Checking account VS Savings account. Do I need both? What fees do I have to pay?
Is it really free to use any ATM I choose?
Why are banks even free to use in the first place or are they? In this video,
I will show you exactly what a checking and savings account is,
the differences between them and if you should have both and the tactics that
you MUST KNOW to not be part of the almost $12 billion that banks collected in
fees in 2019 alone. Stay tuned.
What's going on Fam?
Justin Houser here and welcome to the Justin Houser shooowwww Where I go over
vital information in only 5 minutes on how to make you financially smart and
rich. Feel free to check the description below for show notes,
links the recommended products and anything that I might've forgot to mention in
this video. If you stay until the end, as a bonus,
I will show you the 2 CRUCIAL ways that you can optimize your bank accounts
today! And most importantly, if you get value in this video,
let's help the YouTube algorithm and SMASH THAT LIKE BUTTON,
Subscribe to my channel and hit that Notification bell so you will not miss any
of my future videos. So let's get into: What is a checking and savings account?
And do I need both?
You're probably already thinking that you already know what they both are and
what the differences are. But bear with me.
Your checking account is the backbone of your entire financial ecosystem.
It is usually where your money will go first before it is penetrated. Um,
let's use a different word, uh, filtered, sorry about that YouTube,
to other parts of your financial ecosystem,
like your savings account or your investing account.
The checking account is simply where your money will be deposited and also where
you can withdraw it from in the form of debit cards or these weird paper things
called..... checks. Another way to think of a checking account is like an inbox.
All my money goes into my account and then it regularly goes out to a different
account. Sometimes automatically.
This is where you will meet a whole bunch of unnecessary fees that you should
not have. I will discuss later on of how to remove these fees. Personally,
I pay most of my bills using my credit cards as I have automatic payments set up
for my checkings that go directly to pay off the credit card immediately.
I actually just finished an entire set of videos on credit hacks where I went
into detail on credit scores, credit reports,
and how you can beat the credit card companies at their own game, link up above.
A savings account should be a place where you hold some cash for a short term or
even up to a few years away.
You can use these accounts to help you save up for the holidays or vacations or
even the down payment of a house. So now the question of do I need both?
They both do sound the same,
but there are a couple of key differences that you need to know.
The savings account usually has a higher interest rate than the checking.
It also has a limit on ATM with journals usually capped at six to eight per
month, whereas a checking account has no limit.
This is because your savings account is not meant for frequent withdrawals.
As mentioned previously,
your savings account can be considered your goals account.
Where every dollar saved is assigned to a specific item,
such as a Christmas vacation or an emergency fund. Here's the kicker;
I actually recommend you have 2 different accounts, at 2 different banks.
Now why would I recommend that? Well, I'm glad you asked. Psychology.
Psychology? How does psychology have anything to do with finance?
Don't worry,
I'll give you an example about how psychology has a direct relationship and why
I recommend have 2 different accounts at 2 different banks.
I'm in Vegas would athlete, friend of mine. Keep in mind,
he's doing a lot better than me in life. Okay? Naturally I want to keep,
but with him, so before we go out, he said, cab, don't worry about nothing.
I got you. Everything is on me. I said, Hey, ***** I'm a man.
I paid for my ******* self. Okay, so we go out,
he get a table, I got a table. He got bottles, I got bottles.
He had ******* come to the table. I didn't have no *******. I had my Aunt,
my Aunt was with me andI'm not gonna call my aunt no *****. I love her too much.
Regardless, we having a good time. Okay, now I'm not gonna lie. I got the bill.
I didn't like it. Uh, you ever,
you ever get a bill so high you try to put it in the light like it's going to
change? Hold on. Wait a minute. Hold on. Okay. But I said, I Can't *****
about the bill reason why I can't ***** the bill cause he didn't ***** about the
bill. So I SAID, no way. I start talking to myself. I said, Kev,
just pay the bill. Pay it. That's what I did. I paid the bill.
I go to my room and go to sleep. Here's why I don't mess with athletes.
Next morning I wake up, my boy that I was with, he called me. He said, Kev, yo,
last night was crazy, wasn't it? I said, man, I had a ball. He said, well,
guess what? We will do the same **** again tonight.
I say, I'm not going to do it. I can't. I can't do it two nights in a row.
Because the way that my bank account is set up. You ever,
you ever start explaining your financial situation for no reason at all?
I said I would, but the way my bank account is set up.
The thing is I got a checking and a savings, but all the money is in my savings.
So I got to switch it to my checking. But it's gonna take three business days.
I don't, I don't think it's going to go through.
I don't think it's going to go through.
So I hope that my craziness has helped you better understand how psychology
works, by have these 2 different accounts set up at 2 different banks.
I will go over this in detail on how I do this in a future video. Hey, listen,
if you're getting value in this video so far,
can you do me a huge favor and HIT THAT LIKE BUTTON and let me know in the
comments below How many different bank accounts do you have?
So you might also be thinking, why would I need a savings if I only have $500?
I understand how you must think about this $500 as it would basically only make
you pennies from the interest that the bank is paying.
But in this case, it is not about the financial gains,
but developing the RIGHT HABIT. This is the perfect time to start,
especially when the risk are small. Picking the right accounts,
automating everything, and developing those right habits early on is key. Hey,
congratulations. You made it to the bonus time. Since you've stayed around.
I will give you 2 hacks on how you can optimize your bank account. Number one,
avoid monthly fees and minimums.
If you already had a bank that has monthly fees in your account,
simply call them up or go down to the bank itself and talk to a real person,
not a computer, and just to ask.
If you want to see a similar script of how to reduce your credit card APR,
click on the link up above as you can follow the same outline that I did in that
previous video.
And if they will not reduce or cancel the monthly fees or minimum,
then I advise you to switch to another bank that does not already have these
fees as these fees are probably already wiping the interest that you're already
making on these accounts. And number two, negotiate the bank fees.
Banks have made over $12 billion in 2019 alone from fees.
Overdraft fees are one example.
The best way to not pay is to simply avoid doing it in the first place.
Set up a cushion on your account to where if it reaches a certain amount,
you can get an alert.
You can also set it up to where it can automate a transfer from your savings
account to fully fund that cushion in your checking account.
But mistakes happen and if it does,
call the bank or visit them in person and ask for it to be waived or reduced.
The first time is usually really easy. The second time maybe,
but once you get third, fourth, fifth time after that, it's much harder.
This could also include ATM fees, late fees, or even processing fees.
So there it is. What is a checking and savings account?
What are the differences? And do I need both?
I hope this video has helped you and if it did,
can you smash that like button below and leave a comment?
Now it's time for question of the day.
What is a time where you got a bank be reduced or even wait, please leave.
Your answer below in the comments is, I would love to connect with you.
Thank you for being part of the community and I'll see you on the next video.
[inaudible].