Your 5 Expense Accounts
Checking
- Checking Account # 1 is for bills only. This account will pay all bills exclusively.
- Checking #1 will primarily serve the fixed and variable expenses category of your budget.
- Checking #2 – is for fun only. Deposit cash into this account for eating out, shopping, weekend adventures etc…
- Checking # 2 will primarily serve the choice expense category of your budget.
Savings
- Savings #1 -is for “Emergencies” only. Divide the monthly savings amount you determined in the previous activity by three. Then deposit that amount into this account monthly.
- Savings #2 – This account is for short term savings such as semi-annual events, special events and annual events. Divide your monthly savings amount by three and deposit that amount into this account.
- Savings #3- This account is for long term savings such as investing, buying a house etc… Divide your general savings amount by three, insert that amount into this account.
- The three savings accounts can exist at the same bank as one of the two checking accounts if you prefer. (Remember – the two checking accounts will exist at different banks.)
