The 7 Bank Accounts Every Family Should Have! (no, really)

oh I look like a second grader hey freeze Jordan page here and today I'm gonna tell you the seven bank accounts that every family should have what seven [Music] you heard me right I am a frugal living a budgeting expert and I have been teaching and preaching for over eight years now I've spoken all over the country I've been on national television like Rachael Ray in The Today Show Good Morning America all over the place one of my most effective and most viral principles ever is the seven bank accounts that every family should have now today is a special day because not only am I going to teach you this principle but I'm going to share it with you by way of a video pulled directly from my popular budgeting program budget boot camp com why well because my budgeting program explains it best and I just really couldn't do it any better honestly also because I wanted to tell you some exciting news which is that our biggest sale of the entire year is happening in just two days our early Black Friday sale begins Saturday and the price will not be this low again for an entire year I'm going to leave all the details below and for those of you who are watching this after the Black Friday sale ends don't you worry I will leave a secret code just for you at the end of the movie that you can use that won't expire that's much Olivia I not only have this budgeting program but I also have an awesome productivity program called productivity bootcamp helps you manage your time better get more done get organized and find more time to do the things that fulfill you most again I'll leave all the information below but for now let's go ahead and get to one of my most popular most viral and helpful principles of all the seven bank accounts that every family should have when my husband and I were going through our financial disaster we were poorer than poor one day I was walking through the grocery store which happened to have one of those little Bank branches in it and I heard an announcement over the loudspeaker attention shoppers come stop into such-and-such Bank anytime before 5:00 p.m. and get an instant $150 for opening a new savings account with us you better believe I didn't even make it halfway through the aisle before turning right around and sprinting to the front of the store $150 for opening a savings account BAM I was on it it was easy and I got the money instantly so I went home so excited to tell my husband about it that I just scored us $150 from some sucker at a bank at the grocery store he couldn't believe it either $150 is a lot of money especially when your income is next to nothing for the next little while I'll admit I kind of made it my purpose to find as many banks as possible that offered an incentive for opening an account with them before we knew it we had a whole handful of accounts and no idea what to do with them because we had to leave at least a small balance in each account you know depending on the bank and their regulations so we decided to use them to help us divide up and organize our money we used one account to set aside money for bills another for groceries and my expenses like gifts another for medical expenses and so on and interestingly enough this happenstance situation actually helped us see that we had become ultra organized and we were instantly aware of where every dollar of ours was what it was for what to do with it and we kind of realized we were on to something since then my husband and I we now have over 20 bank accounts between our five businesses and family accounts and we're still opening accounts as needed only now unfortunately things are a little different and banks aren't necessarily tossing us a ton of money for opening them but that's also not why we're doing it anymore and don't worry 20 accounts is excessive we realized our circumstances are pretty unique mostly because of my husband's businesses and whatnot however today I am going to encourage you to open at least seven bank accounts and I'll show you how to do it to help you organize your money make your life easier believe it or not and help you get on top of your bills debts and financial goals I'm sure you're wondering why do I need so many accounts if everyone else has one or two doesn't that seem to work just fine and that's a fair question for one to answer that I'll refer you back to the previous video because you just might not need to cut the ends off of your roasts any more just to be like everybody else and to I kind of think of it like a filing cabinet it's a picture filing cabinet with two drawers and we'll pretend the cabinet is a bank that represents the bank and the drawers represent the two types of accounts that we all have savings and checking so traditionally if families would have two bank accounts like two drawers one checking one savings this has been done for generations right worked for your grandfather's and their fathers and and that's all fine but it can kind of be compared to taking important papers and opening the drawer and just stuffing them in the drawer to keep them safe sure it works they are there they're in the cabinet the cabinet knows they're there they're protected and when you need them they're there because they're separated from one drawer to another right but do you really know what's going on in there or what those papers are for or heaven forbid you need to find something quickly and easily opening multiple checking and multiple savings account is kind of like adding file folders inside those drawers the money's still there just as it always was it just suddenly allows you to organize and compartmentalize your papers aka your money so you know exactly where it is what it's