FIRE with Froogal: Day 8-14
Updated: Aug 24
The must-dos during your second week of FIRE chasing on Froogal.
I'm again going to assume that if you are reading this, you have already gone & created an account at www.froogalsavings.com.
If not, take a second to go register.
It's completely free to create an account - you only pay the monthly fee once you've launched a club (to be explained).
Day 8-15: Your second week
So by now, you have completed the week 1 basics (create a club, create goals, add a profile pic).
Now we can move on to more pressing matters:
Launch your club
Propose a bank deposit to your club
Add money (savings)
Launch Your Club
This is a big moment for new Froogal FIRE members as it begins a lifetime of optimized earnings on your savings for both yourself and your family/friends (that join you).
You will need to have at least 3 members in your club to "launch" and you can invite up to 98 to join.
Once you have the first 3 in, you can press the big button on the club screen that says "Launch Club".
You can also leave the club at any time.
The club launch will trigger the official creation of your private fund and the opening of your initial group bank deposit account.
All club members will be charged $3 per month once launched. You can use the profits you generate to pay the low subscription fee as well (the rate should more than cover it). If you have one "lead user" who wants to cover the costs for the entire group, you can also reach out to the team at Froogal to adjust your settings.
This bank account is temporary until your club votes/approves a new option (explained below).
You will be able to start adding money once your group bank account has been opened.
An email will be sent to all club members once the account is opened.
You can still add new members to your club afterward so don't worry if you forget someone.
For the club to be closed/terminated, all members will need to leave the club.
Propose a Bank Deposit to your Club
Time to start earning some money.
Now that your club is launched, you are now able to officially submit a new "proposal" (your first proposal, in this case).
This will be right on your club screen.
Once you select "+ New Proposal", you are going to see this:
Froogal always displays 3+ "featured banks" (aka - banks that offer the best/highest rates available in the market at various balance .amounts).
Featured banks are base on the total balance level (total savings) of all members of the club.
Although you will never be privy to the savings balances of other club members, you will always know when your group qualifies for a new balance "tier".
For those unaware - banks pay large depositors more money that small depositors. When you hit the $100,000, $250,000, and $500,000 balance amounts, you (and your club, in this case) qualify for higher deposit rates.
Right now (08/2020), this only means the difference of +0.20% to +040%, but, as any FIRE member knows, adds up in the long-run.
You can tell your tier is displayed on your club screen:
Bronze: Less than $100,000
Silver: $100,000 to $250,000
Gold: $250,000 to $500,000
As you reach each higher tier, you will see more/different featured deposit options.
It is likely in your club's best to propose & vote on a new deposit option at each tier.
Lastly, you will also need to plan around FDIC coverage once you get into and past the gold tier. The FDIC coverage limit is $250,000 so in order to maintain complete safety, multiple deposit options for your club would be necessary.
Fear not - Froogal will help you through this entire process.
Once a deposit option has been proposed, EVERY member of the club will need to vote. Non-voters will be forced to leave the club (they can rejoin later).
For a proposal to be confirmed, every club member will need to vote "yes".
It's really as simple as that.
Once approved, Froogal will handle all of the backend tasks required to get the account opened and the money moved.
This process will go as fast or as slow as the selected bank allows.
You will receive a notification once the savings selection is active and your money has been transferred.
Et voila. You're earning more.
Obviously, adding your savings is a crucial piece to this whole thing.
Once your club is launched, Froogal will open a temporary checking account for club members to add money into until a savings deposit option is proposed/selected.
You will receive a notification as soon as this temporary account is set-up & ready to accept funds.
Once you get this email/notification, you can add money by selecting "Add funds" on the dashboard or clicking on the deposit/withdrawal tab.
From there, you simply link the bank account you will be pulling money from, select which club you will be adding the money to (you can be part of multiple clubs), and enter in the dollar amount you'd like to add.
Press "Add" and then sit back and let Froogal handle the rest.
This isn't a revolutionary process but Froogal does make sure you are informed on where your money is at all times on the deposit/withdraw page.
You can track your incoming/outgoing movement via pending, transit, and completed displays.
You will also be able to cancel your request if you should change your mind within 2 hours of the request.
If you would like to set up recurring transfers, you can also email the Froogal team at email@example.com.
Simple as that.