Author Topic: February Challenge - Declutter Your Financial Accounts  (Read 4234 times)

MustachianAccountant

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February Challenge - Declutter Your Financial Accounts
« on: January 31, 2014, 05:19:13 PM »
So, I'm looking around at my finances, and I'm seeing several places I can consolidate money so that there's less "clutter" in my financial life. So far, I've found:
-A checking/savings account that I can close and consolidate into a new CapitalOne360 savings account. Doing this will also allow me to automate a payment that was previously manual.
-A retirement plan at an old employer that I can roll into my Vanguard account
-Disparate 529 plans that can also be consolidated into my Vanguard (and out of the current egregiously high-fee funds)
-An old ShareBuilder account I no longer use, and can close

Your turn!
What can you lump/roll together/consolidate this month?

schimt

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #1 on: February 05, 2014, 06:52:23 AM »
I was considering closing a bank account and only using my online Charles Schwab account, which i love, but i have not been able to find a way to deposit cash into my online bank. For instance, selling something on craigslist, how can you get that money into your online account.

Does Capital One 360 have a solution for this? Schwab told me to maintain a second account at a real bank, which is linked to my schwab account for transfers. This frustrates me, because i have a $500 minimum balance at my other bank.

greenmimama

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #2 on: February 05, 2014, 07:04:38 AM »
I did this in 2012 and I love it, it really simplified things for me and I love that, plus if something happened to me my DH wouldn't leave money accidentally in banks he forgot about

Shor

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #3 on: February 05, 2014, 07:52:53 AM »
I'm planning to close out a Macy's credit card: only used it once for the 40% (?) savings on a one-time purchase.
I opened up 2 credit cards already for churning money, and plan to open up a third very soon. Two of these I can easily close out after the initial 3 month reward period is ended.
My longest running credit card from BofA is unfortunately completely non-rewarding so Most of my purchases were going on to my Costco Amex for simplicity. Both withdraw automagically from my checking account which is the central hub for all my cash flow.
I used to have a savings account, but closed it out early on in college life due to lack of use.

So far it has worked out pretty well due to the lack of experience in the financial account opening category. What are your reasons for having more than one checking account open?

Nothlit

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #4 on: February 05, 2014, 08:07:09 AM »
I did a bit of this last year; I had a couple of old online savings accounts that were no longer paying competitive interest rates. I had withdrawn practically all of my money from them, but last year decided to just go ahead and close them for simplicity's sake. This year I've already drawn down the balance of a reward checking account that had also been growing gradually less competitive, and moved most of that money over into I Bonds and my Vanguard taxable account. Now I basically just have one checking account to keep track of, which is nice.

I was considering closing a bank account and only using my online Charles Schwab account, which i love, but i have not been able to find a way to deposit cash into my online bank. For instance, selling something on craigslist, how can you get that money into your online account.

Does Capital One 360 have a solution for this? Schwab told me to maintain a second account at a real bank, which is linked to my schwab account for transfers. This frustrates me, because i have a $500 minimum balance at my other bank.

It's definitely a good idea to maintain a local account for cash deposits, and even emergency withdrawals. I keep a local account open with $100 in it at all times. You might find that a credit union has friendlier terms of service than your current bank.

MustachianAccountant

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #5 on: February 07, 2014, 12:11:22 PM »

Does Capital One 360 have a solution for this? Schwab told me to maintain a second account at a real bank, which is linked to my schwab account for transfers. This frustrates me, because i have a $500 minimum balance at my other bank.

It's definitely a good idea to maintain a local account for cash deposits, and even emergency withdrawals. I keep a local account open with $100 in it at all times. You might find that a credit union has friendlier terms of service than your current bank.

I agree. I still have an account at a local "brick and mortar," but it is a credit union. No minimum needed in the checking account, and $5 minimum deposit in the savings account.
Check out what your local credit unions have to offer.

MustachianAccountant

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #6 on: February 07, 2014, 12:15:56 PM »
What are your reasons for having more than one checking account open?

At one time, many years ago, I had the third account open to "segregate" funds from other money. Sort of a supplemental savings account. Only recently did I realize that I could just as easily do that by adding another CapitalOne360 savings account. I'm kind of "Type A" about "organizing" money into different accounts. I have something like 15 CapitalOne360 savings accounts, for different purposes.

I do still have two checking accounts, one for side gig business income, and the other as my "main" checking account.

schimt

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #7 on: February 07, 2014, 01:18:12 PM »
It's definitely a good idea to maintain a local account for cash deposits, and even emergency withdrawals. I keep a local account open with $100 in it at all times. You might find that a credit union has friendlier terms of service than your current bank.

Yea, the only frustrating part of my credit union option, is their limited hours, and their ATM's do not accept cash deposits which is really the only reason i need them. So basically i need to Drive there during my lunch break to make a deposit, or go on Saturdays before 12. And they don't have any capability to link an account to Mint, although i could just transfer it to my schwab account before I make transactions.

MustachianAccountant

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #8 on: February 07, 2014, 01:33:37 PM »
It's definitely a good idea to maintain a local account for cash deposits, and even emergency withdrawals. I keep a local account open with $100 in it at all times. You might find that a credit union has friendlier terms of service than your current bank.

Yea, the only frustrating part of my credit union option, is their limited hours, and their ATM's do not accept cash deposits which is really the only reason i need them. So basically i need to Drive there during my lunch break to make a deposit, or go on Saturdays before 12. And they don't have any capability to link an account to Mint, although i could just transfer it to my schwab account before I make transactions.

How much cash are we talking about? The odd Craigslist sale here and there? Why not just spend that cash (on things you need, obvs) instead of trying to deposit it in a bank account?

madage

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #9 on: February 07, 2014, 01:51:12 PM »
Yea, the only frustrating part of my credit union option, is their limited hours, and their ATM's do not accept cash deposits which is really the only reason i need them. So basically i need to Drive there during my lunch break to make a deposit, or go on Saturdays before 12. And they don't have any capability to link an account to Mint, although i could just transfer it to my schwab account before I make transactions.

I find nothing beats a "big bank" for local cash deposits. I keep a basic Chase checking account open solely for this purpose. Depositing by sticking a stack of bills (and/or checks) into the ATM without an envelope is makes my day. Avoid the fee with a simple $500 direct deposit, then use their bill pay feature to distribute to various credit card bills. Chase is ubiquitous around here.

schimt

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #10 on: February 10, 2014, 06:09:33 AM »
How much cash are we talking about? The odd Craigslist sale here and there? Why not just spend that cash (on things you need, obvs) instead of trying to deposit it in a bank account?

Yea, not too much money, some side hussle stuff and selling a few things on craigslist. I could do that, but i really like to use mint for tracking purposes, and it's easier then typing in cash expenses.

Madage: $500 monthly direct deposit is another option that i might Setup

anastrophe

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #11 on: February 10, 2014, 08:06:12 AM »
Good plan. I have a couple of small miscellaneous retirement funds that I need to roll together, and a savings subaccount or two that I never use and should close...funny how it's easy to remember to check my credit report but these kinds of mundane housekeeping always seem like such a hassle.

soccerluvof4

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Re: February Challenge - Declutter Your Financial Accounts
« Reply #12 on: February 10, 2014, 10:49:25 AM »
I just did this the last coupe of weeks. Close two checking accounts and 1 savings account so have one of each now. No idea why i had so many accounts. Also consolidated several items over to Vanguard with one more to go. I actually found stuff I forgot I/we had. Just a punch in my face! BAM!