11%, can I get a high-yield battery? 1.5x monthly expenses has been comfortable for a while. You can even automate transfers from brokerage/HY savings accounts to cover future expenses. The one big thing keeping me on track is not having my paycheck go directly into my checking account.
I still live at home so after the € 600,- I pay to my dad, I like to keep a thousand euro for dog/cat food, small groceries, health insurance, and to spend a little and still have wiggle room. Saved quite a lot, so now looking in how to start investing...
This is bananas. I worked in banking long enough to know that is not only dumb, but not real safe either. We have $1000 cushion. Payday comes along, we pay the bills and immediately move our money to other places. High Yield Savings accounts are your friend.
@@lavellans@lavellans it can be but much more difficult. There is a scam out there called check washing where a person can quickly drain your account just by getting their hands on a check of yours. You also should not have your savings attached to a debit card. Plus I have yet to see a checking account that pays a decent interest rate.
I think it how the account is used. I have several accounts. One back I have a checking account but I use it as a savings. It’s way easier to access those funds if need. I don’t have checks or cards to that account. Then at a totally different bank I have a bill pay account and my husband and I each have a fun money account.
I agree this is bananas! I usually say things are bananas. 😅 My debit card was stolen this weekend, and a $125 charge appeared, which alerted me to the theft. I kept thinking about how bad it could have been if I didn't keep most of my money in my HYSA.
@@lavellans There is a scam known as "check washing" that can make your checking account much more vulnerable. It would be more difficult with a savings account, although they aren't fool proof. I would highly discourage anyone having a debit card attached to a savings account as it puts you at risk as well. The bigger issue for me personally is I've yet to see any checking account that pays the interest to compare with a high yield savings account either, so you're just letting the bank use your money for free if you leave it in a checking account.
I’m so confused by these comments. Do u guys not have easy access to ur savings? In Australia we just move it from checking to savings with a click? I only have a few hundred (so I don’t overdraft) in checking and as much money in savings to grow
@@MG-uz5mr I'm not sure why you're confused, but I'm happy to try to explain because I do the same thing as OP. The type of access you have to your savings account depends on the type of savings account you have. If you have a traditional savings account with the same bank that holds your checking account, it is as simple as clicking a button and transferring money from one account to the other.
@MG-uz5mr you have easy access if you're checking and savings accounts are in the same bank. However, it's a security risk because if anyone gets your login information then they can transfer out all the money from both accounts. This makes it hard to get the money back. And you could potentially lose everything. That's why it's recommended to have accounts with different banks.
I just put $6200 in my high yield checking account. It’s at 5.4% interest rate. I save over half my take home pay every paycheck. You have to live below your means. I still live comfortably.
@@Maggie-gx3wcMany online banks offer it. Type in high interest saving accounts in 2024 in your browser then websites will pop up with a list and the pros and cons of bank/account in their list
Pull up a chair. I have $1800 extra in my account. Started writing down what I was spending and making in January. When I had a tiny extra like $7, I would move it to my "christmas savings" in my book. Never spent from that column. Pretend it's not there. Did this since January. Love it so much that I don't want a pro manicure or coffee since that small amount can go in my save column. You can do this. Before you know it, you will have that 10 grand and your biggest problem will be where to put it. I started because I wanted to have a happy Christmas season without stress. Gifts isn't the issue, it's holiday lunches, special drinks, etc. Find your goal. You can get there every week with a few bucks.
I have a Christmas fund too! I love everything Christmas and did not want to deny myself the joy of spending during festivities without second thought, so I'm saving up for it!
@@kiwijuice662 Yes. Exchange traded funds and index funds. Bought monthly. I use Fidelity because I enjoy having the research but you could buy premade low expense ratio funds at any discount brokerage you like.
@@kiwijuice662 mutual funds or ETFs heck even Treasuries or CDs to start with but typically ETFs and mutual funds return more. It's confusing to begin with but compound interest works well good luck
I feel like I'm broke if I have less than $500 in my checking account, but at the same time I have a 6 month emergency fund. I have the money for my bills set aside in a completely separate account. My checking account is just for my day to day spending
thats a good mentality to have though! many people treat emergency funds as "extra" money for vacays or other non necessities and then end up having no money for actual emergencies like job layoffs and medical situations.
I'm a retail worker, currently studying to gain new skills and hopefully get a new job that allows me to actually survive. If I have at least $150.⁰⁰ in my checking account, that's a good day. I know that's hardly anything. I'm working on it.
This is so real. I’m eighteen and work retail but I don’t want to do that for the rest of my life. I wanna write a book and have that as my job or travel to learn how to farm.
I definitely feel you. My first job was in restaurant and paid well but I left for my own mental health. Unfortunately that left me living paycheck to paycheck in my next jobs and required me to get a second one. I know one day I’ll get something I’m happy with and pays well but for now I’m learning how to live while I’m still in my 20s. :)
Like you said the amount in your checking should be determined by lifestyle and income. For some people a few thousand isnt a make or break. I know someone who makes 300,000 a year before bonuses. Their checking account will look much different from someone making 50,000 a year.
You nailed it! In my 20’s my balance was near $0 all the time and it was really stressful. At one point I found out my mom had run out of money to buy food and they only had crackers left to eat, but I couldn’t even give her any money because I had $10 in my checking account and I needed that for baby formula. Finances are rough when you were young. Now I’m in my 40s and we keep about $7000 in our checking account to pay bills. The rest goes to savings. on occasion, my balance gets low into the one and 2000s range and it makes me nervous. Because my mortgage alone is over $1000. A cushion in my checking account so I never overdraft.
Right, controversial.. I actually forecast all my expenses ahead of the month and remove any excess money right at the beginning into savings account. So by the end of the month, my checking account should say 0. And it doesn’t scare me because that’s exactly what I want. It’s stops me breaking my budget. Equally if I reallly end up needing extra money, I can go into savings, and it feels more sacrificial so I avoid spending money just because it’s there
"Its the mentality behind it," is key. I work part time at a convenience store that has slot machines, and we have one couple that comes in and just SPENDS HUNDREDS, if not more, on thr DAILY. After a few weeks, one of them told me that they had an injury at work and got a very large settlement... With the way they spend it, they are gonna be unable to work due to that injury, and broke on account of their gambling, in no time.
I work in member service for a credit union and I have heard some sad stories with people that get settlements. Its like they dont understand that you are supposed to make it last. And we advise them but people are going to do what they want to do with their money. We had a young man that got a cool million. It was gone in 8 months.
How much did you transfer? I have a sizable regular savings acct, but it's been doing nothing for years. I'm afraid of the risk. How long is the CD and which company?
Same! It would change if I think I can’t access my banking account. I also have my credit card that if I need to use during an emergency but I know exactly how much I have in savings and the second I had a chance, I’d pay my credit card bill
I can see a situation where someone knows of a large expense coming up and transfers money from somewhere else into checking to prepare for it. This could just be a snapshot situation and not what they would normally keep there. I mean this December we will owe property taxes and insurance which will be around $4000 so we will need at least that much in checking to pay it.
@@Vbear-bn4wmyes. If you’re not using it. Let your money work for you. Just know it’s locked for that period amount of time that you also can’t get into so it’s a great security measure as well! I work in finance
i have been so obsessed with your channel since I found it last week. I have already started to make changes in my financial planning and it’s amazing how much relief it brings you when you know you have money saved for emergencies.
1 checking, 1 savings, same bank. Minimum 2k each in both. Pay everything off on checking account and direct deposit into checking account. 6 months emergency fund in a different bank that’s a HYSA. Everything else in investments
Yes because if you have an emergency and need immediate funds it’s in your primary bank already. If you really need money cause it’s a bigger emergency, you transfer it from the HYSA to your regular while the “buffer” holds you down.
I've been wondering if I should do this. I have my entire emergency fund in a savings account with my primary bank that my checking account is also with. But I have a different savings account that is high yield I'm considering moving a chunk of the savings to. I'm just scared to not have immediate access to the full emergency fund at once
Not to sound ignorant but could you do a video on how to get interest on your money sitting in the bank? I was never taught about that so I wish I would have known sooner. I need to do research on this. Financial literacy isn’t something that’s taught to everyone but it’s highly important.
Look into high yield savings accounts They are like a savings account that have high interest versus .001% at the bank in checking First community bank has a HYSA for 6%, capital one is 4.25% and so on. Google them and you can look on RUclips more information on high yield savings accounts in general
As a single income family pretty much living paycheck to paycheck, I know exactly what bills are due and once all of those come out what we are left with is groceries and gas money. We are not in the season of being able to always have a certain amount in our checking account. It is what it is. But we do keep $1000 in our emergency fund savings, so always having that there is definitely helpful with the stress of it all!
Hi, I am a Jamaican Vlogger, I love your videos. America is built on consumerism. The People don't know how to budget nor spend money.1 Pair of shoes that cost 1070 usd is equivalent to $166,910 Jamaican dollars, that can pay for airlines and a hotel. we rather buy a shoe for 50 usd or 8000 jmd then invest the rest of that money. and our credit cards have a limit. if its maxed (which mine never is) the bank does not allow you to go over what you dont have
@@MG-uz5mr Never practice telling people how much you earn, you can attract wicked people. just say you earn a good amount. the less people know your business the better.
Saving can be difficult if you're on a fixed income or below poverty, but some people don't even carry cash anymore. If you wanna make money, save change. You won't realize how fast that shite racks up.
I'm slowly putting the brakes on my online shopping addiction because of your channel. I know I have a problem, but at least I know about it. At least my debts are no longer growing at the rate they used to. I am paying off a lot more on them now as well, and I no longer keep a credit card.
$1k is the amount I need to feel comfortable in my checking account. It’s a nice, safe, even number that covers any of my expenses in the event the debit comes before payday.
My finance professor from college said not to keep more than $2K in my checking account because if the balance is more you’ll always be tempted to spend more than what you have. $2K essentially is my 0 balance. You should keep an emergency fund of 3-6 months expenses in an emergency fund and he told me to keep at least $2500 in a bank savings account (not tired up in investments or an HYSA) in case I really need it in an emergency. The rest of my money gets invested.
A better question is how much you have in the bank! Checking accounts and savings can be switched out at a moments notice. Plus many banks will pay out of your savings if the checkings gets accidentally over drafted. My checking account balance is what I expect to pay out within the next few weeks. If an unexpected bill hits, I’ll transfer more, no big deal
I try not to go below $2,500. I am pretty good with keeping a budget for myself. I use Monarch to help me track my expenses. I give myself $500 for the month for personal use. Once that $500 is done. I’m “broke” until the next month. Lately I’ve been doing a fiscal fast with not really spending money unless it’s an emergency or necessity
1. Keep just enough money for your monthly expenses in your checking account. 2. Keep the rest in a savings account and/or invest and make sure it's not connected to any debit card. 3. It's better to have savings account in another bank for better security. 4. Use only one-time virtual cards for online shopping, never your actual physical cards.
I think with bank accounts we have to remember everyone's monthly expenses are different. So most people want to keep enough to cover one month of expenses without worry when finance allows. This can be a way of starting financial independence. Just another way to think about it. Thanks
BINGO!!! I LOVE TO HEAR STUFF LIKE THIS! I'm looking for over 10% in the brokerage account and that's being conservative imo. I do do LONG term holds (5-10 years)
@@Omar_Zazzle is correct also. Everyone is ADVISED To have 6 months worth of your expenses by professionals. 2 months is "small" amount to me for an emergency fund, HOWEVER I believe the CORRECT amount to have/strive for is 6 months. 💕 This is a good amount because if gives time to find a new income stream and not struggle in the mean time.
You need at least 3 months of expenses in your emergency fund. Brokerage is long term, what happens when you need money and if you sell securities you are making a loss?
I keep basically nothing in my checking account. My bank doesn't charge me an overdraft fee until my account has been negative for like 48 hours. It gives me time to move things around before getting hit with a fee.
Same! For some reason I worry when it drops below that, but usually it's just a one off high spend month. I just have to tell myself, it's fine you'll build that reserve back up, lol.
Same I actually would like 10k in a checking and 50k in a high yield savings for emergencies, I don't have this now but I wish I did I'm more like 100 dollars in checking and 500 In savings
I do a zero budget so I only have bits in my current account. It was hard to see it so low at the beginning, but actually I'm saving tons more by giving every £ a purpose.
She said the secret of my success. A SEPARATE BANK, have two banks. I have my real savings away from my bank where I actually transact. Two reasons safety (the savings bank I have no debit card, do not use it to do anything other than transfer in and out) and two I forget about it so I dont spend it.
5000 in a checking account isn’t that weird if that’s how you pay your bills. Throwing that in a high yield savings account won’t do anything for you if that’s how you pay your bills. And just curious, who’s offering 6% for a HYSA?
As of July 18, 2024, First Community Bank offers a high-yield savings account with a 6.00% APY. But the reason I said maybe 6% in my video is because 6% is not very common. Usually I see it around 4 to 4.5% for a high yield savings account. The 6% are out there but people have to do their research to really know about them. Here's a great CNBC Article about them too ❤www.cnbc.com/select/6-percent-interest-savings-accounts/
And sometimes these accounts have a minimum account balance average that you have to maintain for the month (or statement period) to earn the highest interest.
For real. Nerd Wallet lists the highest at 5.45% coming from My Banking Direct. All the banks offering more than 5% are unknowns; I’ve never heard of them, I don’t know their reputation, but I don’t know if that matters.
@@CateB9in Australia our current highest are 5.75%. I’m on 5.5% it’s only for 35 and under and you must have $1k transferred into ur transaction/checking account every month to earn the highest rate. I like playing in the stock market but if I’m not investing I put it into the HISA and get over $250 a month. Sometimes better than the stock market. I don’t like putting my money into brokerage or retirement accounts where I can’t access it easily, use it if I find a better investment return, and to avoid fees
@@CateB9 I just linked a CNBC article from 3 days ago that may help above in this comment thread. But 5.45 is still great! but here it is Justin case www.cnbc.com/select/6-percent-interest-savings-accounts/ 💕
I have $100 in my checking account, $10k in a HYSA for paying expenses monthly, $140k in 1 month Treasury Bills, and $60k in long term retirement. I only have more liquid assets than retirement because I’m saving up to buy a house and they start at $600k in my area, so really the $150k I have is chump change in comparison.
