Organize your Bank Accounts

6 02 2012

We are sticklers for putting things where they belong.  Our home belongings are completely organized from top to bottom.  Computer items are stashed away in the computer desk, kitchen items stay in the kitchen and so forth.  In addition to our household belongings staying organized, our financial house is in order as well.

What does this mean you ask?  What financial house?  We’re talking about how you store, save and spend your money.

How to Store

  • Nicknames and Multiple Accounts.  If you bank online you have the ability to add nicknames to your accounts.  You may nickname your checking account “Bills”.  Multiple accounts work the same way – if home ownership is in your future, you may want to open a separate account called “Home or Down Payment”.  There is a wide array of nicknames that people create – some include: emergency fund, home maintenance, baby fund, college fund, new car fund, etc.

  • Write it Down.  Written budgets/spending plans make it easy to see your accounts.  We suggest you keep a running list of bank accounts in a safe place at home to keep stock of their whereabouts.

  • Separate Accounts.  For those wanting to consolidate accounts, there’s a way to sub-categorize accounts on paper.  For example, you have one savings account but you are wanting to purchase furniture in the near future so extra cash goes into the one savings account you have.  What you can do is write down on paper the amounts of money you are adding to the savings account which are to be allocated for furniture.  Tally up the total and when it comes time to make your purchase, withdraw that total from your savings account.

How to Save and Spend

  • Set Goals for Extra Cash.  One way we organize our home is to set goals upfront.  Whenever we come into extra cash (i.e., gifts, bonus), we commit to having a plan for that money whether that be saving or spending.  Normally folks add this extra money to their Roth IRAs (if you are working), make an extra payment to their credit card or save for future spending.  No matter which road you take, decide how and when you will save or spend your new-found money.

  • Track Your Cash Flow.  Keeping tally of your accounts will inspire you to continuously keep your accounts organized.

Start  now to organize your financial house.  List the accounts you have and their purpose.  If you bank online, creating nicknames is a sure way to keep your accounts organized!

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