How to Bank

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Open a bank account at a major bank such as Bank of America, Chase Bank, Citibank or Wells Fargo for your main account (to be used daily). This is to ensure your money is safe since these banks are the biggest and safest banks in the United States. Try to open an account with one of them offers such as a free $100 if you deposit a certain amount of cash, or a free iPod, or USB flash drive, or airplane ticket. Go to ibankbonus.com, fatwallet.com, or ibankdesign.com/board to find these offers. My main bank account is at Bank of America.

Open 1-2 more bank accounts (may be at smaller banks that are FDIC) that are paying a high interest rate on their savings account or money market account and CDs (Certificates of Deposit) for making easy money. This will allow you to earn some interest (in the short-term) while your money is ready to invest in stocks, businesses, real estate, etc. (for long-term investments). Check out bankaolic.com, bankrate.com, or gotalkmoney.com for comparing banks and their rates on savings accounts, money market accounts, and CDs. My easy money making bank accounts are at WaMu (Washington Mutual) and BECU (Boeing Employee Credit Union).

Start laddering CDs (Certificates of Deposit).  This can be done quarterly, monthly, bi-weekly, or weekly. I recommend doing it monthly as it is probably the best and the one I do. This is done by buying 1 CD (certificate of deposit) once a month for the whole year in order for you to have a cash flow every month. It’ll help you from having your entire money stuck for a long period of time as well. To do this, let’s say you have $12,000 and the minimum requirement for a CD is $1000. You would buy 1 12-month CD for $1000 at the beginning of every month. After 1 year your CD will mature every month giving you a cash flow and you repeat the process after they mature. Investing in CDs in a bank is good place to put your money for the short-term when you haven’t found a good investment and it’s also for people who are scared or don’t know how to invest in stocks, businesses, or real estate. Check out mymoneyblog.com to see how John does this.

Open about 2-3 credit cards with great offers to take advantage of them. This would include credit cards giving you a 0% APR with a big transfer with low (3% or less) or no transaction fee (better) so you can leverage (using someone’s money, time, or technology for your benefit) it. To leverage, transfer the money from the credit cards to your savings account, money market account, and/or CDs in your bank to earn some easy money (interest) while you do nothing. Then just set an automatic bill payment to pay your credit cards the minimum each month until the 0% APR expires. Once the 0% APR expires, pay all the money you owe your credit cards and find more credit cards offering the same deal to repeat the process again. Once you have about 10 credit cards, start canceling the oldest ones to the newest ones so you don’t get confused as you lose track of them. Go to creditcards.com, bankaholic.com, fatwallet.com, or search credit card offers on Google (google.com) to find these deals. Go to mymoneyblog.com to see how John’s guide on how to do this. I have about 5 credit cards, with 3 of them I transferred money into my bank accounts (5% APY) and I’m earning easy money there. The other 2 I get 3% cash backs on my purchases.

Start banking for your family and friends who don’t know how to manage their money. Manage your family and friends’ money and maybe share with them some profits you make. Put their money into a high interest savings account, money market account and/or laddering CDs. This will give you some easy money because it won’t take any extra hard work since you can just mix your money together with theirs. Make sure to write down how much money they have individually. To earn even more profits, you can try out prosper.com, lendingclub.com, zopa.com, and other P2P (people to people) lending sites (check out my article on “How to Lend Money P2P). I bank for my mother (whom can’t speak English) so far. 

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