Is It Bad That I Keep $0 In My Checking Account?
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- Опубліковано 1 гру 2022
- How much do you aim to keep in your checking account? Do you consider your checking account to be part of your emergency fund - or do you keep your emergency fund entirely separate in a savings account?
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#checking #personalfinance
Most big bank checking accounts are 💩. I keep $500 in mine and the majority of my liquid cash in my HYSA, paying majority of my bills directly from there.
I keep about $500 in checking. My emergency fund is in high yield savings and I can get to it in a couple days. I put everything I can on the credit card then pay the credit card on payday.
I like to keep my checking account above $1,500 at the end of the month. I feel really uncomfortable when it's under that because it's less of a cushion before having to tap into my emergency fund.
I used to keep my checking with a buffer as low as a few hundred dollars. After awhile it became more of a hassle so now I keep about a $2000 buffer which would cover my largest single bill, housing.
Solid plan
Just enough to cover my monthly bills plus a little cushion. I can always transfer money from my savings.
I use checking just to pay bills. Everything else goes to savings.
Since my bills come from my checking, I keep 2 months worth of average bills. So, I am covered for items like this years higher heating bills. One thing for people to be cautious about is if you use a debit card. My daughters use their debit card, which is tied to their checking account, so I tell them to keep the minimum amount in checking, even if that means moving money around more frequently, as fraudulent debit card purchases are not protected like credit cards.
Yep, never use a debit card, if you can use a CC, then pay it off right away as if it was a debit card. So much more protection with a CC.
I try and keep around $1000 as well in my checking. I don’t pay a lot of attention to it but what I do is if that pay period there is an excess of money then I move most of it to my high yield savings. I can transfer back to my checking in a couple days so it’s never been a problem. I do find it interesting that you and your husband has separate accounts. We just have one but I handle all the finances. My wife just doesn’t have the time to do it as she’s a small business owner as well.
I agree 100% with you’re method. That doesn’t make sense to me to keep that much money in a checking account collecting very low to no interest. When you can put it in your savings account and just transfer it over if you really need it. Great video.
Way too much, money in our checking but the good news is our olde fashion bank just changed our money market interest rate to 4% 😊 if you deposit 10k of new money! So our larger than should be checking will be going into MM.
I've actually switched from a checking account to the Fidelity cash management account and keep about 6 months of expenses. It simplifies my finances. The account has no fees, I can buy money market funds from the same account to get higher yields on cash and I can get FDIC insurance up to $1.25 million.
That sounds like a good switch!!
I try to keep a max of 1 dollar, I don't like money just sitting there.
Haha, sounds like my friend 😂 I would be a bit nervous if a saw a $1 balance, just my personal reaction though
I keep about 5-10k. At the end of the month I have ~4k in automatic transfers to investments + my mortgage so I always like to make sure I keep enough to not think about it
“Enough not to think about it” might be the best thing I’ve heard!
Over the years all our income was automatically deposited into savings. Then we kept about $800 - $1000 in checking. As bills came due funds were transferred from savings to checking. We keep almost no cash on hand, $20 - $40 dollars each as we pay for everything with a credit card. We have credit cards that pay cash back or points and my wife makes a list of which cards to use for each location. One card for restaurants another for groceries and another for big box stores etc. This changes as different cards offer special rates for different locations. Special circumstances can also determine which card to use. We are going to Hawaii next year and used a CC that paid miles for the airline we use. We are flying for "free".
We also maintain an 8 month emergency fund. It is based upon using our normal expenses but we know that if a real emergency came up we can cut back and it would last longer. Money for investments and retirement never see the checking account. It is either directly deposited, most likely, or is transferred directly.
We have our emergency fund in high yield savings or MM funds. We also have some in CDs. We pay real close attention to interest rates and have no qualms about changing credit unions or banks as rates change.
I keep a fairly high amount in my checking account because for a long time I got the best interest there. It was one of those accounts that required 12 credit card purchases per month and one direct deposit to get the interest. But I took a lot of it out because my brokerage account now pays more. I had enough in there to buy my used car nearly 8 years ago.
