STEP 2: THE 6 TYPES OF EXPENSES & THE 3 BANK ACCOUNTS
Thanks for completing the questionnaire. It’s now time to look at your bank account options.
Our objective is to get your finances sorted out, so money becomes a silent partner supporting you along the way, rather than being a constant nagging dictator causing stress and anxiety you could well do without.
You may not have realised it, but there are really only six types of expenses we all encounter in our lives and understanding each type allows us to get better control of money. I have listed each type below.
- Weekly Living Expenses – Food, Fuel, Fun and Incidental Expenses
- Non-Weekly Repeating Predictable Expenses – Bills
- Product Purchases
a. Things you need
b. Things you want - Repairing Things
- Replacing Things
- Major ‘Once in a Lifetime’ Occurrences.
a. Big Life Goals
b. Unpredictable larger expenses
Our goal will be to work towards including all the above expense types in your Spending Plan.
Please watch the Video that will give you more detailed information about these Expense Types … CLICK HERE.
If you would prefer to read a text version instead CLICK HERE.
ACCOUNT SET-UP
I’d like you to consider having three bank accounts for use throughout the program. I have some specific requirements for these accounts relating to the different type of expenses above.
I expect you will already have accounts with automatic payments and transfers in place and understand it’s not always easy to make changes. What I would like you to do is consider a specific Account Structure that I believe will make it easy for you to be more successful with managing your money.
I have provided information about this Account Structure in two different formats.
Video – CLICK HERE
Document – CLICK HERE
Both of these explain how I would like your accounts to be set up, and why I want them set up this way. Once you have watched or read this information please start putting some thought into what it might take for you to fit into the model I am suggesting and whether there are any reasons this model might not work for you.
During our first planning session we will discuss this and identify your best plan of action regarding bank accounts and the flow of money.
CLICK HERE to go to Step 3
Warm Regards
David Wright
Your Spending Planner