Automate your savings into money moats to build long-term wealth.
Ideas on money allocation.
Life can be hectic, and there are often more pressing matters than manually setting aside money for savings. That's why I've established separate bank accounts (money moats to protect them) and automated transfers, creating a "set-and-forget" approach to reach my financial goals.
Let’s have a look at some of these money moats.
Emergency Savings Account
An emergency savings account serves precisely as its name implies—it's reserved for unforeseen circumstances such as job loss or sudden medical bills. Begin with modest contributions and gradually increase them over time. While there's no one-size-fits-all approach, it's advisable to target saving enough to cover 3 to 6 months' worth of expenses.
Lifestyle Savings Account
Money for things that you enjoy, passion projects or whatever makes you feel happy.
Boss Savings Account
Money for building long term wealth using the power of time and compounding interest.
Super Sorted
Superannuation might appear to be boring, however, it’s a super powerful wealth creator over the long term. I’ve consolidated my super into one fund with low fees and great (does not have to be the best) returns over 5+ years
Separate high-interest savings accounts for travel, a new car, education, donations or anything that is one of your life goals.
Here is my list of dedicated moats:
Saver Investing (Our share fund)
Car Savings (Because they’re expensive)
Saver Holiday (Our overseas travel fund)
Saver Dream (That someday item)
Side Hustle (Alternative income streams)
Saver Community (Donations to charities)
Saver Emergency (Sleep at night factor)
Bonus Points