How many checking accounts should you have?
If you are trying to stay on budget, you may have heard about the benefits of having multiple checking accounts. But just how many checking accounts should you have? While you can open as many accounts as you like, most financial experts agree that having two checking accounts is a good place to start.
They also recommend having multiple savings accounts. Having more than one checking and saving account can help you better manage your money. You can easily see what you are spending and what you are saving. While having several banking accounts has some risks if you aren’t careful, the benefits are plentiful. Read on to find out the advantages of having multiple checking accounts.
Should you have more than one checking account?
Sahirenys Pierce, of Poised Finance & Lifestyle, suggests on her financial website that individuals have two checking accounts. She notes that the first one should be a “bills checking account” for paying necessary expenses or your “needs.” Typically these are things like your rent or mortgage payments, groceries, utilities and other fixed debts.
The second account is for your discretionary spending or your “wants.” Pierce refers to this as a “lifestyle checking account.” Discretionary spending usually includes dining out, entertainment, shopping and memberships. Everyone’s wants and needs may look slightly different, but the premise is the same. Needs are things you cannot live without such as food, shelter and electricity, while wants are things you like to have but aren’t mandatory.
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