Home Sugar Support Forum™ Money Keeping Allowance Discreet – & how to not have so much CASH!?

This topic contains 15 replies, has 8 voices, and was last updated by SouthernSD SouthernSD 2 weeks, 6 days ago.

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    So, I have just arranged with my SD an allowance that is pretty hefty. He and I are concerned about the arrangement of receiving the money because I will be getting well over $14,000.

    We want to keep this arrangement as discreet as possible. We know that we can use cash as a way to have less of a paper trail but I want to invest my money into a brokerage account as well as save it and develop an emergency fund.

    If I have thousands of dollars cash in a safe, what if the house burns down? How do I invest cash? Should I spend the cash on everything else and use the $14,000 I am allowed to get towards my investment funds?

    So I guess my REAL question is, how do I keep my money discreet AND safe at the same time? Feel free to comment on my other questions as well.

    My email is [email protected] or comment below.



    Good on you girl, there are all sorts of stipulations with that kind of money.
    I wrote a blog about this, you can apply the old school method of paying for bills and grocerys that I talk about in the blog.


    Also, is he giving it to all in one shot? If so, do NOT put it all in the bank at one time.
    Get a fire proof safe and put some in there. If your house burns down and the money goes with it you are SOL.

    As for investments, I have a method that leaves less of an electronic trail. Though you will have to do it in baby steps.
    I’m going to email you, for privacy, some details.


    I wrote a blog just about that a while back. Here’s the link:

    When I refer to safe, it means renting a safe in a bank, and not at home :-) If it is helpful, please support with a like (heart icon)


    @malia I have read your blog and it was super helpful! I’m just working with a lot of money so I didn’t think all of those options would be enough. It was very helpful though! Now that I have an account on here I will go back and heart it. Thanks :)


    @SouthernSD looking forward to hearing from you!


    Ellie I emailed you but my email address ends up in spam sometimes so if you don’t see it in your inbox check spam folder.


    Ellie, if it is a lot to invest you may want the help of a professional financial advisor and accountant for tax issues. Showing too much cash can create a havoc with the IRS and state tax authorities, so thread very carefully.
    If you don’t need the cash for the long term, you can consider tax deferred accounts as investment.
    However you will need to show taxable income so you can do so via an employer, consultant using your own SSN or open a company and invest via a SEP IRA.
    If you will still need money for education related expenses, then 529 accounts are great where the limits can go up to around $250,000. Your SD can make an exception rule contribution equivalent of 5 years in just one year…can’t remember if it’s 60,000 or 70,000.


    Thank you @Malia that was very helpful. I just took a PF & Investing course last semester so I know what you are talking about. Just couldn’t remember those things off the top of my head. @SouthernSD, I have replied to your email.



    @ellie7871 I would suggest that your SD send the full amount in smaller portions through PayPal or just gives your the amount in cash and you can deposit it little by little in the bank. That way everything doesn’t look as suspicious and the IRS won’t suspect any fraudulent activity. Maybe open up a savings account if possible. If I may ask, what area are you from and how did you find your sugar daddy?


    A great question Ellie! Thank you. I am having the same situation as well. My SD is giving me my monthly in one shot. I have the safe and all, but I want to be smart and invest so this will grow on a long term relationship. My most definitely goal for sure is buy some property for myself so I can stop renting. How do I go about that?

    @ellie7871 @southernSD


    @nyclover21. I will give you some insight when I can get a full keyboard and have more time.


    First, great seeing a SB smoking a cigar. Savage AF
    Also, if you want real specifics you can go to my profile, I have IG and SnapChat contacts there. Im not big on posting publicly on ways to circumnavigate the IRS. I did write a blog about handling cash in the Sugar world. It’s in the Money section here is the link.


    Some basic First steps to building wealth: (this is for everyone)
    1. Have a budget

    2. Stay debt free (If you have to use a credit card, pay it off every month. And pay before the Due date)

    3. If you cannot pay for it in cash, you cannot afford it.
    (Print that on a big piece of paper and tape one to your bathroom mirror the other to your fridge)

    To answer your specific question about property, this takes a little different approach then long term investing.
    Since you are probably looking to buy property in the relative short term you are going to need to stay mostly “liquid”.
    In otherwords you cannot be looking to invest in stocks, bond, and other securities that could result in cash loses.
    It kind of sucks right now to stay liquid because of low interest rates but it’s better then losing money on investments and paying fees to move money around.

    A few ideas on staying “cash ready”
    Open Multiple bank or Credit Union accounts. Go to bankrate.com and look for best interest rates. Banks do not have to be local they can be strictly online also, just make sure they are insured by FDIC. Once you open accounts just add small amounts, $2000.00 or less, to each one randomly. Never make a deposit $10,000 or more the bank has to report that to the IRS.

