I will figure out my income, and multiply that number by 6. This will be what I would keep in a savings account. The reason for the savings account is to have financial resources in case there is a bad month (or few bad months) that I would have to weather through. If I don’t have the funds in my checking account because of these bad months, then I will pay what I can through the checking account – then draw on the savings account to cover for the rest of the month.
Since I don’t see me getting crazy with my spending, I will assume that my spending will be at most $10,000 per month which is less than 1% of the money I will likely have left from all of my acquisitions, and the setting up the investment account. With that said, I don’t see many opportunities where this money will need to be drawn on. This will keep this account stable, and I will keep the account active by doing any paltry charge that would likely be from the interest that this savings account will generate. I will be using a different bank than my checking account. This is because FDIC rules applies to 1 person per bank. If I have 2 accounts in the same bank, then the total of both accounts must be less than $250,000 to receive full insurance if there was a bank failure. This will defeat the purpose of having a savings account.