You could also get creative and a bit more risky by putting some money into a balanced mutual fund-if the fund has a lot of gains after a certain amount of time, you'll go on a nicer vacation, and if it loses money and never regains it, then you go camping in a state park. Then you could also put money in ibonds if the timeframe is over 5 years. For instance, if you're planning for a new car in 7 years, you could have put a chunk of cash in a 7-year Penfed CD at 3% earlier this year. One virtue of having multiple accounts, beyond mental accounting and motivation, is to take advantage of higher rates for longer-term goals. Since you are an account, you'd be great with numbers.I looked up the Fidelity account, but the interest rate of 0.07 doesn't look that great.do you think the convenience outweighs a better interest rate? Ramit Sethi of 'I will teach you to be rich' is a good guy, I was actually reading the same article when I was doing my own research just before posting this thread.his book look really popular on Amazon as well. I'm an accountant, naturally, I like to have everything bucketed appropriately. My system of accounts looks something like this. This gets off the topic of your question slightly, but will provide some good insight in how you can set this type of systematic saving up. I have everything direct deposited, so once it's set up, the automation works wonders. Yes - there are separate account numbers for each. ING or Cap360 is similar, I hear.įor no fees, minimum balance, bill pay, etc, Fidelity CMA is my favorite. You can continuously change the name of the accounts to serve different purposes. I have multiple cash management accounts (CMA) with them.

Money manager ex budget review