You read the headline right, I have seven bank accounts, and honestly, you should too. And yes, it keeps my marriage sane. If you are curious about why you should have seven bank accounts, I totally understand. It seems like a LOT! Seven bank accounts might actually seem overwhelming, but in my opinion, it helps keep my money organized.
Having seven bank accounts works for my husband and me because it keeps us organize and allows us to prioritize savings and investing. This system allows us to automate bills and not be late. It always helps us stay one month ahead of our monthly expenses. Having seven accounts doesn’t have to feel like overkill, let’s break it down real smoothly for you.
Seven Bank Accounts #1:
The Bill Payer
The Bill Payer is the main account of the seven accounts where all of our bills are paid from. From the mortgage to our wine club subscription, everything comes out of this account. And to ensure we don’t have excess spending, we’ve calculated our total expenses and only put that amount in that account. (With a buffer too!) But what about bills that fluctuate? Well, good question! Two things, calculator the average amount for fluctuating bills such as water, electricity, etc. I like to use the highest number by checking the median and use that as my standard number, but twice a year I review that number just to make sure everything is still accurate.
Where I place the money: I use a big bank to stash this cash. As mentioned, only what is budgeted for expenses is in this account. I recommend NOT having a debit card attached to the account. This will ensure you have just enough money to pay just your bills and not a Target run.
Seven Bank Accounts #2
The Spending Account
This Spending Account is used for groceries, gas, household, and more. This is a great way to keep on budget because I literally only have what I can spend in that account. The reason I don’t have this mixed with the bill payer is to keep me on track with my spending. If I have extra money in this account, I always transfer it into my Savings Bucket.
Where I place the money: I’m proud that is account is in a Black-Owned Bank! #bankblack
Seven Bank Accounts #3
His/Her Checking Account
Ariana Grande said, “Both his and hers, I want it, I got it,” in her smash 7 Rings. That was part of the inspo for purchasing my home and for having our own checking account. My hubby and I both have side hustles. That is usually what is in this account. This allows me a little independence to buy whatever I want to purchase without feeling guilty.
Where I place my money: I place these funds into an online bank with great customer service. Be sure to have the ability to transfer to and from this account for free.
Seven Bank Accounts #4
Savings Bucket Account
Y’all don’t know how excited I get about my savings buckets. Basically, my online bank offers 10 buckets to drop my money into every paycheck. We have set up several accounts such as Car Repair, Travel, Home, and 3-Months Expenses, just to name a few. We’ve set up what the bank calls “Surprise Savings” to drop into the account of my choice. This online bank has the technology to determine how much money you can spare from the account of my choosing and it pulls into the bucket of my choosing.
Where I place my money: I place this into an awesome online bank with great customer service, named Ally! Get into it!
Seven Bank Accounts #5
His/Her Savings Account
As of this writing, it’s just her savings but I’m sure my hubby will get a savings account again. But if he doesn’t, that’s his choice. I know that I need my own personal savings as I have personal goals to accomplish to invest in this platform. It’s also nice to have my own savings.
Where I place my money: Same as buckets!
Seven Bank Accounts #6
His/Her Investments
We both have our own investing accounts. From Roth IRAs to a 401k/403b and a vehicle for single stocks, we have choices. Investing is important to me because it was never something my family talked about. My grandma did give us bonds for our birthday, but I didn’t know anything about the stock market. I learned so much about the stock market from money coaches and money educators. Please do your research before investing in anything.
Where I place my investments: ElleVest, Fidelity and SoFI.
Seven Bank Accounts #7
His/Her Medical Savings
Medical expenses are the easiest bills to pile up in my opinion. Maybe you need dental work, physical therapy, therapy sessions with a mental health professional or a load of other medical needs. It’s an awesome idea to have medical savings either in a savings account but preferable an HSA or FSA account for tax benefits. HSA (Health Savings Account) are my preferred account and once I saw that my current job offered this benefit, I jumped on it. It can also be used as a means of investing, but for me, that doesn’t work because I usually need money for medical appointments. FSA (Federal Savings Account) is also a helpful option but have a use it or lose it at the end of the year policy. The FSA Store is a true treasure, allowing you to purchase feminine care products, cold & flu medication, and even skincare products! WHAT!
If we are getting technical, there are more than seven bank accounts above. Considering my husband has his own stuff so it kind of duplicates, but I think you get the idea. The seven bank account approach is effective because you organize your money, you delegate your money and you put it to work!
Ready to dig a little deepen? Check out the podcast episode related to this topic.
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