Another One. Why I Have Multiple Bank Accounts
B.C. (Before Corona), I walked into my local bank to make a transaction with a banker that wasn’t my usual banker. I had to show my ID and my bank card to proceed with the transaction, you know procedure. But I got my bank cards mixed up, like I do my shoes from time to time. The banker was confused at why I had multiple bank cards (at that financial institution and others). For a second, I had a slick attitude, but I checked them (no pun) to give insight into my methodology.
I even had some of my clients ask the same question when I told them to make sure that they got their money to get on their job! *Alexa! Play Motivation by T.I.* When this logic is pretty legit, but I will give you the insight into it. You can’t know what you want your money to do if you don’t know what jobs that the company (your budget, life) needs to run smoothly. Creating a budget is more than knowing what bills you have, it is about knowing what all your coints are doing at all times.
In my 3B method for my budget, I call this out pretty fully. For a designated bank account, you might or might not need a bank card. But it allows you to know what that card is for. Some folks do this with envelopes (for spending + saving), but this is a more automotive way of doing so. Especially with what is going on with the potential cashless pivot. Most of us are quicker to pull out a card than we are to do cash. *hands up finger*
For those times when you need to pull out your bank card designated for groceries, you aren’t going to pull out your card that you marked for bills. Either you can get them designed or labeled, this is also building discipline within your wealth factor. You determine which transactions are designated for that bank account/ card. Here’s legit how to make this magic happen, walk with me -
Determine what your expenses and income streams look like for the month. Click here to get started.
Peep your current line up of bank accounts + cards. Be mindful if your account comes with fees (get the best bang for your buck with these banking institutions, they don’t love you, they love your money. Protect it).
Configure what transactions from pulling your slip will go within each category or card/account.
For bills, go ahead and update the bank account information with what you determine on what works for your formula.
Implement and monitor how things run and how you operate.
Give yourself 2 months or so to work out the kinks and strategy. *You know it takes 21 days to develop a habit?*
Running your expenses and income within one bank account makes it even easier for you to miss transactions that could be swiped or scammed. I keep calling your budget + life a company, one bank account doesn’t work for them. They have accounts earmarked for each category. You are the business of YOU and your WEALTH! Got any questions about how to implement this within your money management building? Ask below!