The 7 Bank Accounts Every Family Should Have! (no, really)
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- เผยแพร่เมื่อ 8 มิ.ย. 2024
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12180 s 300e
Number 1028
Draper, UT 84020
1) Family Savings: 10%. Short term, 3 month emergency fund, unexpected expenses, pre-planned expenses
2) Emergency Savings: 10%. Last Option Emergency Fun. 6-12 month Emergency fund.
3) Health Savings Account.
4) Family Checking: Direct Deposit goes here. Bills paid from here.
5) Personal Individual Saving Account 1
6) Personal Individual Saving Account 2
7) Slush Fund: Fun Money
Thank you 😊
Thank you!
Thank you!
This is a great advice, but for some people it can seem daunting. So, disclaimer: First go take Financial Peace University, so you can wrap your head around living on less than what you make. Later, you can try this great advice. It took me a year and a half to be in the mental and financial state to be able to separate my money like this. Single woman here, by the way, I’ve been in the USA for almost 5 years. No inheritance, no mommy&daddy paying for anything, no lottery, nothing. I came from a third world country that’s collapsing (Venezuela) and English is not my first language, I didn’t even know all the coins and all the bills in 2014. So, if I can do it, you can do it!
I am currently in FPU now. Such a good class! Wise Words Virginia!
Great advice, Virginia. Your story is inspirational. The Total Money Makeover by Dave Ramsey is such an easy read that I also think it's a great place to start.
I only have 3 accounts, but I have 7 cash envelopes based on the Dave Ramsey program!
My Accounts are:
Electronic Bills (ie. Rent that can’t be paid any other way than B-Pay, it’s also where my pay goes).
Emergency Funds.
And
Savings (which is the account that my debt snowball used to come out of).
(I live in Australia so I don’t need health accounts though).
way to go! Thank you for your inspirational story.
I took a screenshot of this comment to motivate myself.
I’m single with no kids and I have 8 accounts, this really does help!
It really does!
How?
@@Lovelycat563 their not gonna tell you
Which ones are they? Im single with no kids too.
@@TheKrystolMethod I have 7 accounts too:
Family Checking - bills and groceries
My Checking - 10% paycheck
Husband's Checking - 10% paycheck
Emergency Savings - 10% paycheck
Son #1 College Fund - $50/paycheck
Son #2 College Fund - $50/paycheck
Family Savings - for every transaction from Family Checking, a dollar is automatically sent here. All tax returns go here also
- also, if there is leftover money in Family Checking at the end of the month, we split it between me and my husband's accounts to pay off student loans and other debts
I created new accounts for both of my kids when they became teens. I gave them their debit cards and showed them how to manage their finances. A year and half later they’re both financially responsible! They both work and save money. My son is frugal lol. My daughter tends to spend a little more but I would bring it up and she would get back on budget again. So the moral of the story is it’s important to show your kids from very young age about budgets. Wish someone would’ve done that for me.
We have 2 checking accounts and 18 savings accounts. People always look at me like I have 6 heads when I tell them 🤣😂 I am big into being organized, frugal, and productive and this just makes things so easy! 💕
18? what categorizes are there. (single mom of 3 trying to start being frugal and able to save/ budget )
I thought my seven accounts were bad!
I started following you (and DR) about 3 years ago by myself. Now my husband and I have gone through FPU and also follow your bank account system! We only use about 3 or 4 envelopes but we have 4 savings accounts and 4 checking accounts! All of this has changed our lives, helped our marriage and ensured a path for our family’s future. Thank you so much! I work at a bank but in the back of my mind I want to help others in their journey. We’ve helped a few of our friends who are beyond grateful and it feels amazing to enrich their lives! Thank you for being an incredible inspiration!
You open one Capital One 360 account and create multiple virtual accounts as needed. This way you only have 1 physical bank account but you can maintain multiple virtual accounts to maintain money for different purposes.
This is exactly what I did and Capital One even pays interest on the main checking account!
chamilaya great idea
I did the same thing. Love it.
Great idea.
Great idea bc banks come with fees as well.
Ma'am! You are out here SAVING marriages with this advice! Everyone knows that money is the #1 cause of divorce. Great way to separate money and still have transparency! Especially for couples who have different ideas about money! Thanks for being so creative and thinking outside the box!
Thank you so much for your kind words!
What she said
So true. Dear hubby and I don't fight over money since we know we both know various accts. are covering any emergency.
Yes, this did stop so many arguments.
That is for those that do not truely know God. Because money is not the foundation of marriage but God is.
I opened several bank account and I love it. When we get paid I transfer the money to where it needs to go. At first it was hectic but now I have the hang of it. So for ex. If I have a monthly mortgage of 2000 I would every week transfer money into that account. So that’s 2000 divided by 4 weeks in a month. Till I have my whole mortgage for that month.
If you have a set amount or percentage you move every paycheck you should be able to set it up to transfer automatically
Only forgot one thing- retirement savings.....
