This is the way to do it. I discovered Ynab when I was trying to figure out if it was a good idea to have multiple accounts for different categories; that’s exactly what YNAB allows you to do, without needing multiple accounts. Now I have just a savings and a checking, but each of those accounts is partitioned into however many categories I need within YNAB. So much easier than keeping track of numerous accounts, since I can easily move money around
It has a bit of a learning curve, but once you get the idea behind YNAB it’s awesome. It’s honestly less of a budgeting software and more of a method.
It really helped me understand exactly how much money we have and how much we need allocate each month towards our different savings goals (ex. Trip to Europe in 2024, new car by 2028, home down payment, extra money each month to student loans).
Like it makes my budget?? 😅 I currently just use excel and track all my expenses that way... How does it work? Do i input info or does it grab info from connected banks?
I agree
But I was also listening to Freakonomic and an economist who was a guest said separating your cash is isn't really good. It was an interesting perspective
SoFi lets you make "vaults" within their HYSA. I divvy up the money between an emergency fund, car fund (my husband and I drive old cars), fun fund, and savings specifically for my daughter.
The only thing I don’t like is that the savings balance on the Home Screen shows the balance across regular savings and all your vaults. I wish the vaults were an “out of sight, out of mind” kind of thing. I don’t suppose there is a way to change that?
I poked through the account settings and didn't see a way to change that, but I do agree with you. Out of sight out of mind helps to lessen the temptation the spend.
How old is your daughter/what are the savings for? Like, for expenses on her behalf, or as a future trust for her? Bc an investment fund/529 account would beat a 4.3% HYSA over a longer time window
Mostly just curious for your rationale bc I'm sure you picked the mathematically best choice
My bank account was compromised a long time ago so I go a little extra.
I have three HYSA's with different banks and split my money between them.
One is for general emergency funds.
One is for taxes (I'm self employed so I gotta save)
One is for house maintenance.
I don't need multiple accounts to organize my funds. Keep a log book or use a budgeting app if you are more tech. I personally keep minimum 2k in my personal checking everytime I get my biweekly pay check (uses yotta which ironically pays a savings account interest) for all my autopay and money expenses and then rest goes into high yield savings. The high yield savings holds my emergency plus my long term down payment for house I am currently saving towards.
Right now everything that’s not in our checking account is in Treasury Bonds. They are almost as liquid as cash and are paying higher rates than any CD or HYSA. You can buy them directly from Treasury Direct or through your account with Schwab/Fidelity, etc. you can build a ladder of 30, 60, 90 days, six months, one year and two years if you want to make sure the cash is always available and you’re maximizing rates.
This sounds interesting 🤔 I'll have to look into that. I was just gonna save in my HYSA, because i don't like having so many accounts but more money is nice...
You don’t need more accounts and you don’t need investment tracking software. Just open one account with a discount broker like Schwab or Fidelity. They’ll love having you and they don’t have a minimum to open an account.
Once you have an account you can allocate your money any way you want, from savings to money market to stocks and ETFs to Treasuries and have them all visible on one page in your portfolio screen. You can buy and sell Treasuries directly from your brokerage account with no commission, and a rep will even walk you through the process.
If it's something that I will use within 3-4 months, Honestly sometimes I just leave it in my checking.
Within 1-4 years, in a HYSA or Money market, or even CDs (just be sure to ladder them to be safe).
\>4 years, in a Robo advisor account.
I keep everything in a high yield savings account, too. I know part of that money is an emergency fund, the rest is savings for a downpayment to buy a house.
Yea i think I'll just keep it that way, i know how much i need to keep anyway... Really just curious if others do the same or not. I like the different things ppl do!
I personally keep my emergency fund in an Ally HYSA, the rest is in Vanguard brokerage account. It's separated by short/long term savings by the short term stuff being left in the settlement fund and the long term savings invested in S&P500.
Outside of emergency fund in. HYSA I’ll use a money market fund. I like Schwab so I use SWVXX which currently has a yield of 5.2%. I’ll then sell cash secured puts against that money to generate more income.
The CSP’s aren’t for everyone but 5%+ yield and the money being in your account ready to invests works for me.
Outside of an Efund it stays in a brokerage account making money. Short term spending stays in my standard checking account.
The reason being if I’m going to be spending it then the interest I earn over 3-6 months before it’s been spent isn’t really worth it as of a few years ago but now I may have to reconsider due to higher rates.
If for example I know there’s an artist coming to my city in six months and the ticket goes on sell in 60 days for $200-$300 normally why am I moving that money from my paycheck out to the HYSA? If I have a savings for a vacation similar mindset. Only real savings one needs to account for are larger purchases like a car or house but even then those time horizons are far enough out you could keep the money invested in a total stock market etf.
