The Rachel Cruze Show - The One Bank Account Most People Overlook (It’s Costing You)

Starting point is 00:00:05 When it comes to making the most of your money, where you put your money matters because it's going to indicate how you're going to spend it or save it. So today, I'm going to break down three accounts that everyone needs. And if you don't have the last one, it could actually be costing you hundreds of dollars by the end of the year. Now, before we jump in, make sure to like, subscribe, and show this episode with a friend. So the first account that you need is a traditional checking account. Okay. So this is kind of your main. main hub of where all of your day-to-day spending happens. So usually where your paycheck drops in and you have it and your daily expenses are coming out. So you're using this, obviously, to pay bills,

Starting point is 00:00:46 when you're paying for food, all of it. This is like your go-to-the-mothership, if you will. Now, this is the account that I've attached to my every dollar app because when I am budgeting, it is about all my expenses, usually my day-to-day expenses and then my transactions come into there and then I'm able to track them within every dollar to make sure I'm staying on budget. So this fund again is what you are using your everyday life for. This is not an emergency fund. This is not your sinking fund. This is not your savings account.

Starting point is 00:01:14 No, no, no. This is your regular spending. What is in here you should be expected to spend. And that is a good thing. So when you keep your spending money again in a place where you're going to spend it, that's great. When you keep your savings in there, well, that can be dangerous because you could accidentally spend it, which brings me to accounts number two.

Starting point is 00:01:31 which is you need an emergency fund. So what you're going to start off with is a thousand dollars. That's your starter emergency fund. And this is not going to be in your checking account. This needs to be in a separate account. This could be in a traditional savings account if you want or a high yield savings account. I don't care. Money market account. But you need it in its own place. You need to be able to get to it quickly, though. So usually having a debit card attached to that account is key because if something comes up, you want to be able to swipe it and take care of the emergency. Now, once you are out of debt, then you're going to bump up that emergency fund of $1,000 to three to six months of expenses. And again, we're not moving this. It stays in savings. And you're not

Starting point is 00:02:13 trying to, you know, earn a bunch of interests with this. Think about it that it's like insurance. It's not an investment. Now, if you have six months of savings sitting in a savings account or a high yield savings account, some of you are going to be like, oh my gosh, but I mean, I could invest this and be making so much money. That's not the point of this account. This is your safety net between you and life. So remember, the goal is not to get a big return. The goal is insurance. So keeping that separate is key. So you can keep your full emergency fund, again, in traditional savings, but there's actually a better account that I mentioned that I love, which is a high-yield savings account, and that is where Fair Winds comes in. They are the sponsor

Starting point is 00:02:49 of today's episode, because Fair Winds makes it simple with their smart bundle, which gives you a no-feet checking account like we're talking about with a brand-new Ramsey debit card that says dead as normal, be weird, which I personally love. It's a beautiful blue. It's great. And it's a reminder that you're doing your money differently. Every time you take that out, it's amazing. Now, if you are ready to stick with this plan and to make real progress with your savings, visit fairwins.org slash Ramsey to open up your smart bundle that again, you're getting that checking account with that debit card, but you're also going to get a savings account as well with it. So that smart bundle is amazing. Now, a big goal that people have in the beginning,

Starting point is 00:03:29 of the year is to get more organized, but one thing we forget to clean up is our digital life. And with every coupon, newsletter, or giveaway that you've signed up for, your personal information spreads to shady data broker websites, and that is where Delete Me comes in. And they're another sponsor on today's episode because their team of privacy experts tracks down your info on those sites, removes it, and make sure it stays gone. It's like a personalized digital cleaning crew when it comes to protecting your privacy and your peace of mind. So start your off right with DeleteMe.

Starting point is 00:04:03 Go to join DeleteMe.com slash Rachel and use code Rachel to get 20% off. All right, the third accounts that you need, you got your checking account, your emergency fund is a high yield savings account. So this is one thing that is so great because you are going to earn more than your traditional savings accounts.

Starting point is 00:04:23 So you can have a high yield savings account for your emergency fund. But I also have a third account, account, right? So you've got your checking again, your emergency fund, just a general high-yield savings account that Winston and I use. And it's great because you're able to throw some money in there for savings, especially if you're going to be buying something or using that money five years or sooner. If you're going to be five years or longer, that's when you want to invest. But within a five-year span of time, you could be saving for a new car, a vacation, even a down payment for a home,

Starting point is 00:04:55 you know, whatever that looks like, you're going to be saving. And putting some, you know, chunk of money in an account that's making a little bit more than just a traditional savings is great. So traditional savings is around 1.7%. And a high yield savings account offers like 4%, which is 4x the traditional average again of a savings account. So again, it's not like the end of the world. It's not like, you know, some, I mean, the market, if you invested that money, I mean, gosh, I mean, on average it's 12%. But some years it's been 18. It's been 22. It's been insane. So you can definitely get a return much higher than a high-yield savings account, but if you're going to be using this money, again, within five years, having it where you can access it, and it's not

Starting point is 00:05:34 really a gamble of like, oh, gosh, is the market going to go down when I need to pull that money out? A high-yield savings account is amazing. So you guys, those are the three accounts that you need in 2026 and for the rest of your life because making sure that your money is organized, you know where it is and that you have a plan for it and you're being a little bit strategic with it is really, really key. So the two places that I think have helped me the most when it comes to these three accounts is every dollar with my budget, my checking account, and Fair One's Credit Union when it comes to our high yield savings. So I'll put a link down for both of those below so you can check them out. And I know we just talked about the importance of saving, but there is a time when saving

Starting point is 00:06:12 money is actually a bad idea. So make sure to click here if you want to check that out, or I'll put a link down in the description if you're listening on podcast. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - The One Bank Account Most People Overlook (It’s Costing You)

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