June 14, 2017 Household Personal Finance Saving 17

Last week, I introduced a series titled “What’s in Our Wallet” in which Mr. Adventure Rich and I open up our wallets and let you peek inside!

First Edition:  Credit Cards

So here is our second edition, the Banking Edition!  Let’s check out our checking and savings accounts.

Checking Accounts

We have somewhat of a funny checking account situation.  We began our marriage with 2 checking accounts (his and hers… how cute).  Out of sheer laziness, we did not consolidate accounts until we were married over 2 years.  At that point, we eliminated my Chase checking and consolidated into Mr. Adventure Rich’s Bank of America checking account (again, out of sheer laziness, the BoA consolidation had less hoops to jump through to consolidate… so we went with that one).

Well, less than a year later, we found ourselves 140 miles away from the closest Bank of America branch and ATMs.  While we do most of our banking online, we wanted access to an ATM and a bank branch for certain situations.  Sooo we trotted right on over to Chase and opened up a new joint account there too.  Back to two checking accounts for us it is!

Chase Checking

The Chase checking is the account we direct deposit my (Mrs. Adventure Rich’s) paycheck (well, the portion of the paycheck that isn’t auto-diverted to a 401K, Savings, DSFSA, and HSA accounts… paying ourselves first of course!).  From this account, we pay our general credit card bills, daycare payments, and any other odd bills that don’t go on the credit card.  This is also the account we can pull from for cash if we have a Craigslist purchase or other cash needs.

Bank of America Checking

Mr. Adventure Rich’s paycheck head’s into the Bank of America checking account.  From there, we divvy up the money to pay for our mortgage first (mortgage, PMI, interest, taxes), any household expenses next (such as the screens our house did not have or a washer when ours busted), and any excess is transferred on over to one of the savings accounts.

Savings Accounts

When it comes to savings accounts, the ease of access is not a priority (or even a perk at times…) and we would rather find a good interest rate than a brick and mortar location nearby.  With that premise, we chose Ally Bank.

Current Ally Interest Rate = 1.05%

When I did a quick search on sites like Bank Rate and Magnify Money (rate and account comparison sites), there are a few companies with better rates.  Why not switch over?  Honestly, I would rather spend my time learning a new skill, working to advance my career or spending time with my family than chase down the extra 0.15% interest I might gain!

Ally Savings Accounts

Note the plural “Accounts”.  This is one of the aspects of Ally that I like.  On one log in, we currently have five separate savings accounts, each with specific goals and purposes.  Here is our breakdown.

Emergency Fund:  Maybe a bit self explanatory, but this is our cushion for the unexpected things life may throw our way.  We like it separated so we have less of a chance of dipping into this account for a non-emergency item.  And yes, I did title the account “Emergency Fund- No Touchy”.  Never hurts to add an extra reminder!

 

Charity Fund:  Personally, we feel very blessed to have been given much in our lives and to be in the position we are in.  While we plan to give back in many ways (community organizations, volunteering, etc), we also are willing and able to give monetarily.  Right now, we are saving to fulfill a pledge we made to our parish for an annual giving campaign.  We also like to keep some extra money in here for the “impromptu” giving opportunities such as a family member in need or a YouCaring/GoFundMe for someone we know who is experiencing a tragedy or hardship.

 

Homestead Fund:  Back in October 2016, we bought a house… on 10 beautiful acres!  There are so many things we’d like to do, ideas we have and basic maintenance needs to complete (such as a new roof within the next few years).  As a result, we decided to start a “Homestead Fund” to save for and fund these needs.  We keep it separate from our Emergency Fund because we see these expenses as “foreseeable” and “plannable”, so we are planning financially as well as organizationally.

 

Vehicle Fund:  Similar to the Homestead Fund, the Vehicle Fund is for vehicle expenses and/or a new (read: used but new to us) car whenever one of ours decides to conk out.  We don’t aggressively fund this, but we try to throw a few dollars in ($50-$100) per month.

 

Investment Fund:  While we technically have this fund, its balance is currently $0 (hopefully to change soon!).  We are toying with the idea of Real Estate Investing, so we want to begin to dedicate funds towards this goal.  If we decide to steer away from Real Estate, we would divert these funds to IRAs or some other investment vehicle.

 

What about you?  Online or brick-and-mortar checking and savings?  Do you have multiple savings accounts or just one?  Any exciting goals you are working towards?

 

Always an Adventure,

Mrs. Adventure Rich

 

Psst- we are not affiliated in any way and do not endorse the companies/accounts listed above.  We are simply consumers who are giving our personal perspective on the accounts we hold.