My wife and i frequently have over 10k in checking, but we don’t keep it there. At the end of the month, anything left over 1k goes in to investment accounts. I worry any less than that and a few auto payments we forgot about, or a credit card payment, or something, could overdraw and cause unnecessary headaches.
hello! i found your channel a couple of days ago and man i’m hooked (+subscribed 😀) it’s 1-2k in checking for me (the minimum balance in our local banks here is 1k) and i somehow clawed my way up to 40+k in savings (due for another evaluation and pump the excess into investments again soon though; i’ve been completely independent since i was 24 so i gotta be responsible for my own adulting lol). love your content and have a great week ahead! my phone battery is at 45% ✨
I have two debit cards. One for bills so it's an exact amount (sometimes there's extra if a cancel a subscription) then I have my spending card which I put about $400 a month on. I usually have remaining $500, 250 is for the high yield savings account and $250 into investment account.
I used to be one of those heavy holders that held most money in between the main checking and savings. Currently, I keep about 2.5k in the main checking/savings. Everything else goes to HYSA, Brokerage and Roth.
I keep one month's expenses in my checking account, just in case. Then some goes into the emergency fund if it needs to be replenished, some goes into my rainy day fund, rest goes into investments. I do get where people keep high numbers in their checking accounts; I used to just because I wasn't educated on it.
10k in checking is crazy unless that is your monthly expense or just 1% or less of your net worth. I keep enough in my checking to cover auto pay for bills, and keep a months worth of expenses in a savings account with high yield that can instantly transfer to checking. The rest of my savings is 6 months to a year of expenses in a high yield (mine is 5.2%) the rest goes straight to investing whether its a brokerage or retirement account. Some money you just have to let depreciate cause you never know when youll need that the buffer but the rest should really be invested yesterday!!
I think it depends on the stage of your journey. I split my 40k emergency fund of 6+ months of expenses between savings and checking. That may seem like a lot but it is a tiny fraction of my net worth and before 2 years ago savings accounts yielded nothing. Even now 5% on 40k is not worth enough to me to complicate my financial setup with another account. I would rather simplify rather than have 100% efficiency. I consider that “dead money” that I don’t count towards retirement so it just sits and is a cushion, that’s its only job.
Less than 10k gives me anxiety less thank 5k I panicked. I’m am married with small children, and own a home. You do need access to money when things go out. Or other emergencies. If you’re money is tied up in investments you often pay penalties and taxes when you need access to that money. Our heating and air went out and needs to be replaced. 28k was the best price for a good system. I do keep my emergency fund in a totally separate bank. I do not have checks or debit cards to that account. So i either have to do a money transfer or go to the bank in person
I keep very little in my checking - usually upcoming bills and $150 for spending. I have a HYSA that I can create "vaults" for, and I move my budgeted money into those vaults until it is time to be used. This weekend my debit card was stolen. The thief got $124.80 (one transaction) out of my amount before I knew what happened. I immediately locked the card, reported it, etc. I'm fortunate that if I never get that money back, I'll be okay. There was another time in my life, it could mean I would be homeless in the next few weeks when rent is due. I can't imagine holding $10k in checking just because. If I'm going to keep it liquid, at least it's in my HYSA. My propensity to not keep a lot on checking also likely saved me from bigger concerns due to the theft.
three months' worth of rent, food, and utilities in savings plus 80% of my check post-bills. and then everything beyond that in savings will go to investments such as government bonds long-term or cds shorter term. I'm a college student so it's a little different for me than someone with a more stable job
I’m constantly checking my accounts and tracking my expenses. On average I have $500 but I have a “Bills” savings that has one month of rent and electricity and car insurance. That gets moved into the checking when needed. I have a separate savings for emergencies and other savings goals.
I have two checking accounts. One is my “bills account” and the other is my free spending money. My bills account holds money solely to pay bills and on average I have $6000-$7000 in there. Because I have a mortgage to pay a car payment groceries to buy, etc. That’s what it cost these days, just to pay your bills.
Goal is 20K ; enough to cover most of emergencies, including losing your job, but I understand it is a lot. I only have that amount because I was able to stay with my mom during COVID and save my first money after graduation. Thanks mom.
I wish people would just talk in %s instead of exact numbers. You’re right that having enough to cover a month (or maybe 2 if you have unpredictable income) of bills is more than enough if you have solid employment. Just like an emergency fund size should vary with expenses and life circumstances.
I put a certain amount in my checking usually 300-500$ to just blow on whatever and everything that is needs like groceries gas or docs appts is put on the credit that i pay off every statement, when my checking hits 0 i need to wait till next check before buying any wants
The theft/fraud concern is why i have the opposite situation: I keep a MAXIMUM of $10 in my checking account unless I need to use it to pay a bill that's higher than my (v small) credit limit (which i always pay back bc it's v small)
My checking account has $500 and sometimes less than that in it. I use credit cards for all my expenses to earn points (paid off every Friday) and all other money goes in to a savings account etc. I am always baffled when I see someone use a debit card for purchases.
I usually keep about 500 or so in my checking, and the rest of what is needed for my monthly expenses (after investing my 20-30%) in a high yield savings account. I put everything that I purchase during the month on a credit card that gets cash back on every single transaction, and I keep a detailed list of every purchase in a notebook so that I'm never going over what the balance in that savings account is for the month. Then, on the final day of the month, I use that money to pay off the credit card. If anything catastrophic happened, then I could dip into the 6-month emergency fund, which is a separate thing.
Thank you for the video, I feel like sometimes I could improve my financial literacy and make better decisions with where I store and reinvest the money I earn to make it work for me so this video was very helpful.
Great video! Personally I only use my checking account for bills or for an emergency that I need my debit. All other purchases I use my credit and pay it in full (it helps me keep track on what I'm spending). Maybe $150 on a debit is reasonable after bills, but the rest should be in a HYSA, emergency fund and the rest I'll personally put in a diverse mutual index fund.
The guy was on point. Yes there are a few with several thousands in checking but it's not the norm. So many people be on straight CAP no matter what it is.
I do a variation on zero based budgeting where my "zero" is my budget for the month. That way everything could come out on DAY ONE of the month and I would have to worry. My paycheck is thus just refilling the bucket. So I dont really worry about the current balance at all. Edit: and yes, already built into that budget is automatic deposits in HYS accounts
My checking is whatever bills are coming out + a cushion of at least $500, but preferably $1000. Three months of expenses in the HYSA, and the rest into investments right now. Eventually, I’ll be building up a second HYSA for a house :)
and that's good for people who don't want to be risky don't get me wrong. But me personally, I put my extra money into a brokerage account, because that is where the real wealth can be created in my opinion. For where I'm trying to go I personally am not satisfied with 4% but to each their own. 💕
@@SocialSymoneKeeping your emergency money in a brokerage is really risky. I’ve lived through multiple financial crises with massive layoffs while markets crashed. I understand having most of your wealth in investments, but you should have at least a basic emergency fund in savings.
I manage my spending carefully, regularly save and invest and I live below my means while still allowing myself to enjoy life and have fun. That being said, I get nervous when my checking dips below $1,000, even though I get paid weekly and I’m very well compensated for my labor so it’s only ever a temporary scare.