Arrepentios de vuestro pecados dice la palabra de Dios que es pálábra buena de bendiciones para todos los que aman a Dios 🔥🔥🔥🔥🔥🧡🧡🧡❤️❤️🧡🧡♥️🧡💚💚💙💙💛💛💛🧡🧡♥️♥️💚❤️❤️💛💙💙💜💜💜💜♥️♥️💚💛💛💙💙❤️❤️🧡♥️💚💛💙💙💙❤️❤️❤️❤️❤️❤️❤️
That should be going into a retirement fund not a regular savings account though
I love all of your frugal living tips! 🙌🏼💕You go girl! I’m a mama of 4 over here and love to hear your perspective. It’s great to hear tips from another mom with a large family. 😊
Good Lord lady! I can barely keep money in two accounts. I need a better job, lottery winnings, a husband and 2.5 kids to go along with these accounts LOL
LadyMarie J cv
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Regardless of your financial status, always try to save. even if your savings is just 5 dollars a month, if you compound over time, that five dollars would become a thousand bucks
@LadyMarie J 2.5 kids lol
I used to live pay check to pay check I saw this video when she first put it out and I now have 5 accounts and still adding to them! Also, if you have debt that’s where it’s harder get rid of your debt and you can save even if it’s $25 a paycheck! You have to start somewhere and all of this may feel overwhelming if your still in debt so you have to start there... I worked on my smaller bills then larger ones I literally don’t use any credit cards anymore... also to sell things in your home that you never use will make you money that you can just save away (think of it it’s money you didn’t expect) so into savings it should go! Let me know if anyone has questions believe me I can help I have been there!
2.5 kids 😂
If you loose that envelope, the money is gone forever. If you are using a debit card or checkbook, the money is recoverable. Plus, you can't earn interest on money in an envelope!
The envelope method is an organization concept. You don't physically put money into envelopes!
@@bethchaplin2023 I use electronic envelopes through quicken. And yes, there are people who put actual cash in the envelop.
I agree
@@bethchaplin2023 actually you do. There are a ton of videos on TH-cam that show people stuffing money into envelopes stashed in an organizer or some sort.
I love her she acts like a real person and doesn't care who acts mean towards her. I love those kind of people.
We have 4 accounts (2 savings- 1 emergency & one goals for trips etc. 2 checking - 1 bills & 1 for food & gas). I've been considering adding 1 or 2 more, but I was worried that was excessive. I'm glad you shared this!
Jordan.. by chance, since you have multiple businesses, have you ever thought about doing a budget program for small businesses?
Check out "profit first" by mike michalowicz
Our family has been using these principles for over a year now. Weve made it up for 4 accounts and plan on more once it's financially fitting. This method is not just for 6 figure incomes (my family isnt), same principles can be applied to single people and those just starting out. Not everybody needs all 7 accounts. For instance, we dont have a yours and mine account.. it's more of a mine/ours account because I'm responsible for all the payments. We make it work even though we are in debt, credit cards and college loans. It can be a slow process at times, but when emergencies happen, we aren't using credit which is a win in our eyes. We will probably be at 4-5 accounts until our pressing debt is gone.
We were 50k in debt before we started and always looking to find where they money was to pay the next bills. Now, we have absolutely no debt and have more 14 months of living expenses in our savings - more than I ever thought possible - in as little as 3 years.
When I first saw 7 as the reccomended number I was like WOW, that seems like a lot. Then I realized we have 10 just for personal finances. 😂 I'm so used to dividing our money up that way I forget we have so many.
Great video but clarification on HSAs...you must have an HSA compatible high deductible health insurance plan to be eligible to contribute. The IRS caps the amount you can put in each year...It's indexed for inflation but this year it's $3450 for individuals and $6900 For families. There is no deadline for using HSA money. You can withdraw any remaining balance at retirement without penalty if you don't use it all on medical. If your work offers an FSA, that is a use it or lose it account managed by our employer. You can only roll over $500/yr. Limit is $2650 per employee this year. An FSA is available regardless of your health plan's deductible, but it must be offered by your employer. IRS Publication 969 goes into more detail. Hope this helps someone!
LeahValerie86 all very true! But even if you can’t get an actual HSA, you can open up a bank account and save for health expenses. It just won’t have any tax advantages and is not a true HSA.
@LeahValerie86 thanks for the info. I contribute to FSA and it has been beneficial. But with that, comes forecasting on potential and or real medical expenses for the upcoming year. And, the funds cannot be used towards just any service or health related items. There is approved list of services and items. However, there are loopholes still. I will check on HSA for 2020 as I was not aware the funds can remain until retirement.
Yes, that's how my work does it. I have to use it or lose it and it's $2650 a year.
Thank you i CRINGED at her oversight... is so easy for a financially savvy person to understand & explain, i couldn't understand why she glossed over the strict rules & blatantly confused it with an FSA or HRA! I mean, i know all these rules, but clearly the people watching this aren't all accountants like me!
I also cringed at the confusion between HSA and FSA. Plus if your family is on a qualified HDHP, then you don't have co-pays; you pay all medical expenses until you hit the deductible/out of pocket max. To say HSA funds can pay for co-pays makes this even more confusing for the average viewer.