Same. Just moved it
We keep two months of expenses in checking so if we have any overages in the month there is some buffer. We're not "saving" that money - we're spending it. Liquid savings is in our high yield savings account. We're not looking to save cash - We're looking at it as insurance/opportunity money when we need it.
I don't normally keep more than $300 in my checking. I pay all of my bills on the 1st of the month. Being debt free is the key there. After that I have enough left for groceries, gas and about $150 of play money. The 15th...all me. I put $500 a month into a savings goal for my Roth IRA to max it on April 15th outright. After grocery and gas money I have right about $1,000 to play with. Before I get paid my TSP takes its $500 each paycheck too. I don't even see it, but boom future conquered!
1. Enough to keep from paying a minimum balance fee. 2. Enough for all monthly expenses. 3. Enough to cover at least a $1000 emergency. 4. Enough to prevent over drafts. I really, really don't like having to withdraw money from savings and I avoid it if at all possible.
We keep about a kilobuck cushion for our work horse checking account, and everything else in a savings and emergency accounts. We also budget about 3 months out and have a running forecast balance to keep everything in check. You also ought to consider a credit union as an alternative to typical banks. Great show Erin! 😊
$8K. I think the 2 month target is pretty reasonable for retirees. When I was your age and working, I just strived to never go below $300 in checking account (just in case someone wrote out a check and forget to enter it into the register - back in the days before online banking).
Great point, depends on your phase of life
Erin, this is a good topic. While this is common sense for people with good money management habits, this is something that people who are just entering the workforce wouldn't necessarily know. The same is true for people with poor money management habits. Good job!
Thanks!
I like to keep $1k-$2k in checking. I transfer what’s leftover each month to Money Market Savings. I have a separate checking account that I split my direct deposit into that pays my mortgage, so that is a true zero balance account.
Very good advice! I put all my bills on a credit card that I pay off each month. The only thing I pay directly out of checking is mortgage and cars. Fidelity has a great checking like account called the CMA account that pays a bit less than 2%. It can link to a MMF that pays close to 4% and if you go over the money gets automatically pulled. They also charge no fees and reimburse ATM fees. I find these types of accounts better than most banks as long as you don’t need a physical branch. If you do then use a credit Union with a no fee account.
My checking account is my emergency fund. I don't mind losing the interest on it if it means I avoid the hassle of transferring money around all the time (sometimes I have high bills if I'm booking a trip or something). I aim to keep $10k in there which is ~6 months of my expenses.
I totally get that…when it comes to an emergency fund, it’s about security not capturing the best return
I use checking as a buffer only. I keep at least $1000 in there so that I can automate bill payments. My employer deposits money there, and then the money is transferred to other accounts that earn interest.
I run Bucket type checking accounts. The one checking account slowly builds up, when it gets to an excess (~5K) then it gets dumped over to a higher yield savings account or towards the Principle on my Mortgage. The other "Primary" checking account goes towards my allowance, vehicle gas, home gas and electric... I keep a min/max balance in there of $5/$500.
Thanks 🎉
I keep 6 months of bill coverage in my main checking account at my physical bank. Along with a large amount of money in my online checking and savings account. Mostly because I have two 2 bedroom condo units that I rent as Air B&B. It covers electricity, insurance, taxes, HOA costs, and any repairs that may come up.
Mine fluctuates but $1000 at end of month like you because of budget, never had a issue. I also use quicken where my expenses are 3 to 4 months in the future so I already know where money is going
I keep a balance of only $25 in my checking. But I have a credit union and get six free overdrafts a month. In 30 years I've been with them, I don't remember ever using it even once ,so I'm not worried about overdraft fees. I also use my credit card for things like the grocery store, gas, etc. That gives me 30 days of zero interest to transfer money to cover those. I have only a few bills that come out of my checking and I never use my debit card.
I have 3 checking accounts a personal and 2 businesses my person checking account has a minimum balance without fees of $1500 and my buisness minimum without fees is $3500 so I keep around 10k spread between them as my emergency fund. In both businesses there aren't really any costly emergencies that can come up and 10k is about 10 months of my personal expenses.
Sounds like you are well prepared!
Erin I know you like the "bucket" analogy so In those terms. I keep nearly all of my money in a major investment company bucket. The rest is in a nationwide bank bucket and a credit union bucket.
