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  1. #1
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    Managing Finances - multiple bank accounts?

    I started off with my personal checking. Then I learned pay-yourself-first so I opened a savings account and setup automatic savings. Then I became self-employed part time so I created another checking account to handle finances related to that income. Then online high interest savings accounts became popular and so I have a few of those.

    Now I am starting to make money online (and I want to concentrate more on this in the future) and I'm wondering how to organize my finances. Should I create another bank account to handle online income? Does each site have it's own account or do you use one account for all online income? Do I create a checking account(s) at my brick and mortar bank or do I create online high interest savings and send online income directly there? How do you do it?

  2. #2
    Life is short. Be happy today! silver trophybronze trophy Sagewing's Avatar
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    It's a complex question so it really depends on how your business works. If you are working as a sole proprietor, you don't really NEED to separate your money, but if you have separate business entities then each must have it's own account (for starters).

    Dividing the sites by account won't serve any purpose unless you aren't keeping track of each site's income/expenses in some other way. If that's the case, I would use Quickbooks or something like that rather than arbitrarily separate money.

    As for high-interest checking, I use a 4% checking account at Schwab for my personal checking, but there is rarely enough money in there to make a different. If you have enough cash so that the interest is substantial, why not put it in a money market fund or something like that? Checking accounts are just for checking/banking convenience - if you want interest, they are bottom of the barrel even the so called high-interest ones.

    I have run a decent sized business using two accounts for years - one checking a Schwab brokerage account where we stick retained earnings (cash) during the year. I only have one checking account for my wife and I, and I can't imagine how having another one would be useful at all.

    My guess is that you don't need any more accounts, you need to pick up some basic bookkeeping/records skills!
    The fewer our wants, the nearer we resemble the gods. Socrates

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  3. #3
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    Basic bookkeeping yes I need that. I've always wanted to get some basic accounting under my belt but it's taken a backseat to all my umpteen million other interests, but hopefully someday.

    I am a sole proprietor basically because that was the path of least resistance and I'm just starting out. Given that and in this day and age of multiple income streams I wasn't sure if you should funnel those streams all into one place or funnel them separately into their respective buckets. In my specific case, I have part-time income that is not related to online activity, do you think I should just dump all my income whether online or not into the same account (and use some bookkeeping to keep it separate)? Another alternative I was thinking was just to have one account for all online income.


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