Where Should Your Paycheck Go? (Maximize Your Savings)
Where should your paycheck go and how should you organize your bank accounts? In this video, I walk through the automated money management system I’ve used for over a decade to maximize my savings and keep more of what I earn.
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This practical money flow chart shows how I keep my finances organized, including using a checking account as a central hub, automatically contributing to tax-advantaged accounts offered by an employer, setting aside money in an emergency fund, automatically contributing to investment accounts, handling expenses, with a special emphasis on savings: how I actually save for near term goals in practice and tips selecting a high yield online savings account.
I’ve found that having a framework of where my money is going each month and having everything be automated gave me so much peace of mind and confidence that I was going to be able to achieve my financial goals.
A money system is always best when it’s tailored to how you like to run things (e.g., how granular you like to get), so my hope is that in sharing what’s been working for me, you can take away even just one tip or idea about how you might be able to improve your automated money flow!
0:00 Why a money flow chart?
0:55 Checking account
1:25 Income
1:49 Employer-related tax advantaged accounts
2:21 Retirement accounts
2:35 Tax-advantaged health accounts
3:12 Commuter benefits
3:53 Emergency fund
4:50 Savings accounts
6:38 The savings account I use
6:48 Investment accounts
7:18 Expenses
8:03 How much money should you keep in your checking account?
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This video is for entertainment purposes only and reflects my own opinions based on my personal situation, life experiences, and research. The information provided should not be considered professional tax, legal, or financial advice. Always consult with qualified professionals so that your specific situation can be taken into account, and make sure to do your own research. After all, YOU are the one who cares most about your money. I hope you enjoy this video, and thank you for watching!