The credit union bucket is in a state where I lived during my working years. I keep that as a place for small savings and also because it has a $5k line of credit which is free unless I borrow against it. I keep that checking account balance near zero as I have a savings account there that pays a higher dividend. The nationwide bank I began using, for by bill activity, once retired so I could access my money easily, wherever I was. Unfortunately, they don't offer a line of credit so I maintain a balance large enough to cover my monthly bills.
Like you, all my purchases are with rewards credit cards and paid off each month.
2 months of full monthly expenses. Our bills are paid from our checking account.
Also, our checking account requires at least $15K in order to avoid fees and receive other benefits.
I keep about 2-3 months of expenses. Up until last year I would keep all of my money in my checking account. I was focused on paying down student loans before. Now I’m focused on putting my money to work.
Hi Erin. I am like you I keep pretty much keep what my expenses are in my checking. But I use my ATM a lot! Old-school Tim! I hope you have a great weekend and stay warm out there in Rhode Island!
I keep $500 in checking to pay the 2 CC's I use weekly, then move everything to savings and once a month drain savings for either the 26 or 52 week t bill that month. Maybe Jay Powell doesn't get caught with his pants down and the yield curve flattens, but that I call bs on. Whoever is the chair has lied to America since Greenspan.... My daily banks are Capital One and Navy FCU, but I'm less impressed with NFCU as time goes on, but love my 2% cashback card
what? You are less impressed with NFCU? You must never have seen NFCU's headquarters campus in Vienna, Virginia, and their new annex building🤣 Clients like you are the only way they can afford such expansive facilities. Plus, you have the added benefit of the FBI being next door so you know your money gotta be safe.😄
I don't let my checking account go below 5K, but also keep a couple savings accounts for different things. Have one for house expenses with 5k, one for car expenses with 1500, and another miscellaneous with a grand. Also keep about 6k in cash at home.
I keep the minimum balance possible in my checking account, but it is linked to my savings account for overdraft protection in case I slip up. And my savings account is growing toward 3 months of expenses (I had an emergency actually happen which drew it down quite a bit). My philosophy is that if every dollar has a job, I’m not going to let some of my dollars have the month off and sit idle.
I love to hear you have the savings and checking linked 😊
Agreed, [as mentioned] even if saving isn’t paying much it is usually a free (probably limited) overdraft protection so it makes sense to keep the checking lower and savings has your emergency funds.
i have belong with the same credit union since 1978, would not have it any other way, good information!!
$50. And I only keep that much because Im too lazy to figure out how to stop annoying alerts from the bank when it gets under 50. I dont pay bills on due date. I pay them as soon as I get paid, invest most of whats left, and put the last chunk in short term CDs/treasuries. I have a Heloc that I can tap into in case I need the liquidity which Ill quickly pay down later.
I actually don’t keep much money in my checking. I just try to keep an even number (multiple of $25) in my money market.
However, I don’t ever overdraft, because if there’s ever not enough, I have it pull from my savings before I get charged a fee.
I keep all spending in checking plus a buffer, normally I shoot for 2 or 3 months income just sitting there. Now the funny part, because there funds there. I'm able to cash flow simple emergencies like new tires, or a small car repair without touching my emergency funds.
Nice!
I have a checking account at a credit union. Aside from a few loans I haven't set foot in a physical location in decades. The credit union insurance is called NCUA which is exactly the same as FDIC.
I don't keep a balance in my checking as it exists as a waypoint for money to rest temporarily on it's ways somewhere else. I have two savings accounts and a line of credit attached, so if there was ever an overdraft, it would draw from a savings and then the line of credit.
Since the pandemic, I have nearly entirely stopped using cash and ATM's, but there are apps that can locate fee free machines in my credit union network across the country. I pay for everything on a credit card which I then pay once a month from my checking. That strategy is only good if the credit cards are paid in full each month. Everything left over eventually finds it's way into an investment account.
Passed this one on to the kids Erin, great rules to follow. I'm the same way I have never used an ATM card, my wife has one but I don't think she uses it very often, (but I would never ask) if I need cash I go to the bank. But when I pay with cash all I can think about is there goes some Alaska air miles down the drain. Sounds like you were under the weather a little, I hope you three have a great weekend.
