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 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 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. 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. Right, 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, which is you need an emergency fund. So what you're going to start off with is a $1,000, 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 trying to 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,

...