How Do You Set-Up Your Accounts?

Budgeting Part 4  

Because Sweet Husband and I had different ways of managing our money prior to getting married, we spent a long time getting to a place of agreement on our accounts.

Here is what we finally settled on:

Held at a bank

  • Checking account - All of our income comes into this account.
  • Allison’s allowance - I get a set amount each week for personal use.
  • John’s allowance - He gets (the same!) set amount each week for personal use.

Held in various money market accounts

  • Vacation fund - We pull the same amount into this account each month.
  • Property tax and insurance - We calculate what we owe, divide by 12 and pull the same amount into this account each month.
  • Emergency fund - We keep 3 months’ of expenses in this account.
  • Car insurance - We calculate what we owe, divide by 12 and pull the same amount into this account each month.
  • Allison’s savings account - I don’t like to keep a lot of money in my allowance, so I have this account where I dump money for what I’m saving for.

Held at a brokerage firm

  • IRAs and Retirement accounts - We contribute to these monthly.
  • Cash for upcoming large purchases - We dump money in here when we have it left at the end of the month and/or we get “found” money (e.g., bonus, refunds, etc.).

Again, it took us awhile to get this together, but this works for us. Do you have other ideas? I’d love to hear them!