Thanks for sharing it Phil! I’m glad to hear someone else goes to the bank 😊 I’m slowly getting better, thanks!!
Smart to not use the ATM card for purchases, for identity theft reasons.
I use a budget app that looks like a desk calendar (CalendarBudget). I have all my regular expenses and deposits set into infinity and I log each extra expenditure on a daily basis. The app automatically calculates my daily balances into infinity with each change I make. So, I can see how my 1/5/23 purchases will affect my 1/17/23 or 3/31/25 balances, for example. If I write a check, I scoot the transaction along the days in the calendar until i see my payee cashes, but i consider the money gone as soon as I write the check.
So, there is no reason for me to keep any buffer in my checking account, especially since I run most transactions through a credit card first (and I track all of those purchases like they immediately come out of my checking account).
I don't quite budget to 0... there's usually 30-200 bucks left from each paycheck after hitting my debt and savings goals... but since I like earning 3.2% interest on every dollar I can in my hysa, I keep my checking account pretty sparse!
That’s really cool!
My routine is to check every Monday, and see what bills are expected that week. I make sure I have around $1000 more than expected bills for the week. The rest goes in Savings. That way if something unexpected shows up, I'm ok. I have plenty in the savings account that I can transfer over instantly if something unexpected comes up.
I like the weekly check in!
I keep about $3000 in my checking account.
checking has enough for monthly budget plus enough padding to pay for one major ad hoc expense $4k each joint checking at separate banks, which is important if you are a home owner since the vendor may not accept credit card. I carry flash cash gangster roll on me to make it rain amounting to $20🤣. I also keep enough cash in a brown cookie jar that says cookies located on the bottom shelf to the right of my refrigerator located at 1600 Pennsylvania Ave NW, DC😂 j/k...I do keep $1k-$2k in family go bags in case the feds are a coming or in an emergency where I need to evacuate the house. Then my income disruption/loss fund is one month's expenses across two separate HYSA, with subsequent months' worth laddered maturities across t-bills and currently i bonds (although once inflation gets under control, i'll completely dump i bonds). Technical glitches and such these days I feel require you to split your checking and savings across different banks. We have two joint checking at different banks so half our money would be accessible if the other bank had a technical glitch. HYSA also two separate at different banks than our checking.
😂 “make it rain amounting to $20” 😂😂
We keep about $20K in our checking account and $10K in savings. Looking to move $20K to HYSA and $10K to checking
We pretty much do the same as you, and I like to keep about $500 buffer in checking. All the rest is in other accounts. You sound like you have a little cold, so hope you feel better.
I’m on the mend 😊 thank you!
Basically three months expenses,
I go with one month's expenses in my checking account, with the rest of my "emergency fund" in a tax free money market at my brokerage firm. I have the 2 linked so it's easy to move money back and forth as needed. I also have a credit card from my brokerage firm that pays 3% cash back on every purchase so I use that to pay a lot of our expenses and then pay it off at the end of the month from checking. That way I think of my checking as paying me 3% interest.
I keep 1000 dollars worth for bills and investing
1 month buffer minimum at all times! I use auto-bill pay for as much as possible and I don’t want to have to babysit my balance. This is all about liquidity, so it’s serving a task. I’m willing to let that small amount earn nothing & consider it part of my emergency fund
Zero budget household. Maxed out TSP (+catchup). CC/bills paid from Spend account. Emergency, and funds for next bills, in Reserve account. Taxes and savings in Growth account. 4 different CC for just bills (pts and credit score). CC, no cash, for daily usage (pts)
Love your channel, I encourage my kids to sub.👍👍
Thanks Erin video as always
Thanks Tony!
I use T-Mobile money as my savings account, it pays 2.5% APY right now and it is a checking account allowing me immediate access if I need it. I use a more traditional checking account for everything else besides savings and I can go to a bank if needed. I make sure I leave enough in that account to pay bills and I have a couple hundred to about 1,000 extra in it just in case.
I keep about a grand in checking and 10k in savings. I've never used it but my credit union will auto transfer from savings to checking to prevent an overdraw. We're debt free including no mortgage so I'm comfortable funneling cash into investments and just paying bills from checking.
