Thanks for sharing your financial accounts makeover. While there are other financial updates I make regularly, like revisions to my budget and checking my credit score, I’ve only changed my accounts when an issue has occurred or something has prompted me to do so. I’m going to add my bank accounts to my list so that even if I decide to keep the same setup, at least I check whether it makes sense periodically.
Gary, that’s exactly right! For us financial mavens, it’s a humbling reminder and experience to check our financial moves. Sometimes, surprisingly, we need to switch things up as well. Would love to hear what you find out!
You might want to consider reading one of Dave Ramsey’s books (you should be able to get them from the library). While I do not agree with all of his advice, it is generally solid. Suze Orman also has a newish book out for the young and broke – the library should have this as well and her advice is also generally solid. Hers may actually be better as it is specifically for people in your age group but I have not read it as I am too old! Her other books were great, however. Congratulations on reaching a place where you have enough income to consider saving and kudos on actually using it to save! BTW, I loved your idea of social finance and thought you were so good at articulating what many of us feel.
Debbi, I’ve actually enjoyed Ramsey’s books quite a lot! He’s got some solid advice about budgeting and structuring. The problem is that my income can be quite variable from month to month. It’s related to earnings through Frugaling, the book, Ubering, and various other side jobs. Money made varies greatly between these activities. What I focus on for saving and investing is primarily my main income stream (work).
And I’m ever so grateful you appreciate that part of my writing! Social finance influences and informs everything I do at Frugaling. Thanks for following along.
Ah! The individual stock temptation is so real! Especially if you spend anytime reading and consuming finance content. Great post on stepping back and taking a new look at your finances in general.
Quick question: what’s your plan for the wealthfront account? Is it just a general long term investment fund?
Right now the plan is to deposit into the brokerage/taxable account. The reason is that I might need these funds sooner than retirement. I just cannot plan for 65+ yet, and have some sizable expenses ahead. I’m going to do my best to increase my salary, but if I can’t, I’ll need access to the funds.
It’s amazing how much the retail bankers hit you up with pitches for variable annuities and other high commission products. I had a roommate who made more money than I did at a mutual fund company by pushing his bank’s affiliated insurance products and getting commission.
Just curious if you are happy with your Ally bank account? I was tempted to open up an account myself, but a quick Google search left my confidence in that company shaken. They seem to have a steadily falling stock value, and the reviews listed were very split between people either loving or hating them… I’m a big fan of Capital One so I am considering opening an account there to get anything better than the 0.01% return my current checking account offers.
Thanks for your comment! I have nothing but positive things to say about my Ally Bank account. It’s been an incredibly great account, good customer service, and best rates possible.
Let me know if you have specific questions!
I’m assuming since you’re something akin to a financial blogger you know of the Early Retirement bloggers as well. I’m curious why you don’t just invest in Vanguard? Picking your own stocks or even having them managed in any way almost always results in worse results (especially with management fees). I know it’s a psychological thing which is why so many people lose money in the stock market when if you just invest in Vanguard and let it sit it’s near impossible to lose money over the long term.
If you haven’t checked out Jim Collins yet he has a new book that’s really great (imo) about how to and why to invest with Vanguard. Called…. The Simple Path To Wealth.