Love this Jordan so informative. My parents are very similar with having specific accounts for specific things. It's a great balance and we as kids learned how to save money and love doing it. But of course my parents also taught me that tithing was the most important lol. Much love to your beautiful family from Brisbane Australia ❤❤
This has changed my life! My husband and I did the budget boot camp almost 2 years ago and created the accounts you recommend. Automatically sending 10% to a “don’t touch” savings account has given us such a peace of mind. I LOVE watching that account grow and it’s so painless because I never miss the money since it never hits my checking. The giving account has been such a game changer too!
SPOTON Video!! Thank You much Appreciated
Hi Jordan I just opened my 5th account. My husband thought it was a crazy idea but I did it anyways. My problem with my budget is my spending. I always go over budget. I think that separating my portion of the money from the every day budget will really keep me on track. 😀 love your videos
This is pretty much how we do it, and have been doing it for almost a decade, with some adjustments since I live in Sweden. Cash is not really an option here anymore, it’s phased out. We also have a different healthcare
system so the HSA account isn’t necessary to have. But I love this system and it has helped my family to be organized with our finances. I have several other accounts, I name an account for a specific thing I’m saving up for, it’s not always something very expensive, but I give myself permission to buy that thing when I have saved up for it. Now I’m saving for a 500$ robot vacuum. Could I buy it now? Yes, I could, but I can also wait a few months and put a little money in that account every month before ordering it. I also have a pet account to cover our pets expenses, a car account, a specific vacation account etc. Thank you for your inspiring videos! Love from Sweden! 🇸🇪
Rebeccacrafts hi I’m from the USA. Can you tell me when cash phased out what type of system replaced it
KATRINA PERSAUD Hi! We pay with credit or debit cards and then we have a payment system called Swish that is amazing! It’s an app on the phone and you basically send money to another persons phone. If you google “Swish Sweden” there is information in English on Wikipedia. Nowadays you can pay with swish in stores, flea markets, craft fairs, garage sales, strawberry stands, you name it! If someone doesn’t take Swish, I most often don’t buy anything there. Kids can get a child debit card from the age of 9. They learn to manage their money just as well, you just have to learn them in a different way.
The robotic vacuum isn't the godsend you might think it is 😢 buy one second hand or borrow one before paying so much for one.
haha, you're already part of the family here. My wife's been talking about you, Bubba and the kids for ages, and now I've decided to do with her, of course the bootcamp budget! Gotta say that you've convinced me, lol... Really good stuff and thus, I also subscribe to your channel giving my support and love. Cheers from Italy
I’m considering opening an account to my new baby so that I really keep track of what we spend on her I already have about 5 accounts in just one bank. Now I really I want to do it
I had already started doing this based on ur envelope video and some others I have seen. I love my capital one online banking accounts for this we currently have 8 accounts total between my husband and I based on our needs and wants and it’s such a help keeping g everything organized!!
Thank you! I am a single guy with no kids and this type of budgeting may be a little much for someone like me; but if I use it, I think it could absolutely set me up for financial safety/security. Again Thank you and I hope you and yours have a Happy New Year.
Omg obsessed with this I spent more off budget this month but I picked up overtime so that I could still pay the extra on debt and put money in my savings account. 🤗
Amanda Desjarlais obsessed too😆
When life is paycheck to paycheck, or when getting caught up on school fees, it can be or seem impossible to save anything. Some people have 3 jobs, 70 to 80 hrs a week and they still can't save as cost of living is crazy. Any suggestion on such hopeless situations?
I've got the same question.
The way you have money to save is first become debt free - that frees up extra money you can save. Do you have credit cards, car payments etc? If so those need to go, if you don’t you need to generate more income - side hustles, weekend job etc.
SoulFile- not to sound hopeless myself, but if you are working 2 to 3 jobs, putting in 70-80 hours a week and living paycheck to paycheck, you are not making wise decisions in life from a financial standpoint! The answer to your question 'any suggestion on such hopeless situations'? I have two answers for you. First, if you are working low paying jobs then you will need to improve your skills and your resume to in order to land higher paying jobs. Second, cut unnecessary expenses by not buying that brand new car, TV, or eating out as much! There is no other way around this equation. Again, land jobs that pay more per hour and cut unnecessary expenses, and you will not live paycheck to paycheck. If you think these goals are impossible to achieve then that explains why you are in the situation you are in; you will need to change your mindset in order to improve your standard of living.
You have to work out a budget. 1st the essentials. Roof over your head, food on the table, power, heat etc. How much do you have left? Cut it in half. Cut in half again. One of those two quarters is EMERGENCIES ONLY. Don't touch it unless there is an emergency. Use the other 1/4 to pay down your debt. Now whatever you have left you will have to weigh up against paying off debt (first) then savings or luxuries. If you are working 3 jobs then even transport and buying coffee could be considered a luxury. Work out where you can cut back, is it safe or possible to walk to work, is public transport cheaper than maintaining and fueling a vehicle? Are you eating out when you could eat cheaper at home? Whatever you can do without, go without. Go thru your home and sell off what is not necessary. I'm serious. You won't be on your death bed wishing that you'd watched more tv or played more video games. In the large scheme of things they really don't matter. Time with your FAMILY, and PEACE matter more than anything else you have in your life. If you are honest with yourself, and what you can cut back, you will find something. Even $10 a week saved is $520 a year. Start small and build from there. I have been there and done all the above. It was NOT easy, but it IS doable. Every now and then (just like on a diet) you'll snap and spend on something you shouldn't - its ok, just get back on the budget wagon and keep going. Good on you for actually working those 3 jobs to get ahead. A lot of people wouldn't, so you are already in front of those ones. Good luck in your efforts
Have one source of income that has no ceiling, then grow that job. Typically this is sales or a small business.
