MYM #014: The 4 Must-Have Accounts for Every Couple

Read Time: 6 minutes

In this newsletter, I'll guide you through a simple yet powerful money management system – one that my wife and I personally use for our family of five. We'll explore four key accounts that can transform how you handle your finances.

Why does this matter to you? Because it's the key to achieving financial success as a married couple, in my humble opinion. Whether you're planning for the future, tackling everyday expenses, or aiming to maximize your savings, this approach can make a significant difference in your financial well-being.

Sadly, many people struggle with their finances due to complexity and lack of organization. But it doesn't have to be that way. By simplifying your financial strategy and embracing automation, you can avoid common pitfalls and set yourself up for success.

Here’s how we set up our banking:

1. Joint Checking
2. Joint High Yield Savings
3. Joint Credit Card
4. Individual Checking with Debit Card

Let’s get into how our money operating system can bring clarity and control to your personal finances.

1. Joint Checking: The Central Hub of Our Money Operating System

In my experience as a financial advisor and in managing my own finances as a married couple, I've found that transparency and efficiency are key. 

That's why my wife and I opted for a joint checking account to serve as the central hub of our financial operations. 

Specifically, we use Ally's Personal Checking account, and here's why it works for us:

• No Fees, No Worries: One of the aspects we appreciate the most is that Ally doesn't burden us with any fees. 
• No Minimum Balances Required: There's no need to stress over maintaining a certain balance; we can manage our money without any constraints.
• Automatic Transfers for Convenience: To simplify our financial contributions, we've set up automatic transfers from our joint checking account to our personal checking and joint savings accounts. More on this in a minute. This saves us time and ensures we're consistently working towards our financial goals.
• Earning More with Higher Interest: Ally offers a competitive interest rate, which means our money doesn't just sit there; it grows more effectively compared to traditional brick-and-mortar banks.

Having a joint checking account is not just about managing our finances together but also about creating a strong foundation for our financial well-being. It's a strategy that promotes transparency and collaboration.

2. Joint High-Yield Savings: Security and Goals

Ensuring we're prepared for unexpected expenses is a top priority. That's why we've established a Joint High-Yield Savings account to serve as our financial safety net and to save for short-term goals.

Here's how we make it work, along with why it's become a crucial part of our financial strategy:

• Emergency Fund: We believe in being prepared for life's curveballs. So, we aim to maintain 3-6 months' worth of living expenses in our Joint High-Yield Savings account. This way, we're ready to tackle unexpected emergencies.
• Short-Term Goals: Beyond emergencies, we also utilize our High-Yield Savings for short-term savings goals. Whether planning a vacation, purchasing holiday gifts for our kids, or budgeting for other big expenses, this account is our go-to place.

Our choice for this account is Ally's High-Yield Savings Account. Here's why we like it:

• Automatic Transfers: Ally simplifies our savings efforts with automatic recurring transfers from our Joint Checking to our Savings. This ensures we consistently contribute to our financial goals.
• Surprise Savings: Ally's "surprise savings" feature analyzes our checking account for surpluses and moves the excess into our savings.
• Buckets for Organization: My favorite feature is Ally's "buckets." Think of them as digital envelopes. They allow us to allocate our savings for specific purposes without needing multiple bank accounts or complex calculations. It's a fantastic way to track our progress and stay organized while earning interest on our entire balance.

Our Joint High-Yield Savings account provides us with both security for unexpected expenses and flexibility for short-term goals. It's a versatile tool that keeps our financial plan on track. 

3. Individual Checking with a Debit Card: Autonomy and Financial Freedom

In managing our finances as a married couple, my wife and I hold a shared belief that personal independence and financial freedom are essential. To achieve this, we've incorporated individual checking accounts with debit cards into our financial strategy. 

