You read that right, I have six bank accounts that I use on a monthly basis. I have had more in the past and the number of accounts fluctuates depending on what is going on in my life. Keep reading to see why I have six bank accounts and why you may even need more!
It is extremely important we have a structure built for our personal finances in order to be successful with them. I went years with having two bank accounts.
One checking account and one savings account. Money was directly deposited into my checking and I paid for all my bills out of there. If there was any money left at the end of the month, I might move some of it to my savings account.
Needless to say, when I managed my finances this way I was going nowhere fast. I wasn’t saving really anything and I spent what I made. As long as there wasn’t a negative balance in my checking account at the end of the month, I was happy.
At the beginning of the month, my wife moves money around into each separate savings account. By moving the money at the beginning, it forces us to stick to our budget for the remainder of the month, which isn’t hard if you incorporate a simple monthly budget template into your financial planning.
After the money is deposited into checking, we move a portion into a vehicle fund. This fund is only for vehicle maintenance and for future vehicle purchases.
The third savings account is our vacation fund. This is obviously our favorite fund and one we make sure we put money into each and every month! By having a set amount of money deposited into this savings account, we pay for our vacations with cash.