Moneytrackin' - Savings tips: Organize your accounts

Organize your accounts

Try to have at least 3 separate accounts:
(1) Day to day account
(2) Savings account
(3) Investment account

The Day to Day account serves as your daily expense account. You should take time to set the daily, weekly and monthly expenses that you are incurring so that you could move the excesses to your two other accounts.

The Savings account is your piggy bank. This should not be less than 6x your monthly expense. The reason for this is so that you could survive for 6 months if you lose your current source of income (day job).

The Investment account would be your money pot which you could gamble away on several investments (stocks, mutual funds) or to store your funds for something like your own business. You should only deposit to this account when you have reached the minimum amount in your Savings account.

Tags: accounts expenses investment personal salary savings
Posted on 08-09-2008 21:52 | 7 Comments | Favorited 7 times | Marked 0 times as inappropriate

Comments

shadow383

#1 Thanks for this. It seems obvious but then "common sense" is not so common. Given I've just transitioned between jobs with a break of 1 month between, I realised how little savings I had left and how close to the mark things came. This structure is great advice and one I'll be passing on to my daughters so they never end up in the unpleasant places I've been over the years. Thanks you.

-----------
PJP Fowler

Posted on 02-10-2008 03:05

godidas11

#2 Great Tip, one of my favorites!

-----------
Get money...get money!

Posted on 06-10-2008 16:49

eugie512

#3 new to the work force, and savings... what do you mean by "minimum amount in your Savings account"

Posted on 04-11-2008 12:21

bjbasanes

#4 Thanks for the tip. I'm new. Is there a way to set a minimum amount?

Posted on 20-11-2008 23:19

rabatal

#5 Hey guys, the minimum amount is the "6x your monthly expenses!"

-----------
Reina Batal

Posted on 02-11-2009 09:02

moneytrack..

#6 That makes perfect sense. I wonder however, how one would gain 6X your monthly expenses? is the only answer to transfer over the excess after the monthly expenses.....?

Posted on 08-11-2009 23:45

cole121521

#7 out of all the weird tips on this website. that's a really good tip. how much money do you get when you do that?

Posted on 23-07-2011 00:12

Sign-in to write comments Or sign-up here