I usually have 1.5 to 2.5 times my mortgage payment in checking account so that the autopay have no risk of overdraw. This could be sizable, especially back in the day when I was paying extra. I stopped paying extra because right now I can get higher interest in certifcates than the loan, so now I roll whatever excess into a certifcate every 2 month or so (I have multiple certificate on multiple bank so maturity time comes somewhat frequently, during which I can add more)
I keep like 100-150 in my checking. All my money is in my savings bc I get a 4.25% yield. I pay my car insurance/car taxes every 6 months so I take money out of every paycheck and set it aside in my savings to pay for it. I do that with a lot of monthly bills so it help accrue interest.
Checking should be just for the bills, plus a small buffer to keep it from overdrafting. My overdraft buffer is 300 - you may want more, you may want less. The emergency fund should not be in checking or savings. You do need to be able to get to it within 24 hours, that gives you a LOT of options.
Where I am from there are some chequing accounts where if you keep a min of $5000 you don't have to pay any bank fees and receive other services eg free safety deposit box, no annual fee credit card etc. .So for some people there may be a reason why there is always a certain amount in their chequing account.
The point of an emergency fund is for it to be liquid and quickly available in an emergency. Lock it up in the stock market and something happens on a Friday at 5pm well good luck until Monday to sell and then a maybe couple days for the transfer to go through. But I do park that money in a HYSA. You don’t need to be making a lot of money for $10k. My partner and I both make $20/hr however we also don’t have kids. The reason we keep it high is because if we lose our jobs we want at least 3 months to not worry about our mortgage and bills.
We've been taught to have around two months' worth of expenses readily available and around 6 months' worth of expenses in savings (across multiple banks preferably, never put everything into one basket...)., rest in investments etc., so when shit happens (and it does) you can dip into normal account for emergencies and when big shit happens, like losing a job a medical emergencies, you know you got it covered with savings before having to liquidate anything else (which often takes time).
I think some people have so much in their checking to pay their big bills like their mortgage/escrow accounts, water, and electric bills. Instead of having it pulled from savings they have it pulled from their checking account. While I do agree that having so much sitting in checking is unsafe I do think most of them do this because of the limit on the number of times you can pull money from your savings account in a month.
I keep $1k in my checking account as the “baseline” and I reset it to 1k on the last day of every month. My planned amount to put away into savings gets taken straight out of my paycheck, so anything that goes to savings at the end of the month by resetting to 1k is extra - or I have to take from savings to get back up to 1k, which means I spent more than I planned on. I keep a baseline $10k emergency fund in the savings account, then anything above that goes to fun things and/or life plans.
I keep bill money plus a $50 buffer in my checking account. I have learned that access money isn’t safe there. 😅 the $50 buffer is supposed to be for in case I forget to pay something or need to use a card to pay for parking or something, but normally it gets spent on McDonald’s and eating out. Keep my savings in a HYSA at a different bank. I honestly forget I have it so I constantly think I’m broke
Everything in savings and transfer as needed. Bills come out of savings no card for the savings account and tap for the checking. I’ve saved thousands this way also having a transfer limit to once a day.
I never keep very much in my checking account. My checking is for bills and food and that's it. When my check goes through, I pay whatever bills I need to pay for that week. I keep enough in there for food and the rest gets transferred to my savings. I just keep a small buffer in it, I would rather have that money in a high yield savings account.
I have a separate checking account for bills, i would be too stressed out having everything all together and trying to remember when I can and can't spend some of it because this or that payment is coming up.
I think having a few thousand dollars in your bank account is good. $10k is definitely a solid amount for most emergencies. After saving $10k, it's probably good to be sending continued excess into some investments or retirement. Most Americans I think are not making enough money to cover their living expenses. I think most are able to come up with a few hundred dollars every month but that gets spent so many have a net 0 I think. It's very tough in the world right now.
I’m not going to worry about someone having 4k in their checking, when they have $100k-$200k in their brokerage. Losing out on $15/month in interest (4,000 in 4.5% savings account) is worth the peace of mind to them. Getting that 4k stolen isn’t going to affect them financially. I’m not going to say that’s the story with everyone, just my own reasoning for why I have $4k in my checking.
What do you think is the appropriate amount of money to be in your checking account? Also, what percent is your phone🔋on? I'm on 65%😭
Prob a few hundo as a buffer any more should be invested or saved imo
This is after bills and etc right?
11%, can I get a high-yield battery?
1.5x monthly expenses has been comfortable for a while. You can even automate transfers from brokerage/HY savings accounts to cover future expenses.
The one big thing keeping me on track is not having my paycheck go directly into my checking account.
I still live at home so after the € 600,- I pay to my dad, I like to keep a thousand euro for dog/cat food, small groceries, health insurance, and to spend a little and still have wiggle room. Saved quite a lot, so now looking in how to start investing...
My phone is on 65% and I like to have at least $2,000 in checking, with a backup $1,000 in my savings connected to my checking account.
After i started watched you, i was able to save 26€ its not alot but it's the beginning
And you should be proud of that and I am proud of you! It's not about where you started it where you're going! 💕💕💕💕
Good for you 👏
From little things, big things grow ❤
Save another next month or whenever over and over you’ve got a little safety money 😊 keep going!
Bravo! I’m starting small in savings too.
This is bananas. I worked in banking long enough to know that is not only dumb, but not real safe either. We have $1000 cushion. Payday comes along, we pay the bills and immediately move our money to other places. High Yield Savings accounts are your friend.
I understand a lot of $ shouldn’t be kept in a checking account, but how do you protect a savings? Can’t savings also be hacked?
@@lavellans@lavellans it can be but much more difficult. There is a scam out there called check washing where a person can quickly drain your account just by getting their hands on a check of yours. You also should not have your savings attached to a debit card. Plus I have yet to see a checking account that pays a decent interest rate.
I think it how the account is used. I have several accounts. One back I have a checking account but I use it as a savings. It’s way easier to access those funds if need. I don’t have checks or cards to that account. Then at a totally different bank I have a bill pay account and my husband and I each have a fun money account.
I agree this is bananas! I usually say things are bananas. 😅 My debit card was stolen this weekend, and a $125 charge appeared, which alerted me to the theft. I kept thinking about how bad it could have been if I didn't keep most of my money in my HYSA.
@@lavellans There is a scam known as "check washing" that can make your checking account much more vulnerable. It would be more difficult with a savings account, although they aren't fool proof. I would highly discourage anyone having a debit card attached to a savings account as it puts you at risk as well. The bigger issue for me personally is I've yet to see any checking account that pays the interest to compare with a high yield savings account either, so you're just letting the bank use your money for free if you leave it in a checking account.
we keep bills in checking and rest in savings
I’m so confused by these comments. Do u guys not have easy access to ur savings? In Australia we just move it from checking to savings with a click? I only have a few hundred (so I don’t overdraft) in checking and as much money in savings to grow
@@MG-uz5mr we do through an app typically. might vary by bank.
@@MG-uz5mr I'm not sure why you're confused, but I'm happy to try to explain because I do the same thing as OP. The type of access you have to your savings account depends on the type of savings account you have. If you have a traditional savings account with the same bank that holds your checking account, it is as simple as clicking a button and transferring money from one account to the other.
@MG-uz5mr you have easy access if you're checking and savings accounts are in the same bank. However, it's a security risk because if anyone gets your login information then they can transfer out all the money from both accounts.
This makes it hard to get the money back. And you could potentially lose everything.
That's why it's recommended to have accounts with different banks.
