Cash & Sass

Revolutionize Your Finances: The Power of Multiple Savings Accounts

March 07, 2024 Lisa Marie Robinson Episode 5

Cash & Sass

Mar 07, 2024 Episode 5

Lisa Marie Robinson

It's your Sassy Wealth Queen, Lisa Marie, I'm all about empowering you with the know-how to take control of your finances, and this time, we're diving deep into the game-changing strategy of having multiple savings accounts. Trust me, it's a financial move that's as smart as it is sassy!

🎯 The Power of Purposeful Savings I've been managing not one, not two, but 15 different savings accounts, each with its own special purpose. Imagine having a separate stash for your car needs, your kiddos' school supplies, healthcare, and even that dreamy house fund. It's like giving every dollar a mission!

🚗💼🏥 Why Multiple Accounts Rock Having these dedicated accounts means you're ready for life's curveballs without throwing your budget off course. I started simple with vehicle and house savings and then expanded to cover everything from pet care to braces for the kids. It's all about building that financial fortress, one brick at a time.

💡 Start Small, Dream Big Don't sweat the small stuff; even $5 a month can set you on the path to savings success. It's not about the amount; it's about taking that first step. And hey, with banks like Capital One offering unlimited accounts and sweet interest rates, it's easier than ever to keep your money organized and growing.

🏷️ Nicknames for Your Nest Eggs Get creative and give those accounts some fun nicknames! Whether it's "Beach Getaway" or "Tech Upgrade," naming your funds can keep you motivated and on track. It's a simple trick that makes a world of difference.

🧘‍♀️ Stress Less, Save More Feel the stress melt away as you watch your savings soar. This isn't just about money; it's about peace of mind and building confidence. You're not just saving; you're crafting a more secure and empowered future for yourself.

Please share, subscribe, and review our show. Doing so helps others who need this information find it and benefit from these empowering and sassy convos about money.

