> For the complete documentation index, see [llms.txt](https://wiki.alexhe.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wiki.alexhe.io/topics/money/personal-finance.md).

# 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/)