Set Your S.I.T.E.S.!
by, 04-03-2008 at 06:03 PM (3247 Views)
In this "Age of Turbulence", people can still practice fiscal empowerment and responsibility towards financial independence. One way that can include children is what I call a "S.I.T.E.S." account. This came as a result of going back to the old Mason jar method of saving money for a special project. Instead of using one jar, I want everyone to get 5 jars.
First, I recommend going to a local SUBWAY, Quizno's or other restaurant and ask for 5 empty jars from mayonnaise, mustard, peppers or other condiments. Once you clean the jars out, label each jar with the following:
S = Savings: We should all strive to have 3-6 months of expenses in our savings account/jar. This is where we can apply the 10% and 20% Rules. This jar can serve as the initial seed money to make things happen.
I = Investments: This jar is used to save money to purchase an income-generating asset (or assets). In most cases, the funds can be used to purchase real estate.
T = Tithing: The rule is to tithe where one receives his/her spiritual food. Regardless if it's a church, masjid, synagogue, temple or other entity (like LIBRadio), the funds from this jar should be used to tithe. This can also be used as a "test of faith" jar in that it can be used to strengthen one's faith in the abundance of the Universe.
E = Education: When I speak of education, I'm speaking of financial education. Books, CD's, DVD's and seminars used to enhance one's financial IQ can give you an infinite return on investment (ROI). I've purchased and read every book in the RICH DAD, POOR DAD series over the past 8 years, as well as numerous books on the stock market, entrepreneurship, reading financial statements and personal finance. Benjamin Franklin stated that all education is self-education.
S = Startup Capital: With the presence of the Internet and other forms of technology, businesses are being launched with as little as $1000. Most business can be launched with $10,000 or less in initial seed money. This jar can be your "freedom fund" to build an independent money-making machine.
Presently, I'm practicing my "S.I.T.E.S." account with a local credit union in Albany, NY. Every Friday, I am paying myself $50 and splitting it amongst my five accounts. over the past 36 weeks, I have saved over $1800 in my S.I.T.E.S account, with each account having an average of $360. This tactic is something that can be a family thing or if you want to do it as an individual.
To make it even more challenging, those that are using the jars should pay themselves in quarters. Back in 2000 when I "discovered" this method, I would take $100 from each paycheck and pour it into a jar. Through paying myself first and using other periodic windfalls, I saved over $2500 in quarters over a six-month period. My wife and I wrapped the quarters on New Year's Day 2001 and took them to the bank the next day. After I paid rent and paid ourselves, I opened my first portfolio of mutual funds from the "jar money".
If you try it, drop me a line and let me know how it works for you
Total Trackbacks 0