Should We Have Multiple Bank Accounts? The 5 Accounts We NEED

[@letseatpastatonight1352]

#1. Petty Cash @ 0:18 #2. Fund Account @ 1:14 #3. General Checking Account @ 3:01 #4. Irregular Bill Account @ 3:50 #5. Savings Account @ 6:24

[@KandyG]

Such timely great advice! I was just wondering about multiple accounts...I go to your KZbin channel and tada you had just uploaded a video on just this topic. Thank you!

[@diannestinsonstinson6052]

Starting off to the New year with great ideas two thumbs up👍 👍 once again.

[@cultivatingmylife4705]

I hadn't thought about the home escrow account! Great idea!

[@PatriceWolfe]

This was right on time, I was just contemplating whether I should open a secondary checking account for my prescriptions. The co-pays change every year, so it makes sense to plan ahead...thanks!!!

[@patwagner9308]

Exactly! You are right. One size doesn't fit all. I'm glad you shared what you two do & works for you because some people won't think of doing things that way...but it will be what helps them. I think having separate accounts helps some people because they can see the gains in each account. ..they know when they have enough for a goal. 😊 Always appreciate your thoughts.

[@snukie73]

Here in New Zealand, few bills are ever only yearly. Even income taxes are taken out of every pay check, by the employer and unless you’re doing highly irregular work, the end of year total is really very close to right. Insurance, property taxes, and the like are almost always easily arranged to be monthly, some as often as weekly, never longer than quarterly (they only charge a few extra bucks over the year for monthly compared to quarterly)

[@sandrag7202]

Great advise. I moved a year ago and joined an area Credit Union, I only had to live or work in the area to join. Great idea for anyone looking for a better banking alliterative. The CU's usually have lower interest rates on their loans and often give higher saving/checking interest rate for your area.

[@freedominabudget]

Awesome tips! One of my biggest sinking funds is for my car insurance... I pay it every 6 months and I save $400 a year by paying it in full!

[@swoodyut]

I actually just use my “fund” account for the “bigger bills” category. I have a bunch of sub accounts for each thing - car registration, Xmas, unexpected big vet or car repair bills, travel both pleasure and funeral (Family live overseas) and any big item I’m saving up for like the new couch I recently purchased. It’s capitalone 360 and I have a credit card attached to it, I think you can do checking through them too and then could get a debit card if you’re strict Ramsey. I only use that card for those expenses and then go and pay off the card immediately with the appropriate sub account. I use the auto save feature with CapOne360 to put a set amount in to each sub account and have limits in the labels - for instance, I stopped saving for the couch once I hit $1,200 in that account and directed those funds toward other categories until they’re done getting filled. My checking account is for my everyday mundane expenses and small irregularities that I can predict (haircuts, Amazon Prime subscription, oil changes, normal vet visits, etc)

[@swoodyut]

Oh and I also have a small $1k set aside in a savings account attached to my checking. It was my baby e-fund when I was getting out of debt. Now it’s for overflow and used if I goofed on my budget a bit (next month I’ll top it right back up) or if I get a great deal on bulk items or something I planned to purchase / pay for later on the non-sinking-fund category. I also have two business accounts, one saving one checking. I don’t have a lot of capital expenses with this business beyond computer and cell phone. I sinking fund for those all year long and purchase with my business debit card when the time comes. Then transfer out of that sinking fund back to business checking.

[@CentsibleLivingWithMoneyMom]

Great video. May I ask if you have a certain percentage you put into your emergency savings each month? I try to put at least 10 percent. I am thinking of breaking the emergency into two accounts 1. Job loss , no touch emergency 2. Emergency : car repair, home repair, etc. Please share what you think.

[@frugalgreengirl]

Good questions! We are not currently adding more to our savings. Since we achieved our savings goals we put all the money we don't need to live on to debt (mortgage). The only reason we can do this though is because we have multiple streams on income including some we don't have to work for (rentals). If my husband got laid off we would still have the others. If we have a vacancy we still have the others. In this way there is a nice safety net in place and no need to just keep saving and saving. Plus paying off the debt is doing double duty as a retirement investment. Essentially we are investing rather than saving. As far as the split savings I think it is can be good idea! The no touch savings can be put into something that is a bit harder to get to and makes more in interest since you still have access to other savings but still keeping some money close if something arises.

