Smart Banking – The Power of Simplicity

Smart Banking The Power of SimplicityAnother question I get from married couples about their finances is…

“My spouse and I have two separate checking accounts. Is that a good thing or a bad thing?”

In most cases, we all benefit by simplifying our financial lives!

When your money is spread out across multiple accounts and several different banks, you increase the chances of getting financially lost.

Back in the old days, it was a common belief that to keep our money safe, we needed to have accounts with different banks. Just in case one went under.

But in modern times, most banks and Credit Unions are FDIC insured. That means your money is protected up to $250,000.

Here is my suggestion for this question…

Have just one Checking account.
Have just one Savings account.
Have just one Credit Card.

When you only have one checking account, savings account and credit card, it’s much easier to track and manage.

Doing this, you are more accountable, because you know exactly how much you have. And you avoid the mental illusions of thinking there is more money in your “other” account, when there’s not.

(Only if you have more than $250,000 in the bank, might you consider having accounts at multiple banks. So you can be sure all of your money is FDIC insured.)

I hope this helps you embrace simplicity with your finances. As you begin your journey toward financial peace of mind.

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