Chapter 3: Building a Budget
Structuring your bank accounts in a way that's easy to use and keeps business assets separate from personal is always a good idea.
Personal Checking - This is your primary bank account for collecting income, paying bills, and credit cards.
Personal Savings - This is your primary savings account for saving money for the future.
Personal Savings (Emergency Fund) - This is a savings account that's used to save money for any fluctuations in income and spending, somewhere between three and 12 months of expenses.
Personal Savings (Tax Fund) - If you are self employed and don't have an employer withholding taxes for you; you'll need to set money aside on your own for tax season. Having a separate account to keep your tax money in is wise.
Business Checking (LLC) - If you're self employed and collecting money through an LLC you will want a separate account. You will use this account to collect business income and pay off business expenses/credit cards. Any money that isn't needed for business operations can be transferred into your Personal Checking.
If you're just getting started, this many accounts isn’t necessary just focus on just getting a personal checking and a business checking if you're working through an LLC. As you make more money expand your banking structure to include all of these accounts.