I found a book named “The barefoot investor” written by Scott Pape. Yes, the name is unique but the suggestion provided in this book is also unique.
In this book, the writer suggests to maintain five bank accounts. These five accounts to be used for different purposes.
- First one should be for daily expenses.
- Second one should be for little pleasures like dining out or for shopping.
- Third one will serve to keep your savings for big expenses like travelling.
- Fourth one to keep money for paying crucial costs like debts repayment or buying house or a car.
- Fifth and final one should be kept for retirement savings. You will put money in this account and forget about it.
The writer also suggests the income allocation for topping up these accounts.
- Monthly income should go into daily expenses account.
- 10 percent of monthly income to be transferred to second account.
- Another 10 percent to the third account for holidays.
- Allocate 20 percent of the income for the fourth account.
- However, no portion of monthly income to be transferred to fifth account. This account will have money coming from overtime, any sale proceeds or extra work or bonuses received.
I strongly suggest to read the book to have a detailed understanding for Barefoot investor side hustle. You can buy this book from Amazon.