I absolutely love this system, Jordan! I have no husband or children yet, but I really enjoy your videos and all of the tips you share. Your system inspired me to open up a few extra accounts for my own expenses to keep my money more organized. I'm sure when I start my family I'll be using this system as well. Merry Christmas!
I was recently thinking about your 7 bank account system and have been starting to open up more savings accounts specifically for this. What a helpful refresher!
I feel like this is skewed to already wealthy people. We are a large family with a mid-level income, but even though we live frugally, we are still a long way from having 3 months expenses saved up!
Exactly!!
You just described over half the country.
Sarah DeVries yeah you should finish building your emergency fund before trying this
I've opened many acccts in the years to take advantage of the cash incentives when I was really low on cash. Now we are using it to our advantage even more. I'm no where near wealthy & work a budget on only steady income. We have 2 bank accts now & a savings acct we are SLOWLY building. We and use cash for things like a iitte pocket money (I mean no more than $40) & eating out that I divide up each week. You just have to start somewhere and adjust to you situation & needs. I that helps. Good luck Sarah.
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I'm curious, do you save for your kids college? I didn't see you mention this topic
I'm glad someone else does this besides me! We aren't quite as organized with our different accounts, but we have them set up. Since we move a lot and own land and a house in 2 different states we have separate accounts to manage those. We also have an account for our son and an emergency account. It really does help to visually see where your money is going.
It's interesting to see a video about this. Some people think I'm crazy for running multiple bank accounts. It's basically the Dave Ramsey envelope system but instead of cash it's tucked away safe in the bank.
This is a helpful video I will be starting this in the New Year
When paying off debt do you recommend still putting into an emergency savings account or all to debt? Will I learn this in Budget bootcamp? I am planning on buying this weekend :)) LOVE productivity bootcamp
It's so cool seeing someone else do what I've been doing since I was a kid. It started off in envelopes in my drawer in my room with my alouance. Now it's esavings accounts. I have a standard checking and a checking account for our mortgage payment and house maintenance. Then we make "car payments" in our car savings so that when it's time for a car, we have a substantial down. It also helps for new tires and maintenance. Then we have a savings for our property and school taxes. Then we have a fun account for date nights and spur of the moment activities. I'm forgetting a few but in my head it makes it easier to manage when it's all separated. My husband unfortunately lost his job 3 times in 8 years and I have been on maternity leave for almost 2. With 4 months completely unpaid. Because of my crazy saving, we have been very lucky to be able to handle these financial blows.
I like what you are doing keep it up! I and your community have benefited tremendously!
I do all this on an excel sheet. 2 accounts. Checking and Savings.
I would be so stressed having so many separate accounts! We track our money and spending in Excel. I guess we are old school 😬
I do this too! I'm a 90s baby btw lol
What works, works.
I use Excel to manage all our finances too. Years ago I used to use Microsoft Money, but at some point switched to Excel, and man, I love it. So much easier.
How do you use Excel to do your finances? I have a system on Excel, but it's quite complicated, and would love a simpler one.
@@savs3060 I basically setup a sheet that has all of our various bank account values with their official 'as-is' values that I manually update after I log into the bank and check balances. I then have an area of cells where I track all of our outstanding checks, and use a formula to sum all of those and then subtract that from the given account it's from, so I can see actual totals. If I have large upcoming expenses, I'll enter those as well into my section that deducts from the accounts, similar to writing a check. You can then use formulas to show yourself overall totals. Basically formulas, along with well-designated areas in the sheet for the various data (account total, outgoing expenses, etc...) are the key, at least for me. I spend maybe 5 minutes a day keeping everything current. I also write myself ample notes, leaving myself a bunch of blank cells in-between various values so I won't forget what a various figure is.
@@wpleary2 Cool.. thanks for that.
This was awesome to see this breakdown! Thanks for sharing! Loving your channel!
I have 7 all with same bank (have had for over 10 years), checking (for bills), HSA (checking-health stuff), auto (savings-car payment), Xmas (savings-obvious), House (savings-also obvious), extra(savings-unplanned expenses), and vacation (savings-obvious)...all my monthly expenses come off our credit card and gets paid off from checking every month. I round the deposits from our checks and keep a tiny bit for eating out 1 time a week, we work where we live so getting away an afternoon or two is essential. BTW...we are an older couple with a
Do you recommend all 7 accounts from the same bank or different banks?
Our family has done a version of this for years. We use Ally bank. It's online only and you have to exchange some forms over snail mail to get started, but once you get started you can open as many new accounts as you want instantly and you can nickname them to see what they are for. Then all money is in one bank, separated out, easy to see, transfers are instant, debit cards / checks are free, no monthly fees.
I can't wait to try this!!!
Super informative and the graphics were cute and simpler to follow! Xoxo
So, do you keep all of these accounts with one bank so it's easier to transfer the funds every month? Or are you able to set up an automatic transfer every month even though it's between separate banks? Thanks!
