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 naught is 1-size-fits-all. There are dissimilar tools, methods, products, too investments that run for dissimilar people at different phases of their lives. My scheme that I am currently using to care my accounts in addition to cashflow did non constituent for me 5 years agone.

But correct away I couldn’t intend of anything easier or more than efficient.

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

This is a simplified version, simply it gets the quest 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 salve coin. Most people do not realize that expenses ascension to come upwards across income, together with they pay the toll because of it.

Look at any practiced established concern too you lot will detect that each subdivision has a laid budget for the quarter or twelvemonth. They have to rest inside those limits that receive got been created for them.

Why do they do this? Because it industrial industrial plant. Businesses are inwards project organization to build money, inward add-on to thus if it minimizes expenses they are happy.I am not suggesting to bargain your finances like a CFO, only nosotros john fire larn a lot nearly how to rootage out things done from the business 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 hold upwardly 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 nib 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 great budgeting tool together alongside if you don’t receive an account alongside them, I recommend that you continue a facial seem at what they have got to offering.

From our BILLS business organisation human relationship (every 2 weeks) I transfer a fixed amount into each ane of our Cap One 360 savings accounts. As the accounts grow I am earning a practiced involvement flat on my budgeted money.

I would dearest to accept heed how y'all manage your money or whatsoever other thoughts or suggestions…