for and you can access it in a snap when you need it like I said I recommend having at least seven bank accounts per family here are some of the accounts we have and how they could be a helpful to you the first bank account I like to call the family savings account think of it kind of like your holding tank account the purpose is that it's for short-term emergencies like maybe three months worth of living expenses saved up in there ideally but you use this account for pre-planned expenses that you save up for like a car or vacation maybe even Christmas gifts this account also is where you would pull money from for unexpected expenses like new tires or home repairs a few rules and tips for this bank account is get paid to open an account I know that you don't see that as often as you used to but if you're going to open the account and put money in it and use it banks will sometimes reward you for that so call your bank shop around and find them where you can get a little kickback for doing so one tip that we use in our family that makes it really easy as we automatically draft 10% into that savings account each month so remember how 20% goes into savings well you split that in half and 10% goes into this one and I'll show you where the other 10% goes in a second when you need to withdraw from this account only withdraw when needed but just plan ahead so if you're withdrawing from this account to pay for something like a vacation or bunkbeds for your kids just be sure to wait until you have the full amount saved up so that way you're not pulling from that little emergency cushion the three months that you ideally have saved up in there so how much do you leave in this account you leave three months of living expenses at all time I'll ideally plus a little cushion for expenses and obviously any money that's being used to save up for a larger purpose pretty simple not too bad so the second savings account I recommend is your emergency savings consider this the vaults the purpose is for as it sounds emergencies only picture a piggy bank that you would basically have to shatter on the ground to open this is a dire last resort like we are about to lose our house dire emergency a couple rules and tips are again automatically draft 10 set into this account so 10% into family savings 10% to emergency savings with this account just pretend it doesn't even exist find an account that maybe is at an online bank that's a little harder to pull out it even if you wanted to so it's kind of out of sight out of mind and auto-draft if you have to manually send 10% every month into that account it'll be harder to do it because you'll be thinking about all the different ways you can use that money make it automatic and then it's out of sight out of mind you don't even have to think about it but you know that there's always a little cushion to protect your family in case of an emergency so how much did you have in this account pretty simple ideally you would want six to twelve months of living on I mean one years ideal but if you could set up six months worth of living just imagine if you or your husband were to lose your job you would at least have a little cushion to swing you during that tough time ideally though it would be great to never stop depositing if your finances allow the third type of savings accounts I recommend is a health savings account or HSA you can open your own just standard savings account for this or there is an actual tax-free HSA health savings account that's used to hold money that you use to pay off a medical expense it's amazing because it's tax-free now I will say this the healthcare industry is constantly changing in our country you need to do your research and find out how HSAs work right now at the time that you're watching this video but I'll give you a few rules and tips that'll maybe help you sort through it official HSAs that are tax-free meaning all the money you put into it you're not taxed on amazing right those are available through banks credit unions and your insurance companies what they do is they basically give you this account and you put a little bit of money in or a bunch of money at once whatever you can afford we tend to just put a little bit of money away each month and we factor that into our 70% and then they give you an actual debit card just like any other account and that debit card you can use for any medical expense like a copay or a prescription or an ER visit or a surgery bill or even a massage or a coupon the one thing I will say about HSAs is just be sure to read the fine print like I said things are changing all the time but just know that there are some official HSAs out there that are use it or lose it accounts which means at the end of the year if you don't use the money you lose it it's gone they take it obviously our HSA does not have that you just need to make sure to read the fine print because some of them do have yearly maximums they max you out of a certain amount you can put in so how much money should you have in this account you know honestly that's just based on your personal family situation in general whether it's an official HSA through your credit union or health insurance or whether it's just a savings account you open that you save for medical expenses just make sure that it's enough to cover your perceived medical expenses you obviously don't want to put too much money in there because then you can't be using it for other things but it is nice to have it so that it doesn't eat into your other savings accounts all right so those are the savings accounts in terms of checking accounts the first one is called your family checking account or this is kind of like your home base account this is where all your money