I literally watch your videos for fun! This is so helpful thank you so much!! ( mind you I’m 19 and have no family lol)
start saving now!
Start them young
If you start now..
And find a husband with your financial mind set...
Use the information for a great future!!! Financial stability would be so much easier to attain if we had all done it right from the beginning. You have that opportunity :)
Already ahead
That's so funny you posted this video. I just today went back to rewatch the budget bootcamp video and printed the worksheet. Wahooo... I'm trying to figure out a good online account.
Capital One has a good one, and it earns 1% intetest
@@yanirabaez8831 thank you, I will have to look into it
Ally is great! I believe my savings there earn 1.9%.. it’s always increasing so it might be 2% by now 🙌🏼
Love it!
I just stumbled on to this video and your fun quirky character got me watching to the end. What you have just preached is "right on". I am the frugal one in my family and little did I know, I have been following the exact same method for the past 10 years. Having multiple accounts for various reasons does work. Having that instant deposit is a must if your banks and job allows it and even more so if they can automatically disperse to the various accounts from the moment it gets deposited. We also have the HSA or FSA (flex spending acct.) account thru our employers and I wish I had done this 25 years ago. It does take a while to determine how much you spend for all medical cost out of pocket but when you add up all those doctor co-pays, Rx, dentist and eye exams and glasses for each family, you might as well use the maximum allowance (in our case $2,500). Plus it helps with the taxes on your paycheck. As for the emergency fund, that too is a must. We've had our water heater giving out so one acct. paid for the deductible and didn't even affect our day to day living expense. Why? Because we were already adjusted to living with the funds out of our main checking and the money going to emergency fund was automatically being saved. I was also out of work due to medical reasons and once again, that one year Emergency saved us again. My husband started too with small accts when we got married, but now that were close to retirement, we added even more savings for those such a deferred comps accts and ROTH IRA's. Thanks for sharing your advice. So good to know I'm on the right path.
Great advice Jordan. At first I thought, 7 bank accounts, that is just crazy. But you are absolutely correct. If you see you have what appears to be a lot of money because it is all in one bank account, it is easy to justify to yourself that you can go ahead and spend some of the money without really planning or spending the appropriate amount. Love this idea of 7 bank accounts. It makes perfect sense.
I’m a pensioner on a fixed income and I have already instigated a very similar scheme. I only started this year so its early days. I initially put the money into separate pots to build an amount before transferring into the appropriate account. How much depends on how tight we are. This year I’ve gone from zero savings to building a small cushion that will deal with most emergencies and some longer term. I am aiming for that 3 months of living plus but will take time.
I’m single but I have 4 bank accounts. One where money goes in and autopay bills and unscheduled debits come out. One for my fortnightly spending on food ect. One for big/ longterm savings like a holiday ect. One for big/ short term savings like furniture or clothes.
You are amazing! I've been doing this and I love it.My favorite is having my bill money separate from my spending money.It allows me to spend money without having to readjust my budget every time I spend a dollar. Also I opened a slush fun account and slowly we saved up $1,800 and we used it for our summer vacation.It felt good not using a credit card or bill money it was guilt free fun.Thankyou Jordan Page!
A bit excessive for me being unmarried...I have 4: an online emergency fund (6 months living in case of disability or job loss in a money market), a checking (where my direct deposit goes), HSA (HDHP savings), and a short term savings (for expected expenses like car maintenance, insurance, vacations, gifts, taxes). It’s hard enough maintaining a minimum in required accounts to avoid fees. But I do have 3 kids and I’m the custodian on their youth savings accounts, but it’s in their names. I think it’s wise to consolidate more money together especially in higher yield savings to earn higher interest.
I have 11accounts but no point cuz I stay transfering all the time.. My main account texts me every night my balance and anytime it's used.. My case it so different.. I owe no1 and own 98% of every thing I have free and clear.. Plus we are some what off grid.. Auto pay is a no no here cuz I hate hate just paying my bills I like adding 50 every month on each bill as a safety net!! I love budgeting and saving so this is my thing but the base of it I love!! Thanks for video
Seems so much to keep up with! I have 3 and just use the envelope system.
If you use online banking it's super easy to track. I want to say she has used things like Mint app to track all spending/Accra/credit cards so it's all in just one spot :)
Thats exactly what i was planning to do!! 3 accounts and continue using the envelops!!!
Tsum Tsum Mommy I agree. I like things a little more simple. My husband and I have a joint account checking and savings, then I have my own checking and savings, and he has his own checking and savings. Easier for me to control and he controls his own savings and transfers money to our joint for bills from his direct deposit from work
I still have debt to pay off... how on earth am I supposed to fund these accounts?
Tsum Tsum Mommy Whats the envelope system
Hi Jordan, thanks so much for sharing your tips with us. I have a few questions regarding the 7 essential accounts. Would your retirement /401k/IRA etc be considered an 8th account ? Also, for the 2nd emergency only account is this kept in a brokerage account or just a general savings account? Also would the mine account be budgeted hair, nails shopping etc ? Would you open an additional account for home renovations ? My husband and I are flipping our current home and in hindsight I really wish we would have opened up an individual account so we aren't reconciling through our checking ! You live and learn !
