A recent post from Jamie on his WealthAdviceMadeSimple blog regarding the value of online savings accounts.
Breaking a bad habit is hard, but not all habits are bad. I strongly recommend The Power of Habit by Charles Duhigg to reinforce how habits can be used to create successful outcomes. However, many habits, or reluctance for change actually impede our successful outcomes. And these habits can lead to us missing out on opportunities. As a business owner of a pass-through entity, I am required to pay quarterly estimated taxes every three months. This forces me to carry excess cash in the bank. Additionally, I err on the side of cautious when it comes to my personal emergency reserves. So for years, I had the bad habit of keeping this money in a well-known regional bank, accepting next-to-nothing for interest in my savings account, because….well, that’s what I had always done.
Finally, I took it upon myself a few years ago to establish an online savings account…