dayvewc
DIS Veteran
- Joined
- Mar 20, 2013
I have multiple accounts, and at multiple banks, and use "dummy" accounts. At my primary bank, I have 2 checking accounts, and 1 saving account. Transfers between them are essentially instantaneous - it will show as a "pending internet transaction" immediately, but the reconciled balance does not update until that night. But that is just my bank, it is a local bank, so Capitol 360 might do things differently. I also have a checking and saving account each at two other banks. (7 accounts total - "Checking", "Saving", "Vacation Account", "Amazon", "Dayvewc Savings II", "Credit Union Checking", and "Credit Union Saving")
What happens is, my checks are direct deposited into my primary bank primary checking account. Then, each week, I transfer a set amount to the other checking account (nicknamed "Vacation Account") that I use to pay for my vacation related expenses (timeshare maintenance fees, travel expenses, etc.). Also, each month, I use the bill pay and have the bank send a check to each of the other banks, where I split the funds between checking and saving, and do a scheduled internet transfer to the Saving account. One of the checking accounts I share with my sister, and it is our "Amazon Money" - we have a linked Amazon account and both tend to buy a lot of books for our Kindles. As well as a few movies that stay in the cloud and we can watch anywhere.
The other account is at a credit union where I used to live, and since I destroyed all my checks from there, and don't have a debit card, the only way I can access it is online or to go there in person (a 3 hour drive - one way). The money in the credit union is my actual emergency fund, as it takes a while to access it - even if I have them send me a check for the amount, it is a minimum 3-4 day process. That is enough time to determine if I actually NEED to use those funds, or if I can find a way to manipulate the funds I have in my other accounts. I keep both accounts active at the credit union simply because the savings account pays better interest than anywhere else, but I have to have the checking account to use the billpay in case I need a check from them, and if there is no activity for 3 months they charge a $5/month inactivity fee. So, the checks sent are deposited into one account, and the bulk is either moved to (or left in) the savings account, with a small amount placed in checking each month to keep it active.
The "Dayvewc Savings II" account has the minimum amount to qualify for free checking from that bank (a nation-wide bank, as I live in Arkansas and my sister lives in New Mexico), but I add to it to build up as my semi-emergency fund. Easier to access, since there are branches all over, but easier to just forget about it and let the funds grow.
The Saving account is my immediate emergency fund, as I can transfer fund and use them with my normal debit card pretty much immediately.
Additionally, I also use Quicken to track all my accounts, and set up several "dummy" cash accounts. These are for "Insurance", "Membership Fees", and "Christmas". Each month, I add a set amount to each account (the transfer amount is the new total that is in the account and the previous months transfer is deleted). This way, when I reconcile through Quicken, it shows that I have $XXXX amount as a non-cleared transaction for each account. That way, the balance Quicken shows me as available is significantly less than what the bank thinks I have, but it means when the bill comes due, I just deduct the amount of the bill from the next transfer. (For example, I "transfer" $150/month for insurance, so in March the "transfer" will be $750 and I will delete the February "transfer". Then in April, I will enter the "transfer" for $900 [$750 + $150], and delete the March "transfer", but when the insurance comes due at the first of May, I'll "transfer" $175 [$900 + $150 - $875]. It sounds more confusing than it really is. Each "transfer" is simply an entered line from my primary checking account in Quicken, and I handle it by having the set amount scheduled. Then, after the "transfer" is entered, I check the current balance and update the most recent transfer and delete the one previous).
Hope that helps, at least a little. And if you have questions (I'm sure I would get confused trying to just read this) feel free to ask. It works well for me, and lets me 1) save up for those periodic expenses like auto & life insurance, pest control, or Christmas in a method that easily lets me see how much I have at any time and 2) provides a cushion in my primary checking account should something unexpected happen (like forgetting to record the grocery bill) so I am not overdrafted.
2) I put the remaining as my first snowball payment of the month. It has really proven to be a great motivator starting the month off like that.
