My whole life I've been depositing my paychecks in a Chase checking account and then auto-transferring into savings, investments, and retirement accounts. I keep a pretty high balance in checking (at least 6 months of living expenses) which has been convenient sometimes because when something major like a medical emergency comes up I can pay the bills off immediately. But otherwise there is no good reason to keep that much cash in checking, it's just a paranoid holdover from the days when I didn't have much money.
So I feel like I could set this up better by having my deposits go directly to savings and then transfer out to other accounts from there, including having a certain amount of cash put into checking each month. In this scenario the savings account would then function both as a "staging ground" for my income and act as the emergency fund. Right now my checking account serves both those functions. The major drawback here is that if I do hit an emergency I have an extra step to get the money out of savings to checking vs. having it immediately available, and I think my savings bank has a monthly transfer limit. Probably not a big deal but I'm a little paranoid about these things.
Does this make sense? Just polling the community here to see what you do and what the recommendation would be. I haven't seen this covered, as I would imagine it's not a major issue.
Thanks!
Submitted July 22, 2017 at 11:42AM by Buttman222 http://ift.tt/2tpIAQN
