We are a family of five, with two kids and my mother who takes care of the house. Nita and I are both software professionals. Initially, with the kids, we found our expenses spiralling and were not left with anything to save or plan for our future.
We decided to classify each major expense head and make a separate bank account for it. We have bifurcated who takes care of which expense head and accordingly deposit funds in that account. While I manage the accounts for our home loan repayment, my mother’s expenses and retirement savings, Nita takes care of children’s expenses, household expense and travel.
In some accounts such as home loan and children’s welfare, we deposit a little more than required. This ensures that we don’t fall short in case there is a gap in income and helps build for the children’s future education.
All accounts have a sweep-in feature, where the idle funds automatically get invested in an FD until withdrawn. This ensures that our savings continue to grow.