Life use accounts are precisely that, accounts and/or assets used for daily living. Checking, savings, and money market accounts (and some CDs) are all life use accounts. One way to think about life use accounts is simply as containers that hold your money as it comes in and out and you use it to live life.
When we don’t use life use accounts appropriately we end up losing out to small efficiencies that can add up to big losses. Almost everyone has a checking account and most don’t put much thought into them, but efficiently use of a Checking Account can be the foundation of building wealth.
Your checking account helps you do everything from save for big purchases to grow your wealth over time. Whenever you have too much money sitting in your checking account, you are missing an opportunity to put it to work for you.
Knowing how much money you need available to pay bills and expenses each month will give you an idea of how much to keep in a checking account week after week. Keeping too large a balance in your checking account keeps you from financial gains your money could earn if it was allocated somewhere else. While the idea of keeping a financial cushion in a checking account can be appealing, it’s really the wrong place to set money aside.
If you determine there’s too much money sitting in your Checking Account, you should think about moving it to another type of account where it can start working for you but you still have quick access to it: savings and money market accounts are two examples.
Once you've added your Checking Account(s) to InvestorKeep, we will alert you to opportunities to earn more on your money by moving it into accounts that are better suited to your goals.