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How many bank accounts should a person open?

One checking account is a good thing, but if you have at least two checking accounts as well as two savings accounts, it makes things even better. Having more than one account will benefit you in a number of ways, and they are listed below:

One Checking Account for Your Bills.

You need one checking account that is designated for paying the bills. These expenses include your car payment, your insurance payments, the utilities, and the rent or the mortgage payment. This account should not have a debit card. If you can’t easily spend this money on purchases that are not your bills, then the money in this account will be in the account when you need it.

One Checking Account for Your Other Expenses.

This second checking account will be for everything that doesn’t include your bills. For example, this account can pay for your restaurants, for presents for your friends or family members and the things you like to do for entertainment. This account is going to be for the purpose of spending money on the things that you want to buy, so you can have a debit card for it.

One Savings Account Designated for Unexpected Expenses.

This account is for your emergency fund. An emergency fund pays unexpected expenses that you aren’t paying every month. If your vehicle needs an expensive repair, money in this account will pay for it. This money is not for anything other than an emergency. Keep an amount of money that will not be spent on bills or other purchases.

Many experts believe that every American should have enough savings in an emergency account to pay expenses for three months or six months. If you and your spouse both work, experts suggest that you have enough money saved to pay for three months of unexpected expenses. If only one spouse is working, experts suggest that you have enough money to be able to pay unexpected expenses for six months.

One Savings Account for Everything Else

You must have a savings account for your other large goals. Money that will go into this type of account can be for a wedding, a house or a car.

Managing the Four Accounts

Managing four accounts doesn’t have to be difficult. For example, your employer may be willing to split your paycheck into four. For example, place 35% of your paycheck into your bill account, 20% into your spending account, 20% into your emergency fund and 15% into your other expenses account.

It is a good idea to split your paycheck up because it will keep you from spending too much money. This way, you can save without having to concentrate on doing that.

Before you receive your next paycheck, figure out how much money you will deposit into each account. If your employer cannot separate the deposits, have your paycheck deposited into the checking account that you will open for your bills. Then, set up recurring transfers so that the money is transferred from your bill account to your other accounts automatically.

According to the experts at SoFi Invest, you receive several benefits when you open a bank account with their company. The best part about this is “No overdraft fees. No minimum balance fees. No monthly fees.”

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