Episode 24: The 6 Accounts Everyone Needs

May 4

In this episode, I am going to break down the six accounts that everyone needs. They are checking accounts, savings accounts and investment accounts. I'm doing a comprehensive overview so you have a good picture of all the places your money needs to go so it not only takes care of your present day needs, but it also takes care of your short and long term needs as well. Whether you're a beginner or an experienced money manager, stay tuned to discover the benefits of how these 6 accounts can help you achieve your financial goals.

Key highlights

[00:00:04] My favorite time of the year

[00:01:35] An intro to today’s topic: The six accounts that everyone needs

[00:05:11] Account #1: Bills account

[00:07:05] Account #2: Habits/ Spending account

[00:10:01] Additional checking accounts for partners

[00:10:42] Account #3: Emergency fund

[00:11:28] How to use your emergency fund:

For loss of income
If you have a home emergency
For an auto-emergency
As a health emergency

[00:13:31] Account #4: Travel Savings account

[00:16:20] Account fees associated with all these accounts

[00:16:56] Account #5: Investment account

[00:18:34] Two types of retirement accounts: Traditional & Roth

[00:19:19] Account #6: After-tax investment account

[00:22:43] Sign up for Money Mapping Training

Notable Quotes

What I love about the multiple account structure is it takes away the need to use technology, and you can just make these accounts specific categories.
It's beneficial to split up your bills account from your spending accounts so that you can be aware of how much money you have to spend versus having everything combined in one account and having some bills coming out and then some spending coming out. This allows you to see exactly how much money you have for spending and exactly how much money you have for bills.
If you're someone that uses credit cards and you're running a balance, and you're not constantly paying them off every single month, then my suggestion is to stop using those credit cards and use a checking account or spending account as a regular old debit card. What I mean by that is you will put an amount of money that you can spend in the spending account, and then as the month goes by, you're just going to spend directly down the money in that account by using your debit card so you won't even have your credit card as a part of your spending.
You have to remember your emergency fund is there for your emergencies. It's your money; using it when you need it is okay.
I love my travel savings account, and you all need one. I think it needs to be a part of your monthly plan so that you're saving for those travel expenses before they come up.
Instead of putting so much money into those retirement accounts and then having to take a distribution out when you need money for your life, you could put less money into your retirement accounts and start to put money into these after-tax accounts and take it out without paying any penalties on the money.
Learn about a comprehensive account system called Money Mapping through my free training at Holistic Money Program. Discover the step-by-step process to set up a money map, including which accounts you need and how much to allocate. Improve your money management skills and take control of your finances.