How many checking accounts do you have?

[Nutria]

I was thinking it would be inefficient if I had 20 subcategories of potential expenses that may not happen all at once.

And here I think it's the most efficient way.

Naturally, I'm right and you're wrong...

[Nutria]

It sounds like you have a great system that works well for you.

It's taken 3+ years, and still I'm evolving it.

I do something similar in that I have 2 checking accounts. One for monthly expenses and one for everything else. The monthly expenses account has 1-2 months worth of expenses in it most of the time.

The other one has a lot in it (EF, vacation, car, surgery, other stuff). I often think about investing that in my long term savings plan, but then I chicken out and leave it sit there. Between that and my taxable savings account, I could buy a nice house and rent it out. Tempted to do that, but don't have the guts to take the risk.

Why so much in 0% checking accounts instead of a combination of online CDs and savings account? Sure it's just 1%, but 1% of $25k is a lot better than 0% of $25k...

[disneysteve]

Without explicitly planning for those future needs, we'd quickly... not "nickle and dime" but "dime and quarter" our savings back down to zero through a combination of "stuff" and more short vacations.

Some people look at money in the bank as money waiting to be spent. Others look at it as savings for future needs. You need to know which type of person you are and plan accordingly. If you know that you won't be tempted to spend money just because it's there, there's probably no need to itemize where every penny is going. If you are the type that will spend it if you don't have that specific plan, then you need to maintain that plan.

[corn18]

It's taken 3+ years, and still I'm evolving it.



Why so much in 0% checking accounts instead of a combination of online CDs and savings account? Sure it's just 1%, but 1% of $25k is a lot better than 0% of $25k...

Simplicity for my wife if I die. I had money spread all over creation getting deals and 1% interest. Then I had a heart attack. Then I simplified everything a lot. I'm sure you've seen what happens when a loved one dies and those left try to sort out the finances. Not fun if it's complicated. Grieving is a lot easier if you don't have to worry about money for a while.

So the $1,000 a year I lose in interest is well worth the investment knowing that my wife can live for over a year without moving anything, anywhere.

Tom

[Nutria]

Some people look at money in the bank as money waiting to be spent. ... If you know that you won't be tempted to spend money just because it's there, there's probably no need to itemize where every penny is going. If you are the type that will spend it if you don't have that specific plan, then you need to maintain that plan.

Money definitely burns holes in our pockets...

A budget got us out of $31k of CC debt, but categories got us $23k cash in the bank (while also traveling a lot, sending both kids to parochial school and buying a 2nd car along with insurance for a teen boy and soon girl).

[Nutria]

So the $1,000 a year I lose in interest is well worth the investment knowing that my wife can live for over a year without moving anything, anywhere.

Makes sense...

[disneysteve]

A budget got us out of $31k of CC debt, but categories got us $23k cash in the bank (while also traveling a lot, sending both kids to parochial school and buying a 2nd car along with insurance for a teen boy and soon girl).

Clearly your system is working great for you. Keep it up! Don't let others who do things differently convince you otherwise.

[GoodSteward]

To the OP, I use one checking and one savings with a different bank to hinder the desire to transfer. (I used to have a big problem with transferring too much out to cover bad spending habits.) We went from separate accounts to joint accounts, which does add a level of complication while also simplifying. When I started ministry work that earned an income, I setup a new savings and checking. The point was to keep ministry apart for taxes, and save up for paying taxes. Turned out, since I didn't make a killing with this income and I have plenty of easy deductions(charity and mileage) I didn't need to worry with it. I don't have to save from this account for taxes, and I just overpay on my non-ministry to cover it.

Having two checking and two savings became a complication, even with having a nice custom spreadsheet with formulas and a budget. It got old transferring all the time in and out, and remembering which card to use. I went for a simple program to separate stuff(ended up using YNAB, but there are others as well) and closed both savings at my local bank and one checking. I, in turn, opened a savings with Barclay that offers around 1% if you consistently put money in but don't pull out over 6 months. I didn't realize the stress I was under with my multi-account setup until it was gone and all condensed into this program. I don't ever want to go back to a multi-account setup.

I have 1 checking...wife has 1 checking. We actually dont have a joint.

I wonder how many "younger" married couples have separate accounts? I know my parents generation...everyone seemed to have joint. Doesnt matter to me...doenst make much of a difference other than the fact that we probably use more checks than if we have joint. Hers is mine, mine is hers, all is ours, yada yada yada...seems to work for us.

Not to mention I use a pencil in my checkbook registry and she uses a pen, she will cross stuff out and I will use an eraser. Thats a deal breaker imo of ever having a joint account.

