📘 SECTION 2 — The Six Types of Accounts Every Wealth Builder Needs

There are six essential categories of accounts you must create to build real wealth. These align perfectly with the Overflow Bucket System and your long-term goals.

 

Here they are.

 

🏦 1. Income Receiving Account (Primary Checking)

This is the account where ALL income goes first.

 

Purpose:

• Control inflow

• Direct outflow

• Isolate incoming money before distributing it

 

Think of this as your financial command center.

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🧾 2. Bill-Pay Account (Fixed Expenses Checking)

Separate from your income account.

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Purpose:

• Pay rent/mortgage

• Pay utilities

• Pay insurance

• Pay subscriptions

• Maintain predictable bills

 

This prevents surprises, overdrafts, and confusion.

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💸 3. Spending Account (Variable Spending Checking)

This is what you swipe for:

• Gas

• Groceries

• Restaurants

• Daily expenses

• Random purchases

 

This keeps lifestyle spending from draining your bill money.

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📦 4. Savings Accounts (3–6 separate sub-accounts)

These align to your Overflow Buckets:

• Emergency Savings

• Short-Term Savings

• Sinking Funds

• Opportunity Fund

• Big Purchases

• Travel/Experiences

• Car Maintenance Fund

 

Most banks allow “sub-savings,” making this simple.

 

📊 5. Investment Accounts (Step 4ab)

These include:

• IRAs

• Roth IRAs

• 401(k)s

• HSAs

• 403(b)s

• Traditional retirement accounts

 

They support your long-term wealth plan.

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📈 6. Brokerage Accounts (Step 4ac)

These include:

• Individual brokerage

• Joint brokerage

• Taxable investment accounts

 

Used for:

• Stocks

• ETFs

• Index funds

• Bonds

• Trading

• Wealth compounding

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💼 7. Business Accounts (Step 4ad)

For entrepreneurs, LLCs, side businesses, and future ventures.

 

You’ll need:

• Business checking

• Business savings

• Tax savings account

• Profit account (if using Profit First)

 

These protect you legally and financially.

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📚 CASE STUDY — Emily’s Financial Chaos Turns Into Control

Before structure:
Emily had one checking account. Bills, food, vacations, gas, subscriptions, emergencies, and random purchases all hit the same account.

 

Consequences:

• She overdrafted twice a year

• She had no idea what she spent on food

• She saved “when she could,” which was almost never

• She panicked at every large expense

 

After setting up accounts:

• Income went into an Income Account

• Bills moved automatically to Bills Account

• Food/Spending came from a separate card

• Savings auto-transferred to three buckets

• She opened a Roth IRA with automated contributions

 

Results within 90 days:

• $1,800 saved

• Zero overdrafts

• Stress down 70%

• Confidence way up

• Began investing consistently

 

Structure changed her life.