Part of being stressed is my life is knowing there is always money available and that is budgeted for.
Between my wife and I we have 9 different banks that we have accounts with. Crazy. Thankfully we do not use all of those banks, but it can be daunting at times.
2 of her accounts are virtually dormant. She has one that houses her retirement and another that a small amount of her paycheck gets transferred every 2 weeks. That is her “slush fund.” The “do as you please fund.”
So, that leaves 7 different accounts.
We have a joint account that funds our mortgage and bills. We both have our direct deposit go here. From that account monies are transferred into a different account that pays our credit cards, saves for an IRA or other investments, savings for our next car, and even an account that funds extra mortgage payments or home repairs. Talk about a mess!
The next bank is a credit union and I am a big fan of them. This bank also has direct deposit. I had my mortgage with them until the bank above offered such a low refinance that I couldn’t resist. This bank has our emergency fund (approx 6 months), vacation account, birthday/gift account, as well as our home repair account. You may be seeing that there are 2 home repair accounts at this point. This is the main one and one we really only use.
I also have a http://www.lendingclub.com/ account. Lending Club is an interesting concept and I really think it has long term potential. I have only been a member for 2 years, but I like what I see so far. At this point I am not making new investments, just taking the interest and investing in different notes.
Next is my brokerage account. My work 401k, IRA, and individual account are here. There is also a bank account that I have only used twice, it was an inheritance from my grandfather. I should empty the account and close it, but for some reason I don’t have it in me.
Finally there is my own personal checking account. I would say it is my slush fund, but it really isn’t. This account also has direct deposit. Since I work overtime, this account varies in deposits. On the debit side this account is for our monthly allowance. I will delve deeper into this, but the basis is that we do not ATM. If the account gets over $3,000, I transfer the money elsewhere – usually to pay off a credit card bill or place into a home repair account.
Yes, this may be messy and for the most part it is streamlined and really helps us to set goals and know what we can and can not do.
Do you do something similar to this? Am I crazy for my approach?