Asked on 22 Jul 2020
Currently reading the barefoot investor and it advocates opening up seperating accounts and setting up a standing instruction each month.
Daily expenses (60%)
Fire Extinguisher (20%)
How do you manage your money in terms of needs, wants & savings/investments? Do you have a seperate account to segregate them?
POSB Invest Saver
Syfe REIT+ Portfolio
SC Jumpstart 1% (2% pre covid)
I'm only just started investing so most of it is still in high-interest savings. I also use the Seedly app to keep tracking (manually unfortunately) I watched this video https://www.youtube.com/watch?v=XCcmzsdsB9A I like the guy's idea of 'paying yourself first' i.e setting aside your money for needs, savings and investments and then see what wants you can afford with the remainder.
Hey Anon, personally I have 6 accounts and I use the Seedly app to keep track of these. I don't split it based on different goals but I allocate based on which account provides the best interest rate.
1) Singlife Account (2.5%)
2) Etiqa Elastiq (2.02%)
3) Standard Chartered (1%)
4) DBS Savings Plus (0.05%)
5) DBS Multiplier (for DBS Vickers)
6) Maybank Saveup (to pay Maybank student credit card bill)
(1) & (2) for the bulk of savings
(3) & (4) for daily expenses/transactions, just a small amount inside. Will withdraw from Elastiq if it's running low.
(5) & (6) for certain purpose, no idle cash inside. Will transfer funds in when needed.
The Seedly app does a great job in terms of the ability to track the transactions made and it allows me to see the overall information (funds in each account) at a glance.
10K in Singlife account 2.5%
Rest of my savings in Standard Chartered JumpStart 1%
DBS for expenses, salary crediting & online purchases
So every month, I will put in the amount of money I can spend into my DBS MasterCard, I use it for meals/grocery/online shopping! :)
While the other 2 cards are just to save $!!
It depends on whether you can manage your expenses. If you can't, it would be better to have a seperate account for expenses.
For me, I can manage my expenses very well since I'm a low spender. So my expenses and savings are put together in one account.
DBS Multiplier - Salary crediting + Expenses + Savings
SCB JumpStart - Emergency funds
OCBC 360 - Kinda not in use now (Opened as a FRANK account during poly days. After I started working, OCBC converted my account to 360, providing an option to opt out as well.)
I have separate accounts to segregate them so I won’t mix my spending and savings account and I won’t have the urge to spend more than what’s in my spending account.
When my income comes in, I like to pay myself first and I find it very useful. So after I pay all my bills, I will set aside around 40-50% to savings (some % goes to DCA in ETFs) and the remaining are left to spend.
1) POSB savings account (Expenses)
2) Standard Chartered JumpStart 1% (Savings)
3) SingLife 2.5% (Savings)
Since I'm still a full-time student and not working part-time unless its school holidays, I have 2 accounts for now.
Standard Chartered Jumpstart (1%, was 2% before covid-19) for savings
OCBC Frank Account for expenses
Since its still HBL now, I don't spend much since I'm mostly at home so i capped my spendings account to $100+ and transferred the excess to Standard Chartered account. If there's any part-time job payments, it'll be deposited to OCBC account then I'll transfer the necessary amount to SC Jumpstart to avoid confusion. I restricted SC Jumpstart with a "money in only, no money out" policy unless there is a fixed deposit with a higher interest rate than the 1% Jumpstart is giving.
Personally the way I see it is, the more bank accounts I have, the more misery I will face by having to deal with banks :)
A bank account is just a place to store money, and I don't like to store much money.
I keep 3-6 months worth of expenses in the form of cash in a single bank account - whichever bank is least awful to deal with. Currently I pick a standard DBS savings account because they have the least bad iOS app.
I don't care about interest rates because everything else I move straight into a brokerage account (which I don't consider a bank account). I'm also not worried about keeping all my eggs in one basket because I'm not holding onto that many eggs and the basket I'm using seems about as stable as any other.
Keeps it simple.
I have the following for myself:
1) Business Expenses (for revenue crediting and outflow)
2) Business Savings (for surplus of monthly biz expenses and specific payment received)
3) Habit Saving Account (with a target not to withdraw until passbook pages full. It's to instil discipline and boost consistency)
4) Joint Saving Account (same as 3)
5) Contingency Fund (for family emergency)
6) Sinking Fund (for fixed yearly expenses or 1-2 years objective without touching my other accounts)
7) Giro (for giro and SI)
8) Cash (for personal expenses)
These are for cashflow budgeting. Any investment would fall into the giro category.
My purpose is not after interests rate, but clarity to keep myself motivated in accumulating.
Having to many bank accounts can be confusing but at most just have 1-2 accounts will do. Start small numbers of account to see whether you are comfortable to manage.
I shall share u this method that you may follow.
I just have two, ocbc 360 and a Frank account.
The savings goal function that ocbc offers is able to offer the functionality of different accounts without actually opening multiple bank accounts.
My five saving goals on the 360 (while concentrating the funds to earn the extra interest)
2) investment warchest
3) for top-up cpf / srs
4) rewards (travel, gadgets etc)
5) family reserve / change furniture etc
Instead of having multiple bank accounts to store cash, I move my cash out quite often to
A) buy dividend paying stocks / reits - my dividend yield is still better than 2%
B) buy SSBs coz I still have a tendency to spend if I see too much cash in my bank accounts. Rather store it elsewhere so I got no temptation.
C) put towards srs and cpf top-ups (or repay funds used for property).
DBS Multiplier - For cashback (Dbs lifestyle)+ DBS Vickers (Investment account)
Standard Chartered Jumpstart - Some savings for liquidity (Savings account)
Singlife 2.5% - Warchest for deployment (For investment/savings-depends)
For myself, I do not have different bank accounts for different purposes as I prefer to just consolidate them into one or few high yield savings accounts to earn higher interest rate.
I do have my allocation framework and you can use Excel to separate your monies to different purposes.
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