Thank you for sharing your bootcamp video. I've wanted to know more on the 7 accounts and this helps a lot😊
Could you tell about retirement plans and college savings plans .
In Europe they charge you about €20-40 every year (or even couple of months) just to have an account...so opening up multiple accounts won't work here unfortunately. But its still sound advice for the envelope system. Thanks.
The whole of Europe? Not too sure about that. Most major banks give you free current accounts. Banking has evolved.
hannah60000 well I'm Irish and live in Spain and as I live and work in a number of different eu countries and travel constantly I have bank accounts in many different countries. Normally I can only have a current account without quarterly or yearly fees if my salary is deposited into that particular account so you could be right, maybe not each of the 29 countries charges but most of them do. Either way in my banking countries in the Eu they charge fees and no they haven't advanced that much! Lol.
nic c I’m in Britain and I have a debit ngl I am underage but I have watched a lot on stuff like this and money management. Anyways most accounts don’t have a annual fee.
@@runecrafter1198 you have a student account and thats probably why you dont have charges or because it is your principal account. I didnt have one when I was in uni either but now they charge me every quarter. My account where my salary goes does not have bank charges but secondary accounts all do. It depends on the bank, I'm sure some banks wont charge you when you get older and dont have a minors account but the majority of the big banks will. I bank around a lot of Europe and its been a pretty common theme for me but I'm sure there are exceptions. I shouldnt have made my statement so broadly but in general, in the countries where I bank in Europe there are charges for everything. If it works for you then go ahead and open as many accounts as you like. I'm so impressed that a young person is looking after their finances and sorting their economy out at such a young age. Good on you!!! How I would have loved to be as wise as you when I was younger. You know that even if you save a minimal amount and put it in a good mutual fund now you will have more saved for retirement than someone who puts in thousands every month in their 40's??? You are setting yourself up for success and I'm so proud of you!! Have you heard of Dave Ramsey? If not, get yourself quickly over onto his youtube channel and get his book the total money makeover (or the complete money makeover I cant remember the name LOL). That will help you with debt, savings, investment, retirement and everything in between. Good on you my friend and best of luck in the future!
I just stumbled upon your videos and I love them. I'm glad I'm not crazy, once I graduated high school I created many bank accounts like this. My family thought I was crazy! What your describing is what I have been doing for 15 years. I don't know why I started this way, it just happened. Great video.
Hi! Thanks for your video! Just a question : do you have a card for withdrawal or paying for each account? For example, if you need money for medical expenses, do you pay with the card related to the health account? Thanks!
I’d love to see you discuss retirement with bubba!
I havent delt with banks for almost 20yrs and I'm so much better off for that everything I have I paid cash and owe nothing on 85% of my income is saved
Soooo... If you are not using banks, where do you keep your savings account? If 85% is saved where does it go>
@@michellesmith4975 hahaha you really think im telling anyone where I keep my cash
@@joewalters9207 lol ummm... no! I wasn't asking for the exact location (although that would be nice to know-HA!) But seriously, I was thinking maybe you are using an IRA, family member, CD's etc. 85% is a huge amount (to me) so I am thinking it has to be somewhere specific. Anyways, no need to share the secret bat cave location :) Congrats on saving that much!
How about a safe at home lol lbvs
@@michellesmith4975 It's got to be invested or gaining interest somehow (loan shark? lol), otherwise he's losing money on inflation. Vanguard's 500 index fund (not the exact name) has an average return of around 10-11% per year, which blows traditional banks out of the water. Of course one should also be doing some type of retirement account as well.
You are soo much fun. ❤️ One of my favorite Disney you tube channels is DFB and AJ is my favorite host, she is sweet, bubbly and always has great ideas and suggestions and you sound just like her. Merry Christmas to you and your lovely family 🎄🎁
Thank you so much for all of this great information!!
I just read a book called profit first that teaches you the same thing - to separate all your money via diff accounts. I have more than 7 right now and prob will open more. Also i totally scored $300 for opening a savings account :D but since they charge a monthly fee i might bail on that bank unless they agree to waive my fee. Great advice many people need to know!
When my husband and I turned senior citizen, I called my bank and asked if they have any senior citizen benefits. They said the monthly charge ($6.00) would be free. $6.00 is not a lot of money, but it does add up. So I am giving you this for a suggestion for the account you mentioned in your note.
Excuse me, that is if you are senior citizens.
char myers wow! My fee is $12 a month! Im gona ask them to waive it or im leaving lol
@@DejaDrewit credit unions are the way to go. they have free checking and can 2 accounts per credit union. I use one for bills and the other for misc. spending
0:33 love this snippit! You just look so tall and fun.
Hi there. If you put pre-planned expenses into the emergency area, how do you know how much money is for each category?
So, do I open seven different accounts from the same bank or open up just one account from each bank?
would you recommend having these different accounts in different banks ?
Claire Mignot for me, I was able to open two checking accounts (different account numbers) with my credit union. Then I have a Capital One 360 account (checking and savings)with sub accounts. I hope you Find what works for you.