@@SMBeech ill keep that in mind
I just put $6200 in my high yield checking account. It’s at 5.4% interest rate. I save over half my take home pay every paycheck. You have to live below your means. I still live comfortably.
💕💕💕💕 that's a great rate too!
Which bank give you 5.4%?
Bank?
which bank?
@@Maggie-gx3wcMany online banks offer it. Type in high interest saving accounts in 2024 in your browser then websites will pop up with a list and the pros and cons of bank/account in their list
Pull up a chair. I have $1800 extra in my account. Started writing down what I was spending and making in January. When I had a tiny extra like $7, I would move it to my "christmas savings" in my book. Never spent from that column. Pretend it's not there. Did this since January. Love it so much that I don't want a pro manicure or coffee since that small amount can go in my save column. You can do this. Before you know it, you will have that 10 grand and your biggest problem will be where to put it.
I started because I wanted to have a happy Christmas season without stress. Gifts isn't the issue, it's holiday lunches, special drinks, etc.
Find your goal. You can get there every week with a few bucks.
I have a Christmas fund too! I love everything Christmas and did not want to deny myself the joy of spending during festivities without second thought, so I'm saving up for it!
$1000 in the checking account, the rest goes in my underwear for safekeeping
😂
You mean hidden inside your socks 😄
😂😂😂
$500 is the bottom of checking. That will cover a small emergency. 10k in high yield savings as an emergency fund. The rest is invested.
When you say investing, do you mean shares or something else? I’m early 20’s and am unsure what to do with investing
@@kiwijuice662 Yes. Exchange traded funds and index funds. Bought monthly. I use Fidelity because I enjoy having the research but you could buy premade low expense ratio funds at any discount brokerage you like.
@@kiwijuice662 mutual funds or ETFs heck even Treasuries or CDs to start with but typically ETFs and mutual funds return more.
It's confusing to begin with but compound interest works well good luck
@@kiwijuice662yes, stocks and index funds
@@kiwijuice662 Stocks, mutual funds. Pls avoid crypto.
I feel like I'm broke if I have less than $500 in my checking account, but at the same time I have a 6 month emergency fund. I have the money for my bills set aside in a completely separate account. My checking account is just for my day to day spending
thats a good mentality to have though! many people treat emergency funds as "extra" money for vacays or other non necessities and then end up having no money for actual emergencies like job layoffs and medical situations.
Enough to cover all your monthly expenses Plus at least a $2,000 emergency fund. And that's a minimum for me.
The emergency fund is SO IMPORTANT!!! ❤️ ❤️ ❤️
You know disabled people aren’t even allowed to hold more than 2k in America or they lose their health care ?
In a perfect world, I’d like 2-3 months of bills payed, and $2k.
@@SocialSymone so true. I lost my job unexpectedly last year, no emergency fund. Now I'm working two jobs paying off credit card debt 😅
But I wouldn’t keep emergency funds in my checking account at all
I'm a retail worker, currently studying to gain new skills and hopefully get a new job that allows me to actually survive. If I have at least $150.⁰⁰ in my checking account, that's a good day.
I know that's hardly anything. I'm working on it.
Just a stranger passing by to tell you that you’re doing great! Future you will be thankful 😊
Been there and am just slightly more now. Keep going! You're doing great!
This is so real. I’m eighteen and work retail but I don’t want to do that for the rest of my life. I wanna write a book and have that as my job or travel to learn how to farm.
I definitely feel you. My first job was in restaurant and paid well but I left for my own mental health. Unfortunately that left me living paycheck to paycheck in my next jobs and required me to get a second one. I know one day I’ll get something I’m happy with and pays well but for now I’m learning how to live while I’m still in my 20s. :)
you got this!
Like you said the amount in your checking should be determined by lifestyle and income. For some people a few thousand isnt a make or break. I know someone who makes 300,000 a year before bonuses. Their checking account will look much different from someone making 50,000 a year.
Exactly!!! And 300,000 sounds amazing!!!! What industry do they work in? If you don't mind me asking. ❤️
@@SocialSymone they're a private equity attorney. Honestly I'm not sure what they actually do but they seem to like it
@@SocialSymoneI know a CFO making that before bonues
You nailed it! In my 20’s my balance was near $0 all the time and it was really stressful. At one point I found out my mom had run out of money to buy food and they only had crackers left to eat, but I couldn’t even give her any money because I had $10 in my checking account and I needed that for baby formula. Finances are rough when you were young. Now I’m in my 40s and we keep about $7000 in our checking account to pay bills. The rest goes to savings. on occasion, my balance gets low into the one and 2000s range and it makes me nervous. Because my mortgage alone is over $1000. A cushion in my checking account so I never overdraft.
Right, controversial.. I actually forecast all my expenses ahead of the month and remove any excess money right at the beginning into savings account. So by the end of the month, my checking account should say 0. And it doesn’t scare me because that’s exactly what I want. It’s stops me breaking my budget. Equally if I reallly end up needing extra money, I can go into savings, and it feels more sacrificial so I avoid spending money just because it’s there
"Its the mentality behind it," is key. I work part time at a convenience store that has slot machines, and we have one couple that comes in and just SPENDS HUNDREDS, if not more, on thr DAILY. After a few weeks, one of them told me that they had an injury at work and got a very large settlement... With the way they spend it, they are gonna be unable to work due to that injury, and broke on account of their gambling, in no time.
I work in member service for a credit union and I have heard some sad stories with people that get settlements. Its like they dont understand that you are supposed to make it last. And we advise them but people are going to do what they want to do with their money. We had a young man that got a cool million. It was gone in 8 months.
I literally JUST transferred everything but $1500 into a high yield CD. I'm so excited to start earning money passively.
How much did you transfer? I have a sizable regular savings acct, but it's been doing nothing for years. I'm afraid of the risk. How long is the CD and which company?
I only keep about $100-300 in my checking. 😅 The rest goes to savings
Same! It would change if I think I can’t access my banking account. I also have my credit card that if I need to use during an emergency but I know exactly how much I have in savings and the second I had a chance, I’d pay my credit card bill
10K in a checking account!? Why would anyone leave that much in there!? At least put it into a CD or HYSA.
I've been thinking about opening a CD. Would that be a good investment?
I can see a situation where someone knows of a large expense coming up and transfers money from somewhere else into checking to prepare for it. This could just be a snapshot situation and not what they would normally keep there. I mean this December we will owe property taxes and insurance which will be around $4000 so we will need at least that much in checking to pay it.
@@Vbear-bn4wmyes. If you’re not using it. Let your money work for you. Just know it’s locked for that period amount of time that you also can’t get into so it’s a great security measure as well! I work in finance
It's likely because that's how much they need on a month basis.
You would be surprised how much some people keep in checking.
i have been so obsessed with your channel since I found it last week. I have already started to make changes in my financial planning and it’s amazing how much relief it brings you when you know you have money saved for emergencies.
1 checking, 1 savings, same bank. Minimum 2k each in both. Pay everything off on checking account and direct deposit into checking account. 6 months emergency fund in a different bank that’s a HYSA. Everything else in investments
I love your set up here!!! ❤ ❤ ❤
Yes because if you have an emergency and need immediate funds it’s in your primary bank already. If you really need money cause it’s a bigger emergency, you transfer it from the HYSA to your regular while the “buffer” holds you down.
I personally have my emergency funds split between 2 HYSA with two different banks as well in case one acts up.
