The Financial Accounts Everyone Should Have


It’s hard to speak for everyone in the world, but when it comes to banking, financial accounts are pretty universal — and beneficial. And while everyone’s different, there are a few main accounts you’ll likely want to have.

“Personal finance is just that — personal,” says New York-based certified financial planner Kristen Euretig. “What makes sense for one individual or couple may not make sense for another. There is nothing inherently good or bad about having or managing multiple accounts as long as it’s working for that individual.”

Some people may prefer less, some people may prefer more, but one thing’s for sure: In order to prepare for a healthy financial future, you’ll need at least some basic financial accounts.Some people may prefer less, some people may prefer more, but one thing’s for sure: In order to prepare for a healthy financial future, you’ll need at least some basic financial accounts.

First things first, you’ll need a checking account for those pesky bills, including everything from your housing payments to your car, utilities, insurance, school tuition and any other monthly or semiannual payments. It’s best that your paycheck be directly deposited into your checking account to ensure you can pay all your bills efficiently.

You’ll also use this account for the things you do on a daily, weekly or monthly basis, like grocery shopping, getting your nails done, going to happy hour — whatever the case may be.

An Emergency Fund

This will likely be a savings account, which you’ll use for any unexpected financial setbacks such as medical bills, car repairs or unemployment. An emergency fund should be easily accessed, provide for you on short notice and be federally insured. You’ll want to keep your savings account separate from your checking account so that you aren’t tempted to dip into it for anything other than an emergency. In a perfect world, you’ll never have to take money out of savings and can use that money to invest into your retirement fund. Savings accounts also typically accrue a little bit of interest, which is a nice bonus.

A Retirement Fund

Whether a traditional IRA, a Roth IRA or a 401(k), a retirement fund is an essential account to have, containing both varied advantages and disadvantages relating to needs, tolerance for risk and available funds. Once you retire, a retirement account will allow you to live comfortably within your means — so it’s best to start as early as possible. Time is your most valuable asset when it comes to retirement savings.

A Quarterly Tax Account

If you work for a boss and receive a W-2, your income and Social Security/Medicare taxes are automatically withheld from your paycheck (if you’re self-employed, that’s not the case). Experts recommend that anyone who pays quarterly taxes should create a quarterly tax account to build up money for this purpose, setting aside money each paycheck. You can connect that account directly to the IRS using EFTPS.gov and pay online in seconds.

Contact us or stop by today if you’re looking to open one or more financial accounts.

 

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