Claire Mignot try a credit union. I have one checking and 6 savings accounts there. Direct deposit goes into checking, then I transfer to each sinking fund account per my budget: HOA, life insurance, water/trash bill, etc. some people have one savings account and track the sinking funds breakdown on a spreadsheet. You should do whichever is easier for you to follow and stick with.
I think this system far more complicated than it needs to be, and by that I mean all you really need is a spreadsheet. Our income is divided up not with separate bank accounts but by columns on our budgeting spreadsheet. Money is divided in theory on the sheet even though its all one sum in the bank. So if you want to know how much you have in a given category you consult the spreadsheet, not your account balance. It also makes it easy to adjust how the money is divided up if needed. Now, expenses have to be marked and you have to keep your information up to date, but it really is much simpler than having a bunch of separate accounts. My husband and I also sit down and review our expenses for the month at the end of each month. Having tracked everything on the spreadsheet, this ends up being like a 10 min. conversation where we decide if we were in line with our budget for the month and what changes if any need to be made for the next month. Checking in with each other regularly is important if one person is doing most of the record keeping, which is common in couples.
I tried doing our budgeting and finances this way for around a year and it was very difficult to keep up with. So I slowly started adding more accounts to track money instead. It has worked a lot better. But I think the reason is that I am very visual so 'in theory' wasn't working for my brain. I found your comment really interesting because some systems work for some people and the opposite system works for others. I think you really have to know yourself to make progress with these things.
I have this super vivid memory of my older sister and her now husband doing this as college students. She is in very fortunate finances now I have to think that some of that is attributed to their attention to how they use their money 😊
I love that you think your method is less complicated, lol
I agree, I also move my money virtually, via a finance app where I created several virtual accounts and make my transfers. I know exactly where the money goes and how much I have left in every category, even though it stays in my checking/savings account. It's actually the same as a spreadsheet, but I do find it easier and it saves you a little bit more time.
I have a savings account, travel account, Christmas account (in the 80's banks had Christmas accounts... my mom still talks about it), miscellaneous account (apple laptop I am saving for), healthcare account, plus my hubby has our other acounts. This apporach works! My moms dad used to tell her to save money, even if it was $5. It all does add up in the end.
I just overcome my depression. And I have to start every thing from 0 again, but it ok. I understand by implement wrong method to grow up financial will make me end up stuck and get nothing.
Thank you for your time and willingness to share with us how you manage and overcome your financial situation. Now I have 3 bank account.
I have always had about anywhere from 8-10 accounts as well. I think this is so smart. We have a couple businesses as well. I like it because there is money everywhere. 😁
You are one of my fav TH-camrs! You are soooo funny! I love your intro!
me too
After seeing the intro, i immediately liked the video. That was it for me. I knew this was the channel for me.😂😂
I agree lol
I decided to do this ever since I left university 20 years ago and it works a charm.
-Income
-Personal bills (mobile, spotify, car insurance etc)
-House bills, daily spending (food, travel etc)
-Disposable income (holidays, one-off purchases, luxury items etc)
-Investments (ready to invest where ever I decide)
Salary/business money goes to the income account, and automated regular transfers (as per budget) to the other accounts. Can always check how I'm doing against budget by looking at the balance. Always have a buffer, eg Income account always holds the total amount transferred out in case salary arrives late etc.
This concept is new to me and I think it will work out great for me and my family in future when I go back to work. Thank you for sharing your experience and knowledge!
I feel so sorry for anyone (pretty much only Americans) who would need a bank account just for medical expenses. Other countries just don't relate to this. If I had to shell out for co-pays, insurance and other expensive medical bills, I'd be broke (or very sick and not getting treatment.) And no, America, I am not paying taxes through the roof because I live in Canada. That's one of the many myths. Per capita our costs are 1/2 what Americans pay for health care. I've never seen a medical bill in my life. Having said that, if you live in the States and are forced to figure our your own medical bills, I guess it's good to save in a separate account for that.
From Australia, and I couldn't agree more. It simply blows my mind that a government wouldn't look out for the health of their citizens. But good thing they have all that freedom to fall back on.
well people in america are not the ones dead from the corona virus....sooo
@@hoodyboody The HSA in US is so that we have a deduction from our paycheck before income tax to put in an account for our copays and out of pocket expenses. We aren't taxed by our government to pay for our medical (Medicare in Australia) Our employer pays all or most of our premiums. It's my understanding Australians still have copays and out of pocket; then, a government tax to pay the premiums for health insurance. Yes, I'm glad I have my freedom instead of the government taxing me.
Susan Benedict that may be the case for you that your employer pays most of your premium. Mine doesn’t and either does my husbands. For our family of 3 healthcare premiums cost us $1,200 a month. That’s more than our rent! And guess what? I still have to pay thousands out of pocket on top of that every year and we rarely go to the doctor. To go to the emergency room my copay is $1,000! That cost is to just check in to the emergency room. Not for anything else. This is so wrong that we have to pay these costs. How can they expect anyone to afford these? With my insurance to have a baby naturally without anything special is $7,000! Absolutely wrong!
It’s not just the states, I live in NZ and we have a split system between public and private. Like GP visits are around $65 but other stuff is covered
HSA’s do not have a “use it or lose it” rule; that rule applies to FSA’s.
