010: How many accounts do I need
Very frequently I get a question from my clients about how many accounts they need to have? Checking, Savings, Online Savings, Money Market, Credit cards, etc. There is no right or wrong answers, it’s really what works for you.
I like the idea of having a system of where each account I have serves a purpose and works for me. My husband likes symplicity. With that in mind I built a Money Flow System that works for us. Let me give you an idea of our Money Flow System:
-2 checking accounts, (one to pay Fixed expenses, another to pay Variable)
-online savings account (for emergencies- Curveball account)
-”Family” credit card (which we can use for large purchases)
Our paychecks automatically split and get deposited into our two checking accounts. Fixed expenses are all on autopilot for payments and get paid by the 15th of the month. We only have to manage our Variable account and credit card.
I am working on producing a training course to teach you how to set up your own Money Flow system. For now take a look at the attached diagram and refer to our new site www.Money-Library.com for a short introduction video.
I can’t wait to help you simplify your finances!