I had a joint account when I first got married because I saw my parents do it. It turned into a mess trying to keep things figured out, mainly because our incomes were so low and we needed every penny. Now, having watched family show the massive trouble you can get into with a spouse hiding their spending problems, as well as living alternate lifestyle to hide many things, I feel a joint account is best for most. However, with age I've also seen the wisdom in having this one spouse keep them separate. If he hadn't, his wife would even now be spending everything he makes due to not budgeting and not saying no. There are issues that need to be addressed obviously, but they are defensive of any interaction, so I leave it be. The point is that separate accounts usually indicate a trust issue because one spouse ultimately has more control and that can be hard for people accept. From all the examples I know of where accounts are separate, at the root of it, it's a trust problem as well as a feeling of independence being stripped away. Each couple needs to figure out what is best for them, and I'm only speaking on behalf of the many couples I've talked to about this.

[cypher1]

Two checking accounts:

Primary is a credit union for direct deposits and main transactions/bills.
Secondary is US Bank for more convenient ATM access in case I need to withdraw larger amounts of cash on short notice.

EF is in savings account at CapitalOne360. But I'm thinking of going to Ally Bank.

[Nutria]

as well as a feeling of independence being stripped away.

But isn't that what marriage is (becoming one unit instead of two)?

Anyway... I live in a Community Property state, so our finances are commingled whether or not my wife and I have separate accounts. Thus, it's simpler to have a single account.

[rennigade]

The point is that separate accounts usually indicate a trust issue because one spouse ultimately has more control and that can be hard for people accept. From all the examples I know of where accounts are separate, at the root of it, it's a trust problem as well as a feeling of independence being stripped away. Each couple needs to figure out what is best for them, and I'm only speaking on behalf of the many couples I've talked to about this.

Im sure for the majority that may be true...for us its just not the case. Its just one of those things thats really difficult for anyone to understand why a married couple does not have a joint account. People will always try to convince you why it should be joint, what the problem really is, etc etc. The fact of the matter is we just have separate accounts...thats all. People can bring in earth movers and dig as deep as they want but they arent going to find anything under the surface. Its a system that works for us...its a well lubricated machine that is working.

And even with me stating the above those who are married and have a joint account will still think we're crazy and never understand. Its just what they're used to so they feel thats the superior way. Different strokes for different folks. And yes...we abide by the "our" money...not "my" money. We understand and accept that its all ours combined.

This topic has come up a lot of times. Ive always been interested in all sociology related things. How people think/function...what they consider right/wrong. This is simply one of those interesting topics related to people and money and how they think things should be done.

[Nutria]

EF is in savings account at CapitalOne360. But I'm thinking of going to Ally Bank.

I like the CO360 website better. Lines in a register instead of pretending to be a smartphone. (I hate the "all the world's a smartphone" design philosophy! )

I do have some money sitting in Ally, though, barely touched, because of the higher rate.

[corn18]

Im sure for the majority that may be true...for us its just not the case. Its just one of those things thats really difficult for anyone to understand why a married couple does not have a joint account. People will always try to convince you why it should be joint, what the problem really is, etc etc. The fact of the matter is we just have separate accounts...thats all. People can bring in earth movers and dig as deep as they want but they arent going to find anything under the surface. Its a system that works for us...its a well lubricated machine that is working.

And even with me stating the above those who are married and have a joint account will still think we're crazy and never understand. Its just what they're used to so they feel thats the superior way. Different strokes for different folks. And yes...we abide by the "our" money...not "my" money. We understand and accept that its all ours combined.

This topic has come up a lot of times. Ive always been interested in all sociology related things. How people think/function...what they consider right/wrong. This is simply one of those interesting topics related to people and money and how they think things should be done.

I have no opinion on the social aspects of separate accounts, but do yourself a favor and make them joint. You won't enjoy the process of getting into your non-joint accounts if something happens to either or both of you.

[disneysteve]

And yes...we abide by the "our" money...not "my" money. We understand and accept that its all ours combined.

I think this is the key far more than whether or not there are multiple accounts.

Where I do have a problem is when someone posts something like, "I'm saving 15% for retirement but my husband is saving nothing" or "I have $3,000 in my vacation fund but my wife only has $200." To me, that reads as a couple that isn't considering all the money to be "our" money. What happens when vacation rolls around? Is the husband going to leave the wife home because she hasn't saved "her" share? What happens when they retire? Is the wife going to let the husband starve because he didn't save enough?

My wife and I function as a team with shared goals. We could do that with separate accounts. We just find it far less complicated to do it with one joint account. There's a lot less to keep track of that way. It's hard enough staying on top of all of the various retirement accounts we each have from current and former jobs which have to be individual accounts. If we could combine all of those into one, that would be fantastic but it isn't an option.

[GoodSteward]

But isn't that what marriage is (becoming one unit instead of two)?

Anyway... I live in a Community Property state, so our finances are commingled whether or not my wife and I have separate accounts. Thus, it's simpler to have a single account.

Right, that is the point. I was just stating that is a common thing I see when one or both argue against a joint account. I agree it isn't a good thing, but that's me.