How to Use Multiple Savings Accounts to Your Benefit

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If you thought bank accounts started and ended with one checking account and one savings account then today’s post should be incredibly helpful for you!

I was one of those people for a while that didn’t realize the benefit or reason for having multiple accounts. It wasn’t until I recently talked to someone who was doing just that, that I realized the potential I was missing out on.

I now have a plan in place for some new accounts that I can’t wait to implement.

Saving to one big savings is what we do now because we aren't really tempted much to spend unnecessarily just because “the money's there”. But there are a few things we find hard to spend money straight out of our savings for and it would be nice to have a separate account that saves money separately for those things. (For instance a vacation someday!)

Make sure to read over my post “Three Tips to Save for Something Specific” if you are interested in something like that too.

For now, let’s get into it!

How to Use Multiple Savings Accounts to Your Benefit

 

1. Decide how many accounts and what you want them for

It would obviously be pointless to just start up multiple new savings accounts without a rhyme or reason. The point is to put them to good use! So in order to decide what you want the accounts for start thinking about what it is you seem to never have money for.

Obviously if you don’t have any savings account yet you’ll want your first one to be an emergency fund of around $1000. But beyond that, or if you already have that, think of things that you typically don’t have the money laying around for when you need it.

Maybe that is money for when your car needs an oil change, or any kind of repairs. (Yes, your emergency fund can be used for car repairs but if you have a separate account just for your car that will help you have even more peace of mind!) Maybe you’re like me and have been talking about taking a vacation but never actually set money aside for it! Or maybe there has been times where you wanted to help a family member or friend with something and haven’t been able to because your money's all spent.

Having a savings account that is specifically for blessing others is a great way to give back and help others! So figure out what it is that you never seem to have money for when it is needed and decide how many of those you want to set up a separate account for!

 

2. Set up the accounts!

This will entirely depend on where you bank and what other benefits or offers come with each different bank.

If you want to keep all your money in one spot then choosing the bank you’re with is the obvious choice. However, if you are totally okay with changing banks or just having multiple banks I’d recommend looking into banks that have savings accounts with a higher interest rate!

Our current savings account get pennies every month in interest, definitely not serving us very well. You’ll want to set up an account that is going to build some interest as you put money into it! This shouldn’t be hard and especially with new customers banks are typically willing to give you a deal to get you to use their services. Use that to your advantage!

 

3. Set a goal and set an amount!

After you’ve set up your accounts set a goal! Choose an amount you want that savings account to reach and by what date. Then figure out how much per month you’ll have to add into each account to reach that goal. The app Mint is what I use to set up all my goals! (You can read the blog post all about Mint here.)

You can set your goals within Mint and track when you reach them each month. It’s a great way to keep yourself motivated and momentum going as you work towards your financial goals. You’d be amazed at how much it encourages you!

The other app to help you with reaching your goal is an app that saves your money for you. There are a couple different ones out there for you to choose from but they essentially make saving easy by taking “spare change” from your bank account and moving it to other accounts. It’s easy to set up and there are a lot of apps like this to choose from so you can pick which one works for you. (I’ve heard good things about Acorns.)

That’s it! Once you’ve set these up and started putting your money in them it will make saving your money and not blowing it all a lot easier! Using separate savings accounts will help you to be prepared for the good (Hello vacations!) and the bad (Yikes, flat tire!) which in turn makes for a happy life!

 

Try making just one extra account if you are not sold on it quite yet and see what you think. My guess is you’ll start seeing the benefits real fast! Let me know how it goes!

Do you have any other suggestions or ways you use multiple accounts to help with your finances? Share them in the comments for others to read!

Happy saving!

Lydia