    Another system is to set up a CD ladder, Certificates of Deposit, pay a little bit more interest then savings accounts.
    This method ties up you money short term and has some flexibility.
    Once again look for banks with best rates on 1, 2, 3, 4,and 5 year CD’s. Invest in all 5 of the years separately, then roll the money in a domino cycle.
    So at the end of year one you revert the 1 year CD, which has become due, into a 5 year CD. The 2 year CD now has 1year left on it so by default it becomes the 1 year CD and so on. At anytime when the CD’s mature you can just close it and take the cash.
    Clear as mud?

    As for buying property save as much as you can, ultimate goal is to buy property loan free. If that’s to much then put down as much as possible and at minimum you want to put down at least 20% so you do not have to pay PMI. (Look that up if you don’t know what it is) keep in mind there are fees and commissions when buying property to you will need to take that into account also.

    Hope this helped. And if any of the other SD want to chime in, please do. Keith if your still lurking feel free to add on or tell me I’m nuts.



    @SouthernSD, thanks for the mention … truly you give a lot of great advice, I’m not remotely at your level but I know a bit about taxes and such.

    You covered it pretty well, definitely your points #1 through #3. I guess at the risk of missing the boat, I’d assume that we’re not talking six+ figures kind of money here, at least as someone starts out. So, even if you get your monthly allowance in one payment and its $10,000, you want to be prudent with handling cash and avoid drawing attention, but you’re quite a ways from buying real estate and such (if you live someplace where you can buy property for $100K, it’s unlikely your also in the $10K/month SA market, and if you’re in NYC or something where $10K/month is a real thing, cheaper condos cost >$1M or so), so your down payment is 2+ years away even if you save every nickel.

    Bear in mind that PMI comes up if you put < 20% down on a house, but it’s hard to get a mortgage based on SA income (which typically isn’t reported or documented), so I’m not even sure that’s a thing unless you have a job that pays about as much as SA. So, you use the job to justify income to qualify for the mortgage, and SA to save up the down payment. But, if you are a student with SA income of $5K/month, you might save $40K in a year and have a down payment for a $200K property, but no income to get a mortgage with.

    Interest rates suck, I think the key thing is to find one or more accounts that pay decent interest rates and have FDIC insurance and aren’t scams. Ally Bank, for example, all online, 1.35% for savings, 1.75% for 12 month CD, so if you need flexibility you aren’t losing much by keeping it in savings instead of a CD. ING Direct, now Capital One, similar rates. Traditional banks like BofA or Wells Fargo are more like 0.03%. Credit unions might be better, no experience. The challenge is that you need a bank with a branch to deposit cash, and then want to transfer it to an online bank with better interest rates. If a cheap (free) student account can be had, might be easiest, these days you can deposit cash through the ATM, just keep the amounts $1K or so at a time, and then transfer it out to an online bank for a decent interest rate.

    To draw less attention, one obvious move is to use the cash for expenses (i.e. don’t deposit cash, then pay expenses, use cash for expenses and the bank never sees it). Pay your landlord in cash, or get a money order if you have to. You can use a reloadable card (Walmart or equivalent) to push cash to the card and then use it for online purchases, anything that takes a credit card. Not anonymous, doesn’t help build a credit record, but keeps cash from flowing through the bank. So, if your allowance is $4,000, and you can use $1,800 for rent and $700 for credit card expenses, you are only depositing $1,500 per month.

    I have no experience with IRS enforcement, so this is speculation, but unless you get caught up in some other issue with law enforcement, I don’t think anyone is noticing even several thousand dollars a month flowing into a bank account or a reloadable card. I’d make it look haphazard (i.e. not $1,200 every Thursday), and if the bank can also have direct deposit from a job or something it looks better, but the amounts of money just aren’t large enough to draw white collar crime attention.

    Avoid depositing money orders repeatedly into a bank of any value, it is a red flag, and as @SouthernSD and others have pointed out, never trigger the IRS $10K in cash in one transaction paperwork (which would potentially get triggered if you did $8K today and $4K tomorrow if someone noticed, especially if it is a pattern).

    One other thing: the $10K limit is for a deposit in *cash*. If you build up an account and want to move $40K from one bank to another, no problem with that as an electronic or wire transfer or a check, the $10K report has to do with deposits or withdrawals that are in cash or cash equivalents (which includes money orders, anything anonymous).

    Hope this helps, sorry it’s a bit meandering …

    * Keith


    Palas II

    Hi @ellie2871

    thank you for your topic.

    and @southernSD

    I’d like to leave my email too [email protected] and if you write me Iill reply with some doubts about savings and exchange (LATAM). Thank you. I took the directions above and read your blog.



    I’m new to the Sugar Baby world and I’ve been finding that most SDs that I’ve talked to wanted me to open a bank account so that they could have access and they could deposit my weekly/monthly allowance. I’m wondering if there is a safe way to do this? Like i said I’m brand new to this and really need some advice on where to put/what to do with my allowance in the safest most discreet way possible.

    My email is [email protected]
    Thanks :)

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