FIVE ACCOUNTS YOU SHOULD HAVE BY 30
Some people manage all of their finances out of one checking account while others use up to six different accounts but end up paying a lot in fees and never earning enough rewards to justify having the six accounts. To balance this, you need to know what your financial goal is. I recently decided to look at five accounts that I aim to own and fully operate before the end of the year; I recommend that everyone gets these five accounts to provide long-term financial stability. Here are the five accounts I aim to have:
A NO-FEE CHECKING ACCOUNT:
Try to avoid accounts that include unnecessary fees. I once had an bank that was charging me $12 a month to maintain when it barely held $300-$500 monthly, I found this unnecessary and found an account that better suited my needs, which included no maintenance fees.
HIGH-INTEREST SAVINGS ACCOUNT FOR AN EMERGENCY FUND:
Having a savings account that you are not making adequate returns on makes it ineffective as an emergency fund; by finding an account with high-interest rates, you satisfy that requirement. I am currently looking at options and banks I can start using for my emergency fund savings account. Some banks offer a lockable savings account that charges you a penalty fee if you access the funds early. This feature helps prevent unnecessary “emergencies.”
NO OR LOW-FEE CASH BACK OR REWARDS CREDIT CARDS:
If you are not financially stable and cannot trust yourself with one of these yet, then please skip this step, if you can, then let’s continue. If you are getting a credit card, then it is important to make sure that it offers enough rewards and that the fees are not high, get rewards and cashback offers that you can use for things like trips and grocery runs off the card. I keep a Credit Card account with Discover, and I get rewards for my education and also for spending in different places. If you’re considering getting one, here’s my link.
INVESTMENT ACCOUNT FOR RETIREMENT:
Planning for the future is important, saving for retirement is good but investing for retirement is better. I currently use Robinhood to manage my investments, they also have debit cards for accounts. Here’s my Robinhood link if you want to open one, you also get a free stock.
HIGH-INTEREST SAVINGS ACCOUNT FOR GOALS:
This is an account you use to finance your goals and dreams, like that dream vacation to Greece, or that new gadget you want to upgrade to for work. This account can also be used for the Emergency account, you don’t have to lock it because it is a long-term account. Once you achieve the set goal, you can withdraw the money for whatever you need it for. I am currently working on setting one of these up for myself and my girlfriend.
Thank you to all my readers for your comments and messages. I hope you’re all staying safe and staying home if you don’t work in essential services. We’ll all get through this together. If you need to ask me any questions, drop it in the comments section or use the Contact me page.