Saturday, May 24, 2014

my system.

Everyone has a system that works best for them when it comes to debt repayment/budgeting. I always enjoy seeing how other people handle their accounts to see if they have any awesome ideas. 

I have a total of 5 accounts. That might sound like a lot but they all have their own jobs. I have 1 checking account where I work, not only because I have to but because it's a good bank. I also have a savings account there but I keep the balance in it low and I will explain that later. I have a checking account at the credit union where I have my loan because I got a lower interest rate. Throw in one more checking account at a local bank and that is all my accounts at brick and mortar institutions. I have my emergency account at Ally bank, which is online and the interest rate was at 0.87% and that is pretty sweet. 

Now I'll tell you about their jobs:
  • Checking #1: my paycheck has to be deposited somewhere! And my job prefers to deposit it into their own institution. This is where I pay my credit card bills, my phone bill, and my car payment. Once I get paid I leave a balance in there of about $245, that will pay: my $135 car payment, $60 to one credit card (store card with one check and credit card with the next), $50 towards my phone bill ($50 with each check will pay the total and then give me a little credit towards the next bill).
  • Savings #1: I leave the balance in here at $100 and it's basically in case I hit a bump in the road and need to access the cash quick. When I get paid $100 goes to it automatically and then anything more than $100 will go to my Emergency Account.
  • Credit Union Checking: Like I said this one is because I got a lower interest rate on my debt consolidation loan if I had an account with auto debit. I put $100 in there and pay on the loan even though the payment is only $49.31.
  • Checking #2: this is where I put all my money that doesn't have a job. I could just leave this in the account where I work but I prefer it to not be as accessible. It's nice because the money has been adding up (slowly) and I don't see it so I don't think about it. Anytime I have small bills or lots of change I deposit it in that account (I know most people let their coin add up but lately I've been trying to de-clutter and too much coin in a jar makes me feel like a hoarder, lol).
  • Emergency Account: every single personal finance blog/guru/ANYONE will tell you that you need an emergency account. Dave Ramsey says to start by saving $1000, other people say 3 or 6 months worth of expenses... I'm really just making sure the balance grows. 
I read on Get Rich Slowly about a guy who had several different accounts at different banks (like me!) and each one had a job and he basically said that as long as they all work for you then it shouldn't matter how many you have. :) 

And here is my "YAY MEEE!" moment[s] of the day:
        A few weeks ago (in April before I started on personal finance journey) I spent $100 on a sewing machine because I thought I would use it, well I did not. So today I decided to return it so that means that in the next couple days I will get a text message that says "hey girl, you got a refund!" Those won't be exactly what it says but ya know. 
       I also went thru the spare bedroom at my house and found a handful of sterling silver jewelry of mine/my mom's that has probably been in that room since we moved in when I was like 13... Well there is a place at the mall that will buy your silver so I took it up there and they gave me $4. Hahahaha. This is more funny than anything but whatever, it's $4 more than I had before!

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