• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

  • Home
  • About
    • About us
    • Why SeedTime?
    • Our Beliefs
    • The Story of SeedTime
  • Podcast
  • The Book
  • Courses
    • True Financial Freedom
    • The Real Money Method (unbudgeting) course
    • The 10x Investing course
  • For Churches
  • Blog
    • The Financial Tools We Actually Use
    • My strategy for giving away millions
    • 5 Bible Verses You Should Know (Free PDF)
    • My Checklist To Financial Freedom (Free PDF)
    • 25 Ways to Save Money
    • Why we began giving our age as a percentage
    • Tithing: an honest look and what we do
    • Why I took a Sabbatical YEAR (and how I did it)
    • How We Travel For Free
    • 4 Financial Lessons from Solomon (The Richest Man Ever)
    • How to become a millionaire by investing [& turn $2k into $1 mil]
    • My Morning Checklist (Free PDF)
    • How to get out of credit card debt (Free PDF)
    • How I made $2,145 Last Month by decluttering
    • How I Broke Free From the Rat Race (in less than 2 years)
    • We just checked off the biggest goal in our life…
    • Our Medi-Share Review after 12 years
    • 4 Money Habits To Start in Your 20s (that basically guarantee financial success)
  • Free Stuff
    • FREE preview of our True Financial Freedom class
    • Join over 100k & get our Newsletter

How I organize my bank accounts

September 20, 2007 By Bob Lotich, CEPF®

how I organize my bank accounts

Organize your Bank accounts

If there is one thing that I have learned about personal finances, it is that nothing is one-size-fits-all. There are different tools, methods, products, and investments that work for different people at different phases of their lives. My system that I am currently using to manage my accounts and cashflow did not work for me 5 years ago.

But now I couldn’t think of anything easier or more efficient.

Below is a diagram showing how cash flows through my accounts.

accounts diagram2

This is a simplified version, but it gets the point across.

Variable Expenses

Every two weeks, our paychecks are direct deposited as noted above in the diagram into our accounts at our credit union. Our checking account for GAS & GROCERY gets a fixed amount deposited into it every two weeks. From this account we get our spending cash (or blow money), pay for fuel for our cars, and groceries. None of the three are really fixed expenses, so when gas prices rise we are forced to cut back on our spending money or grocery bill.

I sure hope that gas doesn’t go up to $4 a gallon – I won’t be able to eat!! 🙂 Keeping a leash on variable expenses is extremely important when trying to save money. Most people do not realize that expenses rise to meet income, and they pay the price because of it.

Look at any well established business and you will find that each department has a set budget for the quarter or year. They have to stay within those limits that have been created for them.

Why do they do this? Because it works. Businesses are in business to make money, so if it minimizes expenses they are happy.I am not suggesting to manage your finances like a CFO, but we can learn a lot about how to get things done from the business world.

Fixed Expenses

Roughly 75% of our paychecks go into our BILLS account. When we set this account up, I calculated how much all of our monthly bills cost, divided it by two and set up a schedule for when each would be paid. So, in all honesty I don’t check the balance in this account very often. Since we know how much needs to be paid out each month, we have exactly that amount deposited in. I use bill pay to pay my bills out of this account every two weeks based on my bill payment schedule.

Budgeting

Part of this fixed amount that gets direct deposited into our BILLS account is our  Capital One 360 savings. Cap One 360 is a great budgeting tool and if you don’t have an account with them, I recommend that you take a look at what they have to offer.

From our BILLS account (every two weeks) I transfer a fixed amount into each one of our Cap One 360 savings accounts. As the accounts grow I am earning a good interest rate on my budgeted money.

I would love to hear how you manage your money or any other thoughts or suggestions…


Related Posts

  • Why Money Doesn’t Solve Most Money Problems
  • How To Set Up A Budget With Inconsistent Income
  • I Remember
  • 7 FREE Printable Budgeting Worksheets

Filed Under: Budgeting, How to Manage Money, Productivity, Simplify Tagged With: Banking, Budgeting articles, How to..., ING Orange Savings, Money Management, Money Tips, Organize, Personal Productivity Training, Time Saving Tips

About Bob Lotich, CEPF®

Bob Lotich, CEPF® is a Certified Educator in Personal Finance and has over 15+ years experience writing about Biblical personal finance. He is the award-winning author of Simple Money, Rich Life and has been named a top 20 social influencer in personal finance.

Check out his on-demand Christian financial class for couples, small groups and churches called True Financial Freedom.

Primary Sidebar

 

Welcome!

Bob Lotich

Hey! I’m Bob Lotich. Jesus follower, husband, dad, best-selling author, CEPF®, and money nerd.

This site contains the lessons I learned on my journey from being a stingy, debt-ridden fool, to being able to give more than I ever dreamed, having a paid off house by age 31, and peace with money in the process. Find out more or join us here.

Simple Money Rich Life

 

Legal Disclaimer

The articles on this site should not be taken as financial advice. Please contact a financial advisor (or coach) for specific advice regarding your situation. Any references to interest rates, giveaways, deals, products, and websites are subject to change without notice. We try our best to keep the information current, but things are always changing so it may be different now than when it was first published. Also, all the pages on SeedTime help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others but our opinions are NEVER for sale. Find out more here.

Footer



SeedTime is a 2x Plutus award winning website.
seedtime money logo


seedtime is accredited with the BBB and has an A+ rating
seedtime instagram seedtime money youtube channel seedtime money twitter with Bob Lotich


Our book Simple Money, Rich Life was named 2022 book of the year!
  • Home
  • About
  • Beliefs
  • Blog
  • Podcast
  • The Book
  • Courses
  • For Churches
  • Press



Privacy Policy | Terms | Reviews | Earnings Disclaimer | Contact | 636-344-0438
625 Bakers Bridge Ave Suite 105-134 Franklin, TN 37067
©2007-2023 · SeedTime (Formerly ChristianPF)