# Personal Finance

I keep a bare minimum of $4,000 AUD across my bank accounts at any time and structure it as follows:

* $1,000 AUD as [cash float](#cash-float) in a checking account
  * With $200 AUD in a separate checking account for everyday spending (eg. dining out, fuel etc.)
* $3,000 AUD in a relatively high-interest savings account for [emergency spending](#emergency-fund) (helps me sleep easier at night)

![I call this simple money management!](/files/hBVkYbftHwllTLAwFnuH)

I try my best to save / invest at least 50% of my income. To make this easier for myself, I have set a recurring automatic transfer to a high-interest savings account which occurs every payday. This automatic transfer allows me to save without worrying about it, freeing up mental energy which I can allocate into making investment decisions. I like to invest in stocks, ETFs, cryptocurrencies and ideas that interest me.

## Cash Float

As mentioned earlier, I keep at least $1,000 as a cash float in my main transactional account. Just like how a small business may keep x amount of money in a cash till, I think it is imperative to have some kind of leeway / buffer that keeps one afloat. Moreover, this main transaction account acts as some sort of central hub that distributes funds to my other accounts. I frequently top-up this account up with every paycheck.

## Emergency Fund

This account is strictly for life-threatening emergencies only. Ideally, an emergency fund should hold at least 3-6 months of expenses. I expect the bare minimum for this fund to increase with age.

## Miscellaneous

### Fitbit

I keep $100 AUD in a separate transaction account that I have set to Fitbit Pay. These funds are to be used under the following circumstances only:

1. If I lose / forget my wallet or phone while out
2. Any non-life threatening 'emergencies' that can be solved for under $100

## Quote Dump

> “Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.” — Johann Wolfgang von Goethe

## Links

* [Reddit /r/personalfinance: Common Topics](https://www.reddit.com/r/personalfinance/wiki/commontopics)
* Reddit /r/personalfinance: Personal Income Spending Flowchart
  * [Australia](https://i.imgur.com/NmP4zCu.png)
  * [USA](https://i.imgur.com/lSoUQr2.png)
* [Reddit /r/AusFinance: Your links to financial information in Australia](https://www.reddit.com/r/AusFinance/comments/xme1m/your_links_to_financial_information_in_australia/)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://wiki.alexhe.io/topics/money/personal-finance.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.