Debt free 👏👏👏
Great advice! I found that credit unions usually give you the best service, no fees and best return. Example my checking/saving (Rewards Account) with may credit union pays 3.00% on the first $15K... nice return on our monthly cash fund.
CUs really do have wonderful customer service!
I transfer over $ from my M.M account to my checking as needed with bills as some months are more challenging than others with School tax, Property tax , house and car insurance payments , condo rental ect . I rather get the interest i can in the MM and always leave 1 K in my checking . Easy to do on line as needed . Erin , are you sick ?
Love your channel Erin!! Been watching for a while now. Is it just me or does your video background get lighter and darker? I'm not sure if it's an effect of you moving and the camera trying to correct and overcompensation and dimming? Just something I noticed. LOVE your content!!!
I sit in a room full of windows ..that's the sun/clouds moving as I film. I'm hoping in the next couple months to start filming in our basement - which is currently a construction zone 😊
I use a Credit Union and I try to keep about $100/$200 above my normally monthly bills in the checking with a small saving account that will automatically be pulled from if I over draw. I watch this checking account often and only have the money in it to pay the monthly bills. Move extra money when necessary. I keep a small amount in there so that I wont look at it and want to spend it. Out of sight, out of mind. 🙂
Absolutely, out of sight out of mind!
We used to keep $3,000 as a baseline in checking, but last year we had an overdraft (first ever) when I failed to keep track of a property tax check for $3,300. (Physical checks are for the birds.) We've since bumped up to $5,000 as the baseline, which ensures that no forgotten transactions can cause an overdraft. However, I never knew you could connect a checking account to an external bank's savings account. I'm about to look into that for my bank immediately after this comment. That would allow us to drop our baseline back down.
I monitor our checking to have $6,000.00 at the beginning of each month. With the exception of the last 4 months, our expenses paid from our account was a little over $5,000.00 or less. I’m a semi professional house spouse that’s retired from the USN, so I almost review the account daily. I also review and track all 5 of the statements that are auto payments from our checking account. The only withdrawal that I might not know is when my wife uses her Target card. I love NFCU!
My hubby has been making the change to nfcu! (I’m not 😂 but we’ve always had different banks….I would have to drive way to far to get to that branch, and like I said, I like stopping in to get peanut 🐶 a treat)
@@ErinTalksMoney I find that Penfed CU has better service and rates than NFCU.
Wait, did I miss the video where you explain the zero face budget? Sounds like something I'd LOVE to try! Is the idea that you have separate checking accounts for each bill (e.g., student loan payment checking, mortgage checking, etc.) and then direct deposit the same amount in those accounts each month with a small cushion?
I do have a video on the zero based budget!! You don’t have to have a separate account for each bill…just have to assign a job to each dollar that comes in. 😊
I treat the first $5000 in my checking account as my zero balance. I also have a money market account at Vanguard that is currently offering 3.7% interest. It is very easy to transfer money between the accounts.
I like that idea as a zero balance! 😊
Great suggestion on using different account titles to maximize FDIC!
Thanks!
I have 13 months of expenses in my emergency fund (high yield acct). I also keep 3 months of expenses in my checking. My goal is to never rob the high yield account and keep it growing. I keep the expense checking at the necessary balance for emergencies. I also have a 401K with match, deferred savingS account and a traditional IRA.
One month's worth of expenses plus $1,500 minimum. Keeping more is a waste, since most checking accounts are paying little to no interest. Also, if you keep more than that and your checking account is compromised, you'll have regrets. If you keep less than that you risk having to pay overdraft fees. And for goodness sake, pick a bank that has no minimum balance requirement, and no monthly maintenance fees.
Yes!!
We keep a lot more than we should but until recently the money markets did pay anything either. Still don't get much in the money markets. I have been doing some T-Bills and some special rate CDs with longer term money lately. I know some like using high yield savings accounts at other places but I don't much like moving money between financial institutions that much. Mostly goes in one direction for me like from checking to brokerage account.
I keep between $2,000 to $3,000 in my checking account. It's a little over a month's worth of expenses.
