Elliot asked:
I’m going to set up several different bank accounts. So far I’m going to have:
I’m going to set up several different bank accounts. So far I’m going to have:
- Everyday Account
- Debt Elimination Account/Investment Account (student loan and once thats payed off, will go into savings/investing
- Fun/shopping/sport account (to budget for a bit of sanity)
- Rainy day account (putting aside $2-3k for unexpected things, like broken car or something like that)
Do I need any other accounts? Should I get rid of one of the above?
one for your bills, like home and car
No, You have no need for other accounts;
Not at all. In fact, if I have a particular wish that’s going to take saving up for I open a new account and set up an automatic payment plan so that I know that when the time comes I will have the money in hand.
The easiest way to do this is to set up an account with an online bank and link it to your checking account. I have a personal account, a business account, and a joint account with my wife. All are wired to the online bank, which pays better interest, so that’s where I keep the money stored. They also allow me to set up a new account and payment plan with just mouse clicks. No minimums, either, and all for freebies. My favorite price!
Make sure you have 3 – 6 months of cash to cover all your bills stashed in the rainy day account BEFORE you open any others.
While multiple cash accounts can help you enforce some personal discipline, you should only need two (checking and savings) if you know how to handle your money, or a third one to set aside bill-paying money if you don’t. The secret lies in knowing how much money you can allow yourself to spend and having the ability to stop before you cause yourself some trouble.
wow! your banker must love you!. I would stick to 3 accts, 1 checking and 2 savings. I have had customers who have 7 accts, for me that’s just to much to think about. But it is your $. I hope these accounts
were your idea and not your bankers, because they get commission off
any and all accounts they sell you.