From a long time now we’ve been fans of the “one account” approach to managing personal finance. This approach makes it super simple to manage and make sense of all personal finance transactions that happen each day in your life.
Of course, it goes without saying that this approach goes a long way in making it super easy and super convenient in ensuring personal finance continuity for your loved ones and dependents. Note: We do apologize for coming back to this statement over and over again…but it’s unfortunately one aspect of personal finance that we tend to ignore for that other day!
Here’s what the “one account” approach looks like:
The core idea is simple:
- One bank account.
- One bank account into which all income flows.
- One bank account out of which all expenses flow.
- One bank account from which all investments are made.
- One bank account in which all savings remain.
Needless to say, this approach requires a level of personal finance discipline and the mental model of bucketing each chunk of money into its desired destination and purpose.
But when you’ve mastered it, the following advantages automatically flow:
- A crystal clear picture of what comes in and what goes out (!).
- A true indicator of your personal finance north star.
- More than enough liquidity to cover unforeseen life situations.
- You build life resiliency.
But, most important of all, it makes it very convenient to ensure financial continuity for your loved ones and dependents (there, we said it again, and we can’t say it enough times!) because with this approach they’d need to deal with just this one account instead of having to run around all over the place. And when you ensure that this account is secured with the right nomination it makes it a breeze for your loved ones and dependents.
sthana.ai is a staunch advocate of this approach. Our intelligent algorithms will stitch together your current personal finance asset structure and figure out what changes you need to make. It will then guide you with a very simple and highly actionable plan for achieving this objective.
We’re excited to have you with us on this mission!