At least, this is what has worked for me. Whenever I see a large number in my checking account (i.e. more than $2000), I start thinking about the stuff I could blow it on, and that usually leads to foolish spending decisions and regret.
Now, I try to keep my checking account balance at around $1000 after all my bills are paid. It's just enough of a buffer for me to feel like I could handle an unexpected expense or have a little fun, but low enough for me to feel like I can't really blow it on something stupid. Any excess I have after bills are paid goes into my savings account or brokerage account. I've been using this method for a few years now, and as long as you stay disciplined with it, your savings and investment account balances grow nicely over time.
Submitted July 19, 2018 at 08:30AM by I_need_one_dollar https://ift.tt/2zZMBDc