goes before it's sent off to their other jobs all your paychecks anything that comes in drop it here first a couple of rules and tips for this bills utilities debts all that stuff is paid from this account and as my husband always likes to say he's a huge fan of Auto pay so use it it's great because then your payments are automatically drafted from this account you don't have to sit there and write a check for every single bill your money really shouldn't sit in this account for very long before being transferred to other places so how much did you have in this family checking account really only enough to just cover your expenses for the month you don't want a lot of extra sitting in this account because if you have extra it should be going into savings right but make sure to read the fine print and know how much your bank requires you to leave in this account at all times so you don't overdraft the next two checking accounts are the same it's yours and mine the purpose is probably exactly what you're thinking you take the money that you need for your yours budget and my budget and you leave it in this account and this is what you use to pay for those expenses a couple of rules and tips whether you buy things with cash or debit card or credit card it all comes from these accounts my husband and I I use one credit card he uses one credit card and we just used the money from these accounts to pay them off promptly and that way we're getting the credit card benefits but we still know that we're staying within budget and balance by pulling the money from those accounts to pay for it so how much did you have in this account really just enough to cover the yours and mine budget you want to cover it reasonably so you're not over drafting and that you have enough but you don't want a lot of excess because again if you have excess put it towards savings or more importantly debt the seventh bank account is also the most fun I call it a slush fund account this is basically your Paradise Falls jar have you ever seen the movie up all they want to do is make it to Paradise Falls and they save their pennies from under the couch cushions in whatever else and they put it in this big jar but they have to crack the jar open when he breaks his arm where the car breaks down and they never end up making it to Paradise Falls this is the account that makes sure that you never have to spend your Paradise Falls money on a flat tire or a broken arm you have all those covered in other places you've got savings accounts for the broken arms you've got the family account for the pop tire this purpose is only for fun this account is your reward for being frugal and having extras remember that envelope budget we went over if you at the end of the month had $10 leftover rather than going and buying a $10 t-shirt throw that $10 in the slush fund and you'll slowly add up to something that will be really fun and exciting for your family couple of tips are just make sure to plan ahead and make a plan for the money so that you don't get itchy to spend it on something get your family involved set a goal make it visual any spare change or any extras that your kids earn they could also contribute toward the family slush fund sadly I will say one other tip or rule is that you really shouldn't put any money toward a slush fund until all that pressing debt is paid off but once that debt is paid off fair game how much should you have in this slush fund well really it just depends on how frugal you are in the month and how much extra you save up it will most likely build up pretty slowly but again don't let it burn a hole in your pocket make a plan for it and save up for something so fun and exciting now as I mentioned my husband and I have far more than seven bank accounts so some of these additional accounts could include more checking and savings accounts maybe one for each of your children as they're born business accounts like we have you could open an account to set aside money for Christmas gifts or you could open a specific account for a specific vacation or a large expense that's coming up ok time for a workout I know that was a lot of information but don't worry we've made a nice beautiful diagram that shows the seven possible bank accounts that your family could have keeping in mind that every family is different and you might not have a need or the ability to open seven accounts that's okay we started out really small - all you need to do is fill out the attached bank accounts diagram fill it in and make a plan and then get to work and start making it happen go give it a shot and I can't wait to see how it goes for you I'll see you back here soon so there you go guys I hope you enjoyed this video I hope you enjoyed this principle and I really hope you give it a try don't forget that my budgeting program budget bootcamp comm and my productivity program productivity bootcamp comm have hundreds of more principles tips and ideas just as good as this one be sure to take advantage of the sale details below and for those of you who are watching this video after the sale ends I've got a special code just for you use the code great to get 15% off your entire cart so you can pick up either program or both hope you enjoyed you guys I'll see you next Thursday until then [Music]

Channel: Jordan Page, FunCheapOrFree

Views: 677,582

Rating: 4.6891413 out of 5

Keywords: utah, blog, blogger, family, Jordan Page, fun, cheap, free, Fun Cheap Or Free, frugal, budget, money, budgeting, humor, finance, finances, how to, bank, banking, accounts, questions, Q&A, debt, save, savings, bank accounts, Jordan, Page, Budget boot camp, budgetbootcamp

Id: auzLhKvsxnQ

Length: 17min 1sec (1021 seconds)

Published: Thu Nov 08 2018