No one wants to be at zero or in the red at the end of the month and not know why. The 3-account model can help you get a better overview of your finances and avoid overdrafts. So you have the perfect overview to safely enjoy Bet22.
Organizing your finances sounds time-consuming. It doesn’t have to be: The 3-account model can help you get a quick and easy overview of your finances and, most importantly, keep it for the long term. With this model, you divide your money among different accounts. Each account has a specific purpose and is only used for that purpose.
You can use the 3-account model both as an individual and in a partnership with jointly managed finances. However, the respective procedure in these two variants differs slightly from each other.
How To Divide Your Money
The 3-account model includes a consumption account, a savings account, and a fun account. Each account has its own purpose. What this consists of in each case, you will learn in the following.
1. consumption account: Your salary goes into the consumption account. In addition, you use this account to pay your current living expenses – things like rent or credit, insurance, food, internet, and electricity. This account is also the basic account from which the regular standing orders for the other two accounts come.
2. savings account: The savings account is intended for saving. From your consumption account, you transfer every month by standing order a fixed amount that you want to save. If you like, you can divide this account into two more accounts: A “nest egg” for financial emergencies, which you ideally save first, and an account for financial investments. You can use the latter to invest in value investments such as stock funds.
3. fun account: From the contents of this account, you pay for things you buy or do for pleasure. This includes everything that is not absolutely necessary but is fun and important to you in your free time. For example, you use the fun account when you go out to eat, go to the cinema or book a sports course.
The Advantages
The 3-account model makes it easier for you to keep track of your finances because you don’t have all your money in one account but divide it up into several. You assign different amounts of money to the different accounts and thus always know how much you have available for which areas of your life. This makes it easier to keep track of both deposits and withdrawals.
The 3-account model also helps you save money psychologically in everyday life. You decide in advance how much money you want to spend and on what. This means you don’t have to be so active about how much you spend or save. By setting fixed amounts in advance, it’s easier for you to keep your spending in check and save a little each month. Note, however, that this method requires some preparation at the beginning and can also become more complex the more accounts you have.