I've been wondering if I should do this. I have my entire emergency fund in a savings account with my primary bank that my checking account is also with. But I have a different savings account that is high yield I'm considering moving a chunk of the savings to. I'm just scared to not have immediate access to the full emergency fund at once
@@Justwavy09 which HYSAs do you recommend?
Not to sound ignorant but could you do a video on how to get interest on your money sitting in the bank? I was never taught about that so I wish I would have known sooner. I need to do research on this. Financial literacy isn’t something that’s taught to everyone but it’s highly important.
look into high yield savings accounts!
@@bleeploughly6311 okay, thank you!
Yeah capital one has a good one!
Look into high yield savings accounts
They are like a savings account that have high interest versus .001% at the bank in checking
First community bank has a HYSA for 6%, capital one is 4.25% and so on. Google them and you can look on RUclips more information on high yield savings accounts in general
A safe investment is also getting a government bond
As a single income family pretty much living paycheck to paycheck, I know exactly what bills are due and once all of those come out what we are left with is groceries and gas money. We are not in the season of being able to always have a certain amount in our checking account. It is what it is. But we do keep $1000 in our emergency fund savings, so always having that there is definitely helpful with the stress of it all!
Hi, I am a Jamaican Vlogger, I love your videos.
America is built on consumerism. The People don't know how to budget nor spend money.1 Pair of shoes that cost 1070 usd is equivalent to $166,910 Jamaican dollars, that can pay for airlines and a hotel. we rather buy a shoe for 50 usd or 8000 jmd then invest the rest of that money. and our credit cards have a limit. if its maxed (which mine never is) the bank does not allow you to go over what you dont have
thank you so much. I appreciate your love and support. 💕💕💕💕
I earn 100k and spend 40k a year on average. I’m very excited to continue saving and investing to do something big for the community one day
@@MG-uz5mr Never practice telling people how much you earn, you can attract wicked people. just say you earn a good amount. the less people know your business the better.
@@JourneytofindBeauty who’s gonna find me 😂 I don’t tell people in real life internet is anonymous 😉
@@MG-uz5mr ok that's good. 🙂
Saving can be difficult if you're on a fixed income or below poverty, but some people don't even carry cash anymore.
If you wanna make money, save change. You won't realize how fast that shite racks up.
I'm slowly putting the brakes on my online shopping addiction because of your channel. I know I have a problem, but at least I know about it. At least my debts are no longer growing at the rate they used to. I am paying off a lot more on them now as well, and I no longer keep a credit card.
$1k is the amount I need to feel comfortable in my checking account. It’s a nice, safe, even number that covers any of my expenses in the event the debit comes before payday.
My finance professor from college said not to keep more than $2K in my checking account because if the balance is more you’ll always be tempted to spend more than what you have. $2K essentially is my 0 balance. You should keep an emergency fund of 3-6 months expenses in an emergency fund and he told me to keep at least $2500 in a bank savings account (not tired up in investments or an HYSA) in case I really need it in an emergency. The rest of my money gets invested.
A better question is how much you have in the bank! Checking accounts and savings can be switched out at a moments notice. Plus many banks will pay out of your savings if the checkings gets accidentally over drafted. My checking account balance is what I expect to pay out within the next few weeks. If an unexpected bill hits, I’ll transfer more, no big deal
Yep. I do this too.
I try not to go below $2,500. I am pretty good with keeping a budget for myself. I use Monarch to help me track my expenses. I give myself $500 for the month for personal use. Once that $500 is done. I’m “broke” until the next month. Lately I’ve been doing a fiscal fast with not really spending money unless it’s an emergency or necessity
1. Keep just enough money for your monthly expenses in your checking account.
2. Keep the rest in a savings account and/or invest and make sure it's not connected to any debit card.
3. It's better to have savings account in another bank for better security.
4. Use only one-time virtual cards for online shopping, never your actual physical cards.
I think with bank accounts we have to remember everyone's monthly expenses are different. So most people want to keep enough to cover one month of expenses without worry when finance allows. This can be a way of starting financial independence. Just another way to think about it. Thanks
You only need enough for 1 months expenses and a small emergency in your checking account. The rest is in a separate brokerage account.
BINGO!!! I LOVE TO HEAR STUFF LIKE THIS! I'm looking for over 10% in the brokerage account and that's being conservative imo. I do do LONG term holds (5-10 years)
In your opinion, how much is a small emergency?
@@Omar_Zazzle is correct also. Everyone is ADVISED To have 6 months worth of your expenses by professionals. 2 months is "small" amount to me for an emergency fund, HOWEVER I believe the CORRECT amount to have/strive for is 6 months. 💕 This is a good amount because if gives time to find a new income stream and not struggle in the mean time.
You need at least 3 months of expenses in your emergency fund. Brokerage is long term, what happens when you need money and if you sell securities you are making a loss?
@@christinarach340 Everyone is not selling at a loss.. It Depends on WHEN They bought and are they at a profit or not when they sell.
$1,000 in checking and 6 months in a HYSA as an emergency fund. 401K and Roth IRA maxed out. Also have securities account.
I keep basically nothing in my checking account. My bank doesn't charge me an overdraft fee until my account has been negative for like 48 hours. It gives me time to move things around before getting hit with a fee.
AND THEY PROBABLY LYING--10, 000 IN THE BANK WITH 9,999.00 WORTH OF MONTHY BILLS!
$5,000 is my minimum. I get uncomfortable with anything below that.
Same! For some reason I worry when it drops below that, but usually it's just a one off high spend month. I just have to tell myself, it's fine you'll build that reserve back up, lol.
Same I actually would like 10k in a checking and 50k in a high yield savings for emergencies, I don't have this now but I wish I did I'm more like 100 dollars in checking and 500 In savings
Same. Need a little cash incase of an accident or emergency. I dont know how people can handle less! Too much stress, idk why they do it!
I never felt more motivated to finally open a HYSA then after watching this video! Thank you!
I do a zero budget so I only have bits in my current account. It was hard to see it so low at the beginning, but actually I'm saving tons more by giving every £ a purpose.
She said the secret of my success. A SEPARATE BANK, have two banks. I have my real savings away from my bank where I actually transact. Two reasons safety (the savings bank I have no debit card, do not use it to do anything other than transfer in and out) and two I forget about it so I dont spend it.
5000 in a checking account isn’t that weird if that’s how you pay your bills. Throwing that in a high yield savings account won’t do anything for you if that’s how you pay your bills. And just curious, who’s offering 6% for a HYSA?
As of July 18, 2024, First Community Bank offers a high-yield savings account with a 6.00% APY. But the reason I said maybe 6% in my video is because 6% is not very common. Usually I see it around 4 to 4.5% for a high yield savings account. The 6% are out there but people have to do their research to really know about them. Here's a great CNBC Article about them too ❤www.cnbc.com/select/6-percent-interest-savings-accounts/
And sometimes these accounts have a minimum account balance average that you have to maintain for the month (or statement period) to earn the highest interest.
For real. Nerd Wallet lists the highest at 5.45% coming from My Banking Direct. All the banks offering more than 5% are unknowns; I’ve never heard of them, I don’t know their reputation, but I don’t know if that matters.