Thank you for this video! Now I understand the accounts better!
Is the family savings account a checking account or a saving account? Are they all different banks? Or same bank?
I want to warn people what Jordan did not tell you is there are IRS rules for Health Savings Accounts. You must have a high deductible insurance plan and your contribution each year is limited also. I believe it is $6000 a year per family. The deductible is somewhere around $1000, not per family, per person! So check the IRS guidelines. My husband and I qualify and it is great! Also I have a savings just for savings for vehicles. Both repairs and replacement. Both my husband and I had vehicles totaled this year, (both not our faults) and we have put the insurance checks in a savings just to hunt for the right deal. My husband had a second truck (his hunting truck was totaled) and I had already paid for a used car, for a luxury vehicle that was such a good deal, we went ahead and purchased it, and then about 3 weeks later, my every day Toyota Camry was totaled in a 4 car pile-up. So we have about $18,000 in our "vehicle" fund. We also have a vacation fund, a longer term savings, a main checking with a checking that I use for my "allowance" each month. My husband uses cash for his allowance. We have a main checking and then a checking at our credit union that carries our mortgage. I transfer extra money into that checking from the main every month and then pay extra on our mortgage principal when it builds up a bit. We both have IRA accounts also for retirement. I also use YNAB, but like the control that having different account gives me. YNAB definitely preaches against having multiple accounts, but I'm a grown-up and know what works for me.
@Christy Horton Haha! I was planning to keep my Camry to drag the dog everywhere. She loves to go with us. I had to buy seat covers for the Benz. I was in a 4- car pileup, first behind a stopped truck making a legal left hand turn on a rural 2 lane road. My husband's truck was totaled parked in front of our house and was witnessed by our neighborhood watch captain when he saw out his window his truck almost get hit, so he came out to see where this vehicle was going and knew it was going to hit our truck which was a block past his house. Dang it's been a bad year.
I thought I was the only person that held 6 checking accounts and 4 savings accounts. 😀😜. 💯 correct more accounts are easier believe it or not.
I’m so going to do this! Thank you.
Thanks for this. On this island (Republic of Nauru) we have only one bank (Bendigo, Australia). Although one can open an account with any other external bank, but one will have to travel and make a personal appearance. So here small monies small bank. At the beginning of this year I made a resolution to save for a family trip next year, so I had my one of my sons and one of my daughters coordinate their bank accounts with mine to work towards that end. Their accounts for different savings for gifts, trip, emergency, education; and mine for general use (shopping, bills, etc). We each have two, savings and checking accounts, altogether 6 accounts. But monies go first to their accounts for the savings then they inject shopping monies into mine, and I budget from there. My husband and my other son manage their own monies including some shopping towards the family budget from lists I give them. It's really hard but seem to be working. Savings I toggle between 15 to 30 percent fortnightly of each contributing salary depending on utility bills over that period. It is very encouraging to see from your video that I might be on the right track (but with some fine tuning).
It's quite expensive to save that much money. Due to inflation your money is losing value every day.. You should at least have some of the money work for you..
Do you mean stocks and bonds?
@@petmomful2260 better yet, index funds
She does mention in her other videos that when pressing debt is gone that she uses 10 of the 30% she saves for tithing but that instead you could use that to invest consistently. Definitely should make some work for you but, when you are able to!
@@UrbanFamilyHomestead We do have investments, we are retired, but try to live off the pensions coming in, not our savings. One thing I will NEVER do is tithe. Churches are wealthy enough. Let all those abusing priests get a job like everybody else.
@@petmomful2260 I think that's why she put in that alternate option :) We do not tithe either!
I had 5 different accounts when I got married, and my hubby had 1 BUT within that one there were 15 savings accounts. Crazy. I was hesitant to combine finances, but after a bit I really loved having all our accounts for so many purposes.
As an Accountant I have two checking accounts and one savings account. Checking account one is general ledger account for ninety nine percent of everything. Checking Account two is for anything auto pay. My savings account operates off of the three savings account listed at the top but I use Excel with sub ledgers. Seven accounts in my opinion is way excessive.
This is right on!! We have 13 accounts for family and my self-employment. It has helped us get so far ahead by keeping the money separate. We bank with Ally, an online bank that has no account minimums or fees and pays interest. 1.90% on savings and $0.10 % on checking. We also have all income direct deposited into one account and then we transfer to the other accounts. We have our bills come out automatically as well. The only thing I need to set up is the automatic transfer to savings :)
The digital envelope system
wow l love this, Great advice ! Thanks so much!
Thanks for sharing! Great visual content I love it!
Love this multiple bank account principal my family started doing it and the change has been crazy
What about setting up Mint by intuit where you can link to your bank account to track/categorize your expenses/spending.... The Bank account I have you earn points for every dollar which earns you cash back either by direct deposit or on a universal gift card. Also opening up accounts means credit inquiries on your credit report.
Some bank may check your credit when opening an account, but these are considered soft inquiries and have no impact on your credit score. Research the difference between hard and soft inquiries so you can make better decisions.
Your makeup in the prerecorded part Jordan 👌
Yes! Hair too! 👍👍
Thank you! This was very helpful 😊
Pretty cool! Never looked at it like that. Thank you.