Passive Income and Savings

Every personal finance book I've poured over in the past year keeps referring to a concept of a CASH COW.  Something that allows you to draw passive income, literally earned for little or no work or attention.  Ideally it would be a business that you set up and have other people do the work while you sit back and collect the Green Paper.  Similar to practically every job in NYC the young worker busts their asses while the boss usually takes a million vacations and just dictates orders to you.  They pay you enough for you not to quit while they make exponential sums out of your labor and expertise.  With the Corporate Earnings season almost over this quarter; I decided its really time to start putting my money into an online savings account.  Just setup your auto transfers and let your money grow.  Key word here is ONLINE, because your standard bricks and mortars bank will pay you typically less than .30% and you'll constantly be tempted to tap into easily with your ATM card. 

So I picked just opened an account with Allied bank.  Mostly because it has awesome Bank IRA products that are super flexible. And who's really gonna put money in this crazy financial climate.  Where I'm still waiting on the conclusion to the Debt Ceiling talks and doesn't it feel like everyday you read a new article about some municipality failing.

So for this 10k goal, I've set for myself I'm gonna stash it with Allied bank and their currently offering 1.04% which is super competitive.  Plus if you go to their site, they even have a wait time estimator on their website for customer service.  BIG PRO not having to talk to India for customer service.  

And yes for those of you, who say 1% is pathetic, 2 years ago I would have agreed.  But you have to really look at whats going on today, all the prevalent fraud in the economy and gosh even US Treasuries may be downgraded soon.  So I'll happily take my 1% and be worry free.  Plus, this will help you set up a habit and when rates rise again you'll hopefully have a ton more money earning higher rates.