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Giving myself an Overdraft

November 27th, 2009 at 01:23 pm

My current short-term target is to have 1000 euro in my checking account to act as a buffer.

I won't include it in my Net Worth calculations... it'll just be like an overdraft I have there for myself...

My bank pays 5% interest on money on checking accounts...

I'm planning to put 75/100 a month towards this goal and any extra money that comes my way...

Posted in Uncategorized | 5 Comments »

5 Responses to “Giving myself an Overdraft”

  1. LuxLiving Says:
    November 27th, 2009 at 01:58 pm 1259330313
    1259330313

    Why won't you count it in net worth? It's yours, you own it. I'd just consider it sacrosanct for the long term and count it!

  2. Analise Says:
    November 27th, 2009 at 04:50 pm 1259340621
    1259340621

    This is a good idea. In fact, I do the same and have never had an overdraft. I keep a $1,000-$1,500 buffer in my checking but unfortunately, my checking account pays no interest. Even if it did, it would be less than 1%, not even a ~$1 a month.

  3. Jerry Says:
    November 28th, 2009 at 01:00 am 1259370043
    1259370043

    I like this idea a lot, and can see benefit both in counting it and not counting it as net worth. It does lead to an increase in your long term wealth, but if it offers you some insurance and security to leave it there and forget about it, who cares?! It's YOUR money, and you can make it work as you like... =)
    Jerry

  4. Apprentice Bliss Hunter Says:
    November 28th, 2009 at 01:41 am 1259372519
    1259372519

    Thx guys...

    Yeah 5% is a phenomenal rate of interest for a checking account... it's been offered by the newest bank in Ireland... I hope they don't drop it when they get more market share... it was initially 10% when they first arrived !!

    I don't want to include it in Net Worth coz I wouldn't include an overdraft in Net Worth.. and that's what it's going to be... I'm going to be my own Banker... I'm gonna read 1000 euro in my checking account as zero.

    I don't want my Net Worth to be hurt by the buffer being dipped into.

  5. Broken Arrow Says:
    November 30th, 2009 at 03:06 am 1259550402
    1259550402

    5%! With 5%, they have have more than just my emergency fund. Big Grin Congrats!

    Um, yeah, it's most likely high because they're a new bank and badly want to grow their deposit base.

    Say, does Ireland have something like government protection in case a bank flops? Like the American FDIC?

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