In today’s, 2 Minute Q&A Tuesday I am answering as many questions as I can about the High-5 Banking Method. For those that are new to the banking method, it’s focused to help you organize your accounts with purpose. By separating what you’re spending and saving into specific checking accounts and savings accounts to help you achieve your financial goals.
These are some of the most popular questions answered in this video and blog about the High-5 Banking Method.
- What do you do if you don’t have enough money to fill all 5 accounts?
- Where do you put your direct deposit?
- What banks do you use for short-term goals?
- How do you spend your short-term goals money without a debit card?
I know so many of you are working hard to implement the High-5 Banking Method into your money flow. It’s extremely valuable to remember to start where you’re at and build-up to and even beyond the High-5 Banking method.
What do you do if you don’t have enough money to fill all 5 accounts?
To keep it short, you don’t need to open up all 5 accounts when you’re first starting out with the High-5 Banking Method. Please start where you are at now and work on progressing into using all 5 bank accounts when you’re in the right financial position. For now, work on the first 3 accounts which are your bills, lifestyle, and emergency fund.
Where do you put your direct deposit?
The best place to put your direct deposit is your bills checking account of the High-5 Banking Method. When you think about it, your bills are your top financial priority and your biggest expense. It’s so important that you have enough money in your bills checking account to cover your bills even if your bills are higher than you expected. Having your direct deposit to your bills checking account is also a great way to avoid bank fees from the big banks and credit unions.
What bank do you use for your short-term goals savings account?
I personally use Ally bank and love their bucket feature that allows you to save for multiple goals. This is perfect for the short-term goals account of the High-5 Banking Method since we usually have more than one thing that we want to save for. Some popular goals for this account can be Christmas, Birthdays, anniversaries, New Tech, or even Annual memberships.
Other online-only banks offer great features like no bank fees, high-yield savings accounts, and other saving features to help you save. If you’re looking for the right bank for you check out my blog How to Choose the Best Bank for your Situation.
How do you spend your short-term goals money without a debit card?
I personally use a credit card to purchase any expenses that I saved for in my short-term goals account. But I stick to my two-step method that allows me to use my credit card like a debit card. One, I put the purchase on my credit card, and Two, pay off my credit card with the money from my short-term goals account. This way I pay my credit card in full and don’t get tricked into debt, and also stay on budget.