The 3-Account Strategy
Three accounts make it easier to get a grip on your finances.
- The normal checking account. Use this account only to cover groceries and small purchases.
- The fixed costs account. Ensure there's enough money to cover your mortgage and bills for six months. Don't use this account for anything else.
- The savings account. Set up an automatic payment that transfers a set amount every month to your savings account.
The rule is to pay your fixed costs first, then wire cash to your savings account. Spend what's left in your checking account.
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