The 7 bank accounts you need to have! I get asked what bank accounts I need to have A LOT! How many bank accounts do you have? And what do you use them for? So today I am going to tell you exactly how many accounts we have and what they are for.
Bank accounts you need
1. General – this is our life account. Both our wages go into it and this is where I withdraw our cash budget from each week. Our direct debits come out of this account and transfers into our other accounts like extra mortgage repayments and savings accounts. At the end of the week there isn’t anything left and that’s the point it pays for our life.
2. Bills Account. We have totalled each bill for the whole year and divided by 52 weeks. We then save that amount + a $50 p/w buffer for inflation. All our bills are then paid in to this account. If you have a bill heavy month (doesn’t everyone!) your first year you may need to add more to account for that. But subsequent years its smooth sailing. These bills include – compulsory mortgage repayments, rates, water, electricity, car, house and life insurance. We don’t have a EFTPOS card for this account because all bills are either BPay or direct debit.
3. Savings Account. Where we save for our big goals. We don’t have an EFTPOS card because we don’t spend from this account. If we need the money we transfer it to our general account.
4. Wife Spending Account. Where our week allowance or ‘fun money’ goes. These accounts are separate because we have different spending habits. I spend a little each week while my husband saves and lavishes his wife with gifts – totally jokes. He saves up and buys stuff for his gym or camera.
5. Husband Spending Account. He gets the same amount of allowance each week to do with as he pleases. (It is also worth noting that these are the first categories to get cut if we need to save extra money)
6. House Sinking Fund – as a home owner there is always something to do around the house. Gardening, painting etc. This is an account for that. We transfer some money each week specifically for the house. This gives us some leeway if something needs repairing, but mainly we like to do home improvements (Our house is far from new). Some months it is all saved for a large project other times there are smaller projects that need to be completed.
7. Emergency Fund – $1000 in a separate account without a EFTPOS card for true emergencies. This could be for a car, house or medical emergency.
The only other account we have is a savings account for our son. This is a regular savings account, that is linked to our accounts without an EFTPOS card. He is only young and so doesn’t even know this exists. He will not be getting access to this account until he is at least 18 years old.