I’ve had 4 personal bank accounts for as long as I can remember. It may sound like a lot, but it actually simplifies my money management process. Each bank account serves a specific purpose, but I only manage 1 account on a day to day basis. This set up has allowed me to stay on budget for almost a decade while paying off my 6-figure student loan debt, saving for a down payment on an apartment as well as building an emergency savings account.

4 accounts may sound like a lot initially but let me break down how I use these accounts and then you can determine whether this structure can work for you:

Bill Money Account

This account is the core of my personal banking. My paycheck and income go here first.  If you work for a company, then your direct deposit would go here. If you own your own business, then the salary you pay yourself would go here. Automatic transfers move money from this account to your other accounts via automatic transfer within 48 hours of being deposited into this account.

All bills are paid from this account. Bill money is representative of your expenses that typically come with a bill or statement such as mortgage/rent, utilities, car payment, phone bill etc. The amount you pay every month is typically the same or a few dollars up or down.  

You have a debit card for this account, but you only use it for paying bills.

Day to Day Money Account

This account is for your day to day expenses. Expenses you typically don’t receive a bill for such as food, gas, and dry cleaning. Your budget should tell you how much to have in this account. As stated above, an automatic transfer would move money from the bill money account to this account. It’s even better if you can have your day to day money direct deposited into this account to avoid any fees. The day to day account allows you to manage a much smaller amount of your pay check and stops you from spending bill money before your bills are paid.

You have a debit card for this account, and you use it on a day to day basis. Note this is the only debit card you use.

Emergency Fund Account

This account speaks for itself. Pay yourself first and have a set amount automatically transferred from your bill money account to your emergency fund account as soon as your money enters your account. Consider using an online account that will give you a higher interest rate than a traditional savings account. Utilizing an online account will also make it harder to access your money. No dipping!!!

Goal Fund Account

This account is used for a specific savings goal. I prefer to separate this money from my emergency fund account. You goal fund could be for a down payment on a house, travel or moving expenses.

Honestly, any more than 4 accounts can get complicated. Before you go opening accounts though, determine what your banking fees are and how you can leverage multiple direct deposits to minimize them.

Honestly, any more than 4 accounts can get complicated. Before you go opening accounts though, determine what your banking fees are and how you can leverage multiple direct deposits to minimize them.