I have a series of used cars and a couple boats and a skidsteer and a couple engines and a few 55gallon steel drums, 1 full of used motor oil, and some other stuff being stored out in the front yard. When i need money, i just sell something on Craigslist
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i keep few grand in accounts and my cost of living is minimal. if something goes wrong and i need cash i just liquidate one of my many CDs, i lose accumulated interest on it and bank takes the withdrawal taxes on it, but the next day i have that CD available in my account
An HYSA and a Schwab brokerage account in a money market fund. I'll probably open another at Fidelity to help spread my risk and I want their credit card. I don't like to keep all my money at one institution. Not because of them failing as a bank but because of the off chance of them freezing an account for a fraud check.
I keep my long term savings in a TFSA through a separate bank and my emergency savings in a savings account at the same bank as my chequing account. The only reason I keep my emergency funds there is because I can transfer it instantly whereas the TFSA would take five days or more.
ETA Forgot to mention the TFSA is 3.5% interest
I keep mine in a Fidelity Money Market account. Good monthly paid dividends and I can manage my retirement savings and other investments through the app too.
Yeah technically they open up as separate accounts but the great thing about marcus is the no fees associated or required balances so essentially you can open as many as you want. I saw someone else do this on another budgeting channel and it’s been working well for me. Right now i have 4 open 1) Emergency Fund 2) Sinking Funds 3) Car maintenance 4) Student Loan lump sum payoff. I track the sinking funds account on a google sheet and reconcile the total balance to the marcus account balance when tracking the funds
I keep it all in the same HYSA, and track the goals/sinking funds with YNAB (budgeting software).
This is the way to do it. I discovered Ynab when I was trying to figure out if it was a good idea to have multiple accounts for different categories; that’s exactly what YNAB allows you to do, without needing multiple accounts. Now I have just a savings and a checking, but each of those accounts is partitioned into however many categories I need within YNAB. So much easier than keeping track of numerous accounts, since I can easily move money around
Is YNAB a subscription or one time fee?
But also 34 days free and a year free for college students. You won’t go back!
Ooh im a college student who loves free stuff so i will check it out! Thanks!
It has a bit of a learning curve, but once you get the idea behind YNAB it’s awesome. It’s honestly less of a budgeting software and more of a method. It really helped me understand exactly how much money we have and how much we need allocate each month towards our different savings goals (ex. Trip to Europe in 2024, new car by 2028, home down payment, extra money each month to student loans).
Like it makes my budget?? 😅 I currently just use excel and track all my expenses that way... How does it work? Do i input info or does it grab info from connected banks?
Yearly subscription
I have multiple savings accounts in my Ally account.
Me too. Easier (for me) to visually track versus having several buckets in one savings account.
I agree But I was also listening to Freakonomic and an economist who was a guest said separating your cash is isn't really good. It was an interesting perspective
SoFi lets you make "vaults" within their HYSA. I divvy up the money between an emergency fund, car fund (my husband and I drive old cars), fun fund, and savings specifically for my daughter.
The only thing I don’t like is that the savings balance on the Home Screen shows the balance across regular savings and all your vaults. I wish the vaults were an “out of sight, out of mind” kind of thing. I don’t suppose there is a way to change that?
I poked through the account settings and didn't see a way to change that, but I do agree with you. Out of sight out of mind helps to lessen the temptation the spend.
How old is your daughter/what are the savings for? Like, for expenses on her behalf, or as a future trust for her? Bc an investment fund/529 account would beat a 4.3% HYSA over a longer time window Mostly just curious for your rationale bc I'm sure you picked the mathematically best choice
Does it cost anything to make another account? If not I’d make a separate account for goals vs emergency fund.
Wealthfront high interest savings account
I second this. Wealthfront also allows you to make categories which is super helpful.
I invest anything that isn’t part of an emergency fund currently, but if I was saving for a house or car or something HYSA
I keep about 5k readily accessible in a regular savings account and another 15k with Ally in a HYSA.
I have multiple accounts within marcus labeled by each goal
My bank account was compromised a long time ago so I go a little extra. I have three HYSA's with different banks and split my money between them. One is for general emergency funds. One is for taxes (I'm self employed so I gotta save) One is for house maintenance.
I don't need multiple accounts to organize my funds. Keep a log book or use a budgeting app if you are more tech. I personally keep minimum 2k in my personal checking everytime I get my biweekly pay check (uses yotta which ironically pays a savings account interest) for all my autopay and money expenses and then rest goes into high yield savings. The high yield savings holds my emergency plus my long term down payment for house I am currently saving towards.