Here's how it works and why it's crucial for our mental sanity:

• Maintaining Autonomy: We need the ability to make independent choices about our money. It's important to us that we can freely enjoy the things that bring us happiness, whether it's a new pair of shoes, running gear, a visit to the local coffee shop, or indulging in some game day beer and wings. These individual accounts give us the autonomy to manage our personal expenses.
• Budget Agreement: While we value independence, we also recognize the importance of budgeting and financial alignment. My wife and I have a clear agreement on our budget and how much we can spend independently each week. This ensures we're on the same page while still having the freedom to make our own choices.
• Automatic Transfers: To streamline this process, we've set up automatic transfers from our Joint Checking to our individual checking accounts. This weekly transfer simplifies our financial management and provides real-time feedback on our spending limits.
• Debit Card for Real-Time Control: Using debit cards for these individual accounts gives us instant feedback on how much money we're allocating to our personal expenses. It's a practical way to ensure we're not overspending and stay within our weekly budget.

Just like our Joint Checking and High-Yield Savings accounts, we've chosen Ally for our individual checking accounts. The zero fees and no minimum account balance requirements make it a practical choice, especially since these accounts typically hold a few hundred dollars at a given time.

Individual checking accounts with debit cards are our solution for balancing autonomy with financial responsibility. It's a system that allows us to enjoy our personal interests while still staying financially accountable. 

4. Joint Credit Card: Streamlined Expenses and Getting Rewards

We've found that consolidating our essential expenses and major purchases onto a single joint credit card is a smart strategy.

Here's why we do it and why we've chosen the Apple Card as our go-to:

• Organization is Key: Simplifying our financial life is a priority, and using one joint credit card helps us do just that. By channeling all our essential expenses and significant purchases through a single card, we streamline our finances and make it easier to track our spending.
• Maximizing Rewards: We're big believers in making the most of our spending. If we have to pay bills and make purchases, why not get something back? Consolidating our expenses onto a single credit card allows us to maximize the rewards and points we accrue. It's a simple way to benefit from our everyday spending.
• Smart Financial Practice: Importantly, we make sure that we pay off the monthly balance in full when it's due. This disciplined approach ensures we don't incur unnecessary interest charges and allows us to fully enjoy the rewards without additional costs.
• Apple Card Integration: We've chosen the Apple Card for its seamless integration into our iPhones. This feature makes tracking our spending and rewards a breeze. The straightforward points system is easy to understand, and I can conveniently monitor it right from my iPhone.
• Smart Savings: What's even more appealing is that our Apple Card points are automatically deposited into Apple's Savings account. As of the time of this newsletter, it's earning a competitive 4.15% interest rate. It's a hassle-free way to make our money work harder for us without any extra effort.

Our joint credit card strategy simplifies our financial life, helps us earn rewards, leverages digital integration, and, importantly, aligns with responsible financial practices. 

Conclusion: 

Let's pull this all together. Our approach to managing finances as a married couple revolves around four core accounts:

1. Joint Checking: We centralize our finances, promoting transparency and efficiency.
2. Joint High-Yield Savings: This account acts as our safety net and a tool for achieving short-term goals.
3. Individual Checking with Debit Cards: We balance autonomy with responsibility by allocating weekly personal budgets.
4. Joint Credit Card: By consolidating expenses on the Apple Card and paying off the balance in full, we simplify our finances, maximize rewards, and earn interest on our points.

By no means is this strategy perfect, but it does combine transparency, financial flexibility, and smart financial practices. We've tailored it to fit our needs, and we hope it provides you with valuable insights for your own financial journey.

Actionable Tip: 

If you appreciate the effectiveness of our money operating system, copy our framework and use automation to step up your money game.

Whenever you're ready, there are 2 ways the we can help you:

1. The Master Your Money System: Discover the ins and outs of automating your finances with our easy-to-follow video course. Learn the same strategies we use for our millionaire clients to maximize your money.

2. Join Our Private Client Group: If you're in your 30s or 40s, earning a good income, and aiming for financial freedom, let's team up. Leave the financial headaches to us and concentrate on what truly matters – your family and your career.