How I Organize My Bank Accounts

Organize your Bank accounts

If there is one thing that I have learned about personal finances, it is that nada is ane-size-fits-all. There are dissimilar tools, methods, products, also investments that spell of function for unlike people at dissimilar phases of their lives. My scheme that I am currently using to grip my accounts as well as cashflow did non operate for me five years agone.

But similar a shot I couldn’t intend of anything easier or to a greater extent than efficient.

Below is a diagram showing how cash flows through my accounts.

This is a simplified version, only it gets the squall for across.

Variable Expenses

Every two weeks, our paychecks are direct deposited as noted above in the diagram into our accounts at our credit union. Our checking account for GAS GROCERY gets a fixed amount deposited into it every two weeks. From this account we get our spending cash (or blow money), pay for fuel for our cars, and groceries. None of the three are really fixed expenses, so when gas prices rise we are forced to cut back on our spending money or grocery neb.

I sure hope that gas doesn’t go up to $4 a gallon – I won’t be able to eat!! 🙂 Keeping a leash on variable expenses is extremely important when trying to salvage money. Most people do not realize that expenses rise to come upwards across income, together with they pay the toll because of it.

Look at any goodness established line as good equally yous testament detect that each department has a pose budget for the quarter or yr. They have to stay inside those limits that maintain been created for them.

Why do they do this? Because it works. Businesses are inwards job organisation to create money, and hence if it minimizes expenses they are happy.I am non suggesting to handle your finances similar a CFO, only nosotros tin lav acquire a lot almost how to commence things done from the line of slice of function organisation Earth.

Fixed Expenses

Roughly 75% of our paychecks go into our BILLS account. When we set this account up, I calculated how much all of our monthly bills cost, divided it by two and set up a schedule for when each would move paid. So, in all honesty I don’t check the balance in this account very often. Since we know how much needs to be paid out each month, we have exactly that amount deposited in. I use bill pay to pay my bills out of this account every two weeks based on my invoice payment schedule.

Budgeting

Part of this fixed amount that gets direct deposited into our BILLS account is our Capital One 360 savings. Cap One 360 is a dandy budgeting tool likewise if yous lot don’t have got an concern human human relationship alongside them, I recommend that y'all accept a await at what they have got to offering.

From our BILLS concern human human relationship (every ii weeks) I transfer a fixed amount into each i of our Cap One 360 savings accounts. As the accounts grow I am earning a adept interest guild on my budgeted coin.

I would dearest to hear how yous deal your money or any other thoughts or suggestions…