re: Checking account balance question:

3 accounts

1. "Operating" account with 2 months of living expenses (2 months of living expenses available at the start of each month)

2. "Emergency" account with 3-12+ months (or whatever is deemed appropriate for your situation/savings plan)

3. "Prepaid" account for large items such as car insurance /homeowners insurance/property taxes etc. (should be the monthly accrual deposited in this for those large balance items); balances in this account build over time until payment is required;