My first contact with the word escrow accounts was in real estate transactions, an account held by a third party until certain contractual agreements have been met. On my financial intelligence journey however, it’s a word that features big time. I’ll need to quickly establish what an escrow account is, how it can be set up within the context of personal finance management, the benefits derived from same, and some makeshift escrow options you might wish to consider.
What is an Escrow Account (Source)
An escrow is an arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party receives and disburses money and/or documents for the transacting parties, with the timing of such disbursement by the third party dependent on the fulfillment of contractually-agreed conditions by the transacting parties, or
an account established by a broker, under the provisions of license law, for the purpose of holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction;
What do you Need one for?
In my attempt to help myself and help so many other people to work deliberately towards financial freedom, I realized that the greatest tool, that we can use to create assets of significant value is our monthly cashflow. This monthly cashflow is the difference between our monthly income and our living expenses. If the expense is greater than the income, this is living on the brink of bankruptcy. If they are equal, then things will remain the same. The place to be is where the difference between the income and expense is significantly positive. For the few of us that manage to have anything left monthly however, we keep our money’s where we can access it, and before we know it, we are living true to Parkinson’s law! Our expenses rise up to meet our incomes! I realize that the only way to ensure that the monthly cashflow is being put to good use, is to create an escrow account where each couple can be accountable to a third party on the use of the funds in their escrow accounts.
It’s rather unfortunate that the greatest enemy of progress towards freedom is not real enemies, but close friends and family. The demands keep mounting until your monthly savings are gone. Except you have funds that are yours, but you don’t have access to, chances are you will continue to live on all that is meant to be left. The escrow account creates a habit forming process of keeping your money away from yourself, paying yourself first and not going back to loan it out.
Benefits Derived from an Escrow Account
With an Escrow account you have ensured you don’t have money to manage emergencies. You will soon realize that every problem has solutions outside you. The fact that you are unable to meet a need, does not mean the need won’t end up solved. You need to spend within the confines of your budget, and hold yourself to a contractual agreement to keep money away in an escrow account.
You can begin to build cash assets, strictly towards building real assets. You can have a sense of progress and confidence derived from knowing you are on track, and heading towards your dream. Trust me, there is no feeling quite like knowing that you are moving closer and closer to your desired end.
If you can always access the funds in your escrow account, you don’t have an escrow account!
How to Set up an Escrow Account
To set up an escrow account, simply open a new account in a new bank, with your spouse as co-signatory. You can work with a coach or accountability partner (I have some people trained to assist you at little or no cost, I can as well at the right price) to set up guiding rules, and ensure that money never leaves the account for frivolous reasons. This way you can continue to grow your cash asset until you can participate in a big deal. I currently have a lot of checks with me from people who open their bank accounts and just deposit the booklets with me.
You can also use a cooperative account as your escrow account. Avenues to Wealth Cooperative Multipurpose Society for example can serve as an escrow account. To put money into the account is easy, but to get out your share capital would required 3 months and to withdraw your savings about 1 month. This is done deliberately so that your cooperative funds are not serving emergencies and putting out fires, but building you a solid financial background and basis. With money in share capital alone, you already have an asset which can generate bi-annual dividends.
So, you can see quite clearly what an escrow account can do for you. Now that you know, how long will it take you to start? Once you start, you can buzz online here and let me know. I’ll see what level of support I can give you. Hearing without doing, is a sure way to ensure that when the challenges of life comes your way, you may find nothing to match them with.
31 thoughts on “Why You Need An Escrow Account”
Please,how can I join d Avenue 4 Wealth headed.Thank u 4 d eye opening idea shared.
I believe it is better to see you one on one when you come to Portharcourt than to discuss it here.Thanks for your concern.
Thanks 4 d info. How can i get intouch with you about accountability partner/coach and at which cost? How can I join Avenue to wealth multipurpose cooperative society
Thank you so much sir for this piece.I ve been enlightened n increased knowledge in this subject matter.Godbless a2w!
The piece is very educative. I need more of it.
Thanks for dis educative piece I hpe 2hr more from yu n see my asset invst wit A2w grow gaga n offcourse do my first big deal wit my escrow cash.thumbs up.
