Thursday, December 17, 2015

Financial Resolutions for the New Year


Did you know we have 8 bank accounts? That's right. 8 accounts. Before you think we have taken the crazy train to who knows where, let me explain.

Our financial resolution for 2016 is to make sure we have our finances on the right track for buying a house. Because let's face it, that's a huge purchase and hit on your hard saved money. First, we want to make sure we do not end up "house poor" as some people might say. That means not only making sure we have enough for the down payment but also all the fun stuff that comes after. Then, we have to make sure where we are currently with spending allows us to still enjoy our life after a house or if we should adjust now to prepare for when we do purchase.



To help us achieve our financial resolution, we utilize those 8 bank accounts I had mentioned. I won't say we have fully mastered all the accounts but we are pretty close. We have a system for every paycheck and what can be adjusted if we feel like one account isn't thriving as much as it should.

Our account
This is our joint checking account. Both of our paychecks are deposited here to make it easier to transfer all in one place. We pay all of our bills from this account, including rent, car loan, etc.

His Account & Her Account
These are our separate checking accounts. I know it's always an interesting topic asking married couples if they share an account. We have the best of both. I like having my own not necessarily to splurge but to also be able to surprise Brian if I wanted to. This is where I get my nail money from or my morning coffee fix. It comes out to around 10% of each paycheck.

Regular Savings
20% of our checks go into this account to be used for the down payment on a house. Once we accomplish that savings goal and purchase the house, we can utilize this as regular savings for the future. This is money that we do not touch and you can pretend is not even there.

Will this be my house?


Short Term Savings
10% of each of our paychecks goes into this account. This is for any short term purchases you are hoping to make. Most recently for us, it was the bed, the car before that, etc. That way we did not have to take anything out of our regular savings and were able to see this separately for our purchases.

Fun Money
What goes in here really depends on what we have "leftover" for the month. It usually turns out to be around 5%. We use this for our date nights, ordering in, nights out with friends. If we know we are going out, we place the money that we want to spend in the checking account ahead of time.




Kid Fund
Yes, the child fund because kids are expensive and there might be a chance I just can't go back to work. We like to be prepared ahead of time for the large chunk of expenses it takes. It's 5% that goes in here.

Capital One 360 Savings Account
Seeing as I struggled with saving pennies always, it was important that I had my own savings account. It helped me feel empowered to save and was a small win for me for when I hit my goal at the end of last year. 360 Savings from Capital One account makes it extremely easy to save money. The ‘Automatic Savings Plan’ tool allows users to maximize their savings by having a fixed amount of money regularly transferred from their linked checking account to their online savings account, giving them a higher interest rate. I have it set up for each paycheck to automatically be transferred over so I basically don't even have to see it before it leaves!



We also currently have minimal debt {...I mean besides the student loans that I pretend don't exist..} and want to continue down that road. We only use our credit card for things like gas or groceries that we pay off completely each month. This is so we can build credit and still earn rewards. The Capital One Venture Card is a great option if you are looking for a travel rewards credit card. The Venture Card is a travel rewards credit card offering double miles on every purchase – anywhere, anytime, and without the restrictions commonly found in rewards programs. I personally love making money while spending money or getting free points for stuff. Ask my husband, if it has a rewards program I sign up. 

We feel that we are ready for 2016 with our finances to move forward with our future and you can be too just by following our steps for the accounts. What are your financial goals for the new year?


Krista


I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.

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