In a world where financial independence is both a blessing and a necessity, even the best of us can struggle with this goal. It requires a blend of discipline, creativity, and savvy—a perfect mix of feminine energy. Whether you’re managing your personal finances or overseeing a business budget, setting up a robust system is key to staying on top of your accounts. This article will explore the systems you need, the accounts you should consider, and a few witty strategies to maximize on your financial earnings.
The Basics: Core Accounts to Manage
Before diving into the “sophisticated” world of finance, let’s ensure the fundamentals are covered. Let’s talk about core accounts that can get you started on your wealth-building journey: checking accounts, savings accounts, credit card accounts, and retirement accounts.
Checking Account: Your spinning wheel. Yes, that is a reference to the fairy tale, Rumpelstiltskin because if we aren’t conscious of what goes in and out of our checking account, things will get glum. Consider the money in this account, the straws that must be turned to gold. The money in this account is the result of your hard work and effort. It cost you your time and energy. This account serves as a financial hub, where income flows in and expenses flow out. When I received my first administrative fellowship paycheck, I opened a checking account with Bank of America (BOFA) for a few reasons. Easy access to ATM’s was the first; its locations were conveniently located, making it easy to grab cash from an ATM whenever I wanted. While online banks offer ATMs, I did not want to go on a quest for ATMs from their partner network. BOFA had “free money” offers; between their new customer bonuses and their Preferred Rewards program, my money was already earning money. Their new bonus offer for new customers opening a checking and savings account was between $150 and $300, if I recall correctly. Most importantly, I had enough cash savings to qualify for and benefit from their Preferred Rewards Program, making this the best bank to store my cash at the time. Since I was setting up a direct deposit, I’d be exempt from fees associated with the accounts. In addition to the factors I considered with my first bank, when choosing your checking account, choose one with minimal fees and robust online banking features.
Savings Account: Your metaphorical prince who gallantly slays the dragon and rescues you from impending doom. This is your safety net. Your rainy day fund. Your Emergency fund. The fund you don’t touch unless you’re in trouble. So, look for accounts offering competitive interest rates to maximize your savings. While I continued to grow my savings with BOFA, I eventually decided to take advantage of another no-risk way to earn money from my money. Basically, splitting my savings between two online banks: Discover and Citi. Or was it Synchrony?
Anyway, it’s the money move that matters.
In doing so, I benefitted from their New Customer Bonus offers and their higher interest earnings (above 4%). So, do the due diligence and start maximizing your savings.
Don’t get it wrong. I am not suggesting that we continue to chase new bonus offers and interest rates forever; I am simply emphasizing the importance of choosing accounts and banks that will offer you the most for your money before you settle down. Too many of us choose banks that our friends and family members bank with, even when there are no benefits to be gained. And even when we consciously make a decision to bank somewhere else, we tend to stay there even when there are better offers available to us. So go with the bank that is making an effort to attract new customers and keep them happy. It is the most feminine thing to do, after all. Which is why I refused to continue banking with Chase.
If I had to assign energy to Chase Bank, I would consider its approach to customers as a man embodying 100% feminine energy, a man acting like a prize, waiting for someone to beg to be with him, except he had nothing to truly offer. So, I chose to bank with BOFA, as they actually do more to get and keep their customers. I felt like they were putting in the effort I wanted to see. They were way more masculine in their approach to customers.
Credit Card Accounts: Like a fairy godmother, it can grant your wishes and provide temporary magic. They are essential for building credit history. With a responsible spender, all the good magic happens. With an irresponsible spender, a trail of debt and financial chaos ensues. For those who consistently choose to live above their means, the credit card is not a fairy godmother; it’s a mischievous pixie. I applied for and received my first credit card in the summer before my sophomore year of college, as my mom insisted I apply for it while working as an EMT-B. She was willing to keep my credit history in good standing by paying the bare minimum, at the very least, if she could. And I learned a lot from having that card. By the time, I landed my first job after graduate school, I had at least $10,000 in consumer debt. Don’t get too excited though. It wasn’t glamorous; but I was a student for a long time, and that card worked its temporary magic.
Despite the debt, I would do it again. Having a long credit history with a good track record of on-time payments puts me ahead of the game when it comes to applying for loans now and in the future. After aggressively paying off my cards, I have managed to pay all my credit cards in full at the end of each billing cycle ever since. Now, I choose my cards strategically to reap the other benefits of having a credit card, such as purchase and fraud protection. When selecting cards, choose ones that offer rewards or cash-back perks aligned with your lifestyle.
