I have been a loyal customer of Bank of America since 2006. I opened a savings account first, then a checking account. I also opened my first credit card with Bank of America. I am cutting my checking/savings ties with them and taking my talents to virtual banks.

Income flow is not what it used to be, so my balance has been consistently shaky the past 7 months. Unfortunately, Bank of America is not sympathetic and continues to arrange fees and debits in a way where you’re more likely to overdraft. I can’t tell you how many times I have gotten those stupid postcards saying I gave them money I already didn’t have. It’s a waste of paper too, since I have e-mail alerts set up.

Thankfully my mom was able to help out, and came to my rescue again. I am now reactivating my PerkStreet checking account and reviving my SmartyPig account. I will be handling my finances in a few different ways:

  • For my freelance business, I will be using my Paypal account to accept payments. I’ll come up with an accounting system to make this work, so that I’ll keep a minimum balance in that account.
  • PerkStreet will be my primary checking account, which is awesome since I prefer plastic over cash. This will allow me to earn perks, including cash back, on debit purchases.
  • SmartyPig will be my primary savings account, where I’ll be slowly but surely building an emergency fund. The last time I used SmartyPig, I saved over $800, which felt great, but of course, an emergency came up. Unfortunately, I can’t contribute like I used to, but any little bit helps.
  • Chase is where our joint account is, where we will contribute enough money for rent and household bills.
I’m working on a new budget, and a distribution of funds plan so I know how much money goes into which account and how often. This is actually long overdue, but better late than never. Diversifying income is going to be crucial, and a pretty strict budget is going to help a lot.
What’s your financial distribution plan? How many accounts do you work out of?
Enhanced by Zemanta