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Digm Piece (Op-Ed)

The Difference Between a Savings Account and an Emergency Fund and Why You Should Have Both

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If you are remotely interested in living a financially successful life, you’ve heard about saving accounts and emergency funds. If you keep that interest up, you may wonder the difference between the two and ask if you need both. Are they synonymous? How much of a balance should each have? When do I use my savings account? Does the latest iPhone count as an emergency? These questions and then some may come to mind when making the decision to investing in a savings account and setting up an emergency fund.

Savings Accounts.A savings account is traditionally an interest-bearing deposit account at a bank or financial institution. You deposit money, and over time it grows. Usually, savings accounts provide a financial cushion or threshold you never want to go below. Building wealth means you have more than what you need. While a checking accounts are used on a regular basis (making weekly and monthly transaction; paying bills, etc.), savings accounts simply store money for long periods of time. Funds are used for purposes like college or the purchase of a home.

Emergency Funds. This account is self-explanatory; an account holding cash to be used in case of an emergency. Being big on the power of words, one should call this account life events fund. These events include car repairs, medical expenses, and other unplanned circumstances.

So, why should you have both? Just like businesses should conduct transactions from your personal checking account, you shouldn’t comingle funds when it comes to savings and life events. It’s misleading and is the gateway to overspending. Having separate account organizes your finances, giving you a clear picture of what you really have available.

Tashima Jones is co-founder of Tashima Jones Media, an online television platform & advertising company connected to the independent creative. She is also the author of Being Broke Made Me Rich, a financial memoir likened to Paulo Coelho’s The Alchemist based on personal experiences and the lessons they taught on being rich. Visit www.TashimaJones.com for more.

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Digm Piece (Op-Ed)

Top Ten Freshman Money Myths

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Starting college is one of the most important and exciting times of your life. Now that you’re all “checked-in,” enjoy your college experience without worrying about where your next meal will come from by chasing away these common freshman money myths. (more…)

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Digm Piece (Op-Ed)

Do What You Love for Free – Here’s Why

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This is ParadigmMoney.Com, right? So, speaking about a paradigm shift should come as no surprise. In science and philosophy, a paradigm is a distinct set of concepts or thought patterns, including theories, research methods, postulates, and standards for what constitutes legitimate contributions to a field. When speaking about money, most believe it is something you work for and not something that works for you. In all truth, the one percenters understand this concept quite well. In order, to wake up and do what you love, you too must shift your thoughts when it comes to finances.

Doing what you love for free allows you to create freely. You can come up with disruptive, out of this world, never seen before creations that will rock this planet. Take Elon Musk from South Africa, founder of X.com which went on to become PayPal and sold to eBay for 1.5 billion dollars. Musk is also the CEO of SpaceX which designs, manufactures and launches advanced rockets and spacecraft. The company was founded to revolutionize space technology, with the ultimate goal of enabling people to live on other planets. You may say, of course, he can do this, he is a billionaire and co-founder of Tesla.

Not true. PayPal, Tesla, and SpaceX are all products of Musk doing what he loved. As a child, he was an avid reader and taught himself computer programming leading to the creation of X.com. He dropped out of college to start a company with his brother and here’s what he had to say about that PayPal deal… “My proceeds from the PayPal acquisition were $180 million. I put $100 million in SpaceX, $70m in Tesla, and $10m in Solar City. I had to borrow money for rent.” Elon Musk’s current net worth is estimated to be at about $13.3 billion. No bad at all.

The reality of the matter is the less you are attached to money the more money flows to you. Pay more attention to creating things that move the culture forward. Starting at doing what you love with ultimately position you for financial success and happiness.

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Digm Piece (Op-Ed)

How Much Does College Cost?

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How much does college cost these days? If you’re preparing to go to college and will need to find a way to finance your own education, this is one of the first steps to figure out.  Then you’ll want to find out all of your options and create a plan. Here’s a quick breakdown on the typical cost of college. (more…)

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