In today’s 2 minutes Q&A Tuesday, we’re diving deeper into the lifestyle checking account of the High-5 Banking Method. With so many financial temptations, having a separate checking account just for your lifestyle is a game-changer. Having a designated lifestyle checking account helps you stay on budget, avoid going into debt, and falling into lifestyle creeps. But before you open up any checking accounts, first answer your top questions about your lifestyle account.
Avoiding Checking Account Fee’s
Before opening up a new checking account for your lifestyle expenses of the High-5 Banking Method. You first have to look at your current bank and see how they charge fees for extra checking accounts. For a lot of big banks, this can be an issue due to minimum balance fees and maintenance fees. One of the best ways to avoid banking fees is to avoid them altogether and switch to an online-only bank. But if you absolutly like having a physical branch, then maybe a credit union will be a better fit for you.
Type of Lifestyle Expenses
Once you know which banks offer you the best checking account options to help you avoid fees. The next thing you want to do is separate your bills from your lifestyle. Which are your mandatory needs vs your lifestyle wants. The type of expenses under your lifestyle are the items you want to consider when creating a realistic budget for your lifestyle. The point of having a separate checking account for your lifestyle is for you to enjoy your money without overspending. It’s ok to want things and to enjoy your lifestyle, just make sure you’re not stressing your budget out.
To better explain the type of expenses that go in your lifestyle checking account here are some of my personal expenses.
- Eating Out (restaurants, fast food, coffee, and bars)
- Entertainment (movies, art supplies, bike rental, etc)
- Kid’s Play Money (kids clothes, school supplies, and toys)
- His & Her Play Money (adult “allowance”: clothes, hobbies, and self-care)
- Miscellaneous/Home (gloves, garden hose, kitchen items, and decor)
Lifestyle Accounts for Couples
For a lot of couples that are not married but living together, having separate lifestyle checking accounts can be ideal. This was the case for my husband and me when we lived together and were engaged. But once we got married and started our family, it became easier for us to have a joint lifestyle checking account. I love calling my husband up and asking him to pick up a pizza, feminine products, or even baby products and not worry about transferring him money. As life gets more complicated, don’t feel weird about having a simple system for your finances.
- High-5 Banking Method Q&A – 2 Minute Q&A
- Combining Finances when Engaged – 2 Minute Q&A
- Building Credit with your Spouse – 2 Minute Q&A