In the previous post, I introduced the bank account structure that’ll ensure that you’re spending guilt-free while still working towards your goals
Today, I’d like to show you how to set that up and provide you with some useful resources.
We’ve talked about having your fixed expenses come from one account. The way I do this, is by setting up a bank account with a debit card attached to it.I’ll automate the payment of my fixed expenses (like rent, insurance payments,etc.)as much as possible. Everything is either direct debit or set up to pay incrementally through my debit card. I’ll work out the frequency of those payments, and I have it all planned out. It takes a bit of work upfront, but once it’s all set, I don’t have to worry about it anymore.
The second type of account I recommend to set up is the triple F.I. account. That stands for food, fuel, fun, and incidentals. You can think of it as a weekly living expense account. Each week, I have a set amount transferred from my fixed account into the weekly living expenses account, the triple F.I. If I see the account is getting low, I can limit my spending accordingly. You can either spend the money via the debit card or draw it out in cash.
The third account is for your savings goals. It might be for a holiday, wealth creation, or an emergency buffer. You can have multiple savings accounts, each with a different purpose. Take a look at your bank accounts now. Are they set up as simple as it could be