Multiple bank accounts – friend or foe?

For some people, multiple bank accounts are great way to keep your budget on track.  You might choose to have one bank account per savings goal (e.g. vacation, emergency fund, vehicle, down payment etc).   But this method can also be a pain to manage.  How can you know if its a system that works for you?

The bank account approach may be appropriate if you:

  • Have a steady income
  • Take the time to set up automatic withdrawals from your main account
  • Find enjoyment in watching yourself reach each goal slowly but surely

It might not work if you:

  • Will just shift money around anyway to use for whatever goal is most important at the time
  • Don’t plan to use a bank that offers very low to no cost banking
  • Can’t keep track of when withdrawals will happen, potentially resulting in costly NSF charges

If you are naturally a great saver then this system might not be necessary.  But we support any and all methods of savings, and this approach works for many.  Find a first hand account of blogger Krystal Yee who started using it five years ago, and has lately had a change of heart:

http://www.givemebackmyfivebucks.com/2011/12/21/simplifying-my-savings-strategy/

 

3 replies
    • Morgan
      Morgan says:

      Thanks Lyndsey. We also believe money is not the root of all evil. Depending how you use it, it can be a powerful force for good and freedom!

      Reply
  1. Merrill Giffin
    Merrill Giffin says:

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