Is Having Multiple Savings Accounts A Good Idea?

Checking Credit Card

Saving some money is always a good idea, but keeping the entire amount you manage to put aside in the same place can make things a bit complicated, so why not set up a few extra savings accounts, for specific purposes?

Basically, this could be a more advanced version of the “envelope” system, but instead of putting money into an envelope, for a sole purpose, try taking things digital and fully automated.

One for each of your goals

For example, if you want to travel more, you can have one account dedicated to saving money for your next holiday. Also, you never know when an emergency comes up, so it’s actually highly recommended to put something aside, preferably into an account as well, for those days. Yeah, you can have accounts for pretty much everything!

If you want to keep everything organized, you can also set a priority level for each of the savings accounts you create, then develop a saving strategy. By this, your most important accounts, like the emergency savings, will be prioritized over the one for, let’s say, gifts or traveling. After all, it depends on your own lifestyle!

In a nutshell, the idea behind having a few savings accounts is that you can put money on each of them depending on their importance. Also, when you save money like this, you won’t deal with any surprises.

Covered, all the time!

You will be constantly set up for any costs coming your way and, eventually, if there are some remaining money in your accounts after covering up all your needs, you can feel somehow comfortable with spending a few dollars on stuff you don’t really need, but want too much.

And this wraps it up. What are your thoughts on this concept? Would you set up multiple accounts or you’re ok with only one?

Savings Accounts