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Ditch Your Single Savings Account ASAP!

financial literacy Feb 09, 2021

Many of us were indirectly taught growing up to have an account at your bank or credit union called “savings”. It made perfect sense because you knew you needed to save money for future use at some point.    

 

However, I’m here to tell you to ditch your single savings account and open up multiple named savings accounts that have nicknames to reflect your needs and your “what you value” expenses. 

 

You and I both know that it’s super simple and tempting to spend money out of your “savings account” on a whim for something you desire. When you give into those whims, it always seems to come back and bite you when you have an out-of-the-blue or emergency-type of an expense (think of a car repair). 

 

One way to reduce this stress and have more control over your cash is to open up various “digital envelopes” of cash for things like car maintenance, new car, travel, hobby, clothes/shoes, etc. This will give you more comfort when an inevitable expense comes your way.

 

Be sure to find a bank or credit union that does not charge you to have multiple savings accounts or requires you to have a minimum balance of more than $50 in each of these named savings accounts.

 

Naming your cash in these digital envelopes will make you feel a whole lot better as you begin to get ahead of life’s unexpected expenses and also save for things you truly value.  

 

Be sure to check out our DO MONEY DIFFERENTLY and INVESTING MADE EASY courses here

 

Remember, you have what it takes to do money differently and live a life that fits your dreams.

 

-Todd

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