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Usually a couple of paychecks, average. Nothing comes from my checking except expenses. All savings/retirement contributions come out of my paycheck. My checking acct is the only acct I have at that particular bank so there are no ties to any savings accounts.
My paycheck is deposited into my checking account after my retirement savings and insurance are pulled out.
Then almost everything is on autopilot. Bills are automatically pulled from there and while I put everything on cards for the points, I check a few times a month to transfer money from checking to the credit cards. I have automatic draws to my savings account (which I can access instantaneously), backup emergency account (which would take up to 5 days to access but earns more interest), Roth IRA, travel/fun fund, and house downpayment fund. I split most of those up to transfer either 2 or 4 times a month to give myself some breathing room. By the end of the month, I shoot to have between $700-1000 in checking.
If I'm planning on going over for purchases or I have a small emergency, like a vet bill or car repair, that I need to manage, I can cancel automatic transfers for a week or two to the fun fund or backup emergency fund. If I spend less in a month, I can put more money into the house fund or IRA.
Since I earn 0 interest on my checking account I try to keep as little as possible in there without running the risk over drafting. My paychecks get deposited there and everything gets paid out of there. My expenses can vary each month but at this point in my life I'm pretty familiar with what they're going to be. My balance is usually between $1-$3K depending on which day of the month it is. If it starts to get significantly above $3K, I'll transfer some of that money to an investment.
I haven’t had a savings account in probably 30 years ... I have no use for one
the reason I have one is that I need an account to hold non-recurring expenses that are imminently needed in a few months, such as for travel or my annual auto insurance payment. Checking pays 0% and savings pays 2.25%.
I have a MM position in my brokerage as well which constitutes my EF but I dislike using that as a "bank account".
the reason I have one is that I need an account to hold non-recurring expenses that are imminently needed in a few months, such as for travel or my annual auto insurance payment. Checking pays 0% and savings pays 2.25%.
I have a MM position in my brokerage as well which constitutes my EF but I dislike using that as a "bank account".
i have been using my fidelity core as my bank for more than 30 years ..all bills get paid through it , direct deposits go in and i get market rate interest .
i maintain a core for expenses and paying bills and another for my trading core account or money waiting to be invested ...
what is nice is fidelity can set you up with what is called a Z account ... it is a money market that is linked to nothing ... if say my core i pay bills from is hacked there is no direct link to any other accounts where money can be transferred and hacked . in fact i hate when atm's print a balance ..
if a bad guy holds you up they know what is in the account ... the z account would show only a small balance and not not 6 figures .
I 'say' that I keep $2k in my checking account (a little over one months worth of regular expenses), but lately it's been more like $1k. And currently it's $400. It's been an expensive couple of months....
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Though we never write. He is we have 3 checking accounts, with all bills paid online, most autopay. We never keep more than about $4,000 in any one, in case of hacking. Any additional goes into one of our 2 credit union savings accounts.
At the start of every month I put together a budget and every penny that isn't budgeted for an expense gets taken out of checking. I never want money in there. A couple of years ago someone got my card number from a gas station when I was filling up with gase when I swiped the card. Ever since that day I make sure I get every penny out of there.
People will use your money if they get access to it and not having much in there saves you a lot of headaches.
The person(s) who stold the card number took out more than $1,000 in purchases and it was never discovered who it was.
I not only would never use a debit card but if I did the last place I would ever use one is a gas station, just sayin
They don't now I'll bet.
I just checked, and there's a little over $3,000 in the account. Utilities and a few other recurring payments will be drawn from that account during the next week or so.
I don't like to keep a lot in the checking account. For me, it's not necessary.
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