How to set up your bank accounts

You're almost there

You've got your buckets set up and your first income logged. Now comes the part that makes it all work: actually moving the money.

1. Transfer your money

This is the core habit. When you get paid:

Look at the amounts Wealthsplitter calculated for each bucket
Transfer that amount into the corresponding account
Check off each transaction in Wealthsplitter

That's it. Do this every time income hits, and you'll build a clear picture of where your money goes over time.

2. One goal, one account

If you don't already have separate accounts for your goals, it's worth setting them up. The simplest approach: one goal, one account.

For example, if you have buckets for savings, taxes, and investing, you'd have:

A savings account for your emergency fund
A savings account for tax withholding
An investment account for long-term growth

Most banks let you open multiple savings accounts for free. Some people like to rename them to match their bucket names.

Not sure how to set your percentages? Read about why percentage-based buckets work so well.

3. Use tax-advantaged accounts where it makes sense

If you're saving for retirement or other long-term goals, use accounts that give you tax benefits first. In the US, that's IRAs and 401(k)s. In Canada, TFSAs and RRSPs.

4. Invest money you won't need for 5+ years

For long-term goals, don't just let the money sit in savings. Invest it so it grows over time. If you're new to investing, the Bogleheads wiki is a great place to start.