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:

  1. Biweekly paycheck -> Fidelity Save
  2. Automatic transfer 2x/month from Fidelity Save -> Fidelity Spend
  3. Automatic transfers from Fidelity Spend -> Ally savings and personal spending accounts
  4. Automatic transfers from Ally savings to Ally checking; Ally checking is used for Target debit and automatic transfers to wife’s IRA
  5. 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
  • @[email protected]English
    2•1 year ago

    Paycheck goes into checking at credit union, where I have a money market account alongside and a ton of auto transfers. Basically any incidental regular expense I’ve canceled (useless subscription, payment plan, cigarette habit) gets transferred at the rate it used to be. I’ve been doing this since middle school and it’s up to about $1k/mo.

    Other than that, PayPal Cash Back card rewards funnel into a high interest PayPal Savings account. I also transfer whatever is over my emergency fund threshold from the money market account into here. When it gets big enough to roll into a higher yield CD, it goes back to the credit union.

    Simple setup but it works. I keep retirement in its own separate world.