13 Bank accounts?!

[Nutria]

However, as I said before that seems more like a discipline issue rather than a best practice.

Exactly. Besides, "the unexpected" happens. With a spreadsheet (or YNAB) managing the subcategories, you can go negative on one -- which I had to do when our Federal taxes due were higher than expected in April -- without having to juggle stuff around.

That spreadsheet column just went red for a couple of months until the State refund arrived, and we zeroed it out with some from the "Uncat." column.

[Gailete]

I believe that I have 13 bank accounts as well and that doesn't count our retirement savings. I got the idea from the book
How to Get What You Want In Life With the Money You Already Have by Carol Keeffe . Because I get my SS check near the end of the month, but usually 3-4 weeks before our mortgage is due, I have an amount set aside to a savings account where the bank acutomatically makes the mortgage withdrawal, same with a Christmas Club account, only the bank sends me the money, we have an account for the rental money for the property we own and rent out so that that money isn't co-mingling with regular house money, expecially when time to pay taxes and insurance on that property, and account for our business income with our business name since otherwise we couldn't cash those checks, we also have a checking account. At another bank we have the checking account for my business. On line in our former ING account we have tax accounts one for each business, that we tuck money in as income is made, because of the type of work my husband does sometimes he gets a big check for supplies from customers and I keep that seperate so it doesn't get spent, etc. I have not problems doing this and I assure you that I am not lazy lacking self-control (#2 lack some self-control needed to go to this extreme to make sure money is saved up for things when they come up). I want to see at a glance that I am saving what I need to for things like estimated and property taxes, that bills are being paid on time, etc. We don't have a lot of money coming in and it takes a great deal of self control to constantly remind yourself that even if you have $3000 in your checking accounting that it is all spoken for and in reality you are broke. So I take it out of the checking accounts and save it where I need to. It also means since I DO NOT have debit cards for each account, that I have to be sure a transfer is set up in time to get the money to my checking account when the bill needs paid. My husband doesn't understand any of it, but he put me in charge and we are doing as well as can be. My son does understand what I do, as he does it as well, and will probably be the one left to explain it to my husband if I die first. He would have a checking account and maybe a savings account if left up to him. It is how I stay sane about our finances and every year I get better and better and even when we have low income years, the bills are being met and that is what is important. I don't care what anyone thinks of how I do it, but it works for me and the banks don't care that I am doing it.

What works for anyone is the really important thing so that they know their bills are being paid. I totally don't get that no forecasting thing. Property taxes come due twice a years here plus estimated taxes 4/year. So a person isn't supposed to look ahead and set money aside for them? I just didn't understand that at all.

[Nutria]

I want to see at a glance that I am saving what I need to for things like estimated and property taxes, that bills are being paid on time, etc. We don't have a lot of money coming in and it takes a great deal of self control to constantly remind yourself that even if you have $3000 in your checking accounting that it is all spoken for and in reality you are broke.

A spreadsheet serves the same purpose.

So I take it out of the checking accounts and save it where I need to. It also means since I DO NOT have debit cards for each account, that I have to be sure a transfer is set up in time to get the money to my checking account when the bill needs paid.

I used to do that, but it was such a hassle. Bad Things Happened if an account ever went negative!

Thus, fewer accounts and a spreadsheet to control them all.

What works for anyone is the really important thing so that they know their bills are being paid. I totally don't get that no forecasting thing. Property taxes come due twice a years here plus estimated taxes 4/year. So a person isn't supposed to look ahead and set money aside for them? I just didn't understand that at all.

YNAB makes a false distinction between planning being only for future expenses, and forecasting being only for future earnings.

[Gailete]

A spreadsheet serves the same purpose

While it may serve the same purpose, this is what I do and am more comfortable in doing this.

I used to do that, but it was such a hassle. Bad Things Happened if an account ever went negative!

I don't consider it a hassle and as someone that has gone through the mill financially, to now see in black and white in accounts that all earn interest where we are financially it a thrill! At one point when my son got engaged, I set money aside for going to their wedding plus present. Even when times were tough and it would have been so easy to sneak some of the wedding money out for more 'necessary' things, I left it alone and it was great to go to the wedding and have everything paid for in cash. 18 months that money sat there waiting for it's turn.

The thing is I have a system that works for me. That is what is important that whatever system a person uses that works for them. If your system isn't working with a spreadsheet and you keep tapping the actual money for whatever, maybe it might be better to have several accounts so you perhaps might have to make more of an effort to be sure you only use it for what it has been saved for. Or whatever else will work to keep you on the straight and narrow with handling your money so that you get or stay out of debt and that your financial well-being improves.

