Ok, I know I can’t be alone in this, but I have a lot of savings accounts!  Like, a lot.  I used to debate if I wanted to use savings accounts or cash envelopes.  I tried cash envelopes for a little while, but have since moved to bank accounts.  Not only can you make your money work for you, but you don’t have to worry about pockets of cash all over your house!  I have all my saving accounts separated by two banks – online (Ally) and brick and mortar (Schwab).  Between those two banks I have about 10, yes, TEN different folders I put my money in.  It’s like the cash system without the cash.  I know, I know, your mind is blown!

Are you wondering if you should use cash envelopes or bank accounts to save money? And if you use bank accounts, which should you use and why? There are a lot of questions when saving, let me help you figure out which is the better choice!

  1. Online Bank – I use Ally, and absolutely, beyond a shadow of a doubt LOVE them!  They have have great interest rates (compounded daily, right now it’s 1.2%), no monthly account fees, 24/7 customer support, and you can have unlimited number of accounts.  Did you read that last one?  Unlimited.  This is amazing for people like me who love the cash envelope system, but doesn’t want mountains of envelopes with cash everywhere in my house!  I automatically transfer money from my paycheck to this bank and I have an account for G’s education, house decorating, and bi-annual auto insurance payments.  Side note: automatic transfers are the best thing you can do to save money.  No joke.  The. Best. Thing.Open an Ally Invest brokerage account!
  2. Brick & motor bank – For this one I use Schwab, also – love this company!  I have my savings in an ETF fund, G’s savings in a money market, and my retirement in a Roth!  I love that I can have my money in whatever kind of account I need it in at the time.  Plus, they have FANTASTIC customer service!  They’re available whenever you need them and are always super nice to talk to.  But, my #1 reason I love this company is because I can keep an eye on all my money at once no matter the type of account, and see how it’s doing throughout the day.  Yeah.  I like to babysit my money.  What about it?

If you’re worried that your gazillion bank accounts will negatively impact your credit score, head over to this article on My Bank Tracker!  Short answer – no!  But he does a great job of explaining why.

Head over here for 20 quick and easy ways to save you can do starting today or here to learn how to save money without even realizing it!  Pro tip: if you’re looking for a side hustle, look no further than Airbnb!  It’s helped me save $2,993 in 8 months!  Not too shabby for a side hustle!  Click here to read some tips to get you started!

Are you a one bank person, or multiple bank?  How many accounts do you have?  A crazy number like me or can you count them in one finger?  Have you tried the cash envelope system?  Let me know!

savings accounts or cash envelopes?

Photo Credit:
Photo by Rick Tap on Unsplash

Elizabeth

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