Three-account structure (Floor / Future / Free)

Level 1 · Basics⚙ Method

Read firstPay-yourself-first · Fixed vs. variable costs

Used byHousehold money architecture

Deep divesBudgeting Methods · Girokonto — Checking Account

The three-account structure splits monthly income into three separate bank accounts by function: Floor for fixed costs, Future for savings and goals, and Free for discretionary spending. Money moves out of the main account into each on payday, so covering rent and saving happen automatically, before spending decisions get a chance to compete with them.

Why it matters

The structure turns two budgeting ideas into a standing setup: pay-yourself-first (moving savings before spending, not after) and the fixed-versus-variable cost split (separating obligations that don't flex month to month from spending that does). Instead of tracking every euro against a mental budget, physical separation onto its own account does the enforcement — money sitting in Floor or Future is out of daily reach, so the Free balance is an honest, real-time answer to "can I afford this." This matters for anyone building a German household budget from a single Girokonto (checking account), which by itself gives no structural signal for how much is actually spendable versus already spoken for. It also becomes one building block of a broader household money architecture, once income, goals, and account structure need to work together.

The method

1. Calculate Floor. Add up mandatory fixed costs — Miete (rent), Nebenkosten (utility costs), Versicherungen (insurance), minimum debt payments — as a euro amount, not a percentage. This is what has to clear the account regardless of the month.
2. Calculate Future. Set a savings and goals target: emergency fund contributions, retirement savings, extra debt paydown beyond the minimum. Express it as a euro amount too, even if it started as a percentage of income.
3. Assign the three accounts. Floor sits in (or stays in) the Girokonto used for bill payments via Lastschrift (direct debit) and Dauerauftrag (standing order). Future sits in a separate account — a Tagesgeldkonto (instant-access savings account) works well, since it is a deliberate extra step away from the debit card. Free is whatever account or card covers day-to-day spending.
4. Automate the split on payday. A standing order moves the Future amount out immediately; whatever the Girokonto already covers by direct debit handles Floor. What's left after both is Free — no separate transfer needed if Free is the same account income lands in.
5. Spend from Free without further tracking. Running low before the next payday is the signal to revisit Floor or Future sizing next month, not a reason to pull money back out of them.

Worked example

A household nets €2,800 per month. Floor costs: €900 rent, €150 Nebenkosten, €120 Versicherungen, €80 minimum debt payment — €1,250 total. Future target: €400 (emergency fund plus a Riester or ETF Sparplan contribution). Free is whatever remains.

Account	Covers	Monthly amount
Floor	Rent, utilities, insurance, minimum debt	€1,250
Future	Emergency fund, retirement savings	€400
Free	Everything else	€1,150

On payday, a Dauerauftrag moves €400 to the Tagesgeldkonto before anything else happens; the €1,250 in fixed costs clears the Girokonto through existing Lastschrift mandates over the month. The remaining €1,150 is the number this household can actually treat as spendable — not €2,800 minus whatever gets remembered later.

Check yourself

A household nets €3,200 per month. Floor (mandatory fixed costs) is €1,400 and Future (savings target) is €500. Under the three-account structure, how many euros land in Free?

A household pays a €40/month gym membership automatically via Lastschrift (direct debit). It recurs every month at a fixed amount. Under the three-account structure, which account does it belong in?

Floor, because it is a fixed, recurring chargeFree, because it could be canceled if money got tight, even though the amount is fixedFuture, because it's a recurring automatic payment like a savings transfer

Which of the following are true about the Free account in the three-account structure? Select all that apply.

Money in Free is already committed to a specific purpose before it lands thereRunning low in Free before the next payday is a signal to revisit Floor or Future sizing next month, not to withdraw from themThe Free balance can be read as an honest answer to "can I afford this" because Floor and Future money is already out of reachAutomating the Floor and Future transfers is optional once someone is disciplined enough to track spending manually