[Nutria]

While it may serve the same purpose, this is what I do and am more comfortable in doing this.

I don't consider it a hassle and as someone that has gone through the mill financially, to now see in black and white in accounts that all earn interest where we are financially it a thrill! [snip]

The thing is I have a system that works for me. That is what is important that whatever system a person uses that works for them.

Yes. If it works for you, that's most important.

If your system isn't working with a spreadsheet

It is.

and you keep tapping the actual money for whatever

We don't.

maybe it might be better to have several accounts so you perhaps might have to make more of an effort to be sure you only use it for what it has been saved for.

Transferring money from one bank account is almost as easy in 2016 as transferring money from one spreadsheet column.

The thing is that what if you budget $1,000 for property tax, and the quadrennial reassessment means that your tax is really $1,200? You'd have to hit another account anyway.

Or whatever else will work to keep you on the straight and narrow with handling your money so that you get or stay out of debt and that your financial well-being improves.

Only mental discipline can do that.

[corn18]

I had 13 bank accounts for all my different ST and LT savings and EF. I liked it and it was easy for me to use/follow. Even had accounts at different banks for better interest rates.

But I got rid of all that and went to a spreadsheet. Not because it's better, but because it was easier for my wife if I died. My 13 account system would have baffled my wife and driven her nuts while she was trying to figure out how to bury me, execute the will/trust, get SS and my pension set up and finding a boyfriend. I think it's a lot better for her to have a boatload of cash sitting in one account so she doesn't have to worry how to survive for the next year. After the life insurance comes in, she'll have to figure out the finer points of living off a boatload of money.

Tom

[Gailete]

After the life insurance comes in, she'll have to figure out the finer points of living off a boatload of money.

And finding that new boyfriend -- I'm sure you meant that in jest!

[Gailete]

Good Steward said

I'll make a couple assumptions, but could be wrong. They do this to 1# not have to keep track of everything, like eating out, and #2 lack some self-control needed to go to this extreme to make sure money is saved up for things when they come up

Nutria said

Quote:

Or whatever else will work to keep you on the straight and narrow with handling your money so that you get or stay out of debt and that your financial well-being improves. end quote

Only mental discipline can do that.
Yesterday 07:12 PM

I don't particularly care what anyone thinks of how I track our money. That is my business and it works for me. I do object to the assumption of lack of self control or lack of mental discipline on the part of anyone having a large amount of bank accounts. When the OP mentioned that someone having 13 accounts, his assumption was they lacked self control. I contributed the fact that I also had that many accounts and it works very well for us. His basic assumption is wrong at least in my case as is the assumption of lack of mental discipline.

What and how someone chooses to run their finances is their choice and as long as they have a system, any system that works for them, they should be commended for having control of their money, not to have it implied that they have some sort of mental malfunction or problem.

[GoodSteward]

Good Steward said
Nutria said

I don't particularly care what anyone thinks of how I track our money. That is my business and it works for me. I do object to the assumption of lack of self-control or lack of mental discipline on the part of anyone having a large amount of bank accounts. When the OP mentioned that someone having 13 accounts, his assumption was they lacked self control. I contributed the fact that I also had that many accounts and it works very well for us. His basic assumption is wrong at least in my case as is the assumption of lack of mental discipline.

What and how someone chooses to run their finances is their choice and as long as they have a system, any system that works for them, they should be commended for having control of their money, not to have it implied that they have some sort of mental malfunction or problem.

As I also noted, I could be wrong I knew there could be some out there who might also do this, and enjoy it just because they like complicated systems. I also have stated that as long as it works, it's better to be abnormal and still winning with money vs trying to be normal and failing. To go this far vs a spreadsheet seems like overkill. However, I supposed if you are not comfortable with computers, perhaps the multiple bank account system would be better? IMO, I would only see this being enjoyable to use if someone loved doing ledgers and books, or possibly have a weird obsession with bank accounts. :P

What benefits did you find from having multiple bank accounts vs having a spreadsheet?

I just use YNAB. You can make as many categories as you want. It's the exact same concept rolled into one program, and I only need one account to fool with. In fact, I believe YNAB is designed to use multiple bank accounts also within a budget.