@@CateB9in Australia our current highest are 5.75%. I’m on 5.5% it’s only for 35 and under and you must have $1k transferred into ur transaction/checking account every month to earn the highest rate. I like playing in the stock market but if I’m not investing I put it into the HISA and get over $250 a month. Sometimes better than the stock market. I don’t like putting my money into brokerage or retirement accounts where I can’t access it easily, use it if I find a better investment return, and to avoid fees
@@CateB9 I just linked a CNBC article from 3 days ago that may help above in this comment thread. But 5.45 is still great! but here it is Justin case www.cnbc.com/select/6-percent-interest-savings-accounts/ 💕
I have $100 in my checking account, $10k in a HYSA for paying expenses monthly, $140k in 1 month Treasury Bills, and $60k in long term retirement. I only have more liquid assets than retirement because I’m saving up to buy a house and they start at $600k in my area, so really the $150k I have is chump change in comparison.
I never have more than $150 after bills but I budget in groceries and gas so technically it doesn’t go anywhere until next payday
💕
My wife and i frequently have over 10k in checking, but we don’t keep it there. At the end of the month, anything left over 1k goes in to investment accounts.
I worry any less than that and a few auto payments we forgot about, or a credit card payment, or something, could overdraw and cause unnecessary headaches.
What kind of investment accounts?
Roth and/or brokerage
hello! i found your channel a couple of days ago and man i’m hooked (+subscribed 😀)
it’s 1-2k in checking for me (the minimum balance in our local banks here is 1k) and i somehow clawed my way up to 40+k in savings (due for another evaluation and pump the excess into investments again soon though; i’ve been completely independent since i was 24 so i gotta be responsible for my own adulting lol).
love your content and have a great week ahead! my phone battery is at 45% ✨
I have two debit cards. One for bills so it's an exact amount (sometimes there's extra if a cancel a subscription) then I have my spending card which I put about $400 a month on. I usually have remaining $500, 250 is for the high yield savings account and $250 into investment account.
I used to be one of those heavy holders that held most money in between the main checking and savings.
Currently, I keep about 2.5k in the main checking/savings. Everything else goes to HYSA, Brokerage and Roth.
I keep one month's expenses in my checking account, just in case. Then some goes into the emergency fund if it needs to be replenished, some goes into my rainy day fund, rest goes into investments. I do get where people keep high numbers in their checking accounts; I used to just because I wasn't educated on it.
10k in checking is crazy unless that is your monthly expense or just 1% or less of your net worth. I keep enough in my checking to cover auto pay for bills, and keep a months worth of expenses in a savings account with high yield that can instantly transfer to checking. The rest of my savings is 6 months to a year of expenses in a high yield (mine is 5.2%) the rest goes straight to investing whether its a brokerage or retirement account. Some money you just have to let depreciate cause you never know when youll need that the buffer but the rest should really be invested yesterday!!
i absolutely adore your channel and the fact that you always talk about finances! don’t ever change ! ❤️
Thank you so much!! 💕💕💕 that is so kind of you, I really appreciate that!
I think it depends on the stage of your journey. I split my 40k emergency fund of 6+ months of expenses between savings and checking. That may seem like a lot but it is a tiny fraction of my net worth and before 2 years ago savings accounts yielded nothing. Even now 5% on 40k is not worth enough to me to complicate my financial setup with another account. I would rather simplify rather than have 100% efficiency. I consider that “dead money” that I don’t count towards retirement so it just sits and is a cushion, that’s its only job.
Less than 10k gives me anxiety less thank 5k I panicked. I’m am married with small children, and own a home. You do need access to money when things go out. Or other emergencies. If you’re money is tied up in investments you often pay penalties and taxes when you need access to that money. Our heating and air went out and needs to be replaced. 28k was the best price for a good system.
I do keep my emergency fund in a totally separate bank. I do not have checks or debit cards to that account. So i either have to do a money transfer or go to the bank in person
I really, really enjoy your content and I hope you blow up. I support you 100% sis
Thank you so much! I appreciate your love and support ❤
I keep very little in my checking - usually upcoming bills and $150 for spending. I have a HYSA that I can create "vaults" for, and I move my budgeted money into those vaults until it is time to be used. This weekend my debit card was stolen. The thief got $124.80 (one transaction) out of my amount before I knew what happened. I immediately locked the card, reported it, etc. I'm fortunate that if I never get that money back, I'll be okay. There was another time in my life, it could mean I would be homeless in the next few weeks when rent is due.
I can't imagine holding $10k in checking just because. If I'm going to keep it liquid, at least it's in my HYSA. My propensity to not keep a lot on checking also likely saved me from bigger concerns due to the theft.
three months' worth of rent, food, and utilities in savings plus 80% of my check post-bills. and then everything beyond that in savings will go to investments such as government bonds long-term or cds shorter term. I'm a college student so it's a little different for me than someone with a more stable job
I’m constantly checking my accounts and tracking my expenses. On average I have $500 but I have a “Bills” savings that has one month of rent and electricity and car insurance. That gets moved into the checking when needed. I have a separate savings for emergencies and other savings goals.
I have two checking accounts. One is my “bills account” and the other is my free spending money. My bills account holds money solely to pay bills and on average I have $6000-$7000 in there. Because I have a mortgage to pay a car payment groceries to buy, etc. That’s what it cost these days, just to pay your bills.
$200 in checking. I put all my money in savings
I like to have one month's expenses in checking - otherwise, I get too anxious about exactly when each bill aand check hit.
Goal is 20K ; enough to cover most of emergencies, including losing your job, but I understand it is a lot. I only have that amount because I was able to stay with my mom during COVID and save my first money after graduation. Thanks mom.
I wish people would just talk in %s instead of exact numbers. You’re right that having enough to cover a month (or maybe 2 if you have unpredictable income) of bills is more than enough if you have solid employment. Just like an emergency fund size should vary with expenses and life circumstances.
1:26 people need to know more of this !!!!
My rule of thumb is one full month of expenses plus the minimum before the bank charges a service fee.
Thank you for this. I judt opened a High Yield savings account because of you. RUclips is so educational. THANK YOU!! I just subscribed
I put a certain amount in my checking usually 300-500$ to just blow on whatever and everything that is needs like groceries gas or docs appts is put on the credit that i pay off every statement, when my checking hits 0 i need to wait till next check before buying any wants
The theft/fraud concern is why i have the opposite situation: I keep a MAXIMUM of $10 in my checking account unless I need to use it to pay a bill that's higher than my (v small) credit limit (which i always pay back bc it's v small)
Enough to cover bills plus a $1,000 buffer in my checking. Everything else gets moved to make more money for us.
I’m amazed people keep so little in their accounts.
Yeah i feel like it’s not that bad to keep a lot in your checking if you’re already saving money in different avenues
I absolutely love your channel. I just recently found it, and it has easily become one of my favorites. Great content! Keep up the great work ❤✨️
My checking account has $500 and sometimes less than that in it. I use credit cards for all my expenses to earn points (paid off every Friday) and all other money goes in to a savings account etc.
I am always baffled when I see someone use a debit card for purchases.
I usually keep about 500 or so in my checking, and the rest of what is needed for my monthly expenses (after investing my 20-30%) in a high yield savings account.
I put everything that I purchase during the month on a credit card that gets cash back on every single transaction, and I keep a detailed list of every purchase in a notebook so that I'm never going over what the balance in that savings account is for the month.
Then, on the final day of the month, I use that money to pay off the credit card.
