Lesson 1: Hub Accounts and Inflation

486 to 730+ in 1.5 years, I cut my $20,000 student loan debt in half, and I took a free trip to
 Puerto Rico.  You Can Too, Let's Do This.

Lesson 1:
The Hub Account(s): A “Hub account” is usually a savings or checking account that allows you to ACH transfer out and in for free. If it is a savings account: Federal law limits you to 6 withdrawals per month. Checking accounts may have their own limits set by the bank. You use transfers from the Hub accounts to meet the requirements of your Money Farmer Accounts and grow your money, if only a hair faster than inflation.

Don’t Understand Inflation?

If you had $1,000,000 under your bed in 1950 and you saved it till today, you would still have $1,000,000 today. But in 1950 you could have bought 10 TIMES MORE STUFF with your million bucks. A house cost less than $10,000. This is because of inflation. On average Your money can buy 3% less stuff next year if you save it under a mattress.

Sign up for a Free Discover SavingsAccount HERE. As of April 2017 this account will earn you 1.2% APY interest on your balance. To compare, My Bankofanotherfeeforya Savings account earns me 0.01% APY. 100 times less.
IT GIVES 100x MORE THAN BANKOFANOTHERFEEFORYA. Check your savings account rates. If your rate is is higher, let me know in the comments below.

At 1%, the Free Discover SavingsAccount reduces your cost of inflation by 33%.
$1000 in 5 years can buy $850 worth of stuff. If that same $1000 was in your Discover Savings Account you could still buy $903 worth of stuff.


HA! I just thought of a good analogy. It’s like working out. If you don’t work your muscles out they will atrophy and get weaker. Likewise, If you don’t work your money out, it will inflate and get weaker.


You don’t have to close your current bank accounts to open a new one, you can have 1000 accounts if you’d like. Just make sure to fulfill all the requirements to waive all the fees, or be ok paying the fees. Discover has no inactivity or minimum balance fees. So you can sign up for it with $1 and leave it for a year, then next year you will have $1.01 and no fees***

*** I Had A Chat with Carlos from Discover Bank and he told me that if you are going to leave the funds alone for 1 year or more, that it is a good idea to log onto your account and message or call them so they keep your account active. If you haven’t logged on in over a year, they might think your account has been abandoned and mail you a check for the balance, So log in every once in a while and keep in touch!

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