Happy Saturday everyone! After this past month I've decided there has to be a better way to handle my finances between necessity/non-necessity. Currently I've been transferring X amount of money to my savings account and having the rest sit in my no-interest Bank of America checking.
So this past week I decided to open up a second checking with the same bank as my highest interest savings accounts, ING Direct. I did this for 2 reasons: 1) The checking actually earns interest so any money sitting there is getting more than my BOA savings account and 2) I can do same day transfers between my savings/ING checking.
Number 2 is really important to me because I can put money into my savings but transfer to the checking if absolutely necessary.
I also calculated how much I am approximately spending per month on bills... for me this involves rent, cell, energy, water, yoga, student loan repayment, etc.--let's say $1000 for simplicity's sake. Then, I changed my paycheck direct deposit to put in exactly $1000 per month, or $500 per paycheck. That way, I know the bill money will not be confused with the other money.
The rest of the paycheck is deposited into BOA checking and I have that for everything else! Retirement savings, emergency fund, groceries, shopping, etc will all come out of it.
Is there a special way you help manage your finances?
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