I keep about $14K in high yield savings for emergencies and short term expenses. Like you I put large unexpected expenses on a credit card to get points and give me time to transfer money from savings.
Keep under 100 in checking but hsve 6 months in savings plus take 100 to 200 addl for emergency fund plus put aside $im under budget every month. Can never be too safe. Charge very little on cc and pay off immediately its posted so not ever to carry over balance
Probably too much $$ in my checking account (local credit union). I utilize online banks for my emergency funds & CDs plus a small amount in the online bank's checking account. When CDs are due & a different online bank has a better CD rate, I'll transfer to the better online bank. Some of these banks only accept money being transferred into their checking account. It gets a little complicated at times. As I get older in retirement, I'll probably simplify it & accept the slightly lower returns.
All my readily available money including emergency fund is stored in my checking account, which has about $10k, withdrawn periodically from my retirement funds. The right amount for your checking account is never a certainty, because you never know when a sudden, big expense would occur. Home repairs, car repairs, accidents, injuries, and many other things could incur big spending in a short notice. And credit cards can't pay for everything.
I try to keep a small amount in my checking, just enough to avoid overdraft fees. I also have about $200 in my bank's savings account as overdraft protection.
I have 2 checking accounts that pay 3% interest up to $15,000. So I keep close to $30,000 in my checking account. My overflow savings account also pays 3% also and I keep $50,000 to $100,000. I also have a HSA account that pays 2%. I deposit the max I can in my HSA to reduce my tax base.
We have the same mindset. I have a checking account, and I only put is the maintaining balance amount and a thousand bucks for emergency fund. The rest will go to my investments. Although, I shouldn’t because I do not have an emergency fund yet. That is my strategy for now.
I feel like $1,000 just feels like that magical number
@@ErinTalksMoney indeed.
Hi Erin,
I keep approximately $1000 as a buffer. I pay for just about everything with a credit card (never carry a balance) .
I keep the amount needed to prevent all service charges plus a $100 buffer.
Everyone should figure out what they’re happy spot is. It takes time. There are no real right answers but you gotta be able to sleep well knowing what’s in there.
I usually have about £8 to £10k in my current account. Pretty arbitrary figure but only usually move money out when it goes above £10k. I consider it part of off my emergency fund. With low interest rates I have not tried to sweat every penny but as interest rates have gone up it its probably worth revisiting the strategy (well lets face it apathy). Thanks for the prompt.
Eh I do 2k as my "0" minimum. Then budget a month ahead so Nov paychecks cover Dec expenses so I usually have about 1- 2 months expenses . Then a 6 month ef on the side
Sounds like you have a cold? If so, I hope you feel better. 1000 to 300 in my checking. I have a regular savings with 3 to 5 k and high yield savings has 3 to 4 months in savings.
such a terrible cold! Feeling a bit better though :-)
You don’t need an overdraft. It makes you tempted to use it.
Honestly I don't pay that close of attention. When I notice there's "a little too much" extra building up in there I'll ask the wife what bills still need to be paid before next pay period, then transfer most of it to online savings, leaving a couple hundred extra in there.
Now that rates are a little more worthwhile, I keep a little closer eye on it
Nice!
I keep 1 month's worth of expenses in my checking account. Did you see that Bask Bank has gone to 3.78% APR?
I didn’t see that, that’s great!
At 32, I’ve never used an ATM either. It used to make me feel less adult somehow haha Not anymore. I keep $1,000-1,300 in my checking & also love my local bank! Great video.
I feel like it makes us savers! And I don’t know if I can make anyone feel like an adult….I still don’t feel like an adult - I often turn to my hubby and saw, don’t you just feel like we are playing house sometimes? To which he say “no, my job is stressful, I feel like an adult.” 😂
@@ErinTalksMoney This is true! Haha Do you even have a debit card anymore? I just got my new one automatically in the mail, but don’t use it-so probably won’t activate it. I was late to the credit card game because my parents used theirs for vacations etc Literally to borrow money. They broke their habit of that & steered us to never having one.
@@ErinTalksMoney Know your husband is in the service but, hope he can find a less stressful situation while he's young. Job stress got to be too much when I got older. Fortunately, I was responsible like you and was able to retire at 56-1/2.
