5 Key Bank Accounts To Open Right Now
You’re trying to save money while having all of it in one bank account.
It’s easy to spend that money if it’s a big number.
You say: I got this, there’s so much money, what’s $50 towards some take-out food going to do?
You’re probably losing track quickly and then when it comes time to pay for your, let’s say, pet’s vet bill, you’ll have to put it on your credit card, or dip into your hard earned savings. And it just keeps on escalating.
What if you could separate your money into several key bank accounts in order to keep the balance and be able to pay for your life’s expenses. This way you’ll have an expense come up and depending on which category, you’ll extract money from a specific account that has been building up just for this exact expense.
It’s exactly like the envelope cash system but stored at the bank. Once I’ve created my budget, I use both systems and I’m really seeing the change in my savings and spending.
1. Everyday – Checking
This is where the money comes in and this is where you’ll separate into your other accounts. I keep money in here that will be used for monthly bills, like my car payments, mobile, gas, and the money that I’ll take out for my envelope system.
2. Yearly Bills
These are bills that you see mostly a couple times to once a year, like insurance, license renewal, car maintenance and dentist. When you’re not expecting these, or you’re cringing that it’s coming close to the time you’ll be receiving these bills in the mail. It’s no fun. No need to fret anymore! Just simply pay out of this account, you have the money stashed here, no headache needed.
3. Emergency Fund
Having an emergency fund for those times of emergency, you’ll be less stressed knowing you have money set aside for just this unfortunate event. Start by fiercely get to $1000 as much as you can. $40 every 2 weeks will bring you to $1000 in a year. Could even save even greater if you changed some spending habits. And then after that, start building up to 3 to 6 months of pay, this way you’ll even have funds in case of layoff situations.
Pet Food, Supplies and Vet
Pets are awesome and we want to be able to give them a life of love and well being. Putting money aside for your pets will just make it easier for when you need to bring them to the vet or buy them the essentials. I put a little extra in there for some new toys here and there. Our dogs get very excited when coming back from the pet store and we’re holding a bag. It’s like they know they’re getting something.
Vacation and Gifts
This one is kind of a game changer, for us anyway. No more big bills after Christmas. Money is put aside, budgeted and we come out stress-free from the holidays. Same goes for our vacation, we set aside money towards where or what we want to do the year before. Then when it comes to the time, we have the money sitting here and we can just go on with our vacation.
Side note: I actually have 6 bank accounts. I have a separate account where I store money for my business expenses like Hosting, Tailwind, and BoardBooster. It’s a great way to separate business from personal. Since my business side isn’t as big as I would want it to merit opening a business account on its own.
By having these 5 key bank accounts you’ll see a change in your savings and spending. You won’t have unexpected bills to pay and you’ll be on top of your money as opposed to scrambling to pay your high bills.
You might have different key bank accounts that are important to you, let me know what yours are below in the comments area or tweet me @glow_seeker