[GoodSteward]

This may not have anything to do with anybody's reasons for their methods, but I will admit before I started using YNAB, I had two checking and two savings and I felt I was smart because it was overly complicated with my spreadsheets. It made me feel intelligent using all these accounts, and this big fancy spreadsheet workbook that had a ton of formulas I had created. I thought it was great, but really it just stressed me out often trying to cover it all. I decided to change to YNAB to help my wife out, and in the process went to one account. I didn't want to admit it then, but I much prefer the simplicity as well of this vs my spreadsheet method. So much less to have to keep up with, but still as powerful (or more so).

[corn18]

"complicated systems" "abnormal" "overkill" "weird obsession" "discipline issue"

I like my complicated, abnormal, overkill, weird system and I do have discipline issues. Guilty as charged.

[Nutria]

I don't particularly care what anyone thinks of how I track our money.

I certainly don't think any less of you.

That is my business and it works for me. I do object to the assumption of lack of self control or lack of mental discipline on the part of anyone having a large amount of bank accounts.

Since it requires mental discipline to not move money from account to account, I stand by my mental discipline comment: whether it's 13 bank accounts, or 13 columns in a spreadsheet, you need the mental discipline to not transfer money from income tax "bucket" to the "appliances" bucket in order to buy that 64" TV you've always wanted.

What and how someone chooses to run their finances is their choice and as long as they have a system, any system that works for them, they should be commended for having control of their money

Having a system that works is great. It's just... an over-complicated system.

[Gailete]

However, I supposed if you are not comfortable with computers, perhaps the multiple bank account system would be better?

Really not comfortable with computers?? What does that have to do with anything?You make far too many assumptions. I was one of the first adaptors to a home PC over 20+ years ago. I run an on line business. My last job was as a financial representative and had to check that nursing homes were billing MC appropriately, and used excel to do my job. I track business expenses and income for two business and rental on the computer as well as tax deductible personal expenses. Most of my accounts I can ONLY access via the computer, and my local bank I do a lot of that banking on line as well. Most of my bills I pay on line as well as it saves stamps and the cost of checks.

The closest thing that anyone has come up with about why we weirdos would use this system, is that yes I do love working with numbers. Except for getting to the 'pay the IRS' line, I even like doing taxes although it was much more fun before tax software and I had to do it all manually. But that is me.

As I have said, why should I apologize for doing my finances the way I do? I don't imply that you might be mentally deficient because you use a spreadsheet. I would bet that most Americans use NO system whatsoever to track their money, which is part of the reason for such debt and overspending and lack of savings in our country. Now THEY are the ones that may have some mental disicpline and self-control issues. Not me thank you very much! Nor do I consider what I do overkill and you will notice I am not trying to pull anyone else to the 'darkside', nor if I were helping people to try to get a grip on their finances would I use the approach that you use. For people way to deep in the mire I have a very simple system to help keep track of bills and outgo.

[Gailete]

Since it requires mental discipline to not move money from account to account, I stand by my mental discipline comment: whether it's 13 bank accounts, or 13 columns in a spreadsheet, you need the mental discipline to not transfer money from income tax "bucket" to the "appliances" bucket in order to buy that 64" TV you've always wanted.

More assumptions that having the accounts mean I (and others) swap between them willy nilly. The last thing I would do is buy a TV from my tax account. I do have mental discipline, otherwise my investment accounts would be empty or not there at all. When you are as poor as we are it takes extreme mental discipline to put money aside when you know it means that you are going to have to be super tight with the grocery money for the month. But I don't think it takes any more discipline to keep from moving money from one account to another than it does to switch it around in your ledgers. No difference at all that I can see. Your system to me looks overcomplicated from my view.

[Nutria]

More assumptions that having the accounts mean I (and others) swap between them willy nilly.

You're grossly misinterpreting my writing. (EDIT: You might be confusing me with GoodSteward.)

The last thing I would do is buy a TV from my tax account. I do have mental discipline, otherwise my investment accounts would be empty or not there at all.

Then why are you arguing with me about the need for mental discipline?

But I don't think it takes any more discipline to keep from moving money from one account to another than it does to switch it around in your ledgers. No difference at all that I can see.

Which is exactly what I wrote.

Your system to me looks overcomplicated from my view.

But since you've not tried a spreadsheet system, you're assuming.

I also thought a spreadsheet would be too complicated. Then I actually tried using a spreadsheet for the multitude of savings "buckets". It is much easier and simpler.

(Caveat: my system is much easier and simpler. Other spreadsheet systems -- like one spreadsheet per account, for example -- would be much more complicated.)