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1:00:00

[Music]You're listening to Cash and Sass. I'mLisa Marie, your go-togal for all things money.As the Sassy Wealth Queen and the brainsbehind the Sassy Wealth Coach, I'm hereto take you on a thrilling ride from thefinancial chaos to Sassy and sexy money.Hey, my Sassy friend. Welcome to anotherepisode of Cash and SassMy name is Lisa Marie.I'm the Sassy Wealth Queen and the brainsbehind the Sassy WealthCoach and this podcast.And today I'm going to talk, I'll betalking to you about savings. Yeah, Iknow. Okay. Just bearwith me though, okay?There is a lot of talk about how justeven just a couple of years ago, howaccording to the feds, 2022 economicwell-being, the US households surveyreleased that maybe 37% ofAmericans lack savings accounts.And here's the thing that everybody istalking about. Oh, we need to have anemergency savings. We just need to havethis one savings account.And I want to just stop and say no. Okay.Lisa said no. Lisadisagrees. Yes, I am telling you that.What I want to talk to us, talk to youabout instead is instead of building theemergency savings, why not have severalsavings accounts for specific things?So hear me out. Instead of having justone emergency savings, why not have asavings account for vehicle savings, asavings account for your kids, schoolsupplies, those kind of things, a savingsaccount for healthcare, and then one forlike your house savings.So if you own a house, so maybe if yougot your property tax or your home orinsurance, if they're not included, orjust having money in there for whenappliances may goout, that kind of thing.The reason why I say have multiplesavings accounts is because severalthings can be an emergency, right? Imean, there's all kindsof different emergencies.So I suggest having these differentsavings accounts because then if, forexample, I had to replace a freezer, thatcame out of my house savings, but itdidn't have to come out of my rainy daysavings, which is what Icall my emergency savings.So my rainy day savings is to helpreplace my income if something was tohappen, even as an entrepreneur. Okay. Isthere the whole thing in there that Iwould want in there? No.And that's also okay. There's still moneyin there and money that keeps going inthere. The house savings I needed totouch to get, replace the freezer.However, that means it didn't affectanything for the rainy day. It alsodidn't affect anythingfor my vehicle savings.It didn't affect me having the money formy girls' school supplies or clothes or Ihave an account for my fur babies.It didn't affect that account for my furbabies, which is for emergency vet andtheir yearly vet. So itdidn't affect any of those things.And that gives you peace of mind, right?I don't know about you, but I likeknowing, okay, that wasn't a rainy daything. It wasn't needed to surplus theincome or anything like that.It was I needed to replace a freezer. Myfreezer died. That comes out of my housesavings. That's what themoney was in there for.And so when we have these specificthings, one, you don't necessarily haveto pull out a credit cardand put it higher up in debt.Now we're going to have another episodeabout credit cards and good debt and baddebt and leveraging it and all of that.So I'm not going to get into that today.Today is about how you can start saving.Okay. Y'all, I have 15 savings and you'reprobably going, what? Hear me out.I started off with two, okay, vehiclesavings and the house savings.Then I added two more, my girls and myfur babies and then gradually. Oh, andthen I added health care.So I'm gradually getting enough money inthere for the deductible. Okay. Now, thatmeans it doesn't have tocome from my rainy day.And then I already had my rainy daybefore I opened up these additional ones.I needed a way that I wasn't having totouch the rainy day for some of theyearly things that come up that we forgetto plan for and some of the quote unquoteemergencies that can come up.I don't know about you, but my fur babiesare my family. So if they all have seenit sick and have to go to emergency vet,that's where we're going.And technically that's an emergency. Andso when it comes, when it has to come outof that, I would get stressed about howthe money was going to get back in there.Okay. Me having specific accounts forthose things and being able to quoteunquote estimate and budget around it andmake sure one, I haveenough money in the account.I know how much the vet bill normally isfor each of my dogs. So I can estimatewhat we need, what it would be each yearfor that and thenestimate, you know, okay.One of them had to go to the vet for anemergency. How much is that normally? Andthen I would add that in there, divide itby 12. This is how much needsto be going into this account.And then I normally add a buffer. Okay. Ialso include their dog food because wedon't have to buy dog food once a month.It's probably every other month. So it'seasier for me to put, excuse me, it'seasier for me to put it in there than itis for me to have it included in myregular monthly money roadmap.So what I want you to think about, Lisa,I don't have the, or you're saying, Lisa,I don't have the money tohave all these savings accounts.I'm not telling you to start with 50savings accounts or even five. What Iwant you to do is think about how mucheasier would it be on you if you had acouple of savings accounts specific,meaning nickname them for these thingsand you started putting money in there.So for example, we'll say our kids, youknow, if you've got kids, you've gotschool supplies, you have clothes, youhave, I don't know, you name it.And it seems like they grow out of allthis stuff very quickly, right? So whatif you were to have an account, call itmy kids, I call mine my girls because Ijust have girls and youstart putting money in there.Now, for reference, when I first startedthese savings accounts, I started putting$5 a month in my girls' account.And then I gradually, after a couple ofmonths, I was able, I would realize Icould actually increase that. So Iincreased it to $5 a week.And then I was able toincrease it more as revenue came in.The key is to start, okay? When all thesebig gurus say have an emergency savingsand they say you need to have threemonths and you need to make sure that'sall you're putting inthere until you have it.Okay. That's just not sustainable,especially if you're also paying yourbills and you're trying to live life,which you need to be able to do.And so my thing is, one, scratch that,don't listen to them. Open up a couple ofsavings accounts, nicknamethem, get used to doing those.What I recommend is Capital One. CapitalOne savings is free. It also, you canhave unlimited savings accounts.Their interest rate is actually one ofthe highest on the high yield, whichagain, I don't use it for the interest. Iuse it for the buckets, forthe money