Is your method of management juggling multiple bank accounts? Are you trying to balance it all and keep it under control? Well, simplifying your banking can make all the difference! And, streamlining your money is simpler than you think. Let’s learn how!
Does this sound familiar? “I have to move money from my savings account to cover the check I just wrote for the checking account; but, I have to know which account to move money from because I don’t want to take from the house fund...” Stop! That is way too complicated. Instead, let’s discuss how many and what types of accounts you should have.
What does that mean? It is a no-minimum balance fee with no monthly maintenance fee free checking account! Having no ATM fees would be a great added perk. But, the point is you should have a simple checking account. It's meant to be simple, so keep it simple!
An emergency fund. I mentioned this before in my video, “The Essentials of an Emergency Fund.” First off, this account is only for emergencies. Not a penny less, not a penny more. And, do not make it the same account as your checking account. Whether or not your accounts are at the same bank is more of a personal discipline issue. If you can stay disciplined to not dip into your savings then fine, if not then keep it at a separate bank! But, definitely keeping the account separate from your checking is key! To ensure quick access in an emergency, make sure it's a money market account. You can even get the account a debit card or checkbook so you can access those funds right away. And lastly...
That’s right. I recommend you have only THREE bank accounts. All the things I discussed in “5 Big Things You’re Forgetting to Save For” would be saved in this type of account. If you are reading this, you might be thinking, “How am I supposed to know what everything in these accounts belongs to if I only have three bank accounts?” Well, managing your money and separating it between too many bank accounts is going to get way too complicated. Instead, use a simple budgeting system that serves as your online budgeting tool. With systems like YNAB ("You Need A Budget"), you can know where every dollar is with the simple click of a button or glance at your smart phone. It's a simple system that can help manage your day-to-day spending and keep your accounts in check without you getting confused or having to constantly move money around. Need help? This is where I can come in, as a coach, and help set up your budget management so you know where your money is when you need it. You don’t need all those complicated accounts. So, remove the worry and simplify!
Here is my last piece of advice before I sign off. Stay away from those BIG banks! They are fee-heavy and don’t care about you. To them, you are just a number. It can take them forever to clear basic transactions which will put you behind the 8 ball in trying to manage your day to day finances. Instead, look for a small local bank or credit union where you and your money can be served better, inevitably keeping your wallet heavy and your heart light.
Question: So, did you decide to do a little Spring cleaning of your bank accounts? Do you want to simplify and streamline? If so, great. Contact me today and let me help you set up that online budget so you can see where your money is - both clearly and confidently.
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