Managing your expenses is both necessary and difficult at the same time but there are some things you can do to make that job easier on yourself.
Some people believe in tracking their expenses the old-fashioned way, through memory and bills, while others do those things a bit differently. What is the alternative to being old-fashioned? Well getting in with the time and opportunities that are right in front of you.
All of us have a similar expense that is usually divided into bills, savings, sinking funds, and living expenses, and all of those have everything to do with the fact of how good or bad you distribute your money. If you don’t want to track all of these expenses through bills, memory and a bunch of paper some numbers are written on then the right thing for you is Monite and this article in front of you today.
The best way to be as organized as possible is to divide your earned money into several accounts and to have a detailed tracking system and you will make your life easier by so much. Today we will tell you something about these accounts and the way you can manage them so they make it easier for you to track all your money.
Most people make some mistakes with multiple accounts and they tend to misplace or lose money and we do not want this to happen to all of you, so pay close attention.
1. Make a Bills checking account
In this account, you have to have a direct deposit where you will have money dispersed after you receive your paycheck. This means that as soon as your paycheck gets the money will be divided into these accounts according to needs. One obvious thing that you have to keep in this account are bills whether for your rent, groceries, any debts you may have and a really smart thing to put in your bills account are checks that you write. Most of us tend to forget about those because not all checks are cashed immediately and we tend to let those slip of our mind which gives us trouble afterward. You have to search all the bills, all the papers you hold and your memory if you want to remember where those couple of bucks went. When you have checks included in your bills account you also don’t have to worry about over-drafting as well.
2. Living expenses checking account
These expenses are all of those that you pretty much cover with your card. This means that you don’t spend, or carry any paper money for these. Living expenses are just what the word implies all the expenses that emerge from day-to-day activities. All of us have a car and the car needs gas. If you don’t like to get out of the car and pay for gas personally you get your card and deal with it. If you go for diner or lunch you will pay with your card also. Online purchases are also a thing especially now when we are in a global pandemic and when we are locked down meaning all of our shopping is done online with the help of a trusty piece of plastic.
3. Emergency funds savings
With these hectic times, it is a good idea to always have some sort of savings set aside for God knows what that might surprise you. You see what is happening all around us and this cant is a bad idea. This should be an account that should hold at least $1000 for emergencies and it should be an account that should never be touched unless there is a real need for it or an emergency. Some of the financial experts state that this account should, if possible for you, hold funds for your expenses in the next 3-6 months. This way you make sure that you can function for a while if something happens and your money supply stops or if there is a serious medical emergency that demands a lot of money.
4. Sinking account
Now, this sinking account can be made as a checking or savings account. The one you chose will depend on how much during a month you have to dip into this account. If you need to draw six or more times a month from this account it is better to make it a checking than savings because it will limit you. This account is your purpose savings account and you will categorize and use it for different purposes. Some examples are car insurance, holidays, occasional or annual expenses, and similar things. These accounts come in handy, and truth be told all of what we mentioned above can be divided into some of these other accounts but it would be difficult to track them and if you think about it you haven’t made your life easier which defeats the purpose of having a financial organization like this.
5. Business checking account
This account should be made if you have any type of business besides your regular job or your business that is your bread and butter. This is for your streaming channels, online shops, blogs, or whatever else brings some additional cash into your life. Now in this account, you will have a direct deposit set up for those businesses, whatever they might be but you also have to do some tracking inside this account which makes it a bit complicated but it shouldn’t be too bad. Here you will have to pay attention to taxes from those businesses and you will have to track your business expenses, but if you are the only one who makes expenses then it shouldn’t be that bad.
The financial organization does require a lot of work and discipline but if you are trying to be responsible about your money then this is something you need to do today. By having these accounts, you will easily be the master of your financial flow and we know that you will never be in that situation to ask yourself or a member of your family “where did we lose $50 or $100 last month or week”. All of this does look more complicated than it is and all you need to do is find a routine that suits you best, and you are all set to rule your cash as you should do.