to be allocated.However, it is one of the highest yields.So it's a pretty good interest. And it'snot attached to your checking account,which means two things.One, it means the money is not easilyaccessible. Okay. So it takes, when yougo to decide you need the money fromthere, it's going to taketwo days to get to your bank.If you do it late in the evening, itcould take three. So like if we were to,if it was 6.30 at night and you moved it,then you wouldn't count that day.You would count the next day as it beingmoved. So it would be technically threedays from today, if that makes sense.So it could take two to three days, whichmeans you're going to make sure you're,that's something you need in order totouch it, which I absolutely love.For me, I have a Capital One credit card.And so if I'm needing it, I can use mycredit card and then I immediatelytransfer the money from that Capital Onesavings account to theCapital One credit card, paying it.So there's no interest on that amount. Sothere's just, it's just, it makes iteasier because you're able to allocatethe money exactly where you want it.So what I suggest is make a list of thedifferent categories that you may want asavings account for. So vehicle, if yougot a vehicle, you want avehicle savings account.Okay. If you live in a state where like Ido where there's property taxes, you wanta vehicle savings account. Take what youpaid the last year on your vehicles,vehicle or vehicles and divide it by 12.That's how much, and then I say round itup. That's how much you want being putinto that account for that.And then look at how much you've beenpaying for your oil change. You want totake that how many times a year younormally do it, multiply that by how manytimes a year you normally go, divide by12, you get the idea.And here's the key. The reason why I'mhaving you do this is so you know howmuch you would like to start have, youwould like to have going in there.And then I tell you, okay, now what canyou start with? Because that's where theblock is because everyone is telling you,you need to have these accounts andeveryone is telling you telling us thatwe need to have certainamount of money in there.And we need to do this. What I'm tellingyou is have the number, have it figuredout and then go and say, okay, I can'tput that in there yet.However, I can put $25 in there or I canput $15 a month in thereand then start doing it.Because here's the key. Here's the thing.If you start putting $15 a month in therenow and a year from now, you need tiresor something happens, you're going tohave money in there, okay, that youwouldn't have had beforethat's going to help you.And most of us can put $5 a week into asavings account, most of us. So, and ifyou're not comfortable with that yet,start at $15, okay, andthen gradually increase.Nine to ten times, you're going to startseeing that go up and you're going, youknow what, I've got extra money. I'mgoing to start putting $25 in there. Iactually do have an extra set of things.I don't have to have it. I can put morein there and decide if you have like $50extra, okay, put $25 in there. You say,okay, I know I'm not going to need to buyclothes or something for my kids rightnow, but I do want to have that.I'm going to start putting $10 a month.So if you don't have to do anything for ayear in a year, you're going to have $120in that account to goand get school supplies.Hello, how many times has it like upsetyour monthly roadmap, your monthly budgetor monthly spending or whatever whenyou've had to go get school supplies?So having it in an account already makesa big, huge difference. So I want you tolook at it a different way, okay. I'mgoing to tell you it relieves stress. Icannot explain howmuch stress it relieves.It also gives you self confidence becauseyou look at those accounts and you seethem building. Start with two and one ofthem let one of them be your rainy dayand your rainy day savings you don'ttouch ever except if it'sto help with your income.So start with $5 a month and thengradually increase. Allocate it, okay. Ifit helps you, make it on an automatic. Idon't do mine on automatic. One isbecause I have so many and two, it'sbecause if something happens, a decreasein my revenue or an increase in myrevenue, whatever, or something hashappened and I need to shift how muchmoney is going into each account,then I want to be able to shift it. WhatI do, however, do is I include it, theamount on my monthly roadmap as a quoteunquote expense, meaning transfer tothis, transfer to that and I make sure Ido it. If it's on my moneyroadmap, it must be done.Okay. And so I include it on there andit's included as an expense so that I cansee everywhere my money is beingallocated. This is where I'm saying Iwant my money to go. And it's a way ofbasically going down to a zero budget,but not quite doing it down to a zerobecause I like to have a buffer in myaccount. However, it is allocating everysingle dollar somewhere.And I think it's important that yes, wehave the same as accounts. However, Idon't think that we need to have just anemergency savings. I think we need tohave same as accounts for specificthings. Now here's the cool thing. Ifyou've been wanting to go on a vacationto, I'm going to just say Hawaii, Hawaii,or you've been wanting to go on a cruise and you've been trying to figure out how, you know, you've tried to get asave and where it's not work. Okay. Setup a separate same as how, yes, anotherone, a savings account and call itspecifically Disney world trip orwhatever cruise trip, name it that. So it's there determine how much money you can start putting in there determine how much money you need in order to go to a different account.Name it that. So it's there determine howmuch money you can start putting inthere, determine how much money you needin order to go on the vacation. And thenagain, that's money you don't have totouch because it's not for a quoteunquote emergency. It's not for your furbabies, et cetera. And justkeep putting money in there.When you are wanting something and youtake the time to look at your money andmake a decision of, I want the money togo here because Iwant to go on this trip.You will be surprised at how quickly itcan add up. And y'all, even if it takesyou, even if you're on a fixed income andit takes you two years, think about howyou're going to feel when the money isthere and you can go on that trip.So I really want you to think outside thebox, stop listening to all the gurus whosay you need to have an emergency savingsand instead do a quote unquote rainy daysavings and start putting money in therebecause I know what's happening is thesame thing as me is, oh, Ican't put much money in there.So there's no point in me trying becauseI'll never have three months salary orwhatever. Okay, here'sthe thing. Just start.As your situation changes, you will beable to put different