I try to keep around $1K myself in my checking account. Sometimes I fall below, but not often.
Your financial bone-fides are clearly impressive....you do a bunch of stuff the way I do it!! ;-) I keep, all at one local credit union: 1) about $1k in checking, 2) about $2-3k in "savings," and 3) about $20-$30k in a money market. After the money market are whatever investment options seem good at the moment. My C.U. allows three transfers per month, between them, without charge.
By the way, can you do a separate video about married people keeping separate financials (you mentioned here briefly that you and your husband do). This to me is like the mystery of Sasquatch or the Loch Ness Monster as to what benefit couples get out of this. I'm really curious. Thankia!
I can do a video on that 😊
Well, my wife handles the money for our daily lives. It is safer and better for both of us. However, there are times when I wish I had my own resources and if you will secret account. As every purchase I make and I mean every purchase gets noted by my wife I can't buy a gift or some one time purchase without her asking me if I made such and such purchase. She isn't watching me per se but rather confirming that a purchase was really mine. But it has made me feel like a little kid that was always being watched. I can't stop while on a road trip and grab a bite at a fast food place without being asked about it. It can get old.
Having said that, I know she isn't being an overlord just checking for security but sometimes - just sometimes I wish I could just spend $15 on lunch with out submitting an expense report and a justification report. Just kidding. 🙂
@@Gatorguy2000 My long lost brother saver Chris Goodwin! Scott Goodwin here. Interesting stuff, and the gift part for sure is a benefit as Bryan also mentioned. My wife and I are kind of on a no-gift policy except for token items. We're accounting and finance majors too btw....interesting similarities....except for us everything is one big blob! Thanks for the background Chris and Bryan, very interesting.
I let my first wife be the money manager of "our" money. She was an avid spender and I discovered over $10K in credit card bills. We took out a personal loan at a lower rate, paid off the credit cards and agreed that wouldn't happen again.... then it did! 20 years with wife #2 and we both love the independence and security of our own finances! Money problems don't exist for us and we stay together because we want to, not because we have to. She has three adult "children" and I have one. We were married at 43 and 48 so how fair would it be to mine to see her inheritance taken away and only given back 25%?!!! I could go on and on. Nothing wrong with splitting bills or the higher earner paying for entertainment or vacations. Live together on an even footing but, keep finances separate for security and piece of mind.
@@hogroamer260 Excellent points!
I have 3.95 is in mine right now. I keep most of mine in my savings account at 3.95%. 6 months expenses worth on my savings account.
1-2 months of expenses!
Perfectly as to what is recommended! 👏
I keep around 10k in checkings. The rest of the money goes into fixed income securities and brokerage accounts. 23 yr old male
I am in retirement and relying on my nest egg to pay the bills and live my lifestyle so i keep a decent amount in my checking account. However, most of my excess cash is in my portfolio margin account where i sell options to generate extra income (avg about $2.5K a month) on just CASH. However, I recognize most people don’t understand how to do this.
Does that FDIC different name trick actually work? I would expect it to be based on social security number too.
There are some different categories that get their own $250k limit, like joint accounts and I think IRAs are also a separate limit. I'm not sure, but I think a married couple could each do individual accounts for $250k each and another $500k in a join account, so $1million total insured at the same bank. Or just spread out between a few banks if you somehow have that much cash.
It's really hard for businesses where a few million might just be one pay cycle worth of payroll. Spreading out across banks isn't feasible for a business to run payroll.
I keep ~$30 in my checking and ~$500 in my savings account. I do get paid weekly, and just put everything on the CC and pay it off each week.
Was just thinking about this...
Well that was good timing then!
I keep $0 in my checking and all my bills are pulled from savings because that silly maximum withdrawal limit has not been enforced since Covid
Hi Erin, you seem to be under the weather based on your voice. I hope you'll feel better 🤗
As a subscriber, I'd like to thank your husband for serving in our U.S.A. military. Much respect and appreciation!
$ 100 in chk 1 month worth of expense in savings i have high limit credit card and heloc for large unexpected expense about 65% of hh income goes to investment, never paid any bank fee nor interest for cc, pay off by due date. key is as you said budget i know exactly how much the bills going to be so i can plan everything around the core bills.