If anything catastrophic happened, then I could dip into the 6-month emergency fund, which is a separate thing.
Thank you for the video, I feel like sometimes I could improve my financial literacy and make better decisions with where I store and reinvest the money I earn to make it work for me so this video was very helpful.
Great video! Personally I only use my checking account for bills or for an emergency that I need my debit. All other purchases I use my credit and pay it in full (it helps me keep track on what I'm spending). Maybe $150 on a debit is reasonable after bills, but the rest should be in a HYSA, emergency fund and the rest I'll personally put in a diverse mutual index fund.
The guy was on point. Yes there are a few with several thousands in checking but it's not the norm. So many people be on straight CAP no matter what it is.
I do a variation on zero based budgeting where my "zero" is my budget for the month. That way everything could come out on DAY ONE of the month and I would have to worry. My paycheck is thus just refilling the bucket. So I dont really worry about the current balance at all.
Edit: and yes, already built into that budget is automatic deposits in HYS accounts
My checking is whatever bills are coming out + a cushion of at least $500, but preferably $1000. Three months of expenses in the HYSA, and the rest into investments right now. Eventually, I’ll be building up a second HYSA for a house :)
listen tho. some banks are offering high yield interest (like 4%) in a checking acct. that's probably why they do that.
and that's good for people who don't want to be risky don't get me wrong. But me personally, I put my extra money into a brokerage account, because that is where the real wealth can be created in my opinion. For where I'm trying to go I personally am not satisfied with 4% but to each their own. 💕
@SocialSymone can you make more videos on a brokerage account
@@SocialSymoneKeeping your emergency money in a brokerage is really risky. I’ve lived through multiple financial crises with massive layoffs while markets crashed. I understand having most of your wealth in investments, but you should have at least a basic emergency fund in savings.
@@Happymavishappy I respect and understand where you’re coming from. I personally am more risky but everyone is different. 💕💕💕
@@SocialSymoneMay I ask which account you use? I am looking into Wealthfront!
I manage my spending carefully, regularly save and invest and I live below my means while still allowing myself to enjoy life and have fun.
That being said, I get nervous when my checking dips below $1,000, even though I get paid weekly and I’m very well compensated for my labor so it’s only ever a temporary scare.
I usually have 1.5 to 2.5 times my mortgage payment in checking account so that the autopay have no risk of overdraw. This could be sizable, especially back in the day when I was paying extra. I stopped paying extra because right now I can get higher interest in certifcates than the loan, so now I roll whatever excess into a certifcate every 2 month or so (I have multiple certificate on multiple bank so maturity time comes somewhat frequently, during which I can add more)
We have checking for main bills, household for food/gas/eating out, personal allowances, plus savings account
I keep like 100-150 in my checking. All my money is in my savings bc I get a 4.25% yield. I pay my car insurance/car taxes every 6 months so I take money out of every paycheck and set it aside in my savings to pay for it. I do that with a lot of monthly bills so it help accrue interest.
Checking should be just for the bills, plus a small buffer to keep it from overdrafting. My overdraft buffer is 300 - you may want more, you may want less. The emergency fund should not be in checking or savings. You do need to be able to get to it within 24 hours, that gives you a LOT of options.
Where I am from there are some chequing accounts where if you keep a min of $5000 you don't have to pay any bank fees and receive other services eg free safety deposit box, no annual fee credit card etc. .So for some people there may be a reason why there is always a certain amount in their chequing account.
The point of an emergency fund is for it to be liquid and quickly available in an emergency.
Lock it up in the stock market and something happens on a Friday at 5pm well good luck until Monday to sell and then a maybe couple days for the transfer to go through. But I do park that money in a HYSA.
You don’t need to be making a lot of money for $10k. My partner and I both make $20/hr however we also don’t have kids. The reason we keep it high is because if we lose our jobs we want at least 3 months to not worry about our mortgage and bills.
No wrong way to do what's best for you and your family 💕
It really makes no difference unless you're moving around $100k. The interest in savings accounts is pretty much negligible unfortunately
We've been taught to have around two months' worth of expenses readily available and around 6 months' worth of expenses in savings (across multiple banks preferably, never put everything into one basket...)., rest in investments etc., so when shit happens (and it does) you can dip into normal account for emergencies and when big shit happens, like losing a job a medical emergencies, you know you got it covered with savings before having to liquidate anything else (which often takes time).
I think some people have so much in their checking to pay their big bills like their mortgage/escrow accounts, water, and electric bills. Instead of having it pulled from savings they have it pulled from their checking account. While I do agree that having so much sitting in checking is unsafe I do think most of them do this because of the limit on the number of times you can pull money from your savings account in a month.
To be honest, i didn't even know this was a thing. My checking account is ugh .... 😩 i dont know what to say ...😂 #laughingsoidontcry
I keep $1k in my checking account as the “baseline” and I reset it to 1k on the last day of every month. My planned amount to put away into savings gets taken straight out of my paycheck, so anything that goes to savings at the end of the month by resetting to 1k is extra - or I have to take from savings to get back up to 1k, which means I spent more than I planned on. I keep a baseline $10k emergency fund in the savings account, then anything above that goes to fun things and/or life plans.
I have high yield saving account but not a brokerage account. Could you explain the benefits of it?
Subscribed! Thank you 😊
I keep bill money plus a $50 buffer in my checking account. I have learned that access money isn’t safe there. 😅 the $50 buffer is supposed to be for in case I forget to pay something or need to use a card to pay for parking or something, but normally it gets spent on McDonald’s and eating out.
Keep my savings in a HYSA at a different bank. I honestly forget I have it so I constantly think I’m broke
I don't spend enough money to need $4-10K in my checking account daily. I would rather use that to build up savings goals--house, retirement, travel.
Everything in savings and transfer as needed. Bills come out of savings no card for the savings account and tap for the checking. I’ve saved thousands this way also having a transfer limit to once a day.
I never keep very much in my checking account. My checking is for bills and food and that's it. When my check goes through, I pay whatever bills I need to pay for that week. I keep enough in there for food and the rest gets transferred to my savings. I just keep a small buffer in it, I would rather have that money in a high yield savings account.
I have a separate checking account for bills, i would be too stressed out having everything all together and trying to remember when I can and can't spend some of it because this or that payment is coming up.
Another great video. Always leave your videos with something to think about.!🖤💚
I work at a credit union, I've seen $30,000 in checking accounts.
I think having a few thousand dollars in your bank account is good. $10k is definitely a solid amount for most emergencies. After saving $10k, it's probably good to be sending continued excess into some investments or retirement.
Most Americans I think are not making enough money to cover their living expenses. I think most are able to come up with a few hundred dollars every month but that gets spent so many have a net 0 I think. It's very tough in the world right now.
I probably shouldn’t but I do zero based budgeting and sometimes my account runs down to zero.
I’m not going to worry about someone having 4k in their checking, when they have $100k-$200k in their brokerage. Losing out on $15/month in interest (4,000 in 4.5% savings account) is worth the peace of mind to them. Getting that 4k stolen isn’t going to affect them financially. I’m not going to say that’s the story with everyone, just my own reasoning for why I have $4k in my checking.
Checking account? $500 or so. Anything beyond that for Savings is in a HYSA.
It all depends. I have over 10k in my pa but I also have waaaay more where it should be 💯.