Money Management Habit - How to Save or Blow Money

[EvanOkanagan]

For people who don't like budgeting, I can't praise this enough.

This system is great because you can change the numbers to cater to your current lifestyle. I've changed my accounts around based on my goals and income at the moment.

Update on accounts:

Necessities 15
Fun/MOTORHOME USA (goal to take a 1-month trip around the US in a rented motorhome) 6
Gifts/Charity 2
Glasses/watch-clothes (ongoing account now that I keep for buying new clothes) 2
Luxury SUV (saving for a slightly used Luxury SUV for when my lease runs out next year) 5
FFA (financial freedom account) & Taxes 70
Mattress 0 (This account is now fully topped up and sitting there for buying a new mattress... I was saving 2% so I took that and allocated to different accounts)

Have increased my FFA account quite a bit with my increased income to save for more investments. My necessities account doesn't need as much as last year as I'm still living a similar lifestyle.

 

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[MJ DeMarco]

Thread marked NOTABLE!

I have 7 accounts right now.

1 of the 7 Ally Bank accounts.

So you guys have multiple accounts in these banks? I'm assuming none of these accounts have maintenance or minimum fees?

Does any bank offer just one account with tiered / segregation options? If not, this would be a GREAT value-added feature for banks to adopt and set them apart from other banks.

 

[eliquid]

Thread marked NOTABLE!


So you guys have multiple accounts in these banks? I'm assuming none of these accounts have maintenance or minimum fees?

Does any bank offer just one account with tiered / segregation options? If not, this would be a GREAT value-added feature for banks to adopt and set them apart from other banks.

Ally Bank has no fees. When I set everything up, I had to manually fill out forms and create actual accounts, so these were not really tiered or segregated under 1 main one. They are all linked to 1 login though.

With Chase, same thing. I dont pay any fees bc I keep a min that is needed, but the multiple accounts I have there are all real sep. accounts that I can access under 1 login.

It would be cool to have 1 account that was tiered. I heard INGDirect had this option, but I am not sure if they do now. I also think Capital One had something back in the day.

However, I love my setup since I do no work to maintain it.

 

[EvanOkanagan]

Thread marked NOTABLE!





So you guys have multiple accounts in these banks? I'm assuming none of these accounts have maintenance or minimum fees?

Does any bank offer just one account with tiered / segregation options? If not, this would be a GREAT value-added feature for banks to adopt and set them apart from other banks.

It may be a different case in the US, as I'm in Canada (Scotiabank). There's a few banks though I know of that you can have multiple savings accounts with no minimum monthly fee.

The caveat is that you can't withdraw from a branch or make bill payments from the accounts--otherwise there's a fee. If the only time you touch your accounts is through online banking transfers from one account to the other (which is how I divide the money--send from my checking to these savings accounts) the accounts are absolutely free.

 

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[Bellini]

Does any bank offer just one account with tiered / segregation options?

Check out "Capital One's 360" bank account. This is what I've been looking for, a savings account where you can have free multiple 'accounts' under one main one and segregate everything. Thinking of signing up soon.

https://home.capitalone360.com/online-savings-account/tools

 

[biophase]

Does any bank offer just one account with tiered / segregation options? If not, this would be a GREAT value-added feature for banks to adopt and set them apart from other banks.

When I had ING or Capitalone 360, you could open multiple savings accounts with a click of the mouse button and rename them whatever. This was my strategy for keeping Paypal from stealing back from my account. Paypal was linked to an account called paypal, and whenever it had a balance over $1000, I transferred it into an account called not paypal, lol.

I haven't seen regular banks use this yet, as they all want me to create a real savings account with all the paperwork and crap.

So I'm not sure, how ING actually did it. Did I really have 10 savings accounts? The numbers on ING were different, but maybe in reality it was all in the same account, but just segregated on the screen? Who knows???

Oh and I never had a paypal refund issue, so I can't claim that this strategy works.

 

[Andy Black]

I've had multiple personal accounts for years.

Number 1 account is where I pay my salary into. It's where all bills and standing orders come out of.

I immediately transfer money into the monthly groceries account.

The only account with an ATM card is my "weekly" disposable account. There's a standing order that transfers money from the number 1 account to this one every Friday. It's what I use for the weekend and petrol/lunches for the rest of the week.

On grocery day each week I transfer money from the grocery account to the ATM account.

I effectively pretend I'm paid weekly, so I don't think I'm "flush" each month and get stupid ideas.

I've a couple of joint accounts we use for saving up for things as and when we need to.

Rainy day account? Ha... That always seems to get emptied out with car, house, or school related stuff.