While I am an advocate for credit, there are a few places where I consciously draw the line. Many credit cards offer new customer cash back bonuses when you charge a certain amount to the card within a specified period of time, usually within 3 months of receiving the card. With this is mind, if I do apply for a new card, it is usually because I know that I am going to spend a certain amount therefore qualifying myself for the cash back bonus anyway. Never put yourself in a situation where you spend just for a cash back bonus. When I applied for my first travel rewards card, it was because I was already planning to travel and the cost of my trip was going to meet the expense amount required to receive my cash back bonus. Also, I avoid opening credit cards mindlessly like I once did. For example, opening a store credit card to get an additional 20% of clothing purchases is not a great idea for your credit history, and it opens you up to fraud and overspending as you likely cannot keep track of every single card. Lastly, I do not apply for cards with annual fees. I get that they come with a lot of great perks and rewards; but they also require a lot of spending. Don’t get me wrong, there may be a season in your life where you will spend a lot and can benefit from such a card. Just not during a season where you need to get your financial house in order. Come to think of it, cards with annual fees are not a great idea for anyone looking to become financially stable or free.
Retirement Accounts (e.g., 401(k), 403b, IRA): Your loyal Lady-in-waiting. There will be a time when you no longer want to hustle into an office, trading your time for money. These accounts will attend to your daily financial needs when that time comes. But! This will require you to stash away a small percentage of your income on a regular basis. If you want a future of financial comfort and freedom, you’ll need to be disciplined and patient. These accounts will empower you to do whatever you want, whenever you want, with whomever you want. Maybe you missed out on time with your kids in order to pay the bills, but want to seize the opportunity to be present with your grandchildren. Maybe you’re in your mid 30’s and can’t imagine committing to the 9 to 5 grind until the day you die. And yes, I know someone who dropped dead at their retirement party. So, it’s definitely a possibility. If only they had decided to stash away 10% of their income for the future, they would not have spent their last day at the office.
The best time to start was in your 20s; the second best time is now. Don’t let FOMO and YOLO keep you from financial freedom. Don’t make the mistake I made of waiting until my 30’s to start. Start as early as possible, even if your contributions are 6%. One of my biggest regrets was not opening up a Roth IRA sooner and buying a few broad market index funds because it is that easy to start investing for retirement. These accounts provide tax advantages and can ensure your future is secure.
System Setup: Building Your Financial Fortress
Now that you know which accounts to consider, let’s talk systems. Here are steps to set up a seamless financial management system:
- Create a Budget Blueprint. A budget is your financial roadmap. Begin by categorizing expenses into essentials (e.g., rent, groceries) and non-essentials (e.g., dining out). Establish short-term goals and long-term goals. Short-term goals can be fun, like saving for a bucket list adventure, if you’re a travel enthusiast like me. Or for tickets to a festival or retreat like the Tribeca Film Festival in NYC. Long-term goals could include saving for a home or condo, your wedding day, a business endeavor (like mine), a sabbatical from your career, or the most common long-term goal: retirement. Start small, allocate funds accordingly, and stick to your plan. Consider using budgeting tools like SoFi, Rocket Money, or Qube Money for a digital approach.
- Automate Everything You Can. Automation is your best friend. Set up automatic transfers to your savings and retirement accounts each payday. Pay recurring bills through your bank account’s auto-pay feature to avoid late fees—though we all know mistakes happen. In the event that I have incurred a late fee, I’ve found that a friendly call to the bank or the credit card company can reverse a fee or two. Tip: It’s best to ask credit cards after they have received payments. If your primary bank is unwilling to reverse any of their fees, it may be time to bank somewhere else, and you may need to be vocal about that with them.
- Schedule Regular Financial Check-Ups. Set a monthly date with your finances. To avoid procrastinating on my finances, I make it an indulgent date, preferably on a Saturday Morning when most financial services industries are still open for me to address any financial woes I come across. I brew my favorite tea or grab a latte from my favorite cafe and pair either with my favorite dessert just before finding the most comfortable and coziest place in my home. Take this time to review your accounts, track your spending, and adjust your budget if necessary. Since I tend to tie financial management to well-being and self-care, I make time in the day for a post-review reward where I will treat myself to a massage, facial, or mani-pedi after seeing I am well on track to meeting all my short and long-term goals. I also never put pressure on myself to spend if I do not want to; there are plenty of self-care rituals to engage in at home, and I can allocate those dollars to something more meaningful later.
- Leverage Technology Wisely. Use financial apps to track your expenses, investments, and account balances. Apps like Acorns can help you invest spare change, while Empower (formerly Personal Capital) offers a comprehensive view of your financial health. While I use Excel spreadsheet sheets and templates to create my budget, I have found budgeting apps like SoFi and Empower useful for a comprehensive big picture overview. While they take some time to set up and link all the different accounts, I found the big picture overview to have a positive impact on my overall mental health. I would caution anyone to limit the check-ins of their investment accounts if they cannot handle huge market fluctuations, as that tends to be the nature of the beast.
In conclusion, mastering account management is not just about crunching numbers; it’s about nurturing a relationship with your finances that empowers you to thrive. By establishing a solid foundation with your core accounts, you can make informed decisions that will propel you toward financial independence. Remember to be proactive in seeking out the best banking options for your needs, and don’t hesitate to explore new opportunities as they arise. With a sprinkle of creativity and a dash of discipline, you can turn your financial journey into a rewarding adventure, ensuring that your money works for you rather than the other way around. Embrace your financial femininity, and let it guide you toward the abundant life and security you truly deserve!