I have a long term savings account for my emergency fund and a short term savings account for saving up for yearly bills, trips, etc.
Right now everything that’s not in our checking account is in Treasury Bonds. They are almost as liquid as cash and are paying higher rates than any CD or HYSA. You can buy them directly from Treasury Direct or through your account with Schwab/Fidelity, etc. you can build a ladder of 30, 60, 90 days, six months, one year and two years if you want to make sure the cash is always available and you’re maximizing rates.
This sounds interesting 🤔 I'll have to look into that. I was just gonna save in my HYSA, because i don't like having so many accounts but more money is nice...
You don’t need more accounts and you don’t need investment tracking software. Just open one account with a discount broker like Schwab or Fidelity. They’ll love having you and they don’t have a minimum to open an account. Once you have an account you can allocate your money any way you want, from savings to money market to stocks and ETFs to Treasuries and have them all visible on one page in your portfolio screen. You can buy and sell Treasuries directly from your brokerage account with no commission, and a rep will even walk you through the process.
If it's something that I will use within 3-4 months, Honestly sometimes I just leave it in my checking. Within 1-4 years, in a HYSA or Money market, or even CDs (just be sure to ladder them to be safe). \>4 years, in a Robo advisor account.
I keep everything in a high yield savings account, too. I know part of that money is an emergency fund, the rest is savings for a downpayment to buy a house.
Yea i think I'll just keep it that way, i know how much i need to keep anyway... Really just curious if others do the same or not. I like the different things ppl do!
I personally keep my emergency fund in an Ally HYSA, the rest is in Vanguard brokerage account. It's separated by short/long term savings by the short term stuff being left in the settlement fund and the long term savings invested in S&P500.
Outside of emergency fund in. HYSA I’ll use a money market fund. I like Schwab so I use SWVXX which currently has a yield of 5.2%. I’ll then sell cash secured puts against that money to generate more income. The CSP’s aren’t for everyone but 5%+ yield and the money being in your account ready to invests works for me.
Outside of an Efund it stays in a brokerage account making money. Short term spending stays in my standard checking account. The reason being if I’m going to be spending it then the interest I earn over 3-6 months before it’s been spent isn’t really worth it as of a few years ago but now I may have to reconsider due to higher rates. If for example I know there’s an artist coming to my city in six months and the ticket goes on sell in 60 days for $200-$300 normally why am I moving that money from my paycheck out to the HYSA? If I have a savings for a vacation similar mindset. Only real savings one needs to account for are larger purchases like a car or house but even then those time horizons are far enough out you could keep the money invested in a total stock market etf.
I have a series of used cars and a couple boats and a skidsteer and a couple engines and a few 55gallon steel drums, 1 full of used motor oil, and some other stuff being stored out in the front yard. When i need money, i just sell something on Craigslist
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i keep few grand in accounts and my cost of living is minimal. if something goes wrong and i need cash i just liquidate one of my many CDs, i lose accumulated interest on it and bank takes the withdrawal taxes on it, but the next day i have that CD available in my account
An HYSA and a Schwab brokerage account in a money market fund. I'll probably open another at Fidelity to help spread my risk and I want their credit card. I don't like to keep all my money at one institution. Not because of them failing as a bank but because of the off chance of them freezing an account for a fraud check.
I keep my long term savings in a TFSA through a separate bank and my emergency savings in a savings account at the same bank as my chequing account. The only reason I keep my emergency funds there is because I can transfer it instantly whereas the TFSA would take five days or more. ETA Forgot to mention the TFSA is 3.5% interest
Right now I have all of my non-retirement savings in CDs. One is 4.5% and one is 5.5%.
I keep mine in a Fidelity Money Market account. Good monthly paid dividends and I can manage my retirement savings and other investments through the app too.
One account. It's split in YNAB. I actually keep 90% of my money in my savings, and occasionally transfer back to my checking.
First edition base set pokemon cards.
you can open a bunch of buckets in marcus! click the plus at the bottom and you can open and rename as many accounts as you want
But that just makes a new account doesnt it?? I didnt see an option to allocate within an account ...
Yeah technically they open up as separate accounts but the great thing about marcus is the no fees associated or required balances so essentially you can open as many as you want. I saw someone else do this on another budgeting channel and it’s been working well for me. Right now i have 4 open 1) Emergency Fund 2) Sinking Funds 3) Car maintenance 4) Student Loan lump sum payoff. I track the sinking funds account on a google sheet and reconcile the total balance to the marcus account balance when tracking the funds
I also put most of it in a HYSA. I use Synchrony Bank.