amounts of money inthere. My biggest, biggest piece ofadvice that I can give is just start.Yes, you need to live your life and yes,saving is important. And when you're ableto have different, what I call virtualsaving buckets, you will be amazed at howquickly things will addup into those accounts.I even have one that's called Lisaspending. I do. I haveone called my fitness tube.So if I need a new kettlebell or forexample, I need a barbell or I need newworkout clothes. If there's money inthere and there's enough,then I go and I can get it.And y'all I only put $15 a month in myfitness. So sometimes it may take me afew months or it may take me longer.Okay, I have $15 a month inthere. I do need a new barbell.It's going to be a couple more monthsbefore I have enough in there for me togo get it. So guess what? It stays thereand I keep putting money in there. Rightnow, I'm not where I want money is goingsomewhere else that needs to go.So I'm not willing to change the amountthat goes in there. That's how much I'vedetermined can go in there that I can putin there. So okay, that's what I've done.I have ones called Lisa spending. $15 to$20 a month goes in there. Again, if Iwant something, I look to see what Ihave, how much I have in that account.And if I have enough, I get it.And if I don't, it waits. That way, moneyis not coming out of my monthly roadmap,my monthly spending, my bills and goingto something else and then screwing upeverything. Then me beating myself upbecause I can't pay a bill or whatever.So I invite you to sit down, okay, makelist out all the categories that youthink you would want to have a savingsaccount, then write them onwhich ones you would do first.So rainy day, house savings, vehiclesavings, fur babies, kids, trip,whatever, and there's no judgment. Eachperson is going to have a different list.You may have some that are the same onthere, but you're still going to have adifferent list. Then I want you to rankthem on which ones you want todo first. Again, no judgment.If you already have a rainy day savings,then that one doesn't count. You alreadyhave it. List which other two you want,okay? One of them could be your house ora vehicle and one of them could be yourvacation trip you want to take, whatever.And then look and see, and those are thetwo you set up. I cannot stress how Ibelieve the best thing to do is to set itup in a bank account.And like I said, Capital One savings,there's no fees. It's totally free. It'spretty good interest. And you can have asmany savings accounts as you want.And it's not attached to your bankaccount. I think that's really importantbecause it takes the chance of youtouching the money out.And the chances of it actually buildingup is much greater because it's not aseasily accessible, okay?So rank them, then go open them up.Change the names of them. Nickname them,okay? You can go in theaccount and you can nickname them.Yeah, I think you have to do it from thedesktop, but either way, you nicknamethem. And then after you do that, start.Five dollars. Five dollars. That's it.Put five dollars in there and then putfive dollars a month in there or whateveramount and just watch it grow.And because you've nicknamed it thespecific thing, that reminds your brainthat that's what it's for.So for example, if you're wanting newfurniture, create an account for newfurniture. If you need a new table, callit new furniture, okay?Now, if you're not going to need newfurniture after you've saved up enoughmoney and you've boughtthe furniture, guess what?You change that nickname to a differentthing of whatever else it is you want andthen you put money into it for that.So I have a couple of ones that I callrevolving where the names change. So likemy vacation trips will change.My daughter's cruise changed to hercollege to help pay for her books. Sothat one won't change anymore.But there's another one, which is ourtrip. Our vacation trip, we take summerevery year and we dosomething new every year.So it's whatever name is on there andthen each after we go, I change it to thenext one that we're going to do.So I think it's just really, I just wantyou to try it and see how it goes.We have to be able to make it work forus. And I think the issue is, I believethe issue is, is that so often we getthis block inside our headsand we get a block up going, well, if Ican't save $100 a month or $300 a monthwhere I can't put threemonths of salary in there,then there's no sense in me trying or nosense in me doing it. And what I want totell you is that's BS. Just start.I promise you this takes stress off andit makes it so much easier to save.You're able to allocate, you're able totell your brain, this iswhat this money is for.Your brain can see it because you'venicknamed it and it's not messing withyour money because you were able to lookand say, I can easilyput $5 a month in here.And it's not going to mess up my monthlyexpenses. Try it. I promise you nine outof 10 times you're spending more than $5a month or more than $10 a month onsomething that you could give up and youdon't even realize it.So just try it. I'm not telling you toput $100 a month. What I'm telling you isto create the two savings accounts,determine how much youwould like to be going in there.So doing the figuring and then lookingand determining, okay, I'm going to startwith $5 a month because that's what I'mcomfortable with and just start.And then later, you know what? I canincrease this and then you can increaseit and just see where itgoes and see what happens.And I bet you money as you get used toit, you will end upadding another savings account.So what I want you to take from this isyou don't have to have it as do all or donothing. It doesn't have tobe all this way or do nothing.The key is to just start and haveseparate savings accounts for specificthings along with a rainy day savings sothat those things don't throw you offkilter when they come up.And you're able to see them, those themoney in those accounts grow, which givesyou self confidence,which lessens your stress.So I just want you to remember that thebig, big takeaway doesn't have to be allor nothing. The key is to just start.Thank you for tuning in. As always, I amso thankful that you listened to all mymy episodes. Until next time. Remember,stay sassy, my friend.Bye. Thanks for joining us this week on Cashin SAS. Check us out on social media andon our website atwww.thesassywealthcoach.com where you candownload my free money story start guide.The website again iswww.thesassywealthcoach.com. And asalways, subscribe to the show to catchevery new episode and leave us a reviewso we can continue tobring you fresh content.And remember, yes, it is possible to havesassy and sexy money. See you next week.

Cash & Sass

Revolutionize Your Finances: The Power of Multiple Savings Accounts

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