Like most things in life, organisation is the key to success. Getting healthy? Meal plan. Getting fit? Stick to a workout schedule. Getting your finances in order? Yep, you guessed it – organise your bank accounts. Having one bank account for all your cashola isn’t generally conducive to successful money management, so here are nine accounts that you can pick-and-mix to establish your perfect money management structure.
#1 Spending Account
Let’s kick off with the essentials—you need somewhere for your day-to-day spends to go, right? Your bog-standard transaction account will be just fine for this one, but the purpose here is to separate the money you’re able to allocate to discretionary spending from any expenses, bills or savings.
#2 Bills/Expenses Account
Keeping your bills and expenses coming out of a separate transaction account helps you avoid the classic trap of forgetting an expense, having to drain your account to cover it, and leaving yourself with nothing left for your mate’s hens at the weekend. Choose one transaction account and set all your bills and direct debits to come out of there and say goodbye to bill stress forever.
#3 Emergency Fund
Your emergency fund is your safety net for when life happens. Whether it’s a broken-down car, an expensive medical appointment, or a phone-in-toilet situation, having an emergency fund that’s tailored to the most likely expenses that could pop up takes the worry away from many of life’s surprises.
#4 Goal-Based Savings
If you’re saving up for specific things, set up multiple savings accounts to help keep you on track. Bundling your Bali fund with your house deposit can make things confusing and leave you unsure where you stand but having a separate fund for each of your goals helps you connect to your progress on a deeper level. Hello, motivation!
#5 Long Term Savings
Just like saving for specific things is smart, so is saving for, well, nothing in particular. As a woman who just turned, ahem, thirty, one thing I wish I’d done sooner was stash a small percentage of my income for absolutely zero reason. Being able to reach for this money can give you a huge leg up when you do decide you want to start working towards something bigger, like a car, or a house, or a big trip, or starting a business.
#6 Splurge Savings
The fun one! Your splurge savings are for exactly that—splurges. Having a hunk of money set aside for when you want to treat yo’self is one of the most empowering things you can do for your money mindset. Plus, saving up a little pot of cash for when you see something you really want can actually help you reign in mindless purchases shrouded in instant gratification.
#7 Salary Holding Account
If you get paid monthly or fortnightly and struggle to make your pay last between paydays, a salary holding account can be a great way to help you spread your income throughout the pay cycle. When you get paid, move your salary into a holding account, set up an equal weekly transfer to your spending account, and say goodbye to running out of money the week before payday.
#8 F*ck Off Fund
More empowerment, incoming! A f*ck off fund is your stash of savings that you can call upon to get you out of a situation you don’t want to be in. That might be leaving a toxic workplace, moving houses or cities, or getting out of a relationship.
#9 Personal Maintenance Fund
Never let your budget bulldoze your love of having perfect gel nails or regular physio or sculpted brows. Build your personal maintenance into your budget by sending a portion of your pay into a personal maintenance fund. Then, when those appointments roll around, simply draw down the cash you’ve already reserved. Self-care never felt so good!
Ready to tackle more of your finances? Read our handy guide on how to save money while renting.
Emma is a finance blogger at The Broke Generation and a reformed spendaholic. She shares hot tips on saving, property, tax, career and investing for millennials who want to break the spending cycle and get financially confident.
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