Is three the magic number? Money magazine is encouraging its readers to find a budget style that sticks, and one of the options is a bank account trifecta. The accounts include two checking and one high-yield savings. Here's the gist of the "bucket budget" way of managing your money, as suggested by Money.
- "Figure out how much of every paycheck you want to put toward savings. Have that automatically sent to the savings account."
- "Send the rest of your paycheck to checking account No. 1. From this you'll pay monthly fixed expenses, such as mortgage and utilities; set up automatic bill payment online."
- "Figure out your monthly surplus in this account after recurring bills, divide by four, and set up a weekly automatic transfer for that amount to checking account No. 2. This is for variable expenses like groceries, entertainment, and eating out."
- "Two rules: You can't transfer more money over until the next week, and you can't use credit cards."
Do you think this budget style would work for you?