Combining the Core Systems

Below is a diagram that shows the accounts and credit cards involved in the core system.

The top part, withholding, is governed by the Safe Harbor Pilot Boat. The middle part, the direct-deposit accounts, is governed by the Waterline Budget. The bottom part, the credit cards, is governed by the Captain's Three-Card System.

Put those three pieces together and you get a pretty complete financial picture: taxes are handled before the paycheck reaches you, predictable and irregular expenses are separated from ordinary spending, and credit-card risk is contained before one compromised card turns into a much bigger hassle.

If you want the details of any one system, read the chapter on that system. This chapter is just here to show how the pieces snap together.

Core Safe Harbor Structure
└── Payroll / Income
    ├── Withholding
    │   ├── Federal withholding (Form W-4)
    │   └── State withholding (state form varies)
    ├── Payroll retirement contributions
    │   └── 401(k) / 403(b)
    └── Direct deposit
        ├── Smooth Sailing Account
        ├── Stormy Weather Account
        └── Payment Hub
            └── Credit cards
                ├── Safe Card
                ├── Digital Card
                └── Danger Card

The core system is small, but it is flexible. You can add compatible parts to it without ruining it.

Here is an expanded version.

Expanded Safe Harbor Structure
└── Payroll / Income
    ├── Withholding
    │   ├── Federal withholding (Form W-4)
    │   └── State withholding (California Form DE 4)
    ├── Payroll retirement contributions
    │   └── 403(b)
    └── Direct deposit
        ├── Money for IRAs
        ├── Smooth Sailing Account
        ├── Stormy Weather Account
        ├── Taxable Investment Account
        └── Payment Hub
            └── Credit cards
                ├── Safe Card
                ├── Digital Card
                ├── Danger Card
                ├── Amazon Card
                └── Walmart Card

The rule is simple: it is fine to add more accounts or cards as long as the added complexity pays for itself. If an extra account or card benefits you more than the inconvenience of managing it, then it earns its keep. If it does not, leave it out.

That is one of the strengths of the system. The core is simple and solid, but it leaves room for a few useful additions when those additions genuinely make your financial life better.