I'm talking about types of accounts, automatic transfers, etc. Feel free to mention specifics, but I'm more interested in higher level information like does your paycheck go to savings or checking, do you use automatic transfers, do you use a traditional bank account or something different, etc.
Basically, what happens to your paycheck? Do you like your process, or are you considering making changes?
Here's mine:
I have five main accounts:
- Fidelity Bloom Save and Spend for savings and spending respectively; each is a brokerage account
- Fidelity Cash Management Account - mostly fit the fantastic debit card
- Ally Checking and Savings
And here's the general flow of cash:
- Biweekly paycheck -> Fidelity Save
- Automatic transfer 2x/month from Fidelity Save -> Fidelity Spend
- Automatic transfers from Fidelity Spend -> Ally savings and personal spending accounts
- Automatic transfers from Ally savings to Ally checking; Ally checking is used for Target debit and automatic transfers to wife's IRA
- Manual transfers as needed to Fidelity Cash Management - I try to keep this near $0, and only transfer for travel or if I need to withdraw from an ATM
I have credit cards and other bills set to autopay in full from my Fidelity Spend account 2x/month (roughly even between the two halves of the month). I changed my credit card due dates to line everything up years ago, so now everything is pretty much automated.
I like this setup because:
- brokerage has higher yielding money market funds
- pretty much everything is automated
- can have investments living next to spending money (e.g. my efund is Treasury bills, which live in my "savings")
- I keep more sketchy account linkages at a separate institution from my main savings
- I need a brokerage anyway for my HSA, and I'm considering moving my other retirement savings to Fidelity as well to further reduce institutions
- Fidelity has better 2FA options than pretty much any other bank
I used to use Ally as my main account, but I switched to Fidelity late last year and I really like it so far. Some changes I'm planning to make:
- get my hardware security token set up with Fidelity - I've been sitting on it for months, just need to make the call
- move wife's autopay to pull from Fidelity directly; she's not on the account yet, so I need to fill out some forms
Thanks for starting the discussion! Here's my setup:
Currently I do all the separate account transfers manually after the paychecks are deposited. Main reason is bc I grew up quite poor so I got very good at tracking every dollar manually and never broke the habit. And it serves as a mini-audit every two weeks which is a nice bonus.
Out of curiosity, how did you set up your Treasury bill efund account through Fidelity? I've been looking to consolidate and better track my tbill purchases but haven't settled on a good solution yet
Fidelity supports auto roll, so I set up a ladder by buying the same amount every few weeks with the same maturity. I wanted a three month efund of $13k, so I bought $2k 13-week t-bills every two weeks, and $1k on the thirteenth week. I started that earlier this year and the auto roll went through without a hitch.
I have the other half of my efund (the other 3 months) in Ibonds, but I'll probably end up moving that to t-bills now that I bond rates are less interesting and I prefer having everything in one place anyway. So I'll do that by buying 26 week t-bills and converting the 13-week t-bills as well.
It's a little bit of a pain to set up, but once it's going, it's completely hands off. If you're lazy, you can just buy a t-bill fund and get pretty much the same benefit, but I like owning the bills themselves for some reason. Since it's a brokerage, you can do whatever you like.
This is fantastic! Thanks for the info. I know what I'll be playing with this weekend ๐