14
Dec
07

The Lobby/Vault Method

I’d like to start off by saying that this is not my idea. The concept has been around for quite some time… it just makes even more sense these days. A lot of folks have debit cards and PayPal (or other Internet payment service) accounts. The common factor with these things is the potential for all of the money that is in those accounts to get wiped out in short order by nefarious types. Believe me when I tell you that it will take a long time to get stuff fully resolved. OTOH, services like PayPal can freeze your funds for a variety of silly reasons and don’t have to give them back for as much as six months. Feeling a little tightness down below, yet?

One of the best ways to manage these types of things is to use what is called the Lobby/Vault method. You have a main bank account which is likely tied to your debit or PayPal-like accounts. This is, umm stupid. You need to have two accounts. Keep your main account and treat it as the Vault. Nobody but you or the folks you designate can get in. Set up a second account. We’ll call this one the Lobby account. Your debit account and your PayPal type stuff gets connected to this. Yes, it’s extra work. Here’s the deal. You sweep any money, save for a token amount, from your lobby account into the vault account each day. When you need to use the debit card or whatever, you transfer funds from the vault to the lobby. Boojums can never get at your big stash in the vault. Today’s banking methods make actually moving the funds around rather trivial. Do it. Now.

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