[@CentsibleLivingWithMoneyMom]

Thank you so much. You all are so smart.

[@patwagner9308]

oh..&....hope you are having an enjoyable holiday season!

[@frugalgreengirl]

Thank you, You too!

[@patwagner9308]

thank you! Looking forward to your 2018 videos. Always interesting, informative, well-researched.

[@carlaries4240]

Hehe I agree with your smart grandfather's strategy. I do a similar thing, but with only $2G's as my zero dollar balance. It brings me peace of mind to have that buffer amount in my checking account. ;)

[@Minnesota_Mama_Bear]

I love your insight into money management. I'm 42 and my parents never taught me money management. If I wanted it, I was given it. As an adult, because of this, I struggle terribly. I looked into the Ramsey program, but that's not for me. I wish I had a friend like you to keep me on track and make it work. I do have a question about your 5 accounts. Do you actually have 5 separate accounts opened with the bank or do you just keep track on paper of your separate accounts? Now I'm off to check out your budgeting video.

[@frugalgreengirl]

The DR way isn't for us either. We only have 3 actual bank accounts. The cash isn't in the bank and we do the "pretend this number is zero" method for our emergency savings, so it is in with our regular checking. We keep track of them online, so it's really easy.

[@jlina]

Jennie M good luck Jennie! The only good thing about homemade clothes....they create remarkable self sufficiency! I've used two or three accounts for years :)

[@aromofit3588]

Should I have all these accounts with one bank?

[@curiosity2314]

Credit Unions is the best advice in this video.

[@tyronefinks5878]

Merry Christmas and Happy New Year !!!!!!

[@frugalgreengirl]

Thank you, you too!

[@superarsenal009]

If a company has 2 accounts at 2 different banks, would the bank account numbers be different?

[@pamanderson9139]

I've learned so much from your videos. Thank you so much for sharing all your frugal ways.

[@patwagner9308]

We have a savings & a checking. If we had separate accounts, it would get too complicated for us. 😊 One for saving, one for expenses....plus we have retirement accounts.

[@grubsgarden7364]

Right. I think you only need a transaction account and a savings/mortgage account with instant access to savings/redraw. Unless your spouse is terrible with money I don't see the need for quarantining money in half a dozen different accounts.

[@patwagner9308]

Yeah, if multiple accounts works for a couple, terrific. Each couple has to figure out what suits their needs, works for them, helps them manage their income. For us, having to keep track of several accounts doesn't fit our style. We like things to be simple. More than just a savings & a checking would be too much to juggle. The savings has funds for any surprise expenses or goals. I agree... if a spouse has a spending issue, separate accounts would probably be crucial to keep them from going under.

[@frugalgreengirl]

We found the multiple accounts to be more easy and that it keeps things more simple, but I know it isn't right for everyone. Different people have different obligations and goals so there is no 'one size fits all.'

[@annas8392]

Just wondering.... is there any reason not to have all types of savings, funds, escrow, etc. in one savings account and use excel to track the amounts in each fund? Provided you are responsible and don’t dip into those savings of course.

[@frugalgreengirl]

I think it would be too easy for it all to get mixed and the different purposes to get ignored. Especially when it comes to large sums of money like house down payments, which are usually tens of thousands of dollars.

[@annas8392]

It’s probably a matter of personal preference then. I’ve heard about having multiple accounts before and always wondered why you can’t keep everything in one account. There is no question that you have to have all the savings categories you mentioned, so I guess the rest is just logistics. :)

[@DIYSolarandWind]

Happy Holidays

[@frugalgreengirl]

Thank you! You too!

[@nellspop1]

great video, thank you

[@jaykobwalson1941]

Eggman has multiple. Guess how many.

[@mattlangstraaat3508]

Wake up, All your accounts are going to zero and, or bailed in overnight.. perhaps unbury your head and look around. But your banks are saying thank you for your awesome poor person advice .. good luck

[@frugalgreengirl]

Matt Langstraaat ??? When did your bank account go to zero? And who are these millionaires or billionaires with mattresses made of cash?