I have two accounts for my business. The main account is where money comes in and I pay contractors and expenses (actually, I try to use a credit card most of the time and dump money from this account into the credit card each month).

I have a separate business account for taxes. Whenever an invoice gets paid I instantly pay the VAT into this account.

Whenever I pay my salary I set aside what I think I owe in taxes that month (erring on setting aside slightly more).

 

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[eliquid]

The only thing I didnt like about Capital One 360 was at the time I did all this, AllyBank was paying a lot more than Capital One 360 at the time.

 

[Trud09]

For people who don't like budgeting, I can't praise this enough.

This system is great because you can change the numbers to cater to your current lifestyle. I've changed my accounts around based on my goals and income at the moment.

Update on accounts:

Necessities 15
Fun/MOTORHOME USA (goal to take a 1-month trip around the US in a rented motorhome) 6
Gifts/Charity 2
Glasses/watch-clothes (ongoing account now that I keep for buying new clothes) 2
Luxury SUV (saving for a slightly used Luxury SUV for when my lease runs out next year) 5
FFA (financial freedom account) & Taxes 70
Mattress 0 (This account is now fully topped up and sitting there for buying a new mattress... I was saving 2% so I took that and allocated to different accounts)

Have increased my FFA account quite a bit with my increased income to save for more investments. My necessities account doesn't need as much as last year as I'm still living a similar lifestyle.

Came for the budgeting, impressed by the savings rate. Is a savings rate of 70% typical? I guess I need to raise my bar for earnings. Do you recommend putting it all in an IRA? If so, should I do that as someone who is young? I thought the goal was to retire soon.

I will likely sign up for ally. Their accounts seem simple, and pay 1%. ING Direct seems to have more complexities and do they support separate accounts?

 

[EvanOkanagan]

Came for the budgeting, impressed by the savings rate. Is a savings rate of 70% typical? I guess I need to raise my bar for earnings. Do you recommend putting it all in an IRA? If so, should I do that as someone who is young? I thought the goal was to retire soon.

I will likely sign up for ally. Their accounts seem simple, and pay 1%. ING Direct seems to have more complexities and do they support separate accounts?

I think it's far from typical... but hey I'm not a typical guy I guess!

I started these accounts about 8 years ago in my early 20s. At that time I needed over 50% of my income to live off of for my "necessities" account.. now I could by with 10-15% so it depends on your situation.

I use my FFA/investment account to put towards Real Estate rental properties because that's where my skill set is. If my skillset was importing and selling products I'd put it towards that, or starting a carpet cleaning business, that... whatever will propel you closer to living the good life! When I first started the account I didn't know what I was going to use it for so I just let it build up. I eventually had about 25k buit up and decided to get into real estate and the rest is history.

So I'd say just hold it in a savings account until you learn about a particular investment or decide on a venture to get into.

 

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[The Abundant Man]

I remember reading about this in "I Will Teach You To Be Rich"(See this book is not all bad)

 

[Ocean Man]

I’ve been self-employed for three years but for these three years I’ve been treating myself more as a contractor rather than business. I’ve been making a lot of changes to try to treat myself as a real business and banking wise here are the steps I’ve taken.

1. Separated ALMOST all my personal from my business.
2. Created a separate business checking account at Chase. This is my tax account. Any money I make, I immediately put 30% of that money into this account.
3. Created a personal spending account and created a savings* account.

Business expenses are taken out of my savings as well, so my next step is creating another account for purely business expenses/spending.

So that’s a
- personal spending
- personal savings/tied with business expenses
- tax account

When I make a business spending/expenses account, I’m going to have to rethink how I do things but currently.

30% of all money earned goes into taxes account.
10% for charity/giving
57% is savings/business expenses
3% spending account.

I’m constantly trying to figure out how I can do things better because there’s definitely flaws in my management and I want to make it better.

 

[andrea532]

Molto interessante.. grazie.. ma un po' difficile da realizzare per me.. vivo in Italia quindi qualsiasi conto mi costa circa 100,00 € all'anno di tasse (quindi circa 106,00 $ all'anno) solo per tenerlo aperto il conto senza alcun tipo di movimento. E fondamentalmente oggi la banca dà un interesse dello 0% per i tuoi soldi, quindi penso che non sia un po' redditizio per me.

ciao, vivo anch'io in italia, sei andato a vedere intesa san paolo, unicredit, illimity. Questi sembra che non abbiano grosse commissioni. Nel secondo caso c'è Hype che segue Banca Sella e costa 2,50 euro al mese. Spero di esserti stato d'aiuto, dai un'occhiata

 

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