Money·3 min read

Elevate Your Finances With This Banking Method

Woman sitting on sofa and working
August 30, 2023

Having trouble making a budget you don’t hate, building up your emergency fund, or reaching one of your financial goals (hi, down payment fund)? The right money management system could help. Enter: Sahirenys Ortega Pierce, a personal finance influencer and educator, and her High-5 Banking Method. She created the method to organize her own finances and reach her money goals, and below she explains how it can help you money better, too.

Featured expert:

Sahirenys Ortega Pierce

Sahirenys Ortega Pierce - Personal finance influencer and educator

What is the High-5 Banking Method?

The High-5 Banking Method is a simple way to organize your finances purposefully through the use of multiple, individual bank accounts. Each account has a specific purpose to help you budget and hold yourself accountable. The method is composed of five bank accounts: two checking accounts (one for your bills and the other for your lifestyle expenses) and three savings accounts (for your emergency fund, long-term goals, and short-term goals). 

How can this method help me manage my money?

When we think about money management, the first few thoughts that come to mind are budgeting, saving, and the overall flow of how we delegate our money. For years, we’ve been told to simply focus on budgeting better. But an ignored a major piece of the puzzle is where we place the money. If we want to make sure our money is flowing the way we want it to flow, then we need to bank strategically to make it happen. As a financial educator with a background in finance and financial planning, I’d say that people need a clear structure to keep those dollars going where they need it to and this is a great way to start.

What’s the order I should open my bank accounts in? 

Always start with the first three accounts, as these are the fundamentals. First, start by prioritizing your bills’ checking account because, at the end of the day, we all have bills. Second, shift your focus to getting an emergency fund savings account, just in case life doesn’t go to plan. Last but not least, set up your lifestyle checking account. Which includes your eating out and play money, if your budget allows it. So regardless of your income or situation, the High-5 Banking Method lets you be real with yourself,  take care of yourself, and remember to be kind to yourself. These three foundational accounts can help you do just that.

What mindset shifts will help me view budgeting as a tool for achieving financial wellness rather than as a chore?

For me personally, the core of financial wellness is getting clarity on what you need and what you want. Getting those thoughts on paper and then organizing your finances accordingly is a key component of that. What I love about the High-5 Banking Method is that it holds so many financial planning principles while accounting for your well-being at the same time. Let’s be honest, there is no better feeling than coming home from a chaotic day to a clean and organized home. This is exactly what I want my finances to feel like: clean, organized, and clutter-free. The High-5 Banking Method is like The Home Edit but for your finances.

This interview has been edited and condensed for clarity.

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