In this episode of Get Real Wealthy Season 3, Quentin talks the importance of using bank accounts to save and invest better.
Quentin says that as a young adult, it’s crucial to take control of your financial situation and make smart decisions about how you manage your money. One of the first steps in doing this is to choose the right bank accounts for your needs. Quentin suggests using student accounts or low-cost bank accounts that offer a good balance between savings and access to your money. It’s important to carefully examine the fees being charged by these accounts and negotiate with the bank if necessary. Many banks are willing to offer lower fees or other incentives to keep your business, so don’t be afraid to shop around and compare offers.
Quentin further adds that another strategy that can be helpful is to have at least three separate bank accounts to segment your funds into different buckets. This allows you to allocate your money to different goals and priorities, and makes it easier to track your spending and savings. He suggests having the following three accounts:
• A milestone savings accounts for big purchases, such as a car or a house.
• A lifestyle or social account for spending on necessities, such as food and transportation, and for building credit.
• An investment account for buying paper assets, such as stocks and bonds.
By using these three accounts, you can save and invest for the future while still having access to funds for your daily needs. He also suggests starting with paper statements rather than online statements, at least at the beginning. This can help you better track your spending and avoid missed payments, which can damage your credit and cost you money in the long run.
For homework, he says that you should find three accounts that you can open with the same bank or institution that costs you $0 per month in order to do online transactions. So, if you do online transactions, you’ll get zero charge per month. In conclusion, he says that by using student or low-cost bank accounts and segmenting your funds into different accounts, you can take control of your financial situation and reach your goals as a young adult. With these strategies, you can save and invest more effectively and build a solid foundation for your future.
Important Links and Resources
Quentin D’Souza is the Chief Education Officer of the Durham Real Estate Investor Club. Author of The Action Taker's Real Estate Investing Planner, The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords, The Filling Vacancies Toolbox: A Step-By-Step Guide for Ontario Real Estate Investors and Landlords for Renting Out Residential Real Estate, and The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate.