I’m talking about types of accounts, automatic transfers, etc. Feel free to mention specifics, but I’m more interested in higher level information like does your paycheck go to savings or checking, do you use automatic transfers, do you use a traditional bank account or something different, etc.

Basically, what happens to your paycheck? Do you like your process, or are you considering making changes?

Here’s mine:

I have five main accounts:

  • Fidelity Bloom Save and Spend for savings and spending respectively; each is a brokerage account
  • Fidelity Cash Management Account - mostly fit the fantastic debit card
  • Ally Checking and Savings

And here’s the general flow of cash:

  1. Biweekly paycheck -> Fidelity Save
  2. Automatic transfer 2x/month from Fidelity Save -> Fidelity Spend
  3. Automatic transfers from Fidelity Spend -> Ally savings and personal spending accounts
  4. Automatic transfers from Ally savings to Ally checking; Ally checking is used for Target debit and automatic transfers to wife’s IRA
  5. Manual transfers as needed to Fidelity Cash Management - I try to keep this near $0, and only transfer for travel or if I need to withdraw from an ATM

I have credit cards and other bills set to autopay in full from my Fidelity Spend account 2x/month (roughly even between the two halves of the month). I changed my credit card due dates to line everything up years ago, so now everything is pretty much automated.

I like this setup because:

  • brokerage has higher yielding money market funds
  • pretty much everything is automated
  • can have investments living next to spending money (e.g. my efund is Treasury bills, which live in my “savings”)
  • I keep more sketchy account linkages at a separate institution from my main savings
  • I need a brokerage anyway for my HSA, and I’m considering moving my other retirement savings to Fidelity as well to further reduce institutions
  • Fidelity has better 2FA options than pretty much any other bank

I used to use Ally as my main account, but I switched to Fidelity late last year and I really like it so far. Some changes I’m planning to make:

  • get my hardware security token set up with Fidelity - I’ve been sitting on it for months, just need to make the call
  • move wife’s autopay to pull from Fidelity directly; she’s not on the account yet, so I need to fill out some forms
  • tburkhol@lemmy.world
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    1 year ago

    When I was working:

    • Credit card closes on the 25th
    • Utility bills arrive between 20th & 2nd
    • Mortgage due 30th
    • Paycheck arrives 30th
    • Estimate bills for the month & transfer the rest to mutual funds

    Expenses all paid by credit card, so I’m always ‘budgeting’ for the previous month and there’s no guesswork. Emergency expenses larger than a paycheck might require selling some mutual funds, but in 20 years that never happened.

    Now I’m not working, budgeting is basically the same, except that interest and dividends appear at random intervals in brokerage, are no longer automatically reinvested, but transferred to checking to cover bills, usually around the same time as the paycheck used to appear.

    I don’t automate anything, because I want to notice if a bill is larger than expected and address whatever caused that to happen.