I will explain to you what Mandy and I do. We have one joint checking account. All of our income goes into this account and all of our bills are paid from this account. It makes things extremely simple and easy. We each get our own “spending” money in cash each week that we can spend however we want. It is rather minimal, but it gives us some freedom and autonomy.
We also have one savings account. All of our savings for non-monthly items go into this savings account. Once again, this keeps it very simple to know what is going on with our savings.
The only other account we have is a money market account. This account is our emergency fund. This account, God willing, does not get much action. It just sits there in case we ever need it. Therefore, it is not something that we think about or deal with on any kind of regular basis.
There are many reasons we have set up our accounts this way. There are two main reasons. One, I don’t like complication. That is why I prefer to have as few accounts as possible. I have found with some of my clients that the reason they cannot get their finances in order is because they try to complicate things. The second reason is that we don’t believe in “his” and “her” money. The two of us became one in marriage and that definitely applies to our money. So there is no reason for “his” and “her” checking accounts. We have a financial plan and we execute it together. I truly believe that we are way more effective with our money because we are constantly pulling in the same direction.
I know this topic gets some people worked up. What are your thoughts?