You are a blessing to your generation.
tnx.pls reach me asap via email.I wnt to discuss wit u
I and my buddies happened to be taking note of the best tricks from your site and so suddenly got a horrible feeling I had not thanked the web blog owner for those strategies. All the people ended up as a consequence warmed to see all of them and have in effect unquestionably been loving them. Many thanks for getting very considerate and then for opting for this sort of terrific useful guides most people are really desperate to discover. Our sincere regret for not saying thanks to you earlier.
I am just commenting to make you be aware of of the amazing discovery my cousin’s princess undergone browsing your blog. She came to understand too many details, not to mention what it’s like to have a wonderful helping mood to let certain people really easily thoroughly grasp certain hard to do subject matter. You really did more than my desires. Many thanks for delivering those effective, trusted, explanatory not to mention unique guidance on the topic to Lizeth.
My husband and i got satisfied Peter could do his reports because of the ideas he got from your own site. It is now and again perplexing just to find yourself making a gift of guidance most people might have been making money from. And now we do understand we have got the blog owner to thank for this. All the illustrations you made, the easy blog navigation, the friendships you give support to engender – it’s many astounding, and it’s facilitating our son and the family recognize that this subject is interesting, which is rather vital. Thank you for all the pieces!
I precisely wished to appreciate you all over again. I’m not certain the things I would have achieved in the absence of the entire opinions contributed by you about this area. This was a challenging circumstance in my circumstances, but seeing the specialized manner you dealt with it took me to jump with gladness. I’m just happier for your support and as well , sincerely hope you recognize what an amazing job your are undertaking educating people today via your blog. I am sure you haven’t met all of us.
I happen to be writing to let you know of the terrific experience my wife’s child had using your web site. She realized so many things, which included what it is like to possess an ideal giving spirit to let many people quite simply comprehend specific advanced matters. You truly did more than people’s expected results. I appreciate you for supplying those practical, safe, explanatory as well as cool guidance on that topic to Sandra.
My spouse and i felt quite relieved when John could complete his investigations out of the ideas he came across out of the web page. It’s not at all simplistic just to happen to be giving out guidance which often other folks have been selling. Therefore we figure out we now have the writer to appreciate for this. The main explanations you have made, the simple site navigation, the relationships you can help to instill – it’s most excellent, and it’s really helping our son in addition to our family consider that this theme is satisfying, and that’s particularly pressing. Thanks for all!
Thanks for all of your efforts on this web site. Gloria really loves engaging in research and it is simple to grasp why. My partner and i learn all concerning the lively medium you offer invaluable tips by means of the web site and cause participation from other individuals on the topic then my simple princess is without question understanding a lot of things. Take pleasure in the remaining portion of the new year. You have been conducting a superb job.
My spouse and i have been very excited that Michael could do his investigation from your ideas he got out of the weblog. It is now and again perplexing to simply happen to be handing out ideas which most people might have been making money from. We do know we have you to be grateful to for this. Those explanations you have made, the straightforward web site navigation, the friendships you will help create – it’s got mostly extraordinary, and it’s really assisting our son in addition to the family reason why this topic is fun, which is quite serious. Thank you for the whole lot!
My spouse and i felt quite excited that Michael could carry out his basic research via the precious recommendations he received from your own blog. It is now and again perplexing to just find yourself freely giving secrets which usually some other people could have been selling. We already know we now have you to thank for that. The entire illustrations you’ve made, the easy website navigation, the friendships you will assist to instill – it’s got many impressive, and it’s really facilitating our son in addition to us feel that this subject is awesome, and that’s exceptionally indispensable. Thank you for all!
I wanted to develop a brief comment to appreciate you for some of the fabulous techniques you are placing on this site. My considerable internet look up has finally been honored with extremely good content to go over with my friends and family. I would believe that many of us site visitors are definitely endowed to live in a perfect community with very many lovely individuals with insightful pointers. I feel quite happy to have used your entire website and look forward to some more amazing times reading here. Thanks a lot once again for all the details.
I wanted to create you this tiny remark so as to say thanks a lot over again for your personal unique thoughts you have documented on this page. It’s certainly seriously open-handed of people like you to deliver openly what exactly a number of people could have supplied as an electronic book to get some cash on their own, specifically considering that you might have done it in case you decided. The strategies also acted like a easy way to realize that other people online have the same fervor really like mine to realize way more in regard to this issue. I believe there are many more pleasurable instances up front for individuals who look over your blog post.
A lot of thanks for your entire effort on this website. Ellie loves carrying out investigation and it’s easy to see why. Most of us notice all of the compelling means you render informative information through your web site and even cause contribution from others on that matter and our daughter is in fact learning a lot. Take pleasure in the remaining portion of the year. You are doing a fabulous job.
I am commenting to let you be aware of what a perfect encounter my child went through checking your web page. She came to understand a wide variety of things, including what it’s like to have a marvelous teaching style to get other individuals quite simply know several tricky subject matter. You really exceeded visitors’ desires. Many thanks for producing those precious, trusted, revealing and easy tips about this topic to Kate.
Thanks for your own work on this blog. My mum take interest in going through internet research and it’s obvious why. Many of us hear all of the lively ways you make great strategies on the web blog and therefore boost participation from some other people on this area of interest so my simple princess has always been studying a lot of things. Take advantage of the rest of the new year. You’re the one doing a tremendous job.
WOW just what I was searching for. Came here by searching for keyword|
Hello, after reading this amazing piece of writing i am as well cheerful to share my familiarity here with friends.
Stunning quest there. What occurred after? Thanks!
My spouse and i got absolutely thankful Albert managed to complete his investigations with the precious recommendations he gained in your web page. It is now and again perplexing to just find yourself offering methods that people today have been trying to sell. Therefore we do understand we’ve got you to thank for that. The main explanations you’ve made, the easy web site navigation, the friendships your site make it easier to instill – it’s mostly fantastic, and it is letting our son and our family consider that that idea is awesome, and that’s extraordinarily vital. Thanks for all!
I simply wanted to send a simple remark in order to express gratitude to you for those nice facts you are placing here. My rather long internet search has at the end of the day been honored with brilliant points to go over with my companions. I would point out that we website visitors actually are really blessed to live in a notable place with many special people with valuable tricks. I feel somewhat lucky to have used the web site and look forward to many more exciting moments reading here. Thank you again for everything.
I precisely had to appreciate you again. I am not sure the things that I would’ve accomplished without the entire recommendations contributed by you regarding such concern. It truly was a very horrifying problem in my opinion, however , taking note of your skilled avenue you processed it made me to leap with contentment. Now i’m thankful for your support and have high hopes you really know what a powerful job that you’re doing educating people today through the use of your web page. Most likely you have never come across any of us.
I would like to express some thanks to you just for bailing me out of this particular difficulty. As a result of surfing through the world-wide-web and meeting notions that were not beneficial, I figured my entire life was gone. Existing minus the answers to the difficulties you’ve sorted out by means of your main article content is a serious case, as well as the kind that might have negatively damaged my career if I hadn’t come across your web blog. Your own mastery and kindness in controlling a lot of things was very useful. I am not sure what I would have done if I had not discovered such a stuff like this. I can at this moment look forward to my future. Thanks very much for the high quality and sensible guide. I won’t hesitate to refer your web sites to anybody who should receive support about this subject matter.
I simply desired to thank you so much yet again. I’m not certain what I might have created without those pointers contributed by you concerning my theme. It was before an absolute hard issue for me, however , taking note of a new skilled manner you handled the issue forced me to leap over fulfillment. I am thankful for the service and even trust you find out what a great job you are getting into teaching many people through the use of your web page. Most likely you have never encountered any of us.
I intended to post you this little bit of word to say thanks a lot yet again on your nice ideas you’ve contributed on this site. This has been so wonderfully generous of people like you to convey easily just what most of us might have offered for an electronic book to earn some dough for themselves, mostly since you might well have tried it if you desired. Those principles as well served as a great way to fully grasp that some people have the same interest similar to my very own to understand somewhat more in terms of this issue. I’m sure there are a lot more pleasant occasions in the future for folks who read through your website.