Do you "envelope" budget? Credit: PinkMoose/Flickr

A friend emailed me with a bit of budgeting advice passed on from her mother, the professional organizer Janet Fishman:

Set up separate bank accounts for: living expenses, play, long-term savings, education, charity, and retirement and have either a percentage or fixed dollar amount from each paycheck go into these accounts. Most all companies that offer automatic deposits for payroll have the ability to automatically deposit into multiple accounts. Figure out how much you need to pay taxes, divide by the number of weeks you work, and that constitutes the dollar amount to set aside for each week. Repeat this for the categories above and you will be fully prepared and organized year round!

This ads up to six accounts – or more if you set up one for taxes and other categories. Phew! That strikes me as a lot to manage. Plus, you would have a harder time hitting minimum balance requirements to keep your account free or low cost.

On the other hand, how much money you have to spend on any given thing would be crystal clear. No pushing money earmarked for one expense to cover something else. Plus, retirement is singled out, which makes it more likely that you will save for retirement.

What do you think of this modern take on the “envelope” system? Would you use it?

viZZZual.com / Flickr

I share five must read blog posts about saving money every Friday.

Avoid bank fees – Find out which seven banks are still offering free checking and great interest rates. (Wisebread)

Feed Fido – Save money on your pet with these homemade dog food recipes. (Money Crashers)

Tax season is near – The Silicon Valley blogger shows you how life events affect your tax status. (The Digerati Life)

Protect yourself -Avoid identity theft by learning about the eight things you should shred right now. (MainStreet)

Home costs – Save money by getting these five fall maintenance jobs checked off your to-do list. (Bargaineering)

pin add / Flickr

I share five must read blog posts about saving money every Friday.

Is your bank increasing their fees? Ditch them! Here are 3 steps to replacing your bank. (Money Talks News)

Have you received your internet bill? Find out seven ways your Internet Service Provider may be overcharging you. (Cheap Internet Deals Blog)

Daily deal junkie? You can now sell unused deals on sites that allow you to re-sell and buy past daily deals. (Fabulous & Frugal)

Travel on a shoestring budget to these five inexpensive off-season vacation spots. (CNN Money)

The checkout line is getting revamped. Look for these three changes at your local grocery store checkout line. (Time Moneyland)

borman818 / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

Weeks before graduation, I received a letter from my bank telling me I would no longer qualify for a student account and that I needed an average daily balance of $1,500. Boo!

With my student account I managed to avoid bank fees as long as I never stepped in to the bank and only used the ATM for my transactions. According to the bank’s letter, the fees would kick in on or after June 4. I prepared by transferring money from my savings account on June 1.

A couple days later, I was slapped with a $8.75 fee. What?!?! I couldn’t believe it. I immediately called my bank.

“Hi. I’d like to know why I was charged a fee when I met the average daily balance for my account.”

“Sure, let me check our records,” said the bank teller.

Turns out I

misread the letter. The letter stated the fee would take effect on my statement beginning on or after June 4. My statement had begun May 19 and I made the transfer in the middle of my statement period, which was not enough to bring my average daily balance to $1,500. Rats! How could I complain when I hadn’t been diligent enough to make sure I understood when the fees would start?

This is the only bank fee I’ve ever had to pay, knock on wood! This account had several fees that I managed to avoid. Fortunately, I did not have a limit on how many times I could make transactions. I avoided paying a $3 bank fee plus the other ATM’s charge by only using my bank’s ATMs. I also avoided a $8.95 fee for entering the bank to talk to a teller by calling them instead.

There had been no monthly cost up until the $8.75 fee for not meeting the average daily balance — and I wanted it to continue this way.

“Is there a way to avoid having a minimum on my account?”

“Yes. You can set up a direct deposit.”

“That won’t work. How about another type of account?”

“We have eBanking, but you can’t walk in to the bank to speak to tellers and you have to receive your statements online or you’ll be fined.”

“That’s fine. Can you please change my account?”

An hour later, I had solved my main problem. No more average daily balance for me. Though I never did get out of paying the $8.75 fee.

I’m going to try this new account for a while and if it ends up not working for me, I’m walking. I’ll find a better bank to save money. Have you changed banks to avoid fees? What did you look for?

kenteegardin / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

With bank fees increasing due to debit card swipe fees getting capped, it’s time to take these four easy steps to avoid bank fees.

1. Give your bank a call- I called my bank and requested my personal schedule of fees and deposit agreement. Didn’t get charged for this, thank goodness! It contains a list of all the bank fees I could end up paying if I’m not careful. Now I know that if I lose my card, I’ll have to pay $5 for a replacement. I could also get slapped with a $20 per hour fee for research I did not request on my accounts. Ignorance is not bliss. Sit down and read yours.
2. Move your money – Some fees can be avoided by maintaining a minimum balance in your checking or savings account. Make the appropriate money transfers. If you do decide to part ways with your bank, find out if you’ll get charged for closing your account first. In the end it may be cheaper to pay a termination fee than to stick around.
3. Consider other accounts – Like your bank, but not the fees? Opening another type of account can help you keep bank fees at bay. I recently transferred my regular checking account to an eBanking account because there are fewer rules to avoid fees.
4. Tie the loose ends – Work with your employer to set up your paycheck to deposit directly to your checking account. This may take some time so make sure to do it as soon as possible. Also make sure all your information is up to date. Some banks will begin charging a fee for address changes and beneficiary changes.

What steps are you taking to reduce bank fees on your personal finances?

Broken Piggy Bank / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

CCN Money made a list of the 9 most annoying bank fees and included information as to why banks charge the exorbitant fees. Here are the nine pesky bank fees and my suggestions to avoiding them.

1. Forgetting to update your address – If you are moving, make it your top priority to call your bank and change your mailing address to avoid this fee. I have a post office box where I have important mail delivered for security reasons and to avoid having to deal with address changes.
2. Cashing in your coins – Coin-counting fees at many banks run at 5% or more. In my post about gift cards with perks, I shared that Coinstar no longer

   charges you a fee if you receive your money as a gift card. If you were planing on getting a gift card, then this will save you money.

3. Talking to a human teller – I hate this one in particular. I can’t go into my bank. I can only use the ATMs or else I’ll get slapped with a $8.95 fee for the privilege of talking to a teller. My solution is calling and emailing the bank when I have a question. Thankfully, this has worked fine.
4. Losing your debit card – Keep your card in a safe place if you don’t use it often. If you do misplace it, don’t let the fee deter you from calling the bank immediately to let them know. It’s better to pay a small fee than lose all your savings.
5. Getting a paper statement – Bank online. If you’re hesitant because of all the recent data breeches, make sure to follow all security measures to keep your information safe.
6. Requesting old statements – If you bank online, you’ll be able to download your statements, save them and print them. Some banks only let you go back for a certain period of time, so make sure to download and save all statements and print as needed.
7. Receiving money – Make sure to read the fine print before opening an account. If you are someone that regularly gets money wired, then make sure to find an account where this fee is nonexistent.
8. Redeeming your rewards points – Before opening an account based solely on the rewards, make sure to ask if they are free. It they are not, ditch the bank.
9. Closing your account – If you can’t stand your bank and want to move, do so. Just make sure to find out how many days after opening your account you’ll have to wait to avoid a fee.

Do you agree these are the most annoying bank fees? What bank fees have you been slapped with and what steps have you taken to prevent them in the future?

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This post is brought to you by Kramer Law Firm where you can find an Orlando divorce lawyer.

This is a post by BargainBabe.com writer Yazmin Cruz.

While grabbing dinner with friends, we began to talk about relationships and money. My six friends and I, all in our mid-20s, agreed it was important to be on the same page when it comes to money before getting married or moving in together, but on  the subject of joint bank accounts, we were divided.

Half said they wanted a joint bank account, while the other half wanted to maintain separate accounts. I prefer a combination because I want to be in control. But that was not my only reasoning.

Divorce rates are high. Nearly 50% of all marriages end up in splitsville. And it’s no secret that money is one of the most common problems and causes of stress for couples.

Separate accounts would allow me to build up my savings in case I had to pack my things and start all over again. Of course, living in a communal state like California means everything we owned as a couple would be split 50/50. So the savings would be divided, but give me access to cash in the short term.

I also like the feeling of being financially independent. Having separate accounts would allow us to use our money as we wished. We could also buy gifts for each other without the other knowing as they would not be privy to the statement. We would use a joint account to pay joint bills and have a joint savings account to save up for a house and vacations. We would both contribute equally to the joint accounts.

I do not think one approach is better, as long as you avoid banking fees and the arrangement works for both individuals.

What do you think, should couples have joint or separate banking accounts?

These two share a banking account. ✭Lou✭ / Flickr

I share five must read blog posts about saving money every Friday.

Jim Wang tackles couple finances and weighs the pros and cons of blending your finances with your spouse or significant other. (Bargaineering)

Emergency funds act as a cushion when things go awry, but you’d be surprised how many Americans do not have money set aside. Here’s how to save for an emergency fund. (Fabulous & Frugal)

Borrowing from your 401k, good solution or bad? Laura explains the SEAL Act, that would limits 401k borrowing and ease repayment loans, and tells you what this means for those contributing to retirement accounts. (Money & Happiness)

Donna didn’t care much for yogurt until she found a simple yet inexpensive recipe for homemade yogurt.  A quart only costs $1.25 to make! (Surviving and Thriving)

Consumers are caught in the middle as a plan to cut debit card fees retailers pay banks every time shoppers swipe their cards is hotly debated. Find out how the reduction in swipe fees could affect YOU. (USA Today)

A bank vole captured by blackclough/Flickr

I recently switched banks for a higher interest rate on my checking account. My new bank is nontraditional so I had to consider what behaviors would let me take advantage of the account fully.

1. My bank does not have their own ATMs. However, all my ATM fees are refunded to me on a monthly schedule. As crazy as it seems, this is probably cheaper for the bank than maintaining thousands of ATMs across the country. I try to use the ATM only once a month so I don’t rack up a lot of fees, even though they are reimbursed, because I figure the bank factors the expense into other services.

2. My bank does not have traditional branches so I do not have access to bank tellers to make large cash withdrawals or deposits. This is rare for me, but uncomfortable if it comes up. The branches accept check deposits or I can mail in deposits.

3. The branches are few and far between so I do the vast majority of my banking online, through the mail, or over the phone. The bank website is great, I can request free deposit envelopes through the mail, and the US-based phone service is excellent.

4. I have free checking as long as I have a debit card for the account. This is my first debit card ever and I usually use it for small purchases. It does not feel as safe as using a credit card, however. I think that is just me.

5. My other bank services are free as long as I have a brokerage account, which I use to fund my ROTH-IRA. I like having my checking, savings, and IRA all through the same bank, though I’m worried it makes me more vulnerable if my identity is ever stolen.

All told, I’ve had to adapt my banking habits slightly to take advantage of my new nontraditional bank. But I think I made the right decision because I pay no monthly bank fees and my interest rate is higher that my previous bank. Knowing this, would you bank with a nontraditional bank?