It kind of plays into a few other threads about money investment and saving and such.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)