Monday, August 25, 2008

A Dollar A Day - The Startup

This series of blog posts will be a real money experiment about what can be achieved if you're only able to save, invest or give away a dollar a day. The original dollar must be earned from wages paid in exchange for services rendered. The dollar I will be using must be saved from wages or earned passively from interest or dividends. I will also be exploring giving my dollar a day to charity as well as donating part of my interest on my dollar a day through Zopa ( The goal is to earn a dollar a day in various forms, savings interest or stock dividends, as passive income using only a dollar a day to create this income.

What triggered this interest in the subject was a blog post by Trent Hamm at The Simple Dollar ( in which one of his readers complained that almost all financial advice was aimed at the well heeled. Trent replied with a post to show 10 things to do to improve your situation if you are working for minimum wage.

The first thing to do is find a low cost entry, no fee, high yield savings account to place my savings into. HSBC Direct ( is the bank I chose after surfing around ( I will be opening up an account and funding it with $253 dollars sometime after August 29, 2008. I get paid every two weeks, so I will be adding 14 dollars to the account every two weeks as I go along. This is a real money blog and as such, if there are any “bumps in the road” on the way to my goals, you’ll read about them here.

I will be using Scottrade ( in the near future to buy stocks for the dividend portion of this experiment. Scottrade’s minimum amount to open an account is $500 dollars. This account will be opened in December, 2008 near the end of the month. Scottrade’s transaction fees are only 7 dollars. The cheaper, the better for my purposes. As a friend of mine tells me, "Cheap is good, free is better!"

For those of you who like to read the end of the book, this experiment will take a few years. This should be a fun adventure. I hope you find this series of posts fun and entertaining.

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