Personal Finance: Bank Account Thresholds

“When making plans, think big. When making progress, think small.” — @JamesClear via @visualizevalue

I’ve written about personal finance twice before and I’m excited to expand on the topic today. If you missed the first two articles, you can go back to the basics here:

Money Management

• A sample formula for how to divide your income and set up auto-transfers
• The Fintech platforms I use
• How I select which stocks to invest in

Tracking and Growing Net Worth

• A spreadsheet for tracking your assets
• The sample formula for how to automate growth using your existing income and auto-deposits

Today’s article is about Bank Account Thresholds:

• How to know when it’s time to up your saving & investing game (when you meet your bank account thresholds)
• Setting shorter-term financial goals based on your bank account thresholds

Let’s dive in!

What is a bank account threshold?

I created this term for myself as a way to think about the maximum amount of money I’ll hold in each bank account. Creating this bank account ceiling helps me:

1) Create a short-term goal to reach for as I save money in each account