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In my world checking is where you put money that you plan to spend. Savings is where you put money for the future
gotcha. well, i spend a lot of money and i also have large lump payments to make quarterly. so if i dont keep a healthy amount of money in the "checking account" i will go negative and have to pay interest (margin).
i would think most people would need to keep $1k+ at least in order to cover regular expenses.
Right, I'm realizing that many people spend more money than I do. My DH pays most of our bills. I do a lot of the saving and i'm looking for better ways to do it.
I don’t know what is the point of having thousands in checkin. Why not move it savings?
A lot of people have large in- and out-flows of cash in a typical month and when the amounts are unpredictable then you need a certain level of reserve in the checking account. The amount of interest you get in savings account is peanuts compared to the amount you make in long-term investments. That said I do keep a high-yield savings/short-term CD for money I anticipate using in 6-12 months.
Right, I'm realizing that many people spend more money than I do. My DH pays most of our bills. I do a lot of the saving and i'm looking for better ways to do it.
better places to put the money or ways to spend less? i dont have a savings account. when i feel i have enough cash, i will add to my investments. i actually just paid an estimated tax payment yesterday (less than i expected, woohoo!) so im going to be putting some money to work for me soon.
Right, I'm realizing that many people spend more money than I do. My DH pays most of our bills. I do a lot of the saving and i'm looking for better ways to do it.
You can do a lot better than a savings account though.
In my world checking is where you put money that you plan to spend. Savings is where you put money for the future
Pretty much, yes, plus a buffer. I’m moving and building a pool, buying furniture, solar paneling, contract work, electronics, etc. About $150,000 is needed just for that plus an amount for everyday expenses so for me about $200,000 is needed in checking at present. By November I’ll rearrange so I’m only keeping $20-40K in checking again.
Never less than $2k and usually not more than $10k unless I have to pay taxes or some other large expense. I have $50 in my savings account, the real savings goes to my brokerage account to be invested. I also have a HELOC with my bank if I ever need a lot of money quickly.
I think most people have linked accounts these days - not only in the same bank but between accounts like linking paypal and so forth. So you put the money in the highest interest bearing account and then can transfer it to your operating account - checking for most people - when you are sitting to pay bills. If you do auto pay then I'd have at least an additional month's cushion to cover any auto mistakes - double pays or something that goes wrong.
Last edited by chattyneighbor; 06-21-2019 at 08:54 PM..
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