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Close your savings account, open a spending account

Start saving with a purpose

I hate savings accounts!  There I said it, publicly.

New clients often say, “I’ll put money in my savings account.”  I challenge them to change their narrative.  Our money narrative is the story we tell ourselves, our excuses, our hopes and dreams, and our self-talk.  Changing our money story is the start to changing our habits.

Stop saving, start planning your spending

Many of us were taught to save for a rainy day, or to put money away for a vague, undefined future purchase.  The intent behind this teaching was good, but the impact is that we can drift along aimlessly or have money burning a hole in our pocket as soon as we get a few dollars accumulated.

I’d like you to change your money narrative.  Every dollar has a purpose, and you get to decide how to spend.  There are no vague, undefined savings.

Momentum Account

Close your savings account and open a Momentum account.  A Momentum account is an account you will use to accumulate money for future expenses and purchases that come on a less-than-monthly basis.

I prefer a checking account for this purpose.  Unlike a savings account, you can make unlimited deposits and withdrawals.  Write checks, use your debit card, and pay bills using online bill pay.

To make transferring money easy, link your Momentum account should your primary checking account.  At the end of each month, you will transfer a specific amount of money from your checking account to your Momentum account base upon your monthly spending plan (budget).

Getting more of what you want

By planning ahead for expenses that occur less-than-monthly, things like:

  • Insurance
  • Car repairs
  • New tires
  • Vet bills

You will remove a lot of drama and chaos from your financial life.  Doing so enables you to focus on things that are most important to you.

Your list of less-than-monthly expenses doesn’t have to be all dreaded necessities.  You can accumulate money for purchases such as:

  • Holiday gifts
  • Vacations
  • Tickets to an event
  • A weekend away
  • A special dinner

By changing from a savings account to a spending account, you give yourself permission to have fun while being prepared for the inevitable not-so-fun expenses that can cause you to tap your emergency fund when